Key Highlights

• Whitehaven reported managed run-of-mine (ROM) coal production of 11.0 million tonnes for the quarter, up 3 per cent on the June 2026 quarter and 22 per cent on the September 2025 quarter.

• By revenue, 57 per cent of sales in the quarter were metallurgical and 43 per cent thermal.

• Unit costs, excluding royalties, were at the low end of the FY2027 guidance range of A$132 to A$147 per tonne.

• Net Debt was about A$1.4 billion at 30 September 2026, up about A$0.1 billion.

What does it mean when a coal miner lifts production encouragingly but sells less than it did the previous quarter? For Whitehaven Coal (ASX:WHC), the September 2026 quarter, reported on 23 October 2026, shows managed run-of-mine production of 11.0 million tonnes while Equity sales of produced coal fell 5 per cent, with port disruptions and rising stockpiles explaining much of the gap. The company left its FY2027 guidance unchanged.

The central development: production up, sales held back

Whitehaven reported managed run-of-mine (ROM) coal production of 11.0 million tonnes for the quarter, up 3 per cent on the June 2026 quarter and 22 per cent on the September 2025 quarter. Managed saleable production was 8.5 million tonnes, up 5 per cent on the prior quarter. Equity sales of produced coal were 6.0 million tonnes, down 5 per cent quarter on quarter.

The difference showed up in inventory. Closing managed stocks were 5.3 million tonnes, up 37 per cent, and equity stocks were 4.1 million tonnes, up 34 per cent. In Queensland, the report cites 12 days of planned and unplanned loading outages at the RG Tanna terminal, while New South Wales saw planned and unplanned loader outages at PWCS. Stockpiled coal is not Revenue until it ships, so the pace of drawdown matters for the December quarter.

Business model and revenue drivers

Whitehaven operates mines in Queensland and New South Wales and sells both metallurgical coal, used in steelmaking, and thermal coal, used for power. By revenue, 57 per cent of sales in the quarter were metallurgical and 43 per cent thermal. That mix matters because the two coal types are priced off different benchmarks and respond to different Demand drivers.

The average achieved price was A$226 per tonne, up 2 per cent on the June quarter and 20 per cent on a year earlier. Queensland averaged A$257 per tonne and New South Wales A$198 per tonne. In Queensland, metallurgical coal realised 74 per cent of the premium low-volatility hard coking coal benchmark over the previous 12 months, with the quarter's benchmark averaging US$184 per tonne. In New South Wales, thermal coal realised 103 per cent of the gC NEWC benchmark, which averaged US$140 per tonne.

Costs and operating performance

Unit costs, excluding royalties, were at the low end of the FY2027 guidance range of A$132 to A$147 per tonne. The rolling total recordable injury frequency rate for the group was 7.4, a safety measure the report presents alongside operating results. Royalties were about A$27 per tonne, equal to about 12 per cent of price. Diesel averaged about A$1.38 per litre against about A$1.16 per litre assumed in guidance.

By region, Queensland ROM production was 5.5 million tonnes, down 4 per cent, with equity sales down 12 per cent to 2.8 million tonnes. New South Wales ROM production was 5.5 million tonnes, up 10 per cent, with equity sales up 2 per cent to 3.2 million tonnes.

Guidance and balance sheet

FY2027 guidance is unchanged: managed ROM production of 38.0 to 41.0 million tonnes, managed coal sales of 30.4 to 33.0 million tonnes, equity sales of 23.9 to 26.0 million tonnes, and Capital Expenditure of A$390 million to A$490 million.

Net debt was about A$1.4 billion at 30 September 2026, up about A$0.1 billion. Shareholder distributions in the quarter were A$61 million for the FY2026 final Dividend and buy-back, including 1.8 million shares repurchased for A$14 million.

The report also lists payments to BMA. A second-year contingent payment of A$84 million (US$58 million) was made on 2 July 2026. A final deferred payment of US$100 million is due in April 2027, and a final contingent payment in July 2027.

Projects and approvals

At the Vickery Extension, all government approvals have been received, and a final Investment decision remains subject to board approval. At Winchester South, a draft environmental authority has been approved, but objections have been referred to the Land Court, where judgment is reserved.

Sector and competitive position

Whitehaven competes with other Australian coal exporters and depends on shared rail and port infrastructure. The outages at RG Tanna and PWCS illustrate that the group does not control its logistics chain.

Risks and developments to monitor

The main risks are coal price volatility, logistics disruptions, cost Inflation from diesel, weather, and regulatory or approval outcomes. Inventory is a further risk: stocks 34 to 37 per cent higher than the previous quarter can be a positive if shipped promptly, but could pressure Cash Flow if disruptions persist.

Dates and items to watch include the December quarter production report, scheduled for 28 January 2027, the pace of stock drawdown, diesel prices against the guidance assumption, the Land Court judgment on Winchester South, any board decision on Vickery, and the April and July 2027 payments to BMA.