Reducing Whitehaven's Fair Value by 3% on Lower Near-Term Coal Sales, Higher Unit Cash Costs

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. It purchased Blackwater and Daunia metallurgical coal mines in Queensland from BHP and Mitsubishi in April 2024, but has agreed to sell a 30% stake in Blackwater to two Japanese steelmakers, likely effective early 2025. Equity output is expected to grow to 32 million metric tons by fiscal 2029, split roughly between 60% coking coal and 40% thermal coal.