PERTH (miningweekly.com) – Coal miner Whitehaven Coal has reported a 95% fall in net profit after tax for the full year ended June, as thermal coal prices softened and labour shortages impacted production.
Underlying net profit after tax for the full year reached A$30-million, while underlying earnings before interest, taxes, depreciation and amortisation was reported at A$306-million, down 71% on the previous financial year.
Operating cash flows also decreased by 84%, to A$146.4-million, while revenue was down 31%, to A$1.7-billion.
Run-of-mine (RoM) coal production was down 4% compared with 2019, to 16.5-million tonnes, while saleable coal production remained stagnant at 14.6-million tonnes. Total coal sales for the full year were up by 1%, to 16.5-million tonnes.
“Significant contractions in coal prices disproportionately impacted our headline financial results but it was pleasing to be able to reward investors and pay out A$312-million in dividends through the period,” said Whitehaven MD and CEO Paul Flynn.
Looking at 2021, Whitehaven is predicting RoM production to reach between 21-million and 22.8-million tonnes, with coal sales targeted at between 18.5-million and 20-million tonnes.
The miner has set a sustaining capital budget of between $60-million and $70-million for underground and opencut operations and for major rebuilds, as well as between A$35-million and A$40-million for its major growth projects, including the Vickery project.
Flynn noted that the New South Wales government’s recent approval of the Vickery operation was a significant achievement during the year, but given the continuing short-term economic uncertainty, the company remained cautious about expansion and capital allocation.
“Our immediate focus is on achieving greater efficiency and more consistent operational performance in anticipation of markets rebalancing and price improvements beginning to flow throw.
“We are confident about the continuing demand for high quality coal in a more carbon conscious world and the major role it will play as part of the global economic recovery,” said Flynn.