Target $18.72, page-6346

"Whitehaven’s performance has soured some investors, frustrated with the cost of some of its projects.

Sources say it has spent about $400m on Boardwalk, which it purchased in 2012.

It has spent about $300m on Aston Resources, which it earlier purchased from Nathan Tinkler.

It was through that deal that it first gained Coalworks stakes.

It is also understood to have outlaid between $500m and $1.2bn on its Winchester South metallurgical coal project in Queensland.

The argument from some is that the shareholder value delivered has not justified the spending.

The problem is that if Whitehaven pays up for the BHP assets, it will not be able to fund the $1.5bn-plus development cost of Winchester South, according to one market expert.

Sources have suggested that Whitehaven has been in the market looking for debt from ANZ, CBA and NAB for a purchase, but this has been without success.

Around 2019, Whitehaven’s production slumped after being hit by labour shortages and bushfires at its flagship Maules Creek mine and an eight-week outage at its Narrabri underground mine.

The problems at the time came as a surprise to investors."

https://www.theaustralian.com.au/business/dataroom/whitehaven-coals-funding-plans-in-question-for-bhps-2bnplus-coal-contest/news-story/35a78baa73f98607947bf1745603cdab?amp&nk=e48af77c446634d7c29e1d82781abc99-1689233319