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2.22%

$5.52 whitehaven coal limited

Target $18.72, page-10533

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coalforme

488 Posts.

184

11/09/24

08:43

Post #: 75620074
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Originally posted by Hugnis: ↑

At current coal prices I think we have a negative NPAT.

While the margin of coal price to cost of production remains positive we also have $1bn of other costs to absorb each year ($250m interest on debt and other facilities, and $750m D&A annually).
The incoming sell down proceeds will likely be used to service the deferred acquisition payment (US1.1bn over 3 years), acquisition costs outstanding ($AUD350m), and sell down costs and taxes outstanding ($100m) ... plus deferred tax liabilities ($616m) and recent dividend ($104m) etc [and yes, I know that doesn't add up!]. WHC already confirmed they will retain the debt facility, and annual interest cost.

Then there's still the contingent liabilities to come (up to US$900m over 3 years).

So it's all down to coal price expectations from here. I remain a firm holder as the cost curve will eventually drive out some supply, and upside potential of a coal price bounce (even 10%) is huge. But it's going to be a rough ride for at least a few months ... perhaps years.

GLTAH

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Futures contracts for coking coal in 2025 rose between 3% and 7% overnight (while thermal futures slipped slightly). The first sign of a turnaround?

WHC Price at posting: $5.64 Sentiment: Buy Disclosure: Held
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(20min delay)
Last $5.52		Change -0.125(2.22%)		Mkt cap ! $4.697B

Open	High	Low	Value	Volume
$5.52	$5.63	$5.50	$17.74M	3.195M

Buyers (Bids)

No.	Vol.	Price($)
6	2492	$5.51

Sellers (Offers)

Price($)	Vol.	No.
$5.52	51586	36

View Market Depth

No.	Vol.	Price($)
13	15084	5.510
79	387413	5.500
11	52420	5.490
13	66731	5.480
11	113377	5.470

Price($)	Vol.	No.
5.520	48932	41
5.530	84470	29
5.540	52061	14
5.550	86557	13
5.560	35416	10

Last trade - 11.54am 11/09/2024 (20 minute delay)

WHC (ASX) Chart