Highlighted in yellow are extracts from the report.Elevated coal...

Highlighted in yellow are extracts from the report.

Elevated coal prices and strong operating cash flows in the period enabled Whitehaven to reduce its net debt by $405.1
million from $808.5 million at 30 June 2021 to $403.4 million at 31 December 2021.

The debt reduction is in line with historical average debt for highly profitable years (2017,2018,2019) where the average debt was around $350 Million for the year.

Subsequent to end of the financial period, the Group repaid $225 million of debt drawn under the senior bank facility.

This means that between 31/12/2021 and 17/2/2022 they have reduced their total debt from $403.4 Million to $178.4 Million.

Net tangible assets per share
31 Dec 2021 - 303.38c/share
31 Dec 2020 - 294.48c/share

We can effectively add this $225 Million to the equity reported at 31/12/2021 which was $3,053 Million. Total equity of the company as of today would then equal $3,278 Million. Divide this by 1033 Million outstanding shares and we get a net tangible asset per share figure of 317.32c/share.

In short, as of today, according to this audited report, WHC is trading about 8.2% below its net tangible asset value.

Diluted earnings/(loss) per share (cents per share) 33.7

EPS set to break historic records at the end of FY22.
2017 EPS - 41
2018 EPS - 52
2019 EPS - 52

On 17 February 2022 the Directors declared an unfranked interim dividend of 8 cents per share totalling $80 million to be
paid 11 March 2022. The financial effect of this dividend has not been brought to account in the financial statements for
this period

For those like me wondering where the dividend payment is captured on the cashflow statement.

Both thermal and metallurgical coal prices are expected to be well supported over CY22.

Using a historic coal chart, we can see that strong coal prices are maintained for an average of 3 years. In the current cycle we have entered strong coal prices in the Feb/March period of 2021. So we are only 1 year into this cylce.