Why is the Whitehaven Coal share price having such a top run on Tuesday?

This coal share is charging higher today…

| More on:
A female coal miner wearing a white hardhat and orange high-vis vest holds a lump of coal and smiles as the Whitehaven Coal share price rises today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Whitehaven Coal Ltd (ASX: WHC) share price is having yet another strong day.

In afternoon trade, the coal miner's shares are up 3% to $8.56.

This means the Whitehaven Coal share price is now up over 200% since the start of the year.

Why is the Whitehaven Coal share price rising today?

The catalyst for the rise in the Whitehaven Coal share price on Tuesday has been the release of the full year results of one of its rivals.

This morning New Hope Corporation Limited (ASX: NHC) released its full year results and revealed a 143% increase in revenue to $2.55 billion and a whopping 1,139% jump in net profit after tax to $983 million.

This allowed the coal miner to declare a fully franked 31 cents per share final dividend and a 25 cents per share special dividend. Combined, this was a massive 700% year over year increase from FY 2021's 7 cents per share final dividend.

The key driver of this impressive result was of course sky high coal prices. And with New Hope's management team suggesting that high prices are here to stay for the foreseeable future, this bodes well for New Hope and Whitehaven Coal.

New Hope commented:

Robust market demand for high energy and lower emission thermal coal, strengthened by the Russia-Ukraine conflict which has further tightened supply. With global energy demand to remain flat to 2030, stronger longer-term pricing is expected to remain considering constrained supply.

It's no wonder then that the team at Morgans is forecasting a $1.00 per share dividend from Whitehaven Coal in FY 2023.

This equates to a very generous 11.7% dividend yield even after the Whitehaven Coal share price heroics of 2022.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

A mining employee in a white hard hat cheers with fists pumped as the Hot Chili share price rises higher today
Materials Shares

ASX mining in April 2024: The best stock to buy right now

Analysts at Bell Potter think this mining stock could offer big returns.

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

The Core Lithium share is down 27% in March: What's next?

Times have been hard for this lithium miner's shareholders. Will things improve?

Read more »

A female worker in a hard hat smiles in an oil field.
Materials Shares

Why it's a great day to own BHP shares

The Big Australian's shareholders have reason to smile on Thursday.

Read more »

a business man in a suit holds his hand over his eyes as he bows his head in a defeated post suggesting regret and remorse.
Materials Shares

Why did this ASX All Ords stock just crash 36%?

Investors have been hitting the sell button on Tuesday.

Read more »

A miner in a hardhat makes a sale on his tablet in the field.
Materials Shares

Lake Resources share price surges on sustainable lithium news

Lake Resources shares are enjoying a welcome lift today.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Materials Shares

Mineral Resources shares fall despite 'exceptional results'

This mining and mining services company has provided an update on its energy business.

Read more »

A man looking at his laptop and thinking.
Materials Shares

Are Pilbara Minerals shares in the buy zone or overvalued?

Here's what Bell Potter is saying about the lithium giant.

Read more »

Three guys in shirts and ties give the thumbs down.
Materials Shares

3 reasons to sell Core Lithium shares

This lithium miner's decline may not be over according to Goldman Sachs.

Read more »