Whitehaven also provided a Q3 2025 update. The HNW Portfolio holds a 2.5% weight to WHC.
Coal Key Points:
- Coal production was 800 kt higher than the market expected, with WHC navigating higher rainfall in Queensland.
- Prices paid for Whitehaven coal came at a premium during the quarter, with WHC thermal coal trading at an 8% premium (US$113/t) to spot price of US$105, reflecting their lower ash content.
- Whitehaven continues to find costs to cut, with the new Queensland mines quickly moving down the cost curve since Whitehaven took ownership.
- The balance sheet at March 31st 2025 was net cash $300M versus $1 billion net debt 31st December 2024, following the sale of 30% of the Blackwater mine to two Japanese steel mills.
Why was the stock up? The stock is up due to the higher production and realised coal prices than the market expected, with many anticipating a weak quarter due to a wetter summer in Queensland. With WHC now debt-free, the path to higher dividends and buy-backs in August looks open.
WHC finished up 4.7% to $5.08
