SURFACE

Strong performance from open cuts help boost Whitehaven result

Across its open cut operations Whitehaven is seeing much more consistent and better performance.

 Whitehaven Coal CEO Paul Flynn.

Whitehaven Coal CEO Paul Flynn.

Whitehaven CEO Paul Flynn said the company had made progress on improving performance of the bulk materials handling at its operations.

"Across our open cut operations we are seeing much more consistent and better performance across production and overburden management and our guidance range has tightened accordingly," he said.

"During the latter part of the December quarter there was a strong rebound in pricing and we are increasingly optimistic that underlying market dynamics are supportive of continued improvement in this area."

Whitehaven has increased its FY21 managed coal sales (excluding purchased coal) guidance to 19.0 - 20.0Mt, from 18.5 - 20.0Mt.

Whitehaven realised an average price of US$62 per tonne for all sales of own thermal coal in the December quarter.

The realised price was 8% lower than the quarterly globalCoal Newcastle Index average due to two main factors: Whitehaven's realised prices lag the average when rapid changes in the monthly index coal price occur, and there were increased volumes of other thermal coal sold at fixed prices.

Expenditure incurred on expansion and growth projects during the December quarter was $2.3 million, reflecting approvals and studies relating to the Vickery Extension project, approvals work and land purchase for Narrabri Stage 3 and environmental studies for Winchester South in Queensland.

"It is pleasing to have reached key milestones for both Narrabri Stage 3 and Winchester South development projects, with the submission of both projects Environmental Impact Statements and Winchester South's maiden Reserve Statement," Flynn said.

"We are continuing to progress our development pipeline but work is proceeding cautiously and in line with the company's strict capital allocation framework."

The outage of one of Newcastle Coal Infrastructure Group's two shiploaders has resulted in 550kt of equity sales of own coal slipping from December 2020 into January 2021.

 

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production