Whitehaven Coal: M&A conundrum continues

About the author:

Author name:

By Tom Sartor

Job title:

Senior Analyst

Date posted:

25 August 2023, 6:30 AM

Sectors Covered:

Junior (Emerging) Resources, Bulk Materials

• Whitehaven Coal's (ASX:WHC) key FY23 financials were in line due to quarterly reporting.
• The bigger-than-expected final dividend strongly surprised both us and the market.
• The dividend, but then suspension of the buyback, and WHC’s inability to comment, means it’s hard to get a read on its approach to the BHP asset sales.
• We think WHC is the front-runner for the BHP asset if it chooses. However we advocate a portfolio approach to coal sector investing while M&A uncertainty – with potentially binary short-term share price outcomes for WHC – plays out.

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