Damage to a shiploader at Newcastle’s port amid floods in NSW has affected the company’s operations. The top end of guidance is now downgraded. Managed ROM coal production guidance has tightened to 21.4-22.0mt.
A slower ramping up at Narrabri is also expected. Macquarie remains cautious about thermal coal markets but believes there is upside at spot prices. The broker envisages the earnings loss will narrow materially in FY21. Neutral rating and $1.70 target retained.
Target price is $1.70.Current Price is $1.74. Difference: ($0.04) – (brackets indicate current price is over target). If WHC meets the Macquarie target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).