Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Investor Presentation (April 2025)
22 slides from Whitehaven Coal's investor presentation, Apr 4, 2025
Slide 1: Q&A session with sell-side analysts
Q&A session with sell-side analysts 4 April 2025 Authorised for release by the CEO & Managing Director 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. Price realisations Disclaimer 2. Recap of accounting related topics This presentation contains information in a summary COMPETENT PERSONS STATEMENT form and does not purport to be complete. It is This document contains estimates of Whitehaven Coal's Coal qualified by any other informatio
Slide 3: 1. Price realisations
D7 Whitehaven 1. Price realisations
Slide 4: QLD price realisations
QLD price realisations Recap: Acquisition announcement (Oct-23) provided Do not expect 78-82% price realisations every quarter – FY19-FY23 average historical mix and realisations there will be volatility for a range of reasons, including: Daunia • Spreads of index relativities of SSCC/ PCI and LV HC
Slide 5: Index relativities impacts realisations
Index relativities impacts realisations Scenarios 1-3 show sensitivities to index spreads (i.e. PCI and SSCC index relativities) versus PLV HCC relative to the reported average 5-year outcome FY19-FY23 provided in the acquisition pack Ave 5-year outcome Scenario 1: Scenario 2: Scenario 3: FY19-FY23
Slide 6: Sales mix and falling / rising markets impact realisations
Sales mix and falling / rising markets impact realisations Scenarios 4 & 5 show sensitivities to sales mix changes, Scenarios 6 & 7 show sensitivities to rising / falling PLV HCC relative to the reported average 5-year outcome FY19-FY23 index and lag effects of pricing off a previous quarter, provid
Slide 7: Focus should be on longer-term realisations and product splits
Focus should be on longer-term realisations and product splits • Quarterly price realisations and product splits are not a good measure of performance ‒ we do not give quarterly price realisation or sales mix guidance Dec 24 Sep 24 Jun 24 Mar 24 Dec 23 Sep 23 FY25 YTD ‒ no management KPIs for quarte
Slide 8: 2. Recap of accounting related topics
2. Recap of accounting related topics • Deferred & contingent considerations • Net finance expenses • Depreciation & amortisation • Transaction & transition costs • 30% sell down of Blackwater • Rehab treatment • Tax • Leases 8
Slide 9: Deferred and contingent considerations
Deferred and contingent considerations Deferred payments: ACCOUNTING TREATMENT • Year 1: US$500m payable on 2 April 2025 • Estimated provision for deferred & contingent payables included on the balance • Year 2: US$500m payable on 2 April 2026 sheet under current and non-current liabilities • Year 3
Slide 10: Net finance expenses
Net finance expenses FY25 indicative guidance1 H1 FY25 Comments GROUP NSW QLD • Includes interest on 5-year US$1.1b term loan, fees on undrawn facilities & Net interest expense ~$250m $111m Cash item bank guarantees, and leasing expenses Unwinding of discounts on provisions ~$60m ~$10m ~$50m $27m •
Slide 11: Depreciation & amortisation
Depreciation & amortisation FY25 indicative guidance1 GROUP NSW QLD H1 FY25 Comments • Tracking broadly in line with indicative guidance for FY251 • 30% sell down of Blackwater will reduce D&A Depreciation & amortisation ~$750m ~$250m ~$500m $340m by ~$20m for Q4 FY25 • Depreciation allocated to clo
Slide 12: Other accounting issues
Other accounting issues TRANSACTION & TRANSITION COSTS TAX LEASES • In H1 FY25 $32m pre-tax | $22m post- • Assume 30% effective tax rate on • Total leases profile includes traditional tax on IT systems, QLD restructuring operating results finance leases and leases recognised and integration costs an
Slide 13: 3. Appendix
D7 Whitehaven 3. Appendix
Slide 14: Metallurgical coal price relativities
Metallurgical coal price relativities Price relativities will fluctuate over short periods for multiple reasons. Recent spreads have been wider than historical averages. Platts PLV HCC price relativities – monthly index PLV HCC LV HCC %PLV LV PCI %PLV SSCC %PLV US$/tonne 100% 700 90% 600 80% 70% 500
Slide 15: Structural supply gaps are expected for both 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 16: Demand growth for metallurgical coal is largely 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 17: Global energy markets are undergoing a period of change
Global energy markets are undergoing a period of change The switching price of gas to coal has been over US$150/t for most of the past year 17
Slide 18: Coal remains cheaper for power generation in Japan and more broadly across Asia
Coal remains cheaper for power generation in Japan and more broadly across Asia 18
Slide 19: 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 20: 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 21: 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 22: whitehavencoal.com.au
BF Whitehaven whitehavencoal.com.au