Whitehaven bets on coking coal in US$200 million deal for Winchester South Report

Insight 29 March 2018

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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.

Overview
Deal summary
- Winchester South
Deal analysis
Strategic rationale, upside and risks

Tables and charts

This report includes 12 images and tables including:

Deal summary
Location map
Summary valuation

Valuation metrics
Economic assumptions
Winchester South is attractively priced on relative deal-implied benchmark hard coking coal prices
Whitehaven 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:

Whitehaven bets on coking coal in US$200 million deal for Winchester South.xls

XLS 2.47 MB
Whitehaven bets on coking coal in US$200 million deal for Winchester South

PDF 1.22 MB