Whitehaven coal lowers its FY2023 ROM coal production guidance; Shares tumbled on ASX

Whitehaven Coal (ASX:WHC) announced that the regional and localised flooding impacts arising from the ongoing La Niña phenomenon have impacted production at its open cut mine operations.

In the September 2022 quarterly announcement, the Company’s ROM production was below the planned across all three open cut mines majorly because of disruption due to rain and flooding impacts in September. Wet weather continues to exist in November. Amid the existing weather conditions and possible impacts of weather and labour constraints, the Company has moderated its expectation for FY2023 ROM coal production from its open cut mines.

1. Managed ROM coal production declined from 20.0 – 22.0 Mt to 19.0 – 20.4 Mt.
2. Managed coal sales reduced from 17.5 – 18.5 Mt to 16.5 - 18.0 Mt.
3. Equity coal sales (excl Purchased Coal) dropped from 14.1 – 14.9 Mt to 13.1 – 14.4 Mt.
4. Unit cost of coal (excl. Royalties) increased from AU$89 – AU$96 per ton to AU$95 -AU$102 per ton.

At AEDT 11:53 AM, WHC shares are trading at AU$8.760, down 6.907% from its previous close. 

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