Whitehaven Coal delivered a strong finish to FY26, with full year managed ROM production of 40.3Mt representing a 3% increase on FY25 and hitting the top end of company guidance. The June quarter alone produced 10.7Mt of managed ROM coal, up 13% from the March quarter, demonstrating improved operational momentum across both Queensland and New South Wales operations after weather impacts in the prior quarter. Full year equity sales of produced coal reached 26.0Mt, with the June quarter contributing 6.3Mt.
Cost discipline remained central to performance throughout the year, with the company expecting unit costs of approximately A$132 per tonne at the low end of guidance and capital expenditure also finishing towards the low end of the A$350 million budget. Whitehaven delivered annualised cost savings within its A$60 million to A$80 million target range, suggesting management’s operational efficiency initiatives are yielding tangible results despite ongoing inflationary pressures across the sector. This cost performance should support profitability even as commodity prices fluctuate.
The company’s product mix provided diversified earnings exposure, with FY26 revenue comprising 57% metallurgical coal and 43% thermal coal. This balance proved valuable given pricing dynamics during the period, as NSW thermal coal achieved 104% of the gC NEWC benchmark for the year while Queensland metallurgical coal realised 74% of the PLV HCC Index. The June quarter alone saw NSW thermal coal average A$197 per tonne and Queensland metallurgical coal average A$247 per tonne, reflecting solid execution in capturing stronger thermal coal premiums.
The balance sheet absorbed the second US$500 million deferred acquisition payment to BMA in April, resulting in net debt of A$1.3 billion at 30 June compared with A$0.6 billion at 31 March. Whitehaven completed a debt refinancing during the quarter that substantially reduced its cost of debt, diversified funding sources, and extended maturities. The higher net debt position reflects the capital required to integrate the BMA acquisition but appears manageable given the company’s cash generation capability and strong operational performance.
Investors should monitor FY27 guidance and cost trajectory closely, particularly given thermal coal pricing exposure amid ongoing energy market volatility. Safety performance also improved significantly, with the TRIFR reaching 3.3 for the expanded business, a record improvement from 4.6 in FY25. This announcement is price sensitive and has been flagged as material by the ASX.
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About Whitehaven Coal Limited (ASX: WHC)
Whitehaven Coal Limited develops and operates coal mines in Queensland and New South Wales, producing both metallurgical and thermal coal from mines located in the Gunnedah Coal Basin and Bowen Basin. The company sells its coal to customers in Japan, China, Korea, Taiwan, Malaysia, Vietnam, Indonesia, India, Europe, and internationally.
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