Whitehaven Coal’s March quarter performance disappointed Credit Suisse with solid output at the open-cut mines undone by problems at Narrabri mine that led to outages for four weeks in the half.
The miner has cut its FY21 production and sales estimates yet again by -0.6-0.8mt for Narrabri. Also, the issues there eliminated cash generation in the quarter with no reduction in the net debt to date.
The broker expected net debt to halve by the end of FY22 but sees that delayed by over two years now.
Credit Suisse downgrades to Neutral from Outperform with the target price dropping to $1.55 from $1.95.
Target price is $1.55.Current Price is $1.56. Difference: ($0.01) – (brackets indicate current price is over target). If WHC meets the Credit Suisse target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).