Prices were mixed for these 2 ASX coal shares today as coal mining returned to full operations after the New South Wales floods.
The post ASX coal shares mixed as operations resume after flooding appeared first on The Motley Fool Australia. –
At the close of trade today, shares in Whitehaven were down 1.41%, trading at $1.75, while Yancoal shares finished the day up 2.24% at $2.28.
NSW flooding subsides, mining resumes
Unprecedented flooding in NSW impacted mining operations throughout the state earlier this week.
According to the Australian Financial Review (AFR), rail lines in the Hunter were shut down, vessel movements out of the Port of Newcastle slowed, and operations were suspended at both Yancoal and Glencore PLC.
The Australian Rail Track Corporation (ARTC), which manages interstate railways, said on Wednesday it would resume “limited” rail operations in the Hunter Valley, between Newcastle and Maitland.
The government body said coal services “resumed in a limited capacity” following minor restoration works after floodwaters receded at Sandgate. The network between Narrabri North and Moree remained closed due to continued flooding in the north-west of the Hunter Valley Network.
Let’s take a look at how the 2 ASX coal shares fared as floodwaters recede and mining operations resume.
Based in the Gunnedah Basin, Whitehaven relies on rail to freight its product to the Port of Newcastle.
While spared the massive downpours, the Gunnedah area faced disruptions as it was cut off from the Hunter Region floodwaters. The miner advised 3 days ago that its operations at mining sites, as well as at the Port of Newcastle, were hampered by the flooding.
When Motley Fool Australia reached for comment, a Whitehaven spokesperson advised there were no further updates regarding its operations.
Operating within the Hunter region, Yancoal advised today that production was resuming.
A company spokesperson told Motley Fool:
Production has now resumed at Yancoal’s open-cut MTW and Stratford/Duralie operations in the Hunter Valley region, following the recent heavy rainfall event. Further operational details will be provided in the 1Q 2021 production report, which will be released before the end of April.
ASX coal shares price snapshot
Both the Whitehaven and Yancoal share prices have surged over the last 6 months. Each company increasing value by 67.77% and 17.99%, respectively.
The recent rise in each companies’ share price is being attributed to the rise in coal price. Presently, coal is trading for US $92.22 a tonne, 53.37% higher than 6 months previously.
Whitehaven’s market capitalisation is $1.8 billion, while Yancoal’s is $2.9 billion.
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Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post ASX coal shares mixed as operations resume after flooding appeared first on The Motley Fool Australia.