Whitehaven sales drop, eyes gains from Queensland acquisitions
Make us a preferred source
Make us a preferred source on Google
The news: Whitehaven Coal has reported a drop in March quarter production and sales but is eyeing gains from its recent acquisition of BHP Mitsubishi Alliance’s Daunia and Blackwater metallurgical coal mines in Queensland.
The numbers: Production for the three months to March was down 13% to 4.4 million tonnes, largely due to lower than expected output at Narrabri reflecting the geological challenges and maintenance stoppages. Sales of produced coal were down 16% to 3.1 million tonnes.
Whitehaven shares were up 3% to $8.12 in early trading on the ASX.
The context: Despite the hiccup, the coal miner said it is currently on track to meet overall guidance of 18.2 million to 20.7 million tonnes from its NSW business.
The company is also gearing up to significantly benefit from the long-term metallurgical coal market dynamics through the Daunia and Blackwater mines, whose acquisition was completed earlier this month.
Whitehaven noted the assets would start to contribute to earnings in the June quarter, with both mines expected to deliver around 4.5 million to 5 million tonnes of run-of-mine (ROM) production.
The source: ASX announcement
