Queensland mines post 17% increase in production
Company to disclose new capital allocation framework in August
Prices hurt by trade uncertainties
Unit costs, capex better than previously guided
Shares up about 1%
Updates with share moves, analyst quote, CEO comments and further details on results
By Adwitiya Srivastava
July 25 (Reuters) - Australia's Whitehaven Coal reported an almost 9% rise in production for the fourth quarter on Friday on the back of a strong performance at its mines, while flagging price pressures due to an uncertain trade and demand environment.
Its Queensland operations, which include the Blackwater and Daunia mines, were the biggest contributors, logging a more than 17% increase in managed run-of-mine (ROM) coal production to 5.6 million metric tons.
Operations in New South Wales - which consist of the Maules Creek, Narrabri and Gunnedah open-cut mines - also delivered an uptick in overall production.
Whitehaven reported total managed ROM coal production of 10.6 million tons for the three months ended June 30, up from 9.7 million tons a year ago.
Shares of Australia's top independent coal producer were trading about 1% higher by 0037 GMT, outperforming the domestic mining index which fell over 1%.
The company received A$189 ($124.61) per ton of coal sold during the quarter, compared to an average realised price of A$238 per ton a year earlier.
Prices were hurt by trade uncertainties including U.S. tariffs [https://www.reuters.com/business/tariffs/], discounted Chinese steel exports and re-traded volumes in the seaborne metallurgical coal market, the miner said.
However, Whitehaven said its cost initiative measures helped to offset some of the impact of falling prices.
"Whitehaven is managing well through the current soft pricing environment," CEO Paul Flynn said in a statement.
"Our focus on cost management is reflected in the estimated A$139/t cost of coal for FY25, which is better than our cost guidance for the year."
The miner's per unit cost of coal for the year was A$139 per ton, and capital expenditure was A$390 million, both better than their previously disclosed guidance of A$140 to A$155 per ton and A$440 million to A$550 million, respectively.
"We expect focus to be on continued underperformance on realised price, and the success of cost-out initiatives," analysts at Jefferies said in a note.
Whitehaven also said it will include a refreshed capital allocation framework in its 2025 financial results due for release on August 21.
($1 = 1.5168 Australian dollars)
(Reporting by Adwitiya Srivastava and Nikita Maria Jino in Bengaluru; Editing by Alan Barona and Jamie Freed)
((Nikita.Jino@thomsonreuters.com [Nikita.Jino@thomsonreuters.com]))
