Whitehaven on track for FY guidance, shares lift 4%
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The news: Whitehaven Coal has said it is on track to deliver in the upper half of its full-year production and sales guidance despite a weak March quarter, sending its shares higher.
The numbers: Production for the three months to March was down 5% from the prior quarter to 9.2 million tonnes, while sales of produced coal were down 20% to 6.3 million tonnes.
Despite this, Whitehaven said it remains on course for its 35 to 39.5 million tonnes target for annual production as well as 28 to 31.5 million tonnes in full-year sales. Shares in the company were up more than 4% to $5.05 in early trading on the ASX.
The context: Whitehaven said the Daunia and Blackwater mines in Queensland were hit by weather challenges during the march quarter which affected shipments. Volumes from the open cut Maules Creek and Gunnedah mines in NSW improved, but it reported slower than planned progress at Narrabri.
CEO Paul Flynn said the miner is well placed to manage through the current uncertain pricing environment. Demand remained robust during the March quarter, with customers continuing to take contracted volumes of both thermal and metallurgical coal. The soft pricing environment is likely to continue in the near-term although recent weather-related supply disruptions and possible supply curtailments may create some upward price pressure, the company said.
The source: ASX
