Whitehaven Fair Value Raised 5% After It Buys Two Metallurgical Coal Mines From BHP and Mitsubishi

Whitehaven Coal offers exposure to global energy and steel demand via thermal and metallurgical coal production. Its mines are in New South Wales, Australia. Salable coal production expanded from 10 million metric tons in fiscal 2014 to about 14 million metric tons in fiscal 2022, largely due to the ramp-up of Maules Creek and the expansion of the Narrabri mine. Driven by its agreement to buy the Blackwater and Daunia metallurgical coal mines in Queensland from BHP and Mitsubishi, effective from the June quarter 2024, equity output is expected to grow to 36 million metric tons by fiscal 2028, split roughly 50/50 between thermal and coking coal.