Rain to help Whitehaven

DRENCHING rains in northern New South Wales could help alleviate problems Whitehaven Coal has been having with dust at its Maules Creek open cut coal mine, according to a research note by Morgans.
Rain to help Whitehaven Rain to help Whitehaven Rain to help Whitehaven Rain to help Whitehaven Rain to help Whitehaven

Rain clouds could offer relief from dust for Whitehavens's Maules Creek mine.

The note said Whitehave was also getting better than expected equipment utilisation at Maules Creek in recent weeks despite labour shortages.

"Softer 2Q output was in-line with Whitehaven's guidance downgraded on December 5 although key positives emerged," according to Morgans.

"The manning recovery plan [for recruiting 50-60 operators] is anecdotally exceeding initial targets.

"The disruption due to air quality [predominantly from dust] has also been less than that built into FY20 guidance.

"Forecast rain in the region this week can only assist in alleviating dust prone conditions."

Morgans said Whitehaven's second quarter thermal coal price realisation was affected by the Narrabri longwall changeover and a localised intrusion at the end of LW108.

"But the completed changeover and the zeroing out of stocks should see price realisations immediately revert from the 3Q," it said.