WHC 2.16% $7.09 whitehaven coal limited

Ann: Half Year FY24 Results Presentation, page-169

  1. 572 Posts.
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    Correct me if I'm wrong but here is some cost curve commentary:

    ~125 NEWC is 75th percentile of the cost curve.

    ~100 NEWC is 50th percentile of the cost curve.

    Spot is currently 120ish so we're well into the cost curve now.

    WHC's costs inc. royalties are ~85 USD based on recent guidance which sits around the 25th percentile.

    Should spot get to WHC's breakeven cost, ~75% of global export production will disappear.

    Remember what happened post oil trading negative during COVID - same would happen to coal out the other side (on steroids) should we see a short term crash deep into the cost curve due to a global shutdown.

    "The cure for low prices is low prices"

    I agree with all in favour of a BB at current equity levels. Some of the $$$ earned from a selldown could be used to BB 100M shares = $700m @ $7/s or $800m @ $8/s.

    Either way, it's a fun time dissecting this major transformation and the possible pathways it could go.

    https://hotcopper.com.au/data/attachments/5974/5974671-f788f199349fa951dc4e7131ae028fdb.jpg
 
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