Whitehaven Coal
(ASX: WHC)Share Price and News
About Whitehaven Coal
Whitehaven Coal (ASX: WHC) is an Australian coal miner, producing over 35Mt of coal per year.
Whitehaven holds several large-scale coal mining projects in NSW including the Maules Creek, Narrabri, and Werris Creek mines, which contain significant reserves of coking and thermal coal. Recent years have seen an expansion into the Blackwater and Daunia mines, taking them over from BHP.
As one of Australia's largest independent coal producers, Whitehaven provides a key resource for global energy production.
Whitehaven Coal's Company History
Whitehaven Coal was founded in 1999 and quickly established itself as a key player in the Australian coal industry. Over the years, the company expanded steadily through the acquisition of high-quality mining assets, including the Maules Creek and Narrabri mines.
In 2014, Whitehaven reached a significant milestone with the acquisition of the Werris Creek mine, further solidifying its market position.
In 2024, it completed the acquisition of the Emerald and Daunia mines in Queensland. These were part of a longer-term strategy to grow its exposure to metallurgical coal and away from coking coal.
Future Outlook of Whitehaven Coal (ASX: WHC)
Looking ahead, Whitehaven Coal hopes to benefit from continuing demand for coal in key international markets, particularly in Asia.
But it is at the mercy of coal prices and after they briefly surged when Russia invaded Ukraine, coal prices corrected due to the growth in renewable energy, the slowdown in China and uncertainty as to coal's future given both of those factors. There is hope that demand from India might catch up and match China's but that hope seems far-fetched right now.
For FY25, the company has guide to 35-39.5Mt of coal (roughly half of which is from Queensland and half from NSW) and it has confirmed as of Q3 that it is 'tracking firmly in the upper half of guidance'. It anticipates 28-31.5Mt of managed coal sales and 24.3-27.4Mt equity coal sales. It anticipates $440-550m capex and $140-155m cost of coal - both tracking at the lower end of its guidance.
The company is promoting its Queensland assets as its future to its investors, given these mines focus on metallurgical coal rather than coking coal and the operational efficiencies (including that they can be controlled by a Remote Operations Centre from Brisbane).
Is Whitehaven Coal (ASX: WHC) a Good Stock to Buy?
Whitehaven Coal’s stock is attractive to investors seeking exposure to the coal industry. After all, it is one of the largest coal miners and has strong track record of delivering consistent earnings and paying competitive dividends.
The trouble is that many investors may not like exposure to coal either because it is perceived as harmful to the environment, 'on the way out' or both. And even investors who don't mind exposure to commodity miners need to consider the uncertainty of coal prices right now.
Our Stock Analysis
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Frequently Asked Questions
Whitehaven Coal has a solid history of paying dividends, with a dividend yield that is competitive within the Australian mining sector. The dividend payout reflects the company’s strong cash flow generated from coal sales.