Whitehaven Coal Limited (ASX: WHC) has seen its share price sink 7.7% in trading today to 60 cents.
Still, shares are up more than 50% since hitting a low of 36 cents in February. But over the longer-term, shareholders have seen a massive loss, with the share price down 53% in the past year, and more than 90% in the past 5 years.
That's all got to do with coal prices. Whitehaven produces coal both for use in steelmaking as well as energy coal. And both have plummeted, with thermal (energy) coal down lore than 50% in the past five years as the following chart shows.
Coal miners around the world appear to be acknowledging the threat from renewable energy, not to mention the decline in electricity power usage. (Could the rise of household energy storage batteries and electric cars change that?)
Foolish takeaway
In the last half, Whitehaven produced a net profit of $7.8 million despite the plunging coal prices. If coal prices can rise, Whitehaven's share price could rocket, but I'm won't be putting my house on it.