Photo by: Bloombeg
PERTH (miningweekly.com) – Coal miner Whitehaven Coal this week told shareholders that its expected earnings before interest, tax, depreciation and amortization (Ebitda) would nearly double in the first half of 2016, compared with the previous corresponding period.
Ebitda for the first half of 2016 was expected to be in the range of A$100-million to A$105-million, meaning the miner would be profitable during that period.
Furthermore, cash margin performance in the half-year was also expected to exceed the A$13/t margin reported in the year ended June this year, enabling Whitehaven to reduce its net debt over the 2016 financial year.
Full-year production guidance for run-of-mine coal production has also been upgraded from the previous estimate of between 18.8-million tonnes and 19.4-million tonnes, to between 19.5-million tonnes and 20.1-million tonnes.
“During my recent visit to Asia, customers in Japan, Korea, and Taiwan emphasised the strong and growing demand for our Gunnedah basin coal. Our coal’s high calorific value, low ash and low sulphur qualities attracts pricing premiums of up to 5%,” said Whitehaven MD and CEO Paul Flynn.
“Production growth from our two tier-one mines, Narrabri and Maules Creek, has enabled us to expand our portfolio of quality customers.”
Whitehaven was also given the go-ahead by the New South Wales Department of Planning and Environment to increase production at its Narrabri mine from eight-million tonnes a year to 11-million tonnes a year, and would see the miner install a 400-m-wide longwall face at the Narrabri mine.