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Whitehaven Coal Limited : Annual Report 2009
Whitehaven Coal Limited -- Annual Report 2009 13 Construction of the new NCIG coal loading terminal (Whitehaven owns 11%) remains on track with first coal shipments expected in early 2010. CORPORATE Institutional Placement And Share Purchase Plan Subsequent to balance date, Whitehaven undertook a capital raising through an institutional placement and a share purchase plan. The institutional placement raised net cash of $177 million, while the share purchase plan raised $26 million. The institutional placement was oversubscribed with strong demand from both existing and new Australian and international investors. The strong support shown by both existing and new institutional investors is an endorsement of Whitehaven's business and growth plans. These funds will provide Whitehaven with additional capital to fund new growth opportunities and strategic initiatives, increase working capital and provide balance sheet flexibility. The capital raising has also increased free float and liquidity in Whitehaven's shares. Relocation Of Head Office During the year, the company's head office was moved from Brisbane to Sydney. BOARD AND MANAGEMENT In October 2008, Mr Andy Plummer was appointed an Executive Director -- Business Development, providing support to the Managing Director and Chief Financial Officer. Mr Plummer was a non-executive director of Whitehaven from May 2007 and was an executive director of Excel Coal with responsibility for the company's business development activities. In February 2009, Mr Allan Davies was appointed Executive Director -- Operations. Mr Davies is a professionally qualified mining engineer with 35 years mining experience in the Australian and international coal and metalliferous mining industries and is a registered mine manager in Australia and South Africa. In October 2008, Mr Austen Perrin was appointed Chief Financial Officer, and in July 2009 Mr Timothy Burt was appointed General Counsel and Joint Company Secretary. OUTLOOK Coal demand has slowed as a result of the global economic downturn, however the structural uptrend continues as demand for thermal coal remains strong and demand for metallurgical coal continues to recover, with China importing much larger tonnages of Australian thermal coal and India appearing to follow. Supply is expected to remain constrained by infrastructure in the short term, with a general trend to higher production costs, slower and more difficult mine development and increasing time for approvals providing ongoing constraints to new supply. Australia is well placed to protect and gain market share in the coming years with major Asian power utilities and steel mills looking to Australia as a reliable, long-term supplier of high quality coals. Contracted coal prices for 2009 hard coking coal settled around US$128/t FOB, with semi-soft coking and PCI coals settling around US$80/t. Demand for metallurgical coal is recovering and spot prices are being reported at levels substantially above contract prices. Thermal coal contracts for 2009 settled around US$70-72/t FOB. Spot market prices for thermal coal are around US$72/t with forward thermal coal prices stronger at around US$77/t for calendar year 2010 and around US$87/t for calendar year 2011. Tony Haggarty Managing Director
Annual Report 2008
Annual Report 2010