Total coal sales for the June quarter were 5.187Mt, up 22% on the previous corresponding period. Sales in the quarter comprised 21% metallurgical coal and 79% thermal coal.
Sales for FY2016 were 20.127Mt, 44% higher than the previous year and comprised 16% metallurgical coal and 84% thermal coal.
The proportion of metallurgical coal sales is expected to increase progressively over the next four years as its high quality Maules Creek semi-soft coking coal continues to gain market acceptance and term based contracts are concluded.
Whitehaven achieved an average price of $US63.20/t in the June quarter from sales of all metallurgical coal products.
The company expects pricing for metallurgical coal products in the September quarter 2016 to be in the range of $67/t to $72/t following the increase in quarterly benchmark prices. Recently concluded quarterly metallurgical coal price negotiations saw the price of hard coking coal for the September quarter increase by 10% to $92.50.
The GlobalCOAL NEWC Index price averaged $51.61/t for the June quarter. Sales of the high quality Maules Creek thermal coal achieved an average price of $56.15/t for the quarter representing a premium for quality and CV uplift of 8.8% on the Index price for the quarter.
Whitehaven expects to gradually increase this premium over time as demand for high quality thermal coal increases in the Asian region. An average price of $51.94/t was achieved for all Whitehaven thermal coal sales for the quarter.
Whitehaven has agreed a number of new supply contracts for both thermal and metallurgical coal with buyers of Maules Creek coal during the quarter.