By FY27 Whitehaven Coal expects to be producing more than 35mtpa of saleable coal through the Vickery and Winchester South projects. Currently production is 20-21mt.
UBS believes unit costs, guided to $70/t in FY20, could be down around -10% on initiatives such as autonomous trucks and in-pit dumping at Maules Creek and percent Narrabri South along with the Tarrawonga integration into Vickery.
The company will host its inaugural investor briefing on September 12. UBS maintains a Buy rating and reduces the target to $4.00 from $4.30.
Target price is $4.00.Current Price is $3.20. Difference: $0.80 – (brackets indicate current price is over target). If WHC meets the UBS target it will return approximately 20% (excluding dividends, fees, and charges – negative figures indicate an expected loss).