Whitehaven Posts 9.2Mt Q3 ROM Production, $1.08B Blackwater JV Proceeds Boost Cash

Solid Production Amid Seasonal Challenges

Whitehaven Coal’s March quarter production report reveals a company navigating the familiar challenges of seasonal weather impacts while maintaining operational resilience. Managed run-of-mine (ROM) coal production reached 9.2 million tonnes (Mt), a 5% decrease from the December quarter, reflecting typical quarter-on-quarter seasonality. Queensland operations produced 4.5Mt, down 3%, with sales notably affected by weather-related rail and port disruptions, leading to a 26% drop in sales volumes. New South Wales operations saw a 7% production decline to 4.7Mt, with open cut mines performing well but slower progress at the Narrabri underground mine weighing on volumes.

Pricing and Market Environment

Despite the softer global coal price environment, Whitehaven achieved average realised coal prices of A$221 per tonne in Queensland and A$182 per tonne in New South Wales. Metallurgical coal accounted for approximately 61% of revenue, with thermal coal making up the remainder. The company’s Queensland metallurgical coal prices averaged 79% of the Platts PLV HCC Index year-to-date, while New South Wales thermal coal prices slightly outperformed the gC NEWC Index at 108% for the quarter. Market softness is attributed to lower steel production, trade uncertainties, and delayed Indian demand recovery, but Whitehaven remains focused on margin management and cost discipline.

Financial Strength and Capital Management

Whitehaven’s balance sheet received a significant boost with the receipt of US$1.08 billion from the 30% sell-down of the Blackwater mine joint venture to Nippon Steel and JFE Steel. This transaction shifted the company from net debt of A$1.0 billion at December 31, 2024, to a net cash position of A$0.3 billion at March 31, 2025. The company also made the first US$500 million deferred payment to BMA for the acquisition of Daunia and Blackwater mines, with a second payment due in April 2026. Whitehaven has resumed a $72 million share buy-back program, having repurchased 1.66 million shares to date, signaling confidence in its capital allocation strategy amid market uncertainties.

Development Projects and Outlook

Progress continues on key development projects, including the Narrabri Stage 3 extension, which received federal approval in December 2024 and aims to extend mine life to 2044. The Winchester South metallurgical coal project is advancing through environmental approvals, with a Queensland Land Court review scheduled for July 2025. Capital expenditure remains disciplined, with $6.6 million spent in the quarter on development and $3.7 million on exploration. Whitehaven maintains FY25 guidance for ROM production between 35.0 and 39.5Mt and coal sales between 28.0 and 31.5Mt, with unit costs at the low end of the $140–$155 per tonne range.

Strategic Positioning in a Volatile Market

CEO Paul Flynn emphasised Whitehaven’s focus on cost and margin management, prudent capital allocation, and maintaining a strong balance sheet to weather the current uncertain pricing environment. While near-term coal prices remain soft, the company anticipates longer-term structural supply shortfalls in metallurgical and high CV thermal coal markets, particularly driven by underinvestment and depletion of Australian high-quality coal reserves. Whitehaven’s portfolio is well positioned to benefit from these dynamics, supported by ongoing operational improvements and strategic project development.