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The Markets
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Media

Whitehaven Coal feels brunt of weak coal prices

Whitehaven Coal (ASX: WHC) today announced a Net loss after tax (NPAT) of $47.0 million for the first half of FY2013, down from a profit of $19.9 million in the previous corresponding period.

Whitehaven shares are currently down 3% to $2.91 at 10:30am EST, which are off the $2.70 lows of the past twelve months - but well down from the $6.13 highs.

Nathan Tinkler holds around a 21% stake in the company - which is worth over $600 million - but is down from $1.1 billion when Whitehaven merged with his company Aston Resources in April 2012.

Read more: https://www.smh.com.au/business/mining-and-resources/tinkler-hit-again-as-whitehaven-dives-20130131-2dmba.html#ixzz2LxPg4iTG.

The company said factors impacting the result included; Accounting treatment of the Sunnyside closure; Significantly lower average coal prices due mainly to market movements; and in part to coal quality linked to high moisture in Narrabri thermal product which is currently being addressed.

Other factors included; Unfavourable foreign exchange rate; Impact of Boggabri train derailment; and; Previously reported Take or Pay costs associated with delays in NSW and Commonwealth Government approvals.

Underlying EBITDA profit (excluding significant items) of $8.2 million, in line with guidance provided in December quarterly.

Overall EBITDA loss of $18.6 million; includes accounting losses associated with Sunnyside mine and Brisbane office closures and other significant items totalling $26.7 million.

No dividend was declared for the period.

Other key financials

- Underlying NPAT (excluding Significant Items) of $27.6 million loss, down from $22.0 million profit in the first half of FY 2012.

- Directors resolved not to pay an interim dividend for the half.

- Cash used in operations of $100.5 million.

- Net cash outflow of $430.4 million inclusive of Coalworks acquisition.

- Completion of $1.2 billion re-financing package.

- Solid financial position at 31 December with net assets of $3,293.1 million, including $83.2 million cash on hand, interest bearing liabilities of $487.5 million and undrawn debt facilities of $650 million.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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