Whitehaven Coal sales plunged in the December quarter after a shortage of explosives hampered mining.
The miner on Wednesday reported total coal sales of almost 1.43 million tonnes (Mt) for the three months to December 31, down 22 per cent compared to the same period in 2010.
Whitehaven said a shortage of explosives due to the shutdown of Orica’s plant in Newcastle, NSW prevented it from mining ore bodies in the preferred sequence.
A shipment scheduled to load in late December did not load until this month and there was a minor impact from wet weather on its open cut mines, the company said in a statement.
“This doesn’t change the outlook for Whitehaven,” Morningstar senior resources analyst Gareth James said.
“Short-term issues like this don’t really have much meaning.”
Whitehaven said its new underground mine under development at Narrabri, in northwest NSW, continued to be hampered by a lack of skilled underground miners.
However, the capital cost estimate for the project of about $300 million remained unchanged.
The company had to buy 381,000 tonnes of coal from other suppliers during the December quarter to meet fixed price legacy contracts entered into in 2005/06, but these obligations will be fully met by the end of the current financial year.
Mr James said the market was squarely focused on whether Whitehaven’s proposed friendly tie-up with Nathan Tinkler’s Aston Resources would go ahead.
A scheme of arrangement booklet is slated for release next month.
Combined, the companies would form a $5 billion plus entity.
Whitehaven shares closed up 10 cents, or 1.84 per cent, at $5.53.