Whitehaven Coal (ASX:WHC) has reported a robust start to FY25, driven by gains in its Queensland operations. The company's September quarter saw a managed run-of-mine (ROM) production of 9.7 million tonnes (Mt), consistent with the previous June quarter. Queensland operations contributed significantly, with ROM production up 11% from June, reaching 5.3Mt. This improvement was attributed to productivity gains and cost-efficiency measures at both the Blackwater and Daunia mines.
Paul Flynn, Whitehaven's Managing Director and CEO, stated, “We are seeing productivity gains and cost improvements across our Queensland operations, which are pivotal to our strategy of reshaping the business for long-term success.” The company’s Queensland mines also achieved an average coal price of $259 per tonne, reflecting an increase in the price percentage compared to global indices.
In New South Wales, Whitehaven’s operations were in line with expectations, focusing heavily on overburden removal in the first half of FY25. ROM coal production in NSW was 4.4Mt, down 12% from the previous quarter as part of a planned sequencing strategy, with higher production anticipated in the second half. The longwall at Narrabri mine performed reliably, supporting consistent production output.
The company remains financially sound, with net debt at $1.2 billion as of 30 September 2024. A boost is anticipated from an upcoming $1.08 billion in proceeds related to the 30% sell-down of the Blackwater mine in Queensland, set to be finalised in Q3 FY25.
