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Morningstar cautious about the impact of coal prices on Australia’s Whitehaven







Morningstar cautious about the impact of coal prices on Australia’s Whitehaven


















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XM does not provide services to residents of the United States of America.

Reuters

Morningstar cautious about the impact of coal prices on Australia’s Whitehaven

BUZZ Morningstar cautious about impact of coal prices on Australia's Whitehaven

**Morningstar analysts lower fair value estimate for Whitehaven Coal WHC.AX due to lower short-term coal sales volumes and higher unit costs

** Broker lowers fair value estimate from AUD 9.90/share to AUD 9.60/share

** Morningstar is cautious on the coal mining company's balance sheet given weak global coal prices, which have historically led to a deterioration in WHC's balance sheet

** Whitehaven is a price taker, meaning that a sustainable competitive advantage requires low capital and operating costs.

Costs and Long-Life Mines – Morningstar

** Brokerage says WHC's return on capital is likely to decline in the long term

** Nine of 14 analysts covering the stock recommend Buy or higher and five recommend Hold. Their median price target is A$9.30 – LSEG data

** The share has fallen by 4.6% since the beginning of the year (as of last close of trading)

Reporting by Shivangi Lahiri in Bengaluru; Editing by Sandra Maler

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