Australia’s coal company Whitehaven Coal beats estimates on mining, stocks grew.

Coal mining company Whitehaven Coal increased its production in 29% during its second quarter, and exceeded market predictions. In second half of 2020, the company will have to deal with pressure on coal price due to globally lower demand for the commodity caused by the coronavirus pandemic.


Whitehaven Coal produced 6.2 million tons of coal in second quarter of 2020 compared to output of 4.8 million produced during the same period in 2019. According to Shaw and Partners analysts, numbers show that the company managed to deal with a trend which “was a very awkward couple of quarters.” However, the firm still has to face uncertainty, especially in case of import from China

A lower demand caused by the pandemic also led to lower coal market price, which will endanger Whitehaven Coal in second quarter. While a ton of heating coal cost $84 on global markets last year, the price dropped below $60 in 2020. 

Once the results were published, Whitehaven Coal stocks grew in more than 13% in the beginning of the week. Tuesday trading caused a slight decline, yet still remained almost 5% over final price from the end of last week.



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