Hey @deanosaur I'm a bit off track here. There is no denying that many coal stocks are being shorted or even just going down because of the thermal coal price. WHC is not a coking coal play now and won't ever be, For WHC to outperform, met coal needs to contribute more profit to the group operations and get to a 70/30 split of met v coal. It's mining costs are just too high at $170p/t. There target was 70 coking 30 thermal but after 3 quarters it is still at 62/38 and thermal coal brought in more profit than the met coal in at least the December quarter as apercentage of sales. (haven't looked at previous quarters).
If we go by my back of the writing pad coal revenue and mining costs (below) I get the following
Met coal Sales $1.090b mining costs $782k Profit before mining costs $308k Royalties 15% (est) $31k Profit after royalties $277k
Thermal coal Sales $675k mining costs $384k Profit before royalties $291k Royalties 10% (est) $29k Profit after royalties $262k
You then have selling and distribution expenses for the quarter and non-cash expense of depreciation (will be huge $ amount for full year Qld mines and plant & equipment)
What does anyone make of my calculations for the December qtr. I think I can justify my calculations. See if you can understand my calcs below. The figures below have been taken from the December quarterly. Can anyone dispute the above calculations? Where might I have gone wrong?
WHC over the last 3 weeks has come down from around $6.37 to $5.57. (down about 12%) in line with every other ASX coal stocks.
WHC Price at posting:
$5.57 Sentiment: None Disclosure: Not Held
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