The Whitehaven Coal Ltd (ASX: WHC) share price is in focus today after the ASX coal miner posted a solid September quarter result, including 5.9 million tonnes of equity coal sales and progress towards $60–80 million in annualised cost savings.
What did Whitehaven Coal report?
- Managed run-of-mine (ROM) coal production for Q1 FY26: 9.0 million tonnes, down 15% quarter-on-quarter
- Equity sales of produced coal: 5.9 million tonnes, down 1% from the June quarter
- Average price per tonne: A$200/t in QLD operations; A$175/t in NSW operations
- Cost-out program on track to deliver $60–80 million in annualised savings by June 2026
- Net debt at 30 September 2025: approximately $0.8 billion
- Continued share buy-back with 1.9 million shares repurchased for $12.6 million in the quarter
What else do investors need to know?
Whitehaven delivered steady operational performance across its Queensland and New South Wales sites despite weather disruptions and challenging pricing. QLD managed ROM output reached 4.7Mt, while NSW managed ROM was 4.4Mt, with flood-impacted volumes partly offset by improved production at Narrabri.
Average sales prices remained under pressure in a softer coal market, but NSW operations achieved a 105% realisation against the gC NEWC thermal coal index. The company made its first contingent payment of US$9 million to BMA well below the annual cap, and no further payment is anticipated for year two on current pricing.
Development and exploration spending topped $14.4 million in the quarter, covering ongoing work at Winchester South, Narrabri Stage 3, and Vickery projects. Whitehaven remains disciplined on capital allocation as it pursues long-term growth.
What did Whitehaven Coal management say?
Commenting on the result, CEO & Managing Director Paul Flynn said:
Whitehaven delivered a solid first quarter result. New South Wales ROM production totalled 4.4Mt for the quarter, after being modestly affected in the quarter by flooding at the open cut mines, but partially offset by improved output from Narrabri following the long wall move in the previous quarter. Queensland's ROM production of 4.7Mt reflects solid performance from both Daunia and Blackwater. Both sites are focused on delivering further operational improvements. Demand for Whitehaven's products continues to be strong. Equity coal sales were 5.9Mt for the quarter but a soft pricing environment persisted through the period. Across the business, cost discipline remains a priority and we are tracking to be well within the guidance range of A$130-145/t cost of coal for FY26. Whitehaven maintains a strong financial position, with net debt of ~$0.8b at 30 September 2025.
What's next for Whitehaven Coal?
Whitehaven has reconfirmed its FY26 guidance, expecting managed ROM coal production between 37–41 million tonnes and equity coal sales of 23.3–26.1 million tonnes. Unit coal costs are forecast at $130–145/t before royalties.
The business is focused on lifting second-half volumes, delivering on its cost-out program, and advancing key growth projects. Its robust balance sheet underpins a steady approach to capital management and project investment as it navigates through a period of lower coal prices.
Whitehaven Coal share price snapshot
Over the past 12 months, Whitehaven Coal shares have risen 9%, slightly underperforming the S&P/ASX 200 Index (ASX: XJO) which has increased around 10% over the same period.
