The Whitehaven Coal Ltd (ASX: WHC) share price is in focus today after the company reported managed ROM coal production of 11.0 million tonnes for the December quarter, up 21% on the prior period, and equity sales of 7.0 million tonnes, lifting 18% quarter-on-quarter.
What did Whitehaven Coal report?
- Managed ROM coal production of 11.0Mt for the quarter, up 21% on September
- Equity sales of produced coal reached 7.0Mt, up 18% on prior quarter
- Unit cost of production at ~A$135/tonne for H1 FY26, at the low end of guidance
- Net debt reduced to A$0.7 billion as at 31 December 2025, down from A$0.8 billion
- A$60–80 million annualised cost-savings target on track for FY26
- Share buy-back of 6.3 million shares in H1 FY26 for A$45 million
What else do investors need to know?
Whitehaven's Queensland and New South Wales operations both showed solid production gains during the December quarter. QLD managed ROM production came in at 5.6Mt, while NSW managed ROM lifted 23% to 5.4Mt, with Narrabri reporting particularly strong volumes.
Coal market conditions supported higher prices for metallurgical coal. Whitehaven's QLD operations achieved an average sale price of A$225/t, while NSW saw average thermal coal prices at A$163/t, nearly at parity with key industry benchmarks.
Cost discipline remains a focus, with unit costs at the more favourable end of expectations. The company continues to implement cost-saving initiatives across the business, aiming for up to A$80 million in annualised savings by June 2026.
What did Whitehaven Coal management say?
Paul Flynn, Managing Director & CEO:
With a solid second quarter of production and sales, Whitehaven closed the first half of FY26 with 20.0Mt of managed ROM production including 11.0Mt in the December quarter.
We continue to experience strong demand for Whitehaven's products, with 12.8Mt of equity coal sales for the first half including 7.0Mt for the quarter. Metallurgical coal prices improved during the period, while thermal prices were steady on the previous quarter.
Cost discipline remains a priority, and with a half year unit cost of A$135/t, we are tracking well within the guidance range of A$130-145/t.
Whitehaven's financial position remains strong, with net debt of ~A$0.7b and liquidity of A$1.5b at 31 December 2025.
What's next for Whitehaven Coal?
Whitehaven says its FY26 guidance remains unchanged, with ROM coal production and sales expected to be at the upper half of the targeted range. The company expects its unit costs for the half to be around A$135/t, and capital expenditure is within plans.
Management is progressing key growth projects such as the Narrabri Stage 3 Extension and the Winchester South metallurgical coal project. The company plans to maintain strict capital discipline and will update investors on cost-saving progress at the half-year results in February 2026.
Whitehaven Coal share price snapshot
Over the past 12 months, Whitehaven Coal shares have risen 52%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
