Ann: Appendix 4D and Half Year Financial Report, page-87

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Yeatesy

1,246 Posts.

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17/02/22

19:25

Post #: 59645629
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Originally posted by RefreshNow: ↑

Headline of story should be 'High Coal Prices Overcome Poor Performance at WHC'

The only thing that is surprising about today's market reaction and the fall in SP is that anyone is surprised by it.

The buyback announcement won't help the price in the next few weeks before it actually begins. As the buyback price isn't known and is likely to be a strategy rather than one fixed buyback price it's in a traders interest to drive down the price now in the expectation that the buyback next month will then allow them to sell at a decent profit over the coming months. Long term it's going to be up to $400Mil gone and then they may need to borrow more to start a new mines and the debt cycle continues and when it begins the cozl price may not be as high.

The dividend is not above expectations and at a cost of 80 Mil when they had a NPAT of 340.5 Mil it's nothing special and actually a crystal ball concern for when a higher dividend could ever be paid again by WHC.

Worrying is the FOB increase to $83/T which is $13 per/T higher than the corresponding period last year. It's OK at the moment but if coal prices fall WHC will be in serious trouble if the upward trend in costs continues.

Sales of produced coal down 19% compared to HY21.

Lower yield of 81% compared to 85% of prior corresponding year.

I thought for a while that WHC might improve if they got a 3rd party to operate their mines for them instead of their own staff but they might be better off outsourcing the strategic management of the company as well if they could.

They got lucky with the coal price increase and at the moment high prices are covering up their other production and cost issues.

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You will find the points you raised were addressed in the investor call this morning. Worth a listen to understand the basis for lower volume and higher costs last half.
Current quarter is tracking substantially better!
Focusing on the rearview mirror will lead to missing the opportunity right in front.

WHC Price at posting: $3.02 Sentiment: Hold Disclosure: Held
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(20min delay)
Last $7.25		Change 0.025(0.35%)		Mkt cap ! $6.056B

Open	High	Low	Value	Volume
$7.15	$7.28	$7.11	$16.43M	2.279M

Buyers (Bids)

No.	Vol.	Price($)
2	797	$7.24

Sellers (Offers)

Price($)	Vol.	No.
$7.25	23254	24

View Market Depth

No.	Vol.	Price($)
36	24045	7.250
30	31447	7.240
22	24031	7.230
16	32934	7.220
16	32287	7.210

Price($)	Vol.	No.
7.260	23560	21
7.270	56018	18
7.280	27743	15
7.290	55375	17
7.300	99777	20

Last trade - 13.00pm 01/10/2024 (20 minute delay)

WHC (ASX) Chart

Ann: Appendix 4D and Half Year Financial Report, page-87

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Ann: Appendix 4D and Half Year Financial Report, page-87

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