By Rhiannon Hoyle
Whitehaven Coal has revealed that its production costs for the year are on track to be at the upper end of its forecast range. The Australian miner anticipates that its unit cost of producing coal, excluding royalties, will fall within the projected range of AUD 103 to AUD 113 per metric ton for the fiscal year through June 2024.
While production costs for the second quarter of the fiscal year ended December 31 were within the expected range, Whitehaven expects its full-year production mix to be skewed towards higher-cost open-cut operations instead of its Narrabri underground mine. The open-cut operations have been performing better.
"Given the expected strong contribution from open-cut operations and lower volumes from Narrabri, FY 2024 costs are tracking towards the top end of the cost guidance range," stated Whitehaven.
In addition, Whitehaven has downgraded its capital expenditure estimate for fiscal 2024. The company now expects to spend between AUD 400 million and AUD 450 million, a decrease from the previous range of AUD 460 million to AUD 570 million. The adjustment reflects shifting spending priorities after striking a deal with the BHP Mitsubishi Alliance to acquire the Blackwater and Daunia mines in Australia.
Whitehaven plans to complete the acquisition in early April and is also exploring the possibility of selling a roughly 20% stake in Blackwater to a strategic partner in the steel industry.
Despite a 5% decline in saleable coal production in the second quarter compared to the previous three months, Whitehaven reported a 17% increase in total managed coal sales during the same period. This growth was attributed to the sale of coal from stockpiles.
