Whitehaven shares shrug off production downgrade

WHITEHAVEN Coal shares have shrugged off the company’s revised production guidance last Monday for its Narrabri longwall mine in New South Wales with its shares rising more than 7% since the announcement to $2.87 yesterday.
Whitehaven shares shrug off production downgrade Whitehaven shares shrug off production downgrade Whitehaven shares shrug off production downgrade Whitehaven shares shrug off production downgrade Whitehaven shares shrug off production downgrade

Lou Caruana

The company’s shares, which have soared by 400% in 12 months on the back of higher coking coal prices, continue to be a favourite because of good production figures from its Maules Creek open cut mine.

The company said in its revised guidance to the Australian Securities Exchange that the Narrabri mine was expected to produce between 7.5 million tonnes and 7.8Mt forecast instead of the 9Mt it had previously forecast for the 2016-17 financial year.

 

Whitehaven blamed adverse geotechnical conditions at the Narrabri longwall mine for the downgrade but said it remained on track to achieve its group 2017 saleable production guidance of 21Mt to 22Mt.