Whitehaven Coal (WHC) Q1 2025 TU earnings summary

Executive summary

• All mines performed at or above plan, with Queensland operations showing strong productivity improvements and outperforming expectations.

• Managed ROM coal production reached 9.7 million tonnes, with Queensland contributing 5.3 million tonnes (up 11% quarter-on-quarter) and New South Wales 4.4 million tonnes.

• Equity sales of produced coal totaled 6.4 million tonnes, slightly down from the previous quarter due to planned phasing.

• Costs are tracking at the lower end of guidance, driven by productivity gains and disciplined capital management.

Financial highlights

• Revenues split 64% Queensland/metallurgical coal, 36% New South Wales/thermal coal.

• Average realized price for Queensland operations was AUD 259 per tonne; New South Wales averaged AUD 211 per tonne.

• Net debt at 30 September 2024 was AUD 1.2 billion, with improvement expected from Blackwater sell-down proceeds in Q3 FY2025.

• Cash generation was strong, with significant stock build and no exceptional items beyond dividend and employee share plan payments.

Outlook and guidance

• FY25 guidance unchanged: managed ROM coal production 35.0–39.5Mt, unit costs AUD 140–155/t, capex AUD 440–550m.

• Cost base expected to be rebased by AUD 100 million by year-end, with further improvements anticipated as productivity initiatives mature.

• Proceeds of US$1.08 billion from 30% Blackwater sell-down expected in Q3 FY25.

• Weather remains a key risk for Queensland operations, but allowances have been factored into forecasts.