Whitehaven Coal Shares Rise 3% After Record First-Quarter Output Beats Forecasts and Full-Year Guidance Holds

Shares of Whitehaven Coal rose more than 3% on Friday after Australia's largest independent coal miner reported record first-quarter production that beat analysts' expectations and reaffirmed its full-year outlook.

Whitehaven shares gained 24.5 Australian cents, or 3.2%, to A$7.895, closing at the session's high. More than 3.7 million shares changed hands, giving the company a market value of about A$6.5 billion.

The gain stood out on a day when energy and mining stocks were among the worst performers on the Australian market.

Record quarter

Whitehaven reported managed run-of-mine coal production of 11 million metric tons for the three months ended Sept. 30, up 22% from about 9 million tons a year earlier and up 3% from the previous quarter. It was the company's best-ever first quarter.

The result comfortably beat the Visible Alpha consensus estimate of 9.5 million tons, according to Reuters.

Production was supported by strong performance at the company's Queensland operations, which produced 5.5 million tons, and a recovery at its New South Wales mines, where output at the Narrabri mine rose 10%.

Higher prices

Whitehaven also benefited from stronger coal prices. The company received an average of A$226 per ton of coal sold during the quarter, up 2% from the previous quarter and 20% from a year earlier.

Unit costs came in at the low end of the company's full-year guidance range of A$132 to A$147 per ton.

Sales slip on port disruptions

Not every measure improved. Equity sales of produced coal fell 5% to 6 million tons, as temporary outages at the RG Tanna coal terminal in Queensland delayed shipments. As a result, the company's coal stockpiles rose 37%.

Whitehaven said the disruptions had been resolved and that the effects of delayed sales and high inventories should unwind in the second quarter.

Guidance reaffirmed

Whitehaven kept its fiscal 2027 guidance unchanged, forecasting managed run-of-mine production of 38 million to 41 million tons and equity coal sales of 23.9 million to 26 million tons. It expects costs to remain within guidance.

The company ended the quarter with net debt of about A$1.4 billion. It bought back A$14 million of its own shares during the quarter under its ongoing buyback program and said payments to BHP Mitsubishi Alliance for its Queensland mine acquisitions are expected to finish within the next year.

A Queensland transformation

Whitehaven transformed its business in 2024 by buying the Daunia and Blackwater metallurgical coal mines in Queensland from BHP and Mitsubishi. The deal shifted the company's focus toward metallurgical coal, used in steelmaking, alongside its traditional thermal coal business in New South Wales, which supplies power stations in Asia.

The Queensland operations have become a key driver of the company's growth.

Bucking the trend

Whitehaven's rise contrasted with a broad sell-off in resources stocks on Friday. The materials sector fell more than 3% at one point, and energy stocks dropped about 2%, as iron ore and gold prices weakened.

The S&P/ASX 200 index fell 0.15% to 8,780.1.

Oil prices remained elevated amid tensions in the Middle East, which can support demand for coal as an alternative energy source in some markets.

Whitehaven shares are up about 13% over the past year.

What's next

Investors will watch the second quarter for evidence that sales recover as the company expects and that stockpiles come down after the port disruptions.

Coal prices will remain a key factor for the company's earnings. Demand from Asian steelmakers and power producers, as well as global energy market conditions, will shape the outlook for the rest of the fiscal year.