Two of the largest coal miners on the Australian share market have released updates this week.
Bell Potter has been running the rule over these updates from Coronado Global Resources Inc (ASX: CRN) and Whitehaven Coal Ltd (ASX: WHC). But has it seen enough to recommend either coal miner as a buy?
Let's see what the broker is saying about them:
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Coronado Global Resources
Bell Potter notes that it was a challenging first quarter for Coronado, with production and sales down heavily quarter on quarter, and costs coming in higher than expected. It said:
CRN reported quarterly saleable coal production of 3.0Mt (down 30% QoQ; BPe 3.3Mt) and sales of 3.5Mt (down 20% QoQ; BPe 3.3Mt). Production was heavily impacted by a 6-week shutdown at Mammoth following a fatality; adverse weather and a planned 2-week CHPP shutdown at Curragh; and two longwall moves at Buchanan. Group mining costs were US$135/t produced (BPe US$113/t), up 41% QoQ. Group realised met coal pricing was US$165/t (70% realisation to the average HCC index). BP calculated quarterly group EBITDA was -US$88m (BPe US$8m) with unit mining costs elevated on lower sales.
In response, the broker has retained its speculative hold rating with a reduced price target of 30 cents.
Whitehaven Coal
Unlike Coronado Global, Bell Potter notes that Whitehaven Coal performed better than feared during the third quarter. It highlights that production and sales were ahead of expectations for the three months. The broker said:
WHC reported quarterly managed ROM production of 9.5Mt (BPe 9.6Mt), managed saleable production of 8.4Mt (BPe 7.8Mt) and equity coal sales of 6.9Mt (BPe 6.3Mt). Sales were supported by a stock drawdown with production impacted by heavy rainfall in Queensland and geotechnical issues at Narrabri. The next 8-week longwall changeout and maintenance period is scheduled for the December 2026 quarter. Group realised pricing was A$207/t, up 9% QoQ in line with higher met and thermal market prices. FY26 guidance was reiterated; ROM production and sales are tracking to the upper end and costs to the middle of the ranges provided.
According to the note, the broker has retained its hold rating and $8.10 price target on Whitehaven Coal's shares.
Bell Potter then concludes:
We maintain a Hold recommendation. In the medium term, WHC are positioned to capitalise when coal markets sustainably improve with a diversified portfolio of assets in Queensland and New South Wales and strong organic growth optionality. We have a positive long term met coal outlook, driven by constrained supply and increased demand from steel producers reliant on seaborne met coal (i.e. India).
