Whitehaven Coal Issues a Profit Warning

Submitted by Share Trading on 1 February, 2013 - 08:25

Sydney based coal miner, (ASX:WHC) issued a profit warning on Thursday.

  • WHC 1H first half earnings (EBITDA: earnings before interest, tax, depreciation and amortization) could be below $10 million after weak coal markets and high Australian dollar takes its toll.
  • Thermal coal is currently priced around $93 per tonne and the Australian dollar is just below $1.05. They also sell a metallurgical product, Newcastle semi-soft coking coal which was priced at $US113.50 a tonne.
  • WHC run-of-mine (ROM) coal production for the December quarter increased by 96 percent to 2.367 million tonnes (Mt) from the previous corresponding first half period.
  • Whitehaven is flagged as a potential takeover target where it held talks with China's Shenhua (developer of the Watermark project in the Gunnedah Basin).
  • Nathan Tinkler is a major shareholder of Whitehaven Coal stocks at a 19.4 percent stake. In 2012 Tinkler had a unsuccessful privatisation bid for the company and later attempted to spill the board of directors.
  • Whitehaven Coal shares fell 19 cents or 5.5 percent to $3.28.