Whitehaven Coal was built from coal mines in the Gunnedah Basin of NSW. Currently it is benefiting from improvements in coal prices and there is potential for Whitehaven’s to grow from a 20 million tonne overall producer today to more like 45 million tonnes over the next decade. The Vickery and Narrabri mines all represent strong potential expansion stories, as does Winchester South, a Bowen Basin project that represents Whitehaven’s first venture outside the Gunnedah Basin. This project in the Bowen Basin may yield its first coal in FY24.
Whitehaven is currently trading below 5x consensus FY22 EBITDA, even though a 36% increase in EBITDA is forecast.