Whitehaven Coal (WHC) is an Australia-based company engaged in the production of coal and focused on the development and operation of coal mines in New South Wales and Queensland. Established in 1999, mining operations commenced at the Canyon open cut mine near Gunnedah [1], NSW, in September 2000. Further mines were established at Werris Creek [2] and Tarrawonga before the company listed on the Australian Securities Exchange [3] in June 2007. WHC has 2,500 employees. Raymond Chan thinks the company is a buy.
“Our analyst has upgraded thermal coal price assumptions, including a lift in our long-term price to US$80/t,” Raymond said.
“Our base case valuation lifts to $5.10.
“Physical market feedback suggests ongoing coal price strength above consensus forecasts.
“Our valuation in a bullish pricing scenario is $6.53.” Raymond said.
Whitehaven Coal Limited (WHC)
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