Insight
Whitehaven bets on coking coal in US$200 million deal for Winchester South
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
On the 22nd March, Whitehaven announced it had agreed to purchase Rio Tinto's 75% interest in the Winchester South coking coal project in Queensland's Bowen Basin for US$200 million in cash. The deal represents an attractive opportunity for Whitehaven to increase its exposure to coking coal. The acquisition provides Whitehaven with further portfolio growth options beyond its ramp up at Maules Creek and the development of Vickery in New South Wales.
Table of contents
- Overview
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Deal summary
- Winchester South
- Deal analysis
- Strategic rationale, upside and risks
Tables and charts
This report includes the following images and tables:
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Deal summaryLocation mapSummary valuation
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Valuation metricsEconomic assumptionsWinchester South is attractively priced on relative deal-implied benchmark hard coking coal pricesWhitehaven pro-forma production profile - metallurgical coal (attributable)Whitehaven pro-forma production profile - thermal coal (attributable)Seaborne metallurgical coal cost curve 2027 (US$/tonne, nominal)Seaborne thermal coal energy adjusted cost curve 2027 (US$/tonne, nominal)Marketable reserves (1 July 2018)
What's included
This report contains:
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