MS says visit to Aussie Whitehaven Coal's Queensland mines reinforces rating

Whitehaven Coal

06/06/2025 24:18

** Morgan Stanley says Whitehaven Coal's WHC.AX Daunia and Blackwater site visits in Queensland showcased strong ops, with operational improvements and cost savings

** Brokerage says A$100 million ($65.10 million) annualised cost savings across Queensland assets by FY25 are on track, with potential for further reductions, mainly at Blackwater

** Says ~15 million metric tons per annum (tpa) production at Blackwater is achievable by FY27, driven by pre-stripping investments

** Daunia/Winchester South integration is unlikely before several years, with approvals expected to take ~2 years — MS

** Adds, co is well-positioned for a weak coal price scenario due to recent cost-cutting and deleveraging efforts

** Reaffirms "overweight" rating at price target of A$6.20/shr

** Stock down 9.8% YTD

($1 = 1.5361 Australian dollars)

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk))