Whitehaven Coal (WHC) Q1 2025 TU earnings summary

Executive summary

• All mines performed at or above plan, with Queensland operations showing significant productivity improvements and momentum, while New South Wales focused on overburden removal as planned.

• Group safety metrics improved, with TRIFR at 4.5, reflecting a blend of New South Wales and Queensland outcomes and ongoing focus on safety.

• Management teams fully installed and driving productivity, with healthy stock levels and increased production across both states.

• Costs are tracking at the lower end of guidance, and capital management remains disciplined.

Financial highlights

• Managed ROM coal production totaled 9.7 million tonnes for the quarter; Queensland contributed 5.3 million tonnes (up 11% quarter-on-quarter), New South Wales 4.4 million tonnes (down 12% as planned).

• Total equity sales of produced coal were 6.4 million tonnes, slightly down from the previous quarter.

• Average realized price for Queensland operations was AUD 259/tonne (84% of PLV HCC Index); New South Wales averaged AUD 211/tonne, both consistent with prior quarters.

• Net debt at 30 September 2024 was AUD 1.2 billion, with strong cash generation and a significant stock build.

• Q1 revenue mix: 64% metallurgical coal, 36% thermal coal.

Outlook and guidance

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

• Cost initiatives and productivity gains are tracking towards the bottom end of guidance, with further improvements expected.

• Royalty payments are blended at AUD 30/tonne across the group.

• CapEx guidance for Narrabri Stage 3 will be updated at the half-year, with a likely reduction due to the decision to extend the life of the existing longwall.

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