The Whitehaven Coal Ltd (ASX: WHC) share price is defying the broader market malaise on Monday and marching higher.
Shares in the S&P/ASX 200 Index (ASX: XJO) coal stock closed Friday trading for $6.65. At the time of writing, shares are swapping hands for $6.82, up 2.6%.
This comes alongside some solid performance from rival coal stocks, while the ASX 200 has dropped into the red in morning trade, down 0.1%.
Here’s what’s helping boost the Whitehaven share price.
What’s drawing ASX 200 investor interest?
ASX 200 investors are bidding up the Whitehaven share price following the release of the coal miner’s June quarterly report.
Among the highlights, the miner reported a 19% quarter on quarter lift in managed run-of-mine (ROM) production, which came in at 5.1 million tonnes.
Whitehaven’s full 2023 financial year (FY23) managed ROM coal production was 18.2 million tonnes. That came in within the company’s full-year guidance of 18Mt to 19.2Mt.
The ASX 200 coal miner received an average coal price of AU$264 per tonne in the June quarter and an average price of AU$445 per tonne across FY23.
Total equity sales of produced coal in FY23 of 13Mt was down 8% from the prior year. FY23 managed sales of produced coal of 16Mt was within the company’s guidance of 15.3Mt to 16Mt.
Investors could also be bidding up the Whitehaven share price today on its strong balance sheet. The miner reported $435 million in cash generated from operations in the June quarter and $4.2 billion for FY23. This saw Whitehaven holding a net cash position of $2.65 billion as at 30 June.
Commenting on the results helping boost the Whitehaven share price today, CEO Paul Flynn said:
During FY23, production and sales volumes were impacted by H1 flooding and weather delays, labour shortages and operational constraints at Maules Creek. However, a stronger June quarter relative to the March period helped deliver our overall FY23 guidance for both production and sales.
Flynn noted that realised coal prices were at a record average of AU$445 per tonne for FY23. That compares to the prior high of AU$325 per tonne achieved in FY22.
On the dividend front, Flynn said, “In FY23 we returned $1.6 billion of capital to shareholders through dividends and buy-backs.”
Looking ahead, he added:
We are maintaining a resilient balance sheet, and with strong underlying demand for our high quality products, Whitehaven is well placed to continue to generate strong cash flows and deliver value for our shareholders.
Whitehaven share price snapshot
Despite today’s lift, the Whitehaven share price remains down 23% in 2023.
Investors who bought shares in the ASX 200 coal stock 12 months ago will still be sitting on gains of 15%, not including the two record dividend payouts.
