Whitehaven Coal (WHC) Q4 2024 TU earnings summary

Executive summary

• Completed acquisition and integration of Daunia and Blackwater metallurgical coal mines in Queensland, driving strong quarterly production growth and operational improvements across both Queensland and New South Wales.

• Managed ROM coal production for the quarter reached 9.7 million tons, with full-year total at 24.5 million tons, up 34% year-over-year.

• Queensland operations contributed 4.8 million tons ROM production in the quarter, with robust performance at Blackwater and Daunia despite initial rail logistics constraints.

• New South Wales operations delivered 4.9 million tons ROM production in the quarter, with strong results at Maules Creek and improved consistency at Narrabri.

• Equity sales of produced coal totaled 6.5 million tons for the quarter and 16.4 million tons for FY24, up 26% year-over-year.

Financial highlights

• Average coal price achieved: AUD 271/ton in Queensland and AUD 207/ton in New South Wales for the quarter.

• Net debt at 30 June stood at AUD 1.3 billion, reflecting prudent capital management.

• Revenue split: 59% metallurgical coal, 41% thermal coal.

• FY24 unaudited capex for NSW operations was AUD 380 million, below the guided range.

• FY24 unit cost of coal (excluding royalties and QLD) expected at AUD 114/ton, at the top end of guidance due to lower Narrabri volumes and inflation.

Outlook and guidance

• FY25 guidance and finalized FY24 results to be provided in August 2024.

• Expectation of normalization in product mix and sales volumes as Queensland rail logistics improve.

• Proportion of metallurgical coal sales is expected to increase as Queensland logistics normalize.

• Positive market outlook with structurally constrained supply and strong pricing expected to continue.