Whitehaven Coal (ASX:WHC) outlined a stronger December 2025 quarter that built on the September period, supported by higher production, improved metallurgical coal prices, and lower unit costs, while flagging ongoing weather and logistics risks in Queensland.
Production and sales strengthened in the December quarter
Management said the group delivered “a good first half” after a December quarter that improved across key operating metrics. Total recordable injury frequency rate (TRIFR) was reported at 2.9, which management said reflected growing consistency across the enlarged business.
Across the first half, management cited Queensland production of 10.3 million tonnes and New South Wales production of 9.7 million tonnes. In the December quarter, Queensland ROM production totaled 5.6 million tonnes and New South Wales ROM production totaled 5.4 million tonnes.
Mine-by-mine performance highlights
In Queensland, management said performance was strong despite seasonal weather risk. Blackwater produced 4.0 million tonnes, up 24% from September, while Daunia produced 1.6 million tonnes, up 11%. Blackwater sales were 2.7 million tonnes, which management attributed to timing between washing and shipping, while Daunia sales rose to 1.1 million tonnes, up 17%, with shipping timing again influencing quarterly outcomes.
In New South Wales, management described operations as “pretty good,” with managed sales of company coal at 4.9 million tonnes in the December quarter, up 39%. Site stocks were 1.4 million tonnes, down 32% from September, which management said reflected stronger sales.
At Maules Creek, production was 2.6 million tonnes. Management said the mine was improving after weather disruptions in the first quarter but did not recover as much ground as planned, leaving some sequencing impacts to play out in the second half. Executives reiterated that Maules Creek remains second-half weighted and linked longer-term efficiency gains to approvals for the Maules Creek Continuation Project, which would allow a pit reorientation and more operating flexibility toward its approved limit of 13 million tonnes per year.
Narrabri delivered 1.8 million tonnes, up 48% from September. Management said performance benefited from the absence of a longwall changeout this year and noted that while ground conditions were “decent,” the operation still experiences occasional weighting events and roof falls. Management said it expects strong performance to continue through the balance of the year, while cautioning analysts against annualizing the December quarter run rate.
Gunnedah operations produced 0.9 million tonnes, with 0.6 million tonnes from Vickery and 0.3 million tonnes from Tarawonga, which management described as reliable performance.
Pricing, realizations, and sales mix
Management said metallurgical coal market conditions improved during the quarter, citing a 9% quarter-on-quarter improvement in the PLV average. The company reported average realized prices of AUD 225 per tonne in Queensland (up from AUD 200 in September) and AUD 163 per tonne in New South Wales (down from September).
For metallurgical coal, management said realized pricing was AUD 150, or about 75% of PLV, broadly in line with the trailing 12-month average. Product mix was cited as a driver, with met coal sales comprising 63% “primary products” (hard coking and semi-hard), and 34% PCI/semi-soft. Management said PCI and semi-soft relativities improved after the quarter ended but did not rise as much during the quarter itself due to lag effects in a rising market.
In New South Wales, management said realizations were about 99% of the GCNEWC average, but also noted the quarter’s sales mix was influenced by an “abundance” of Narrabri coal, which lowered average pricing compared with quarters that include more premium products.
Revenue mix for the period was reported at 53% metallurgical coal and 47% thermal, which management attributed mainly to strong New South Wales sales and the effect of higher Narrabri volumes.
Costs, balance sheet, and capital allocation updates
Management said higher volumes helped lower costs relative to the first quarter, with production costs at about AUD 135 per tonne for the half (subject to audit and to be detailed with half-year results). The company said it remained on track to deliver AUD 60 million to AUD 80 million in cost savings, with more detail to be provided at the half-year release.
Net debt decreased by about AUD 100 million during the period. In response to analyst questions, management pointed to working capital movements and emphasized company-wide efforts to manage through a subdued pricing environment.
On contingent and deferred payments related to the BMA transaction, management said recent price improvements mean the company expects to pay some contingent consideration. Executives said a second payment of US$500 million would be made “very shortly,” and noted that in the third year only US$100 million remains payable as a deferred payment. The company estimated a contingent payment of about US$9 million for the current year, while noting payments in the final year will depend on prices relative to the stated trigger threshold.
Whitehaven also provided an update on its on-market buyback, stating it had repurchased 4.4 million shares for AUD 32 million. Management said the board would consider capital returns for the second half at the February results, noting investor preferences differ between franked dividends and buybacks.
Weather impacts and operational constraints in Queensland
Executives addressed wet weather in Queensland occurring after quarter-end, estimating roughly one week of downtime. Management said stock levels and improved preparedness helped support shipping as ports reopened, while also noting non-weather-related haulage constraints on the Blackwater line during the December quarter that were described as improving as labor issues are resolved.
Management said the rain event did not leave the company with accumulated issues that would materially worsen the impact of future events, citing available water storage and ongoing pumping and compliance management. However, executives reiterated that further disruptions remain possible as the wet season continues.
Management said guidance remained unchanged and that first-half production of 20 million tonnes positioned the company well for a historically stronger second half, subject to weather conditions.
About Whitehaven Coal (ASX:WHC)
Whitehaven Coal Limited develops and operates coal mines in New South Wales and Queensland. It operates through three segments: Open Cut Operations, Underground Operations, and Coal Trading and Blending. The company produces metallurgical and thermal coal. It operates four mines, including three open cut and one underground located in the Gunnedah Coal Basin in New South Wales. The company sells coal in Japan, Korea, Taiwan, Malaysia, New Caledonia, Vietnam, Indonesia, Europe, and internationally.
