Australian (ASX) Stock Market Forum

WHC - Whitehaven Coal

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Rabbithop said:
Just like you WDS free carried from BHP. So hold both. If WDS hit 39 plus, I will exit. BHP..mmmm..will it hit that 50...maybe in my dream. Dream may come true too.
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am not sure i will EXIT , WDS but hold without having investment cash at risk ( i already held some WPL , pre-deal )

BHP i am ( very carefully )buying as a 'core holding ' ( if BHP implodes Australia is going to be a very dark place ) for example i would rather hold BHP than a gold ETF ( but will hold gold-producer stocks )

WHC my buy ( more ) price is about $1.50 , but i don't expect that anytime soon

am not planning to sell ( all ) of any of the three stocks
 
divs4ever said:
am not sure i will EXIT , WDS but hold without having investment cash at risk ( i already held some WPL , pre-deal )

BHP i am ( very carefully )buying as a 'core holding ' ( if BHP implodes Australia is going to be a very dark place ) for example i would rather hold BHP than a gold ETF ( but will hold gold-producer stocks )

WHC my buy ( more ) price is about $1.50 , but i don't expect that anytime soon

am not planning to sell ( all ) of any of the three stocks
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😁all these 3 stocks are on my list.
 
DJ Australia's Whitehaven Set to Buy Two BHP, Mitsubishi Coal Mines -- Update
BHP
up
$45.85
$0.28 (0.6%)$45.85$45.86
18 Oct 2023 11:20:30

By Rhiannon Hoyle

BHP Group, the world's biggest miner by market value, on Wednesday named Australia's Whitehaven Coal as the preferred bidder for two steelmaking coal mines it owns with Japan's Mitsubishi Corp.

Earlier this year, BHP said the joint venture was seeking a buyer for its Daunia and Blackwater mines in the Bowen Basin of Australia's coal-rich Queensland state. The BHP Mitsubishi Alliance, Australia's largest producer and exporter of metallurgical coal, is narrowing its focus on high-quality coal it expects steel mills will increasingly buy to help curb their carbon emissions.

"BHP confirms that Whitehaven Coal has been selected as the preferred bidder in the divestment process," the miner said in a quarterly production report on Wednesday. It didn't provide any further details on the bid or the timing of any deal, and a spokesman declined to comment.

Whitehaven requested trading in its shares stop until it makes an announcement on its bid for the mines.

The Blackwater and Daunia mines produce millions of metric tons each year of mostly metallurgical coal for steel that's shipped mainly to buyers across Asia. The Blackwater mine, opened in 1967, is one of the longest coal mines in the Southern Hemisphere.

The mines produce lower-quality coal than some of the joint venture's other operations, and BHP previously said those two mines would struggle to compete for future investment. "What we are doing here is further concentrating our portfolio on the best-of-the-best assets," BHP Chief Executive Mike Henry said in February.

BHP last year sold its controlling interest in two other mines to Stanmore Resources in a roughly $1.35 billion deal. It also sold a minority interest in a Colombian mine to Swiss commodities giant Glencore.

BHP sought to sell its last thermal-coal mine, the Mt. Arthur coal operation in Australia, but failed to secure a buyer. Last year, BHP said it would instead keep mining the pit for several years before closing it and beginning rehabilitation work.

The world's top miner has been pivoting toward commodities it expects to enjoy higher demand amid a global energy transition, especially industrial metals copper and nickel, and fertilizer ingredient potash.

BHP bought Australian copper miner OZ Minerals in May in what was its biggest acquisition in more than a decade. Before that, it struck a deal with Australia's Woodside Energy to offload its global petroleum business.

Still, coal remains an important money-spinner for the mining giant. BHP's coal interests contributed 18% of the group's underlying Ebitda in the year through June, with a margin of 46%.

BHP says it believes high-quality metallurgical coal will be needed to fuel blast furnaces in the steel industry for decades to come, underpinned by growth in steelmaking in countries such as India, which--unlike China--relies on imports of steelmaking coal.

"Higher quality coking coals are expected to be valued for their role in reducing the greenhouse gas emissions intensity of blast furnaces," BHP said in an earnings report in August.

On Wednesday, BHP reported a fall in output of metallurgical coal and steelmaking ingredient iron ore for the first quarter of its fiscal year, but said its copper production was sharply higher versus a year earlier. It said it is on track to meet fiscal-year production and cost estimates set for all its operations.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

October 17, 2023 20:20 ET (00:20 GMT)

i hold WHC ( 'free-carried' ) and BHP
 
BHP announces divestment of the Blackwater and Daunia BHP and Mitsubishi Development Pty Ltd (MDP) have signed Asset Sale Agreements to divest the Blackwater and Daunia mines, which are part of the BHP Mitsubishi Alliance (BMA) metallurgical coal joint venture in Queensland.

Each of BHP and MDP hold a 50% interest in BMA. Two wholly owned subsidiaries of Whitehaven Coal (Buyers) have agreed to acquire the Blackwater mine and Daunia mine respectively for cash consideration of up to US$4.1 billion.

Whitehaven Coal has guaranteed the obligations of each Buyer. The purchase price comprises US$2.1 billion cash on completion, US$1.1 billion in cash over 3 years after completion and the potential for up to US$0.9 billion in a price-linked earnout payable over 3 years.
Excluding the price-linked earnout, this represents an Enterprise Value/Reserves multiple of 12.8/t1 .

The sale is subject to the satisfaction of certain conditions, including competition and regulatory approvals.

The Buyers have agreed to pay a US$100 million deposit on signing which BHP and MDP are entitled to retain if the proposed divestment is terminated in certain limited circumstances.
Completion is expected to occur in the June 2024 quarter. The Buyers will assume economic and operating control of the Daunia and Blackwater mines on completion of the sale, including all current and future environmental liabilities and rehabilitation obligations.
BMA will continue to operate the assets until completion and work closely with the Buyers and Whitehaven Coal to ensure a successful transition of ownership.
BHP will support certain transitional services to the Buyers for a short period of time after completion.
BHP’s President Minerals Australia Geraldine Slattery said: “This transaction has delivered a good outcome for the BHP Mitsubishi Alliance, our workforce and the communities around the Blackwater and Daunia operations.
Whitehaven Coal has a strong track record as a responsible and reliable operator, and we will work closely with them to achieve a smooth change of ownership focused on maintaining safe and productive operations and supporting people and communities through the transition. In line with our long-term strategy, we will continue to develop our high-quality metallurgical coal assets in Queensland, which are sought after by global steelmakers and needed to support the energy transition.”

Net proceeds will be used to reduce the Group’s net debt.


i hold WHC ( 'free-carried' ) and BHP
 
divs4ever said:
i guess the days of buying WHC sub $1.60 are gone if this completes
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How can you get the above price when it's trading at this present moment, divs? And, if the data today out of China is accurate, won't they need more coal? The laggard, YAL made a move today too. It's done better in percentage terms compared to NHC
 
i was buying ( WHC ) in 2013 and 2020 , i don't mind waiting years for a target price

but maybe this time the WHC train has left the station

am trying ( not so successfully ) to bulk up on TER and already hold S32 and NHC

coal has been surprisingly good to me
 
Rabbithop said:
Me too. Hold BHP n WHC...now I wonder to Shareholders get a sm bite of the money or is the lump sum going to clear debts.
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i read 'reduce debt ' somewhere , near the end of a release

so the next question is does WHC need to raise any cash ( it should have some in the kitty )
 
Mentioned Jim, and the next thing, I saw this. (gotta log off, see you guys tomorrow)



News of the aid package came on the same day that House Republicans almost selected far-right member Jim Jordan, who has opposed Ukraine aid, to be Speaker of the House. Jordan, a confidante of Donald Trump who supported his effort to overturn the 2020 election, lost as 20 GOP holdouts withheld support on an initial ballot Tuesday. Republicans later postponed any more speaker votes until Wednesday, a possible sign that Jordan wasn’t able to demonstrate momentum. The House has been paralyzed since the Oct. 3 ouster of Speaker Kevin McCarthy and unable to address an impending government shutdown.

There’s bad news for storied Wall Street giant Goldman Sachs—not to mention its chief executive, David Solomon. The firm posted a second straight quarter of real estate writedowns and a continued dealmaking slump, leaving the firm’s profitability at about half of what it had hoped for. Solomon has been struggling to revive the bank’s stock after retreating from its consumer-banking endeavors and refocusing on core business lines. While the CEO got a nod of support from the board’s lead director last month, he’s been the focus of dissatisfaction among employees for much of the last year. And last month, the firm gutted the leadership ranks of its transaction-banking business over compliance lapses. It was another black eye for one of the firm’s newer forays. Meanwhile, Solomon has decided to forego one of his hobbies and no longer DJ at high-profile public events—a highly visible off-hours persona that drew unwanted scrutiny.
 
Rabbithop said:
A question for you, divs, eskys n row...if WHC comes back down to $6 plus, wld u pick up more?
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i would have to see the figures for the enlarged company . remember although it will operate the new mines , it is only the 50% owner of the new mines , whilst also acquiring the liabilities of the new mines ( remediation and stuff )

my first instinct ( without having numbers to crunch ) is NO , somewhere much closer to $2 , because the Greens have a passion with attacking WHC ( which has allowed me to buy very cheap in the past )
 
I
divs4ever said:
i would have to see the figures for the enlarged company . remember although it will operate the new mines , it is only the 50% owner of the new mines , whilst also acquiring the liabilities of the new mines ( remediation and stuff )

my first instinct ( without having numbers to crunch ) is NO , somewhere much closer to $2 , because the Greens have a passion with attacking WHC ( which has allowed me to buy very cheap in the past )
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I will hold what I have n watch how high it will go before taking my next step n I don't think it will be down to 2 bucks, maybe when I am long gone 🤫
 
Rabbithop said:
I

I will hold what I have n watch how high it will go before taking my next step n I don't think it will be down to 2 bucks, maybe when I am long gone 🤫
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never underestimate the lunacy of the climate activists ( and friends ) they have been profitably disruptive for me ( maybe it will happen again )

i still hold some and have recovered the investment cash ( more than ) twice over

with no investment cash at risk i can watch and wait painlessly ( or crystallize the remaining profits )
 

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