Whitehaven Coal Reports Resilient Performance in Q4 FY23

Key Highlights:

• Whitehaven Coal Limited  has released its quarterly report for Q4 FY23.
• The company faced production and sales disruptions.
• However, a stronger June quarter helped Whitehaven meet its production and sales.

Whitehaven Coal Limited (ASX: WHC) has released its quarterly report for Q4 FY23, showing a resilient performance despite challenges. The company faced production and sales disruptions due to flooding, weather delays, labor shortages, and operational constraints at the Maules Creek mine. However, a stronger June quarter helped Whitehaven meet its production and sales guidance for the fiscal year. The average realized coal price for FY23 reached a record high of AU$445/t, compared to AU$325/t in FY22.

In the June quarter, Whitehaven achieved managed ROM production of 5.1Mt, a 19% increase from the previous quarter. Saleable coal production was 5% higher, and total equity sales of produced coal remained steady. The company generated AU$435 million in cash from operations during the quarter, resulting in a net cash position of AU$2.65 billion as of June 30, 2023. Whitehaven returned A$1.6 billion of capital to shareholders through dividends and buybacks in FY23.

Despite a moderation in price realizations in the June quarter, Whitehaven delivered a 10% premium to the gC NEWC index for its thermal coal. The company remains optimistic about its strong cash flow generation and the underlying demand for its high-quality products. Whitehaven's focus on maintaining a resilient balance sheet and its strategic position in the market bode well for delivering value to its shareholders.

The safety outcome for the company improved, with a 13% reduction in the total recordable injury frequency rate (TRIFR) for employees and contractors compared to FY22. Whitehaven plans to provide further details on its financial results during the FY23 results announcement on August 24. Despite ongoing market challenges, the company's performance and outlook indicate its ability to navigate the industry's dynamics and continue delivering value to stakeholders.

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