Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — H1 FY25 Earnings Presentation
48 slides from Whitehaven Coal's earnings presentation, Feb 20, 2025
Slide 1: Half Year Results FY25
Half Year Results FY25 20 February 2025 Authorised for release by the Board of Whitehaven Coal Limited Whitehaven Coal Limited ABN 68 124 425 396 P +61 2 8222 1100 F +61 2 8222 1101 Level 28, 259 George Street, Sydney NSW 2000 PO Box R1113, Royal Exchange
Slide 2: Contents and Disclaimer
Contents 1. Half year highlights Disclaimer • Safety & environmental • Operational & financial This presentation contains information in a summary form and does not purport to be complete. It is COMPETENT PERSONS STATEMENT This document contains estimates of Whitehaven Coal's Coal qualified by any o
Slide 3: 1. Half year highlights
D7 Whitehaven 1. Half year highlights
Slide 4: Good safety and environmental performance
Good safety and environmental performance Reporting of QLD and NSW operations consolidated from H1 FY25 ROM coal production and TRIFR 4.9 25 20 TRIFR for employees and contractors of 4.9 in H1 FY25 compared with 15 3.3 for NSW in FY24 and 6.6 for QLD in Q4 FY24 Includes QLD 10 from FY25 4.9 Zero 5 0
Slide 5: Strong operational performance underpinned solid results
Strong operational performance underpinned solid results Operational results 19.4Mt 14.2Mt A$232/t $137/t Managed ROM production Equity sales of produced coal Whitehaven achieved price Unit cost of coal including 9.9Mt from QLD operations up 109% on H1 FY24 reflecting the Resilient pricing in a subd
Slide 6: 2. Whitehaven's Markets
D7 Whitehaven 2. Whitehaven’s Markets
Slide 7: Product, market and geographic diversification
Whitehaven is benefiting from product, market and geographic diversification Revenue contribution % by type1 16.4M tonnes of managed sales2 in H1 FY25 Thermal Thermal Metallurgical Metallurgical 4% Japan ⚫ ⚫ 6% 6% India ⚫ 36% 6% China ⚫ 10% H1 Korea ⚫ ⚫ 8% 49% FY25 Malaysia ⚫ H1 64% Taiwan ⚫ ⚫ FY24
Slide 8: Structural supply gaps for high CV thermal and metallurgical coal
Structural supply gaps are expected for both high CV thermal and metallurgical coal Global supply & demand: Global supply & demand: seaborne HCV thermal coal (>5850 NCV)1 seaborne metallurgical coal2 M tonnes 400 400 M tonnes 350 350 300 139Mt 300 250 250 74Mt 200 200 150 150 100 100 50 50 0 0 2024
Slide 9: H1 FY25 market conditions
H1 FY25 market conditions Demand for Whitehaven’s products remains strong; prices were resilient in H1, despite some market softness Supply and demand Pricing Costs • Demand for Whitehaven’s met coal • QLD operations average price of • Unit costs of $137/t at low end of remained strong, while market
Slide 10: 3. H1 FY25 operational results
3. H1 FY25 operational results 10
Slide 11: ROM coal production and sales
ROM coal production and sales Strong H1 FY25 performance from QLD and NSW mines Managed ROM coal production (Mt) Managed sales of coal produced (Mt) 19.4 15.8 14.1 6.8 11.1 5.7 3.6 10.3 3.1 1.3 8.4 2.3 1.7 1.8 1.4 0.9 2.6 1.7 1.7 1.0 6.0 5.1 5.4 4.2 3.4 4.6 2.6 3.0 2.5 3.1 2.2 1.7 1 1 H1 FY24 H2 FY2
Slide 12: NSW Operations – ROM coal production
NSW Operations – ROM coal production All NSW mines delivered in line with or better than plan in H1 FY25 Managed ROM coal production (Mt) • H1 FY25 NSW ROM production of 9.4Mt 20.6 20.0 19.7 o 5.1Mt from Maules Creek 1.6 1.6 18.2 o 3.0Mt from Narrabri 1.2 2.3 2.4 1.4 2.3 1.9 o 1.4Mt from Gunnedah Op
Slide 13: QLD Operations – ROM coal production
QLD Operations – ROM coal production A strong H1 FY25 operational performance delivered by Daunia and Blackwater mines Managed ROM coal production1 (Mt) • H1 FY25 QLD ROM production of 9.9Mt o 6.8Mt from Blackwater 20.0 o 3.1Mt from Daunia 18.0 17.4 17.6 • Alignment of operating model for long-term
Slide 14: 4. H1 FY25 financial results
4. H1 FY25 financial results 14
Slide 15: H1 FY25 financial results
H1 FY25 financial results Resilient coal prices and solid production support strong underlying earnings; Adjustments to underlying earnings largely relate to non-cash movements including FX Underlying EBITDA $960 million • Transition and transaction costs of $22m (post-tax) or Depreciation & amortis
Slide 16: Financial history
Financial history Group QLD NSW and unallocated Revenue ($m) Underlying EBITDA1 ($m) Underlying NPAT1 ($m) H1FY25 1,394 2,034 3,428 H1FY25 588 960 H1FY25 328 2 H1FY24 1,589 H1FY24 632 H1FY24 379 FY24 869 3,824 FY24 272 1,399 FY24 740 FY23 6,065 FY23 3,967 FY23 2,655 FY22 4,920 FY22 3,060 FY22 1,952
Slide 17: H1 FY25 segment financial results
H1 FY25 segment financial results $ million NSW QLD Group1 • Underlying H1 FY25 EBITDA of Revenue 1,260 2,034 3,428 $960m compared with $632m H1 FY24, reflecting: Underlying EBITDA 395 588 960 o QLD underlying EBITDA of $588m Depreciation & amortisation (107) (233) (340) o NSW underlying EBITDA of $
Slide 18: EBITDA margins remain attractive
EBITDA margins remain attractive H1 FY25 FOB unit costs vs average realised price (A$/t) • Underlying H1 FY25 EBITDA of $960m compared with $632m H1 FY24 • Average H1 FY25 coal price realisations3 reflect solid underlying demand 67 232 137 27 Average o A$232/t from Group Margin realised price o A$24
Slide 19: EBITDA H1 FY25 vs H1 FY24
EBITDA H1 FY25 vs H1 FY24 (before significant items) $m $236m (24) 588 (73) (75) 960 (88) Achieved Prices H1 FY25 H1 FY24 632 NSW (A$/t) 211 220 FX AUD:USD 0.66 0.65 H1 FY24 Price (net of Sales Volume Costs QLD Other H1 FY25 royalty) 19
Slide 20: Net debt reduction in H1 FY25
Net debt: $990m of cash inflows and a net debt reduction of $289m in H1 FY25 $m Net income taxes $m FY24 tax refund 69 FY25 tax paid (57) 12 (110) (989) 12 (245) (1,278) (104) 922 (160) 56 (82) Net debt at Net cash from Net interest Net income Capital Returns to Repayments & Daunia & Foreign Net deb
Slide 21: Net debt and liquidity
Net debt and liquidity A$ million 31 Dec 2024 30 Jun 2024 Maintaining a strong balance sheet Cash on hand 880 405 • We are lightly geared at 16% Credit facility (1,763) (1,661) • We had available liquidity of A$1.33b at 31 December 2024 comprises: Other financing facilities (62) (29) o cash on hand
Slide 22: Capital allocation framework
Capital allocation framework Disciplined capital allocation builds resilience and delivers shareholder value Operating cashflows 1 2 3 Maintain and optimise Retain cash / maintain Return to shareholders • Fully franked interim dividend of operations balance sheet strength 9.0 cents (~$72m in total)
Slide 23: 5. FY25 guidance
D7 Whitehaven 5. FY25 guidance
Slide 24: FY25 guidance
FY25 guidance ROM coal production and coal sales are currently on track to be firmly in the upper half of FY25 guidance H1 FY25 actual FY25 guidance Comments Managed ROM Coal Production, Mt GROUP 19.4 35.0 – 39.5 QLD 9.9 17.6 – 19.7 Tracking firmly in upper half of guidance NSW 9.4 17.4 – 19.8 Manag
Slide 25: Whitehaven's FY25 focus areas
Whitehaven’s FY25 focus areas Focused on delivering on guidance as well as safety, operational performance, cost management and optimising price realisations NSW QLD Group priorities • Manage costs and optimise margins • Further refine operating model • Continuous improvement of safety and environme
Slide 26: whitehavencoal.com.au
BF Whitehaven whitehavencoal.com.au
Slide 27: 6. Appendix
D7 Whitehaven 6. Appendix
Slide 28: Financial results supporting slides
Financial results supporting slides 28
Slide 29: Costs
Costs H1 FY25 H1 FY24 H1 FY25 Costs $m $/t $m $/t Labour Operating expenses 1,489 105 514 76 20% 28% Repairs & maintenance Selling & distribution expenses 415 29 203 30 Diesel 1 Administrative expenses (net of sundry revenues) 35 3 27 4 Drill & blast 14% Share-based payment expenses 5 0.3 5 1 Equipm
Slide 30: FY25 capital expenditure guidance remains unchanged
FY25 capital expenditure guidance remains unchanged FY25 H1 FY25 ($m) Includes guidance actual • Open cuts fleet overhauls, sustaining capex • Legacy environmental compliance QLD Operational Assets 280 – 345 • Narrabri sustaining capex – 200 Series precinct 152 NSW ~40%, QLD ~60% • Vickery • Narrabr
Slide 31: Depreciation & Amortisation
Depreciation & Amortisation H1 FY25 FY24 FY23 • H1 FY25 D&A in line with guidance GROUP provided in August 2024 Depreciation & amortisation $340m $319m $226m • Depreciation applied to closing stock D&A per tonne (sales of own coal) $24/t $19/t $17/t balances at 30 June 2024 delivered a one-off benef
Slide 32: Underlying finance income / (costs)
Underlying finance income / (costs) H1 FY25 FY24 FY23 • Debt drawn in April 2024 GROUP • Reduction of interest income from 2 Underlying net finance income $12m $85m $82m April 2024 once upfront consideration Underlying net finance costs ($163m) ($107m) ($40m) for acquisition was paid. Underlying net
Slide 33: FY25 guidance for D&A and net finance expense
FY25 guidance1 for D&A and net finance expense Recognising complexities associated with the treatment of the acquisition, the following guidance for FY25 is provided, as published in the FY24 Results presentation. These numbers are indicative only. FY25 indicative guidance GROUP NSW QLD Comments NSW
Slide 34: Sustainability
D7 Whitehaven Sustainability
Slide 35: Whitehaven's portfolio of operations in QLD & NSW
Whitehaven’s portfolio of operations in QLD & NSW Whitehaven is a leading Australian metallurgical coal producer and supplier of high-CV thermal coal NSW QLD Operating Assets Maules Creek Narrabri Tarrawonga Blackwater Daunia (100%) (77.5%) (100%) (100%) (100%) Development Projects Early mining of V
Slide 36: Contributing to our communities – FY24 overview
Contributing to our communities – FY24 overview 10.6% 22.7% 7:1 281 ha of workforce1 identify female employees2 and ratio of land managed of land rehabilitated1, as Aboriginal and/or 19.7% in our legacy business for biodiversity compared with adding to 107 ha in FY23 Torres Strait Islander up from 1
Slide 37: Providing energy security for our customers
Providing energy security for our customers Our coal provides a significant proportion of electricity to our key customer countries totalling ~40 TWh annually Contribution to baseload electricity from Whitehaven managed coal supplied into Japan, South Korea & Taiwan (JKT) and Malaysia1 Japan Taiwan
Slide 38: Producing the highest quality seaborne thermal coal
Producing the highest quality seaborne thermal coal Average energy content of Whitehaven’s thermal coal was ~6077 kcal/kg NAR Percentage of thermal coal exports by quality1 – CY24 100% 90% H1 FY25 quality outcomes 80% kcal/kg NAR2 • Average energy content of Whitehaven’s 70% <5000 thermal production
Slide 39: Our coal is efficient when combusted
Our coal is efficient when combusted When combusted, more energy per metric tonne is generated than other thermal coals Comparative coal feed rates (%)1 • Required feed rates for all reference coals to deliver the same power output is higher than Whitehaven’s coal • Higher feed rates are required fo
Slide 40: Our coal is lower in emissions
Our coal is lower in emissions Demand for high quality, high CV, low ash coal remains strong Coal-fired power plants – GHG emissions per MWh sent out1 • Whitehaven’s thermal coal is used in high- efficiency, low emissions (HELE) electricity generation including Ultrasupercritical 42% (USC) power pla
Slide 41: Focused on Scope 1 and 2 emissions, TCFD and ASRS
Focused on Scope 1 and 2 emissions, TCFD reporting and ASRS standards1 Scope 1 emissions primarily from Narrabri fugitive emissions, Maules Creek diesel consumption, and Blackwater fugitive emissions and diesel consumption in FY24 Greenhouse gas emissions2 • Multiple fugitive emissions abatement pro
Slide 42: Scope 1 emissions by facility and source
55% of Whitehaven’s FY24 Scope 1 emissions were fugitive emissions, primarily from Narrabri and Blackwater Scope 1 emissions by facility1 Scope 1 emissions by source1 1,228 1,172 0.1% 17 11 - 43 54 73 28 910 190 k tonnes CO2-e 10 - 258 22 47 76 67 44% 55% 286 266 Diesel Fugitive consumption emission
Slide 43: Coal price charts
D7 Whitehaven Coal price charts
Slide 44: Metallurgical coal prices (US$/t)
Metallurgical coal prices (US$/t)1 Long term supply and demand dynamics continue to support stronger prices Metallurgical coal indices1 US$/tonne H1 FY25 700 Dec 24 Platts Index (average) (mthly index) US$/t 600 PLV HCC 206 200 500 LV PCI 166 148 400 SSCC 137 137 300 • Moderation of PLV HCC in H1 FY
Slide 45: Metallurgical coal price relativities
Metallurgical coal price relativities Price relativities will fluctuate over short time periods for multiple reasons, including index relativities to PLV HCC. Recent spreads have been wider than historical averages. Platts PLV HCC price relativities – monthly index Low Vol HCC %PLV Low Vol PCI %PLV
Slide 46: Demand growth for metallurgical coal underpinned by India
Demand growth for metallurgical coal is largely underpinned by India Asia seaborne demand for metallurgical coal1 M tonnes Recent Wood Mackenzie forecasts indicate: 350 • ~33% growth in demand for seaborne metallurgical coal into Asia by 2050, with India to grow ~140%1 Malaysia 300 • India will driv
Slide 47: Thermal coal prices (US$/t)
Thermal coal prices (US$/t)1 Outlook remains supported by structural HCV supply shortfall gC NEWC Index1 US$/tonne 500 450 • gC NEWC index averaged US$139/t 400 in H1 FY25 (US$127/t in Dec 24) 350 • Despite lower incremental demand, pricing remained resilient in H1 FY25 300 250 • Energy security con
Slide 48: Whitehaven
D7 Whitehaven ~