PERTH (miningweekly.com) – Coal miner Whitehaven Coal is expected to report earnings before interest, taxes, depreciation and amortisation (Ebitda) of A$3-billion for the 2022 financial year, following record average coal prices of A$514/t for the June quarter and A$325/t for the full year.

“With demand for high-quality coal outstripping global supply, Whitehaven remains well placed to support energy security through transition and to deliver strong returns for shareholders,” said MD and CEO Paul Flynn on Monday.

“Coal prices set a new record during the June quarter and continue to be well supported. Stronger operational performance has enabled us to deliver our 2022 production and sales guidance in spite of the tight labour market and Covid-related absenteeism.”

Run-of-mine production for the June quarter was up 21% on the March quarter to 6.4-million tonnes, and reached 20-million tonnes in the full year, which was within the guidance of between 19-million and 20.5-million tonnes.

Sales of produced coal during the June quarter were up 23% on the previous quarter, to 4.4-million tonnes, and reached 14.2-million tonnes in the full year, down 2% on the 2021 figures.

Whitehaven reported that managed sales of produced coal in the full year reached 17.6-million tonnes, which was also within the guidance of between 17.2-million and 17.8-million tonnes.

“Improved operational performance combined with record high coal prices will underpin our strongest ever full-year result. We expect to report a full-year Ebitda of approximately A$3-million, subject to final audit.

“A net cash position of A$1-billion at the end of June, with ongoing strong cashflows, gives Whitehaven a continuing strong balance sheet with cash reserves to fund future growth and also return capital to shareholders through franked dividends and share buy-backs,” said Flynn.