The miner declared an $A82.2 million net loss after tax compared to a $62.5 million net profit in the previous year.
This was pinned on a substantial slide in the price of coal from about $112 per tonne in fiscal 2012 to about $84/t over the past 12 months.
This was in turn attributed to general market weakness and a “significant” amount of thermal coal being sold from the company’s Narrabri mine in New South Wales at a price below the Newcastle benchmark.
Other factors flagged as impacting on the year’s performance included costs associated with the delayed start-up of Narrabri, the placing of the Sunnyside mine (also in NSW) on care and maintenance, and a train derailment near the town of Boggabri.
Operating earnings before interest, tax, depreciation and amortisation were negative $11.1 million, down 116.9% on last year.
Cash outflow from operations, however, was $16.2 million for the year compared to a cash inflow of $2.5 million for fiscal 2012 as a result of general working capital movements.
Outside of the shuttering of Sunnyside, cost-cutting initiatives included revised mine plans for lower stripping ratios and less use of contractors.
The company produced a record 9.1 million tonnes of run-of-mine coal and 8.2Mt of saleable coal during the year, an increase of 71% and 67% respectively.
Total coal sales were up 34% compared to last year at 7.4Mt.
Equity production at the crucial Gunnedah Basin operations in NSW were down 7%, but were offset by a major sales contribution of 2.3Mt of coal from Narrabri.
Revenue was up 0.7% compared to the previous year at $622.2 million.
Whitehaven said it would continue its efforts to improve efficiencies through reducing mine operating costs and overhead in the face of low coal prices and the high Australian dollar.
The miner expects to produce and sell about 11Mt of coal in 2014.
“While the company does not expect an improvement in coal prices in the short term, the weaker Australian dollar will help to increase revenues in FY2014,” it said in a statement.
“In addition, recent cost-cutting across all of the mines will leave Whitehaven well-placed to cope with the current market environment.”
The company said it would undertake a restructure to move its finance and administration to a shared service function over coming months to improve process and streamline efficiency.
Integration over the course of the year of Whitehaven, Aston Resources and Boardwalk Resources is expected realise synergies in coal-blending opportunities and integrated rail and port infrastructure operation.
Reductions will also target expenditures in tyres, fuel, explosives, electricity, road haulage services and corporate costs.
Cash on hand at the end of the year was $11.5 million, with net debt of $471.6 million, compared to $513.6 million in available cash. At the end of the previous year, cash available was $513.6 million and net cash was $24.2 million.
Shares in Whitehaven were trading 1.9% down today at $1.98.
