Whitehaven Coal (ASX:WHC) Builds Stockpiles as Port Outages Cut Sales Despite Higher September Quarter Output

Aditi Sarkar

23 October 2026 09:40 PM AEDT

Whitehaven Coal (ASX:WHC) Builds Stockpiles as Port Outages Cut Sales Despite Higher September Quarter Output

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Highlights

• Managed run-of-mine production reached 11.0 million tonnes in the September quarter, up 3% on the June quarter.

• Group average achieved price rose to A$226 per tonne, up 2% on the prior quarter and 20% year on year.

• Net debt stood at about A$1.4 billion, and the company bought back 1.8 million shares for A$14 million.

• Management kept FY27 guidance unchanged, with production of 38.0 to 41.0 million tonnes and capex of A$390 to 490 million.

Whitehaven Coal Limited (ASX:WHC) dug more coal than it could ship in the September 2026 quarter. Managed run-of-mine production rose to 11.0 million tonnes, yet equity sales of produced coal slipped 5% on the June quarter to 6.0 million tonnes after loading disruptions at the RG Tanna terminal and at Port Waratah Coal Services. Shares were trading at A$7.91 on 23 October 2026, up 3.40%.

Output Rises, Shipments Lag

The production gain was spread across both states. Queensland managed output came in at 5.5 million tonnes, down 4%, while New South Wales rose 10% to 5.5 million tonnes. Blackwater produced 4.1 million tonnes and Maules Creek 2.7 million.

Sales told a different story. Queensland equity sales fell 12% to 2.8 million tonnes, which the company attributed to 12 days of RG Tanna loading outages. New South Wales equity sales edged up 2% to 3.2 million tonnes. The gap showed up in inventory: managed stocks climbed 37% to 5.3 million tonnes, with Queensland closing stocks up 1.0 million tonnes to 3.1 million.

Prices Firm and Costs Hold

Pricing offered some offset. The group average achieved price reached A$226 per tonne. Queensland averaged A$257 per tonne, up 4%, and New South Wales A$198 per tonne, in line with the June quarter. The PLV HCC index averaged US$248 per tonne for the quarter, while gC NEWC averaged US$135 per tonne.

Unit costs excluding royalties tracked at the low end of the FY27 guidance range of A$132 to 147 per tonne. Diesel averaged about A$1.38 per litre, above the A$1.16 assumed at the guidance midpoint.

Debt, Buy-Backs and BMA Payments

Net debt was about A$1.4 billion at 30 September 2026, roughly A$0.1 billion higher than at June. The quarter included A$61 million of shareholder distributions, covering the FY26 final dividend and buy-back, and an A$84 million Year 2 contingent payment to BMA. The company reiterated a capital returns target of 40% to 60% of underlying group net profit after tax on a full-year basis.

The BMA acquisition payments still have a way to run. The year-to-date Year 3 contingent estimate is US$109 million, based on an average realised price of US$175.31 per tonne against a US$134 threshold, subject to third-party verification and capped at US$350 million for the year. A final deferred payment of US$100 million is due in April 2027, with a final contingent payment due in early July 2027.

Milestones Ahead

Management expects the sales slippage and elevated inventories to unwind in the December quarter, with RG Tanna now operating normally. The planned loader outage at Port Waratah Coal Services is on track to finish in November. The Gunnedah open cuts haulage approval rose to 4.1 million tonnes a year from 3.5 million in August, and the next Narrabri longwall move is expected to start in March 2027, taking about nine weeks.

On development, Vickery Extension has all required government approvals, but the full-scale project still awaits a board final investment decision. At Winchester South, a draft Environmental Authority has been approved, the federal environmental approval process is progressing and the Land Court judgment is reserved. The December quarter report is scheduled for 28 January 2027.

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