Share to buy – Whitehaven Coal (WHC)
Posted on April 15, 2016
Until recently, we’ve viewed a lack of market confidence as mis-pricing WHC.
Over the journey, the company has maintained an earnings margin average of $13/t but it appears the market has been factoring in the future coal price and giving management little benefit for being able to sustain its margins, despite its track record.
The risk lies with the thermal coal price outlook and whether China continues to retreat from the trade.
Today the company announced record high ROM coal production of 5.7Mt for the March quarter, up 21% compared with the previous corresponding period and 44% YTD.
The company also recorded its highest quarterly saleable coal production of 5.3 Mt for March, up 28% compared to a year earlier, and 48% YTD.
Whitehaven Coal says that it is on track to meet FY2016 guidance for saleable coal to be in the range of 19.5 Mt to 20.1 Mt.
The miner says that costs guidance for the full year FY2016 is now expected to be $57/t.
We think momentum can now build in the stock and are prepared to be buyers..
VIEW SHARE MARKET RECOMMENDATIONS BY CATEGORYASX Blue Chip Shares asx health shares ASX Small Caps ASX Speculative Shares ASX Top 200 XJO ASX Top 500 All Ordinaries Australia Shares Best Shares Consumer Discretionary Stocks Consumer Staple Stocks Energy Stocks, News & Tips on the ASX Financial News Financial Stocks General Global Stock Markets News Gold Stocks Australia Health Care Stocks Hot Stock Picks Hot Stocks Industrials Stocks IT Stocks Market Sectors News Materials Stocks Mining Shares S&P ASX News Sell Shares Shares To Buy Stock of the Week Stock Trading Recommendations Stocks Investing Advice Telecommunications Stocks Top Stocks Utilities Stocks watch Watch Stocks
Access our investment insights free
Not understanding the financials of even big blue chips can cost you precious income such as when Telstra reduced their dividends.
This is why our hugely popular Income report has become a must read report for all income investors
Download the Income Report for free to get the top ASX Dividend Stock Recommendations for 2018.