Fund Manager Summary
The fund managers believe that the outlook for Whitehaven Coal Ltd is promising, particularly following its strategic acquisition of the Daunia and Blackwater metallurgical coal mines from BHP. In their opinion, this acquisition positions the company to derive approximately 70% of its revenue from metallurgical coal and 30% from thermal coal. They see this shift as well-timed, given the recent trends in coal pricing; while thermal coal prices have declined, metallurgical coal prices have risen. This transition is expected to bolster Whitehaven's revenue stability and growth potential, making it an attractive investment opportunity.
Source: Trading View
Commentary From The Managers
Subscribe To Unlock
Date
Price
Summary
Unlock Recent Updates With ThesisTracker Pro
Don’t let information asymmetry undermine your investment returns. Join other engaged investors on ThesisTracker Pro.
Atlas Funds Management
31 July 2025
$6.44
Summary
- Whitehaven Coal Ltd has shown a positive production update, reflecting strong operational performance.
- Atlas Funds Management notes management's emphasis on operational excellence in their met coal mines.
- The focus on cost reduction has been a key driver of performance.
- Atlas Funds Management continues to hold because of the company's strategic direction and operational improvements.
- Investors should consider the ongoing commitment to enhancing productivity and efficiency.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Updates are made available to members within 12 hours in accordance with the ThesisTracker Pro Service Level Agreement.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Atlas Funds Management
31 July 2025
$6.44
- Whitehaven Coal Ltd has shown a positive production update, reflecting strong operational performance.
- Atlas Funds Management notes management's emphasis on operational excellence in their met coal mines.
- The focus on cost reduction has been a key driver of performance.
- Atlas Funds Management continues to hold because of the company's strategic direction and operational improvements.
- Investors should consider the ongoing commitment to enhancing productivity and efficiency.
Summary
Blackwattle Investment Partners
31 July 2025
$6.44
- WHC was one of the largest positive contributors to performance during the month.
- WHC rallied 19% in July as part of a broad rally in mining stocks due to Chinese supply side reforms.
- WHC delivered another strong quarterly production result in July, meeting the upper end of production guidance and lower end of cost guidance for FY25.
- Blackwattle Investment Partners attended the WHC site visit of the recently acquired Queensland metallurgical coal mines in June, highlighting the scale, quality, and productivity potential of the mines.
- There is material long-term upside for WHC as an 'improving / enduring quality' business.
- WHC is viewed as one of the highest quality mining companies on the ASX, with strong financials and a capable management team.
- Despite recent volatility in coal prices, longer-term supply/demand dynamics remain favourable.
- WHC continues to generate free cash flow at current coal prices while maintaining a net cash balance sheet.
- Blackwattle Investment Partners backs WHC to execute on multi-year internal levers to enhance business quality beyond commodity prices.
- Key internal levers include cost reduction, production improvement, paydown of deferred BHP acquisition payments, Vickery expansion & sell down, Daunia/Winchester South expansion & sell down, and further disciplined capital management.
Summary
Perpetual Asset Management
31 July 2025
$6.44
- Whitehaven Coal demonstrated strong performance in July following a positive quarterly update.
- Production volumes reached the upper end of guidance, with unit costs better than expected.
- The management's ability to optimise performance was evident amid subdued thermal and metallurgical coal pricing.
- Successful integration of Queensland coal assets acquired from BHP exceeded original production targets.
- Operational transitions and weather disruptions were effectively managed, validating the quality of acquired assets.
- Despite global coal market pressures from trade uncertainties and softening Chinese demand, strategic inventory build during the quarter was noted.
- This inventory strategy positions Whitehaven to capitalise on potential future price recoveries.
- The investment case focuses on ongoing improvements in mining productivity and volumes.
- Potential for significant free cash generation exists in a better pricing environment.
- Given the constrained supply outlook for thermal and metallurgical coal, commodities may respond positively to any global supply outages or demand improvements.
Summary
Blackwattle Investment Partners
30 Apr 2025
$4.99
- WHC was one of the largest negative contributors to performance during the month.
- WHC fell 9% in April amid a broad sell-off in mining stocks.
- Concerns over a trade war impacting the Chinese economy increased during April.
- Commodity prices were generally soft, with thermal coal falling 9%.
- WHC has greater exposure to metallurgical coal, which rallied 13% in April.
- WHC delivered solid quarterly production at the end of April, offsetting some underperformance.
- WHC is tracking at the upper end of production guidance and lower end of cost guidance for FY25.
- Blackwattle Investment Partners continues to see material long-term upside for WHC as an ‘improving / enduring quality’ business.
- WHC is viewed as one of the highest quality mining companies on the ASX.
- Strong financials and a capital disciplined management team support WHC's position.
- While coal prices have been volatile, long-term supply/demand dynamics remain favorable.
- WHC continues to generate free cash flow at current coal prices with a net cash balance sheet.
- Blackwattle backs WHC to execute on multi-year internal levers for business quality improvement.
- Key initiatives include cost reduction, production improvement, paydown of deferred BHP acquisition payments, Vickery expansion, and disciplined capital management.
Summary
Blackwattle Investment Partners
30 Sept 2024
$7.22
- WHC was the largest positive contributor to performance during the month.
- WHC rallied 10% in September on improving China sentiment and rebounding metallurgical coal prices.
- WHC is an Australian coal producer with thermal coal mines in NSW and recently acquired metallurgical coal mines in QLD.
- Blackwattle Investment Partners views WHC as one of the highest quality mining companies on the ASX, with strong financials and a capital disciplined management team.
- Our conviction in the material long-term upside for WHC as an ‘improving / enduring quality’ business has allowed us to invest confidently through the recent market volatility.
- We expect more market volatility as China may require more stimulus to offset structural issues.
- However, WHC has numerous multiyear internal levers to maintain and improve the business quality beyond cyclical commodity price movements.
- These levers include: cost reduction and production improvement in the acquired metallurgical coal mines, paydown of the deferred BHP acquisition payments, Vickery expansion & selldown, Daunia/Winchester South expansion & selldown, and further disciplined capital management.
Summary
Blackwattle Investment Partners
31 Aug 2024
$6.72
- WHC was the largest negative contributor to performance during the month.
- WHC fell 13% in August on weakening metallurgical coal prices.
- WHC is an Australian coal producer with thermal coal mines in NSW and recently acquired metallurgical coal mines in QLD.
- WHC delivered a strong FY24 result, but announced the sell-down of 30% of Blackwater Coal mine at a significant premium to original price.
- This sell-down puts WHC in a net cash position, reducing downside risk.
- China’s weakening property market is pressuring steel consumption, impacting metallurgical coal.
- Metallurgical coal prices remain healthy compared to historical prices due to tight supply.
- Blackwattle Investment Partners continues to see long-term upside for WHC as a quality business.
- WHC considered one of the highest quality mining companies on the ASX with strong financials.
- Expect WHC to execute on internal levers for improvement including cost reduction and production increases.
- Focus on paydown of deferred BHP acquisition payments and expansions (Vickery, Daunia/Winchester South).
- Blackwattle Investment Partners views WHC as maintaining disciplined capital management.
Summary
Katana Asset Management
21 May 2024
$7.75
- Katana Asset Management highlights the acquisition of two high-quality metallurgical coal assets—Blackwater and Daunia—from BMA.
- This acquisition doubles production and triples revenue without issuing new shares.
- The revenue mix shifts towards ~70% metallurgical coal, which has higher prices and stronger long-term demand.
- The deal was funded through existing cash, manageable debt, and vendor financing, reinforcing disciplined capital management.
- Katana notes the potential upside from a partial asset sell-down, such as 20% of Blackwater, which could unlock capital for dividends or buybacks.
- Despite strong earnings, the stock trades at a deep discount of around 4.7x P/E versus 20x for the ASX 200.
- Concerns over thermal coal and ESG have overly depressed sentiment towards Whitehaven.
- Whitehaven’s diversified mix, strong balance sheet, and strategic positioning provide resilience and growth.
- Regulatory barriers to new coal developments in Australia create a supply-side economic moat.
- Global demand for coal, particularly metallurgical coal, is rising, which Katana believes the market is failing to recognize.
- A normalization of valuation multiples could drive significant upside in Whitehaven’s share price.
Summary
Clime Investment Management
30 Apr 2024
$7.72
- Clime Investment Management has initiated a position in Whitehaven Coal Ltd (WHC).
- WHC has completed a transformational acquisition of the Blackwater and Daunia mines from BHP.
- The increased exposure to metallurgical coal is viewed as a positive development.
- This acquisition presents a growth and synergy rich opportunity for WHC.
- WHC continues to trade at an attractive valuation.
- There are opportunities for continued industry consolidation to support the company's strong production growth.
Summary
Contract Asset Management
30 Apr 2024
$7.72
- Contract Asset Management continues to hold Whitehaven Coal (WHC) due to its recent acquisition of BHP’s Queensland assets.
- The acquisition has resulted in a significantly improved scale and product diversification for WHC.
- Despite recent volatility in coal prices, there has been a normalisation in prices that allows the company to generate solid margins and cash flows.
- A potential near-term positive catalyst includes a partial selldown of the Blackwater mine, which could help reduce some of the debt load.
Summary
Cadence Capital
30 Apr 2024
$7.72
- Cadence Capital provides an update on their investment thesis in Whitehaven Coal Ltd.
- During the month, Whitehaven Coal completed the acquisition of the Daunia and Blackwater metallurgical coal mines.
- This acquisition will transform Whitehaven from producing predominantly thermal coal to producing both thermal and metallurgical coal.
- Post-acquisition, 70% of Whitehaven's revenue is expected to come from metallurgical coal.
- Whitehaven Coal is currently trading on a PE of 9, annualizing their first half profit.
- The current PE does not include the substantial earnings accretion from the acquisition.
- Cadence Capital continues to hold because of the positive transformation in Whitehaven's revenue structure.
Summary
Endeavor Asset Management
30 Apr 2024
$7.72
- Endeavor Asset Management notes an 8.7% increase in the share price of Whitehaven Coal (WHC) in April.
- The business is on track to meet its FY24 guidance.
- The 20-30% sell down of the Blackwater asset is viewed as a positive avenue for increasing optionality towards capital returns.
- This transaction is also seen as beneficial for debt reduction.
- Endeavor Asset Management continues to hold its position in Whitehaven Coal due to these developments.
Summary
Cadence Capital
31 Jan 2024
$8.43
- Whitehaven Coal has shown strong performance following its acquisition of the Daunia and Blackwater metallurgical coal mines from BHP.
- Post-acquisition, approximately 70% of Whitehaven Coal's revenue will come from metallurgical coal, with the remainder deriving from thermal coal.
- The shift towards predominantly metallurgical coal is considered well-timed as thermal coal prices have decreased while metallurgical coal prices have risen.
- Cadence Capital continues to hold its position regarding Whitehaven Coal as it anticipates favorable market conditions.
Summary
Spheria Asset Management
30 Sept 2023
$7.19
- Whitehaven Coal (WHC.ASX) share price rallied almost 17% in September from heavily discounted levels.
- Last year, the company traded at all-time highs with thermal coal peaking over US$400/t in September 2022.
- Current share price has nearly halved, trading at a significant discount to peers, considered very cheap on an absolute basis.
- As of FY23 year-end, the company had $2.7bn of net cash and $400m of franking credits, with a market capitalisation around $5.6bn.
- Forecasted to generate over $500m of pre-tax free cash flow in 1H24 at current coal prices, despite a heavy capex campaign.
- Trading on 2-3x pre-tax free cash flow based on this run-rate.
- The discount reflects valid concerns over capital allocation, as the company is pursuing BHP’s metallurgical coal assets in QLD.
- Pursuit of these assets may delay capital returns to shareholders and introduces risk of potential overpayment.
- Exposure to an onerous royalty regime in QLD could suppress leverage to rising coal prices.
- NSW government's announcement of a 2.6% increase in coal royalties from July 2024 will impact WHC by approximately $100m pa negatively.
- Expectations of the royalty increase being worse likely aided share price performance in September, despite thermal coal prices falling from US$173/t to $129/t.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"With the shift towards metallurgical coal, it seems Whitehaven Coal is strategically positioned to ride the rising tide of demand, while thermal coal's decline may just be a fleeting shadow in the rearview."
Last Updated: 31 Jul 2025
Query The Data
Frequently Asked Questions
Who is investing in Whitehaven Coal Ltd (ASX:WHC)?
Fund managers including Cadence Capital, Endeavor Asset Management, Spheria Asset Management, Blackwattle Investment Partners, Katana Asset Management, Contract Asset Management, Clime Investment Management, Atlas Funds Management and Perpetual Asset Management have invested in Whitehaven Coal Ltd (ASX:WHC).
Why do fund managers invest in Whitehaven Coal Ltd?
Fund managers are investing in Whitehaven Coal Ltd due to its strategic acquisition of the Daunia and Blackwater metallurgical coal mines from BHP, positioning the company to generate approximately 70% of its revenue from metallurgical coal. This shift is advantageous as metallurgical coal prices are rising while thermal coal prices have declined, enhancing Whitehaven's revenue potential and market stability.
What happened to Whitehaven Coal Ltd (ASX:WHC)?
Fund managers are investing in Whitehaven Coal Ltd due to its strong operational performance, evidenced by a recent 19% share price increase and positive quarterly production updates. The company has consistently met production targets while maintaining low costs, showcasing effective management and operational excellence. Whitehaven's strategic focus on improving productivity, alongside its robust financial position, including free cash flow generation and a net cash balance sheet, positions it well for future growth. Additionally, the favorable long-term supply-demand dynamics in the coal market, despite recent volatility, enhance its investment appeal.