Whitehaven Coal has reported a robust December quarter, closing the first half of the 2024–25 financial year (FY25) with a strong performance in production and sales across its Queensland and New South Wales operations.
“I’m pleased to report another solid quarter of production and sales across our operations to close the first half of FY25 with strong ROM (run-of-mine) production of 19.4 million tonnes (Mt), including 9.9Mt from our Queensland mines and 9.4Mt from our New South Wales mines,” Whitehaven managing director and chief executive officer Paul Flynn said.
“Production and sales volumes are tracking very well, including record sales volumes from Daunia in the December quarter.
“We are on-track to deliver firmly in the upper half of FY25 production and sales guidance, and at the low end of our full-year cost guidance range.”
Whitehaven reported a total managed ROM coal production of 9.7Mt for the quarter, maintaining consistency with the previous quarter, while total equity sales of produced coal increased by 22 per cent to 7.8Mt.
The Daunia and Blackwater mines in Queensland were still able to perform well despite incurring weather disruptions, with total sales of 4.6Mt, up 28 per cent from the September quarter.
The company said Daunia’s record quarterly sales were supported by “good coal availability, strong demand and improved availability of rail paths on the Goonyella line”.
Whitehaven’s NSW operations produced 5.1Mt of ROM coal, up 17 per cent quarter-on-quarter as open-cut mines saw increased volumes, and Narrabri performed consistently before unplanned downtime in December.
“We expect to receive the $US1.08 billion ($1.73 billion) of proceeds from the 30 per cent sell down of Blackwater in the third quarter of FY25, further strengthening the balance sheet and providing an opportunity to review Whitehaven’s capital allocation at the end of FY25,” Flynn said.
The company’s total recordable injury frequency rate for employees and contractors stood at 4.9 for the quarter.
Additionally, cost efficiencies in Queensland operations continue to be realised, building towards $100 million in annualised savings by the end of FY25.
Whitehaven said its main customer markets such as Japan remain robust as upcoming peak winter conditions in northern Asia are expected to drive thermal pricing up as coal inventories are drawn down.
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