Coal news and updates

Australian coal miner Whitehaven Coal Ltd WHC.AX on Thursday cut its annual output and sales forecasts for 2021, citing geological challenges and equipment damages at its majority-owned Narrabri underground mine in New South Wales.

 

The news sent Whitehaven shares down as much as 14.4% in their sharpest intraday percentage fall since August last year. The broader market .AXJO was down 0.3%.

 

The country's largest independent coal miner trimmed its annual managed coal sales forecast for the second time in two months, lowering it to a range of 17.8-18.3 million tonnes (mt) from 18.5-19.0 mt.

 

In March, Whitehaven had lowered the range from its initial 19.0-20.0 mt forecast as torrential rains shut rail networks to a key port in New South Wales, disrupting deliveries.

 

Continued geological challenges at the Narrabri mine have resulted in unscheduled down time and additional longwall equipment repairs, the miner said.

 

A rise in coal demand due to higher industrial activities as countries reopen their economies from COVID-19-induced lockdowns helped Whitehaven post a 7% rise in third-quarter sales.

 

"Coal prices have continued to improve over the quarter, responding to increased economic activity as well as supply constraints," Chief Executive Officer Paul Flynn said.

 

However, Flynn said the quarter was a "mixed bag" from an operational perspective.

 

Source : https://www.nasdaq.com/articles