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Whitehaven Coal revises production guidance for Narrabri longwall operations

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World Coal,

Whitehaven Coal Ltd has issued a revised production guidance for its Narrabri longwall operation, but remains on track to achieve its group 2017 saleable production guidance of 21 million – 22 million t.

New full-year ROM coal guidance for Narrabri is in the range of 7.5 million – 7.8 million t. Whitehaven last issued production guidance for Narrabri at the FY2016 results in August 2016.

The revised guidance arises from production impacts associated with safely managing a discrete area of adverse geotechnical conditions at the mine.

Mining in panel LW06 at Narrabri is expected to be completed in early March with production scheduled to commence in LW07 panel (the first 400 m wide panel) early in the June quarter.

Notwithstanding this revision and production impacts caused by wet weather earlier in the year, Whitehaven remains on target to achieve its FY2017 saleable production guidance range.

Further, the company reported, metallurgical coal sales in the December quarter were 22% of total sales compared to 16% in the September quarter. Sales of metallurgical coal in the second half of the year are forecast to grow to 26% of total group sales consistent with the target of achieving 35% of total group sales when Maules Creek reaches full capacity.

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