Whitehaven Coal: M&A conundrum continues

About the author:

Tom Sartor
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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