Whitehaven Coal has provided its December 2021 quarterly report and updated FY22 guidance. Managing Director & CEO Mr Paul Flynn said “Coal prices continued at attractive levels through the December quarter and remain well supported for the near future given strong underlying demand and persistent supply-side disruptions. Cash generation has been strong, with the business expected to be net cash in the March quarter. Whitehaven has unfortunately not been immune to recent heavy rains that impacted large parts of regional New South Wales and Queensland as La Niña made its presence felt for the second Australian summer in a row. While we remain very confident about ongoing favourable supply and demand dynamics, there is elevated uncertainty associated with COVID’s impact on workforce availability and resourcing through our supply chains.”HighlightsWhitehaven achieved coal pricing averaged AUS$211/t for the quarter (FY21: AUS$94/t, 2Q21: AUS$86/t).December quarter managed run-of-mine (ROM) production 3.2 million tonnes.December quarter managed saleable coal production 3 million tonne.December quarter total managed coal sales 4 million tonnes, managed own coal sales 3.5 million tonnes, total equity coal sales 3.3 million tonnes and equity sales of own coal 2.9 million tonnes.Managed coal stocks 2.1 million tonne as at 31 DecemberIn 2022, demand for seaborne thermal coal remains strong and ongoing constraints from both Australia and Indonesia have seen thermal prices soar once again. In Australia, COVID is adversely impacting production as the Omicron wave runs through NSW and Queensland. The December quarter also saw wet weather cause flooding in the Hunter Valley and Gunnedah Basin which impacted mining operations, including cutting access to some mines. In Indonesia, the government imposed an export ban from 31 December for the month of January or until domestic power utility PLN achieved regulated inventory levels. As at 11 January, exports re-started for some producers, however the ban has reduced exports of seaborne coal supply by approximately 10 million tonnes in January MTD.Premium low volatile hard coking coal (PLV HCC) FOB Australia averaged US$369.10/t across the December quarter, up 41% on the September quarter average of US$262.30/t. Supply constraints for metallurgical coal have emerged over the end of the December quarter due to increased rainfall in Queensland related to La Niña weather patterns. In addition, a number of tropical cyclones have formed in the Coral Sea adding to concerns of possible further supply interruptions. As a result, the PLV HCC spot price has remained strong, currently at US$388.13/t January MTD. The Platts SS index has increased in January to US$254/t MTD after averaging US$234.97/t for the December quarter.Both thermal and metallurgical coal prices are expected to be well supported over CY22.
Whitehaven Coal has provided its December 2021 quarterly report and updated FY22 guidance. Managing Director & CEO Mr Paul Flynn said “Coal prices continued at attractive levels through the December quarter and remain well supported for the near future given strong underlying demand and persistent supply-side disruptions. Cash generation has been strong, with the business expected to be net cash in the March quarter. Whitehaven has unfortunately not been immune to recent heavy rains that impacted large parts of regional New South Wales and Queensland as La Niña made its presence felt for the second Australian summer in a row. While we remain very confident about ongoing favourable supply and demand dynamics, there is elevated uncertainty associated with COVID’s impact on workforce availability and resourcing through our supply chains.”HighlightsWhitehaven achieved coal pricing averaged AUS$211/t for the quarter (FY21: AUS$94/t, 2Q21: AUS$86/t).December quarter managed run-of-mine (ROM) production 3.2 million tonnes.December quarter managed saleable coal production 3 million tonne.December quarter total managed coal sales 4 million tonnes, managed own coal sales 3.5 million tonnes, total equity coal sales 3.3 million tonnes and equity sales of own coal 2.9 million tonnes.Managed coal stocks 2.1 million tonne as at 31 DecemberIn 2022, demand for seaborne thermal coal remains strong and ongoing constraints from both Australia and Indonesia have seen thermal prices soar once again. In Australia, COVID is adversely impacting production as the Omicron wave runs through NSW and Queensland. The December quarter also saw wet weather cause flooding in the Hunter Valley and Gunnedah Basin which impacted mining operations, including cutting access to some mines. In Indonesia, the government imposed an export ban from 31 December for the month of January or until domestic power utility PLN achieved regulated inventory levels. As at 11 January, exports re-started for some producers, however the ban has reduced exports of seaborne coal supply by approximately 10 million tonnes in January MTD.Premium low volatile hard coking coal (PLV HCC) FOB Australia averaged US$369.10/t across the December quarter, up 41% on the September quarter average of US$262.30/t. Supply constraints for metallurgical coal have emerged over the end of the December quarter due to increased rainfall in Queensland related to La Niña weather patterns. In addition, a number of tropical cyclones have formed in the Coral Sea adding to concerns of possible further supply interruptions. As a result, the PLV HCC spot price has remained strong, currently at US$388.13/t January MTD. The Platts SS index has increased in January to US$254/t MTD after averaging US$234.97/t for the December quarter.Both thermal and metallurgical coal prices are expected to be well supported over CY22.
