- Whitehaven Coal (WHC) slashes FY23 group production guidance following adverse impacts of the La Niña weather event in QLD and NSW
- The Australian coal miner says ongoing rain and flooding associated with La Niña caused lower run-of-mine (ROM) production across its three open cut mines
- Total ROM production guidance for Maules Creek, Narrabri and Gunnedah is between 19 and 20.4 million tonnes for FY23, down from 20 to 22 million tonnes
- Interestingly, however, Whitehaven upgraded the FY23 guidance for the Narrabri mine following stronger than anticipated performance
- Following the news, WHC shares have fallen 8.82 per cent to trade at $8.58 each at 1:48 pm AEDT
Whitehaven Coal (WHC) has slashed its FY23 group production guidance following adverse impacts of La Niña which affected large parts of Queensland and NSW.
The Australian coal miner said relentless rain and flooding associated with La Niña caused run-of-mine (ROM) production to be lower than expected across all three of its open cut mines.
As a result, the total ROM production guidance for Maules Creek, Narrabri and Gunnedah is between 19 and 20.4 million tonnes for FY23, down from 20 to 22 million tonnes.
“Whitehaven has moderated its expectation for FY23 ROM coal production from its open cut mines given current and possible projected impacts of weather and ongoing labour constraints,” as stated in today’s announcement.
While the company hasn’t experienced onsite flooding and has somewhat maintained production activities by transporting people to sites via helicopter, the recent wet weather has continued to impact ROM production, with the Maules Creek and Tarrawonga open cut mines being the most affected.
Due to this, Maules Creek is now forecast to produce between 10.3 and 11 million tonnes, down from the previous 11.7 to 12.6 million tonnes. Gunnedah O/C is expected to produce between 3.1 and 3.4 million tonnes, instead of the original 3.3 to 3.7 million tonnes.
Over the month of October, access roads and haulage roads continued to be impacted and wet weather has persisted into this month with soil moisture profiles, dams and river systems at capacity in the Gunnedah Basin.
Amid these downgrades, Whitehaven Coal upgraded its guidance for Narrabri following the stronger-than-anticipated performance. The underground mine is now forecast to produce 5.6 to six million tonnes in FY23, up from the previous five to 5.7 million tonnes.
Following the news, WHC shares fell 8.82 per cent to trade at $8.58 each at 1:48 pm AEDT.