Whitehaven Coal (ASX:WHC) share price hits 52-week highs. Here’s why

Coal remains Australia’s number 2 export earner…
The post Whitehaven Coal (ASX:WHC) share price hits 52-week highs. Here’s why appeared first on The Motley Fool Australia. –

The Whitehaven Coal Ltd (ASX: WHC) share price is up 3.5% at the time of writing. That puts the coal miner’s shares at 52-week highs.

In fact, you’d need to go back to 29 November 2019 to find the Whitehaven share price above the current $2.97.

Clearly, ASX investors aren’t concerned about the United Nation’s latest proposal to phase out all Australian coal production within 10 years.

What’s driving the run to 52-week highs?

The Whitehaven Coal share price has enjoyed a healthy tailwind over the past calendar year from rising coal prices.

Premium hard coking coal prices in China, the world’s biggest coal consumer, surged again this month, up US$9.18 per tonne to reach US$431.03 per tonne.

The ASX coal producer also received a big boost in May, when it won a legal battle against Environment Minister Susan Ley. Ley had been attempting to block approval for Whitehaven’s Vickery Extension Project, which will expand the company’s Vickery Coal Project.

That project has the potential to produce some 10 million tonnes of mostly coking coal per year. The high-quality coal produces lower levels of CO2 emissions than lower thermal varieties.

The Whitehaven Coal share price also kept charging higher following the release of some mixed results for FY21. Shares are up 27% since the company released those results on 26 August.

Despite revenue and profits falling year-on-year, investors picked up on the one-off asset impairment related $650 million of significant expenses dragging on the overall numbers.

Whitehaven’s CEO Paul Flynn also offered this positive outlook with the release of the company’s FY21 results:

Today, the outlook is better than we have seen for some time, with the strong price environment putting us on an accelerated timeline to de-leveraging the balance sheet and returning cash to shareholders.

Whitehaven Coal share price snapshot

Now at 52-week highs, Whitehaven shares are up 248% since this time last year. By comparison, the S&P/ASX 200 Index (ASX: XJO) is up 26% over 12 months.

Whitehaven Coal pays a 0.8% dividend yield, unfranked.

The post Whitehaven Coal (ASX:WHC) share price hits 52-week highs. Here’s why appeared first on The Motley Fool Australia.

Should you invest $1,000 in Whitehaven Coal right now?

Before you consider Whitehaven Coal, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Whitehaven Coal wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

ASX 200 energy shares in firing line of United Nations’ climate action

ASX 200 Weekly Wrap: ASX puts earnings season to bed with another rise

2 ASX shares you missed that had cracking results

These were the best performing ASX 200 shares last week

Here are the 3 most traded ASX 200 shares on Thursday

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!