Whitehaven delayed coal expansion and a second downgrade

Shares of Whitehaven coal tumbled after the company cut its coal sales target for the second time in five months and ruled out investment in coal expansion this year amid turmoil in the financial markets. The freeze on expansion decisions is most relevant to the $700 million Vickery project near ganeda, NSW, which is expected to be the subject of investment decisions in 2020. Paul Flynn, chief executive of Whitehaven, said in February that vigrie would be viable if power coal prices remained at around $68 a tonne (as they did in the first three months of 2020). But the project is still blocked in New South Wales' approval process, which white haven said Thursday would be prudent in the face of recent market turmoil, although it has not had a significant impact on the business. "Despite the resilience of the coal market in the March quarter, Whitehaven is not expected to consider making a final investment decision on these projects in 2020," the company said. It was previously reported that Whitehaven's half year profit in February was 91% lower than a year earlier due to lower coal prices and lower sales. White haven also reported in February that its net debt more than tripled. Whitehaven wants to sell up to 30% of Vickery's projects, but no such divestment is expected until NSW regulators finally approve the project, and the ambiguity of such approval indicates that the project is about to be sold. The delay in approval is partly caused by the complexity of regulators' efforts to hold public hearings on the merits of the project. Whitehaven also hopes to build a new coking coal mine in Queensland, south of Winchester, but the investment decision for the project is not expected to be made in 2020. The company has also been considering expanding the Narrabri mine.