On October 25, Australian miner Whitehaven Coal Ltd released a quarterly operation announcement, showing that in the first quarter of the current fiscal year (July-September), Whitehaven's equity raw coal production was 8.762 million tons, a year-on-year surge of 106%, and basically flat sequentially.

In July-September, Whitehaven's equity commodity coal production was 6.459 million tons, up 82% year-on-year and down 13% sequentially, while equity coal sales were 6.396 million tons, up a whopping 108% year-on-year and down 2% sequentially.

In the first quarter of the current fiscal year, the company's equity raw coal production in New South Wales was 3.434 million tons, down 13% sequentially; equity coal sales were 2.782 million tons, down 16% sequentially; and raw coal production in Queensland was 5.328 million tons, an increase of 11% sequentially; and sales were 3.614 million tons, an increase of 13% sequentially.

Whitehaven said that on April 2 this year, the company completed the acquisition of BHP Billiton Mitsubishi Alliance (BMA) Blackwater Coal Mine (Blackwater) and Daunia Mine (Daunia) metallurgical coal assets, driving a big increase in raw coal production in the quarter. Meanwhile, production from the Narrabri coal mine (Narrabri) in New South Wales likewise increased.

“The 2024-25 financial year has started well, with the newly acquired Queensland operations delivering a second consecutive quarter of strong production, while the New South Wales operations are running to plan.” Whitehaven CEO Paul Flynn said. “Operating costs are expected to be at the lower end of expected levels for the full year as productivity improves and operating costs are controlled.”

The announcement showed that from July to September, the company's average sales price for tons of coal was A$238 per ton, with the Queensland metallurgical coal business averaging A$259 per ton and the New South Wales business averaging A$211 per ton.

The report noted that the consolidation of the Company's assets in Queensland is currently underway, and that A$3.6 million was spent on the Winchester South metallurgical coal project, the Narrabri Stage 3 project and the Vickery mine development project in the July-September period, including drilling of the Winchester South mine. work to advance mine planning, infrastructure development and exploration activities.

In addition, the Company spent A$1.9 million on coal quality and geotechnical analysis work on exploration activities in New South Wales and Queensland.

In its quarterly report, Whitehaven noted that it expects a structural shortfall in global metallurgical coal production, particularly as Australian producers have long been limiting hard coking coal production, coupled with increased demand for seaborne coal from India, will drive metallurgical coal prices higher. The Company's metallurgical coal portfolio is expected to benefit from this tight supply market structure.

Meanwhile, the metallurgical coal price index weakened in the July-September period due to the prolonged rainy season in India and weak steel demand in China, while the end of the rainy season in India in October, coupled with a series of stimulus packages by the Chinese government, led to a rebound in Australia's high quality, low volatility hard coking coal index from its low in September.

Demand for high-calorie coal from Asian countries remained strong to support the operation of their high-efficiency, low-emission (HELE) power plants. However, due to the lack of investment in new capacity and the gradual depletion of existing capacity, there may be a structural shortage of seaborne high-calorie power coal, which will continue to support seaborne high-calorie coal prices.

Influenced by seasonal factors, seaborne power coal prices tend to weaken in September. However, the current price is in the range of $135-150 per ton, and high-calorie power coal prices have shown a high degree of resilience.

The quarterly report shows that for the 2024-25 fiscal year (July 2024-June 2025), Whitehaven's raw coal production is targeted to be between 35-39.5 million tons, of which the raw coal production in Queensland is expected to be 17.6-19.7 million tons, while the production in New South Wales is expected to be 17.4-19.8 million tons.

For the financial year 2024-25, the company's equity coal sales are expected to be 25.1-28.3 million tons, of which Queensland equity coal sales are expected to be 14.4-16.1 million tons and New South Wales sales are expected to be 10.7-12.1 million tons. The company's production cost per ton of coal (excluding mining rights tax) for the current fiscal year is A$140-155 per ton, and full-year capital expenditure is expected to be A$440-550 million.

Article Source：sxcoal.com