Target $4.61, page-5485

The update coming this week is unlikely to provide any pleasant surprises. The good stuff around the average sale price of coal and being debt free by March is already known from the quarterly announcement as are the reduced production volumes and increased costs. These things are already known and factored into the price, it's more a matter of WHC confirming the results because if they can't meet expectations then expect another sell off as per what happened after the quarterly update.

They really need to be clear about dividends and not still be giving statements to the effect that they are considering what to do as that just leads to guessing games. I assume they will offer up a dividend and advise which new mine they will invest in. I'd much prefer them to invest in a new mine then launch a buyback which will temporarily lift the share price until the buyback ends & allow some large investors to get out before launching their usual tactics after the buyback ends to lower the price. They need to minimise borrowing for the next project and the current cash flow is the ideal opportunity to do that instead of a buyback and then borrowing more later if the coal price heads south. The political situation is unlikely to get friendlier for new mines so they need to get going. Less thinking and more precise plans and actions please.