Whitehaven Coal logs 2026 output at top end of guidance, sees costs at low end

Australia’s Whitehaven Coal said on Tuesday annual output and sales landed near the top of its guidance range as its Queensland mines recovered, while full-year costs were set to come in near the low end of forecast.

The cost outlook matters as the Sydney-based coal miner works to absorb higher diesel prices linked to the Middle East conflict.

Whitehaven said unit costs for 2026 were expected at about A$132 ($92.29) a metric ton, towards the low end of its forecast range, after it delivered savings within its annualized target of A$60 million to A$80 million.

The company earned A$222 per ton of coal sold in the fourth quarter, up from A$189 a year earlier, helped by stronger Asian demand for thermal coal after liquefied natural gas supply was disrupted.

Managed run-of-mine production was 40.3 million tons for the year ended June 30, up 3% from a year earlier and near the top of its 37 to 41 Mt guidance range. Managed coal sales rose 8% to 32.7 Mt, within estimates of 29.5 to 33 Mt.

Fourth-quarter output rose 1.3% to 10.7 Mt, matching the Visible Alpha consensus estimate.

Queensland operations, including the Blackwater and Daunia mines bought from BHP Group in early 2024 in a $4.1 billion deal, recovered from prior-quarter weather disruption, with production up 41% sequentially.

The New South Wales mines, including Maules Creek, Narrabri and Gunnedah, posted a 1.6% year-on-year rise in quarterly production, though output fell 8% from the prior quarter because of tougher mining conditions.

Whitehaven shares were down 1.1% by 00:58 GMT, in line with declines in the energy sub-index and the broader market.

($1 = 1.4302 Australian dollars)

(By Jasmeen Ara Shaikh and Keshav Singh Chundawat; Editing by Shilpi Majumdar and Subhranshu Sahu)