WHITEHAVEN COAL LIMITED 14 April 2016
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Record high ROM coal production of 5.7Mt for March quarter up 21% on the pcp and 44% YTD
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Highest quarterly saleable coal production of 5.3Mt for March up 28% on the pcp and 48% YTD
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Coal sales of 5.5Mt for March quarter up 48% on the pcp and 53% YTD, again a record for Whitehaven
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Production ramp up at Maules Creek progressing well with 2.0Mt ROM coal produced in the quarter
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Maules Creek next ramp up stage to 10.5Mtpa begins in January 2017
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On track to meet FY2016 guidance for saleable coal to be in the range of 19.5Mt to 20.1Mt
- Costs guidance for the full year FY2016 is now expected to be $57/t
Thousands of tonnes | Mar 2016 | Quarter Ended Mar 2015 | Change | Mar 2016 | YTD Mar 2015 | Change |
Managed ROM Coal Production | 5,665 | 4,700 | 21% | 14,935 | 10,356 | 44% |
Managed Saleable Coal Production | 5,304 | 4,142 | 28% | 14,557 | 9,811 | 48% |
Managed Total Coal Sales | 5,543 | 3,741 | 48% | 14,940 | 9,736 | 53% |
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Thousands of tonnes | Quarter Ende Mar 2016 Mar 2015 | d Change | Mar 2016 | YTD Mar 2015 | Change |
Equity ROM Coal Production | 4,361 | 3,606 | 21% | 11,446 | 8,063 | 42% |
Equity Saleable Coal Production | 4,041 | 3,218 | 26% | 11,081 | 7,647 | 45% |
Equity Sales of Produced Coal | 4,249 | 2,899 | 47% | 11,546 | 7,612 | 52% |
Equity Coal Stocks at period end | 1,347 | 1,297 | 4% | 1,347 | 1,297 | 4% |
Safety performance improved during the March quarter with Whitehaven's TRIFR declining to 9.1 at 31 March from
10.7 at 31 December. The improvement came from increased focus on safety performance across the business.
Total coal sales for the March quarter were 5.5Mt. Sales comprised 15% metallurgical coal and 85% thermal coal.
During the quarter, sales of semi soft coking coal from Maules Creek exceeded expectations with a number of trial cargoes to new steelmakers. The high quality of the coal is attracting strong interest from Northern Asian buyers. Whitehaven achieved an average price of US$61.77/t in the March quarter from sales of all metallurgical coal products - both semisoft coking coal and PCI coal.
Whitehaven expects pricing for metallurgical coal products in the June quarter 2016 to be in the range of US$64/t to US$67/t following the recent increase in quarterly benchmark prices.
The high quality of the Maules Creek thermal coal was reflected in achieving an 8% premium over the GlobalCOAL NEWC Index (Index) price for sales during the quarter. Whitehaven achieved an average price of US$51.56/t for all export thermal coal sales for the quarter compared to the Index average price of US$50.46/t for the quarter.
A number of new thermal coal buyers from Asia have visited Maules Creek and Narrabri and are trialling the coals. Whitehaven expects that terms will be concluded and new contracts executed with these new buyers in CY2016.
Whitehaven 70%
ROM coal production at Narrabri for the March quarter was 2.056Mt, 6% lower than the previous corresponding quarter. Ground conditions temporarily slowed longwall mining in a section of LW105 during the quarter however production from longwall panel 105 is expected to be completed by mid-May 2016 and longwall production is forecast to recommence in late June 2016.
Saleable coal production for the March quarter was 2.127Mt, an 18% increase from the previous corresponding quarter. Sales for the March quarter were 2.331Mt, a 42% increase from to the previous corresponding quarter.
Whitehaven reaffirms full year production guidance for Narrabri to be in the range of 6.6Mt to 6.8Mt ROM coal.
The project to widen the longwall face to 400 metres (from 300 metres) is on schedule and on budget. Components of underground equipment for the project are being manufactured in several countries while surface works, which include stockpile capacity expansions and surface electrical upgrades, are progressing on schedule. Mining of the first 400 metre wide panel, longwall panel LW07, is expected to commence in the first half of CY2017.
MAULES CREEK MINEWhitehaven 75%
The production ramp up at Maules Creek continued during the quarter with ROM and saleable coal production of 2.057Mt and 1.970Mt respectively1. Production for H2 FY2016 is expected to exceed an annualised rate of 8.5Mt.
Sales for the March quarter were 2.066Mt.2
Whitehaven reaffirms full year production guidance for Maules Creek to be about 7.6Mt ROM coal and 7.4Mt saleable coal.
Mining equipment to support the ramp up profile to an annualised rate of 10.5Mtpa has been ordered and is expected to arrive progressively onsite in H1 FY2017 and be operational during January 2017. Production is scheduled to increase to an annualised rate of 10.5Mt in H2 FY2017.
Tarrawonga Mine
Whitehaven 70%
ROM coal production of 0.576Mt for the quarter was 8% higher than previous corresponding period. Saleable coal production was 0.444Mt and coal sales for the quarter were 0.467Mt, 5% lower and 16% higher respectively than the previous corresponding period.
Rocglen Mine
The mine performed strongly during the quarter with ROM coal production of 0.362Mt, 75% higher than the 0.207Mt ROM coal produced in the previous corresponding period. Saleable coal production of 0.237Mt and coal sales for the quarter was 0.192Mt, respectively 1% and 7% ahead of the previous corresponding period.
Werris Creek Mine
ROM coal production of 0.613Mt in the March quarter was 7% lower than the previous corresponding period. Saleable coal production for the quarter was 0.527Mt and coal sales were 0.469Mt.
The strong production performance from the Gunnedah open cut mines was assisted by good weather and by continuous improvements in both mine planning and operational practices resulting in lower costs.
Work has progressed on the various studies to produce the Environmental Impact Statement (EIS) seeking government approval for an expanded Vickery mine. Drafting of the EIS document and several other supporting documents is underway. These studies will continue with a view to finalising an EIS for submission around the end of the financial year.
Timing for start-up of the Vickery project remains market dependent, but would not occur prior to Maules Creek having been fully ramped up to 13Mtpa.
1, 2 Maules Creek commenced commercial production on 1 July 2015.
Whitehaven continues to make progress on achieving further cost reductions across its business. FOB cash costs excluding royalties for the full year FY2016 are now expected to be about $4/t lower than the average of $61/t reported for FY2015.
The combination of lower FOB costs and capex post Maules Creek Project capital expenditure programme is expected to support further reductions in net debt in FY2016 and beyond.
There are US$30.0 million in forward A$/$US exchange contracts currently in place at an average exchange rate of A$1.00 = US$0.7292. These contracts are deliverable between April 2016 and June 2016.
Whitehaven spent a total of $0.162 million on exploration during the March quarter.
Whitehaven Coal Limited issued this content on 14 April 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 13 April 2016 23:34:37 UTC
Original Document: http://www.whitehavencoal.com.au/investors/docs/march-2016-quarterly-report.pdf
