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Natural Resource Partners24 August 2023
FY23 Appendix 4E and Annual Financial Report
Financial Report
Annual Report
2023
Authorised for release by the Board of Whitehaven Coal Limited
Investor contact
Media contact
Kylie FitzGerald
+61 2 8222 1155, +61 401 895 894
KFitzGerald@whitehavencoal.com.au
Michael van Maanen
+61 2 8222 1171, +61 412 500 351
mvanmaanen@whitehavencoal.com.au
Whitehaven Coal Limited ABN 68 124 425 396
Level 28, 259 George Street, Sydney NSW 2000 | P +61 2 8222 1100 | F +61 2 8222 1101
PO Box R1113, Royal Exchange NSW 1225
whitehavencoal.com.au
Contents
FY23 in Review
Chairman’s introduction
Managing Director and CEO’s introduction
Directors’ Report
Operating and financial review
Remuneration Report
Financial Report
ASX additional information
Resources and Reserves
Glossary
Corporate directory
2
4
5
6
16
32
54
108
110
112
117
Our strategy is to own
and sustainably operate
large, cost-efficient mines
producing high-quality,
high-CV thermal coal
for premium markets
in Asia and to grow
our metallurgical coal
business to have a more
balanced portfolio.
We have a 2,750 strong workforce1,
with ~75% based in regional areas
where we operate.
Our STRIVE Values unite us, direct
our decision making and guide our
interactions.
Safety
The safety of our people,
workplaces and the communities
around us comes first. We are
committed to Zero Harm.
Teamwork
We work collaboratively and
support one another.
Respect
We foster a diverse and
inclusive culture and deal with
all stakeholders respectfully.
Integrity
We are honest and do the
right thing.
Value
We create value for
shareholders, customers
and local communities.
Excellence
We deliver on our
commitments.
1
Includes 1,290 FTE employees and 1,457 FTE contractors.
This report includes forward-looking statements relating to future
events and expectations.
While these statements reflect expectations at the date of this
publication they are by their nature not certain and are subject to
known and unknown risks.
Whitehaven makes no representation, assurance or guidance as to the
accuracy or likelihood of fulfilling any such forward-looking statements
(whether express or implied) and, except as required by applicable
regulations or law, Whitehaven does not undertake to publicly update
such forward-looking statements.
Whitehaven Coal is playing a critically
important role through the energy transition.
Our thermal coal, which offers more energy efficient and lower
emissions outcomes than other coal products, is helping our
customers to responsibly meet their decarbonisation goals.
At the same time, we are helping to provide much-needed energy
security through the energy transition.
We are focused on delivering
long-term, attractive returns
for our investors.
Our long-life mining
assets in Australia are well
placed to continue to meet
strong customer demand
in Asia, support local
communities in Australia and
provide rewarding career
opportunities for decades
to come.
Managed sales
(tonnes)1
1
Managed sales including third party purchases and
excluding coal reservation sales.
2
Includes Indonesia, New Caledonia, Vietnam and Chile.
Page 1 | Whitehaven Coal Annual Report 2023
Page 1 | Whitehaven Coal Annual Report 2023
QUEENSLANDBlackwaterPort of GladstoneGladstoneRockhamptonMoranbahMackayPort of Hay PointPort of Abbot PointBowenWinchester South ProjectNEW SOUTH WALESNarrabriBoggabriGunnedahGunnedah CHPPNewcastleSydneyTamworthGunnedahCoal BasinMaules Creek MineTarrawonga Mine Werris Creek Mine NarrabriUnderground Mine(PWCS and NCIG Coal Terminals)Vickery Mine16.3 Mt63% Japan15% Taiwan7% Malaysia1% Europe5% Other29% Korea FY23 in Review
Leveraged record prices and
strong underlying demand
– A record average realised coal price
of A$445/t for FY23 compared with
A$325/t for FY22 and A$95/t in FY21
– Whitehaven achieved a 1% premium to the
gC NEWC index on its thermal sales due to quality
premiums in a tight supply environment and the
decrease in the index
Returned capital to shareholders
– $1.6 billion of capital returned to shareholders in
FY23 through dividends and buy-backs
– Fully franked FY23 dividend of 42 cents per share
to bring the full year dividend to 74 cents per share
(48 cents in FY22)
– 52% total shareholder returns1
ranked #9 in the ASX100
– 94% of sales to thermal and 6% to metallurgical
– A payout ratio of 50% of FY23 NPAT, aligned with the
customers reflecting ability to divert semi-soft coking
coal to achieve more attractive thermal prices
company’s capital allocation framework
Produced 18.2M tonnes of ROM coal
– Run-of-mine (ROM) managed production of 18.2Mt,
9% below FY22, due to weather / flooding impacts
in H1FY23, labour shortages and Maules Creek
operational constraints
– Labour supply is improving and more favourable
weather expected in FY24
Delivered exceptional financial results
– Record NPAT of $2.7 billion compared with
$2.0 billion in FY22
– Record EBITDA of $4.0 billion
compared with $3.1 billion in FY22
– $4.2 billion cash generated from operations
compared with $2.6 billion in FY22
Made a meaningful
contribution to communities
– $1.65 billion of taxes and royalties paid
or payable for FY23
– $4.35 million in corporate community partnerships
and donations
– $357 million spent with local suppliers
incl $14.4 million with 16 Aboriginal and
Torres Strait Islander businesses
– Powered Japan for 41.3 minutes/day,
Taiwan for 15.8 minutes/day and South Korea for
9.1 minutes/day
Significantly improved safety &
environmental results and engagement
– Employee and contractor TRIFR2 of 4.7,
a 13% improvement on FY22
– ZERO environmental enforcement actions
versus four in FY22
– 1.3 million tonnes scope 1 and 2 CO2-e emissions
– Employee engagement scores up ~5% to 6.6 out
of ten and community sentiment score improved
to highest level yet with 51% positive sentiment
to Whitehaven
1
2
On a net TSR basis, which excludes franking benefits.
Total recordable injury frequency rate.
Page 2 | Whitehaven Coal Annual Report 2023
Maintained disciplined capital management
– Balance sheet strength – $2.65 billion net cash at 30 June 2023
– Re-secured contingent credit support facilities covering environmental bonding,
rehabilitation, and port, rail and other financial guarantees
Capital allocation framework
Operating cash flows
1
2
3
Maintain & optimise
operations
Retain cash / maintain
balance sheet strength
Sustaining capex
Lease repayments
Extend existing operations
Investments in HSE,
innovation and new
technologies
Retain cash on balance sheet
for flexibility and optionality,
and adequate liquidity
through cycle
Maintain funding diversity
Target BB+ grade
credit rating
Return to shareholders
Dividends
Buy-backs
Ordinary dividends –
maximise franking
Share buy-backs,
if value creating
Currently targeting 20-50%
NPAT payout ratio for
dividends and buy-backs
combined. May exceed this
if additional distributions
are best use of surplus cash.
4
Use surplus capital for best use
Growth investments –
M&A
Growth investments –
Development projects
Additional returns
to shareholders
Consider increasing equity
positions or other M&A
opportunities eg. grow met
coal, if compelling
opportunities arise
Progress development
projects to ‘shovel ready’ and
invest if returns are
compelling
Use surplus capital to
buy back additional shares if
returns are more attractive than
growth investments
Progressed our strategy to supply
high CV thermal and grow met coal
Navigated regulatory changes
– Advanced Early Stage Mining of Vickery with
commencement of a $150 million project
– Progressed Winchester South development approvals
and Narrabri Stage 3 approvals
– Meeting our obligation under the NSW Coal
Reservation Policy (effective 1 April 2023)
– Expect Safeguard Mechanism Reforms
(effective 1 July 2023) to impact ~$1/t in FY24.
Page 3 | Whitehaven Coal Annual Report 2023
Chairman’s introduction
Dear Shareholders,
Whitehaven reported another year of
record earnings and capital returns
for shareholders due to an exceptional
thermal coal price and continued
demand for high-quality thermal coal.
We returned 50% of FY23 NPAT to
shareholders through a 74 cent fully
franked dividend and share buy-backs.
Ongoing global supply constraints for high-quality
thermal coal and continued focus on energy security
saw coal prices peak in the first half of the year. While
prices retreated in the second half, external market
drivers that underpinned our record result continue
to imply favourable conditions for our high-quality
coal products.
Our coal products remain highly sought after,
particularly in premium markets in Asia.
In FY23, 63% of our volumes were delivered to Japan,
and approximately 30% exported to Taiwan, South
Korea and Malaysia. This meant we helped produce
electricity that kept the lights on for 41 minutes every
day in Japan, 16 minutes a day in Taiwan, and nine
minutes per day in South Korea. These estimates
highlight the daily contribution we make to the base
load electricity supply in these key economies.
Whitehaven’s coal is some of the highest quality thermal
coal globally. The high energy content coupled with low
ash and sulphur of our thermal coal delivers efficient
energy supply with less CO2
coals. In fact, modern HELE plants in Asia that consume
our coal produce in excess of 40% less CO2 emissions
than some of Australia’s much older, less advanced coal
fired power plants, so the markets in which we operate
are very different to what we see here in Australia.
emissions than alternative
Whitehaven’s strategy is to supply high-quality,
high-CV thermal coal to provide energy security
through the energy transition – and we are delivering
on that promise.
Our strategy is also to grow our metallurgical coal
business if compelling opportunities arise. That is why
we invested in the Winchester South development and
we continue to progress approval processes to develop
that asset in the future. Our other development projects
are also progressing.
Leveraging existing infrastructure will allow early stage
mining of the Vickery development and we expect to
start producing coal at Vickery by the end of FY24.
Vickery coal will be the highest quality thermal coal in
our portfolio, providing valuable blending opportunities
to maintain our high-quality portfolio.
With our people maintaining focus on continuous safety
and environmental improvement, we were pleased
with the outstanding result of zero environmental
enforceable actions received or expected to be received
in relation to FY23.
The Group safety outcome for the year also improved
with a total recordable injury frequency rate of 4.7 for
employees and contractors, a 13% improvement
year-on-year.
Whitehaven’s people are highly engaged when it comes
to safety and environmental management and in other
aspects of the business more broadly. Our workforce
engagement which is measured annually, continued
to strengthen – up 5% year-on-year. Given ~75% of our
2,750 strong workforce – employees and contractors
– live locally to our operations, it’s logical that our
community engagement scores also strengthened
this year.
We are continuing to work hard to attract and retain
good people in our business; this includes at the Board
level. I am delighted that since November 2022 we
have welcomed three new Directors – Nicole Brook,
Wallis Graham and Tony Mason – to the Board. These
new Directors bring valuable industry experience and
outstanding financial skills to the Board. John Conde
retired from the Board in October 2022, Lindsay Ward
stepped down in December 2022, and Julie Beeby will
complete her time on the Board at this year’s AGM.
I thank John, Lindsay and Julie for their excellent
contribution to Whitehaven.
On behalf of the Board and shareholders I thank
Paul Flynn, the executive leadership team and the entire
Whitehaven workforce for the outstanding results in
FY23. I also thank members of our communities and
our shareholders for their ongoing support.
The Hon. Mark Vaile, AO
Chairman
Page 4 | Whitehaven Coal Annual Report 2023
Managing Director
and CEO’s introduction
Dear Shareholders,
FY23 was a strong year for
Whitehaven, with our record financial
performance complemented by
continued improvement in other key
areas of focus across the business.
The global energy supply shortfall supported record
high thermal coal prices, particularly in the first half of
FY23. As a result, we achieved an average realised coal
price for the year of A$445/t and record revenue of
$6.1 billion.
We delivered a record NPAT of $2.7 billion and EBITDA
of $4.0 billion, generating cash from operations of
$4.2 billion and ending the period with $2.65 billion
of net cash on the balance sheet.
Whitehaven finished the financial year having delivered
a Total Shareholder Return of 52%, which placed us as
the ninth highest returning stock in the ASX100 and
follows our first place in FY22.
In FY23 we returned $1.6 billion to shareholders in the
form of fully franked dividends and through our share
buy-back program. We paid an interim dividend of
32 cents and declared a final dividend of 42 cents, to
finish the year with a payout ratio of 50%, which is the
top end of our targeted range.
Looking at some of our key non-financial metrics, the
Chairman noted the pleasing improvement in our safety
and environmental performance and our workforce
engagement. It is encouraging to see this improved
performance reflected in the sentiment recorded
amongst the local communities in which we operate.
In our latest quantitative survey of 603 respondents
across the Gunnedah, Narrabri, Tamworth and Liverpool
Plains LGAs, we achieved 51% positive local community
sentiment towards Whitehaven and only 18% negative,
yielding the highest ever net sentiment score since we
began quantitative community surveys in 2014.
This is a testament to the great work of our teams
and it is a welcome recognition of the important
social and economic contribution we make to regional
communities across North West NSW. Our 2023
Sustainability Report provides further details in this
regard, as well as outlining improved diversity and
inclusion outcomes, and reporting on our safety and
environmental management and climate-related risks.
Looking ahead, strong operating cash flow will allow
us to continue to optimise operations, maintain balance
sheet strength and support returns to shareholders.
It also provides us the funding optionality and flexibility
to reinvest in our business and consider growth
opportunities, within the parameters of our prudent
and disciplined approach to capital allocation.
We will continue to play an important role in supporting
the strategic objectives of our key customer countries
in Asia. Most forecasters expect strong demand for
thermal and metallurgical coal to continue over the
coming decades, with our customers needing our coal
to deliver on their emissions reduction goals, to make
steel and for critically important energy security.
In FY24, we expect another strong year will materialise,
with ROM production around 18.7 – 20.7 million
tonnes and managed coal sales of between
16.0 – 17.5 million tonnes.
We recognise the opportunity to improve operational
performance and reliability, and this will remain
a key focus during the year ahead, alongside cost
management. Our unit cost of production is increasing
as a result of higher diesel, electricity, labour and other
inputs, but we are well placed to continue to deliver
strong margins as a result of the ongoing strong
pricing environment.
Whitehaven continues to present a compelling
investment proposition and we are excited about
our future.
As we look forward to the year ahead, I thank all
of Whitehaven’s people and our Board of Directors
for their contribution and support in FY23. I thank
our customers, suppliers, joint venture partners and
shareholders for their continued support, as well as
our local communities and Traditional Owner groups
who continue to be valued partners on our journey.
Paul Flynn
Managing Director and CEO
Page 5 | Whitehaven Coal Annual Report 2023
Directors’ Report
For the year ended 30 June 2023
Directors’ Report
For the year ended 30 June 2023
1. Principal activities
The principal activity of Whitehaven Coal Limited and its controlled entities (the ‘Group’) during the period was the
development and operation of coal mines in New South Wales and Queensland.
In the opinion of the Directors, there were no significant changes in the state of affairs of the Group that occurred during
the financial year that have not been noted in the review of operations.
2. Directors and Executives
2 (a) Directors
The Directors of the Company at any time during or since the end of the financial year are:
The Hon. Mark Vaile AO
Chairman
Non-Executive Director
Appointed: 3 May 2012
As Deputy Prime Minister of Australia and Leader of the National
Party from 2005 to 2007, Mark established an extensive network of
contacts throughout Australia and East Asia. His focus at home was
with regional Australia and particularly northern NSW. As one of
Australia's longest serving Trade Ministers from 1999 until 2006, Mark
led negotiations which resulted in Free Trade Agreements being
concluded with the United States of America, Singapore and
Thailand, as well as launching negotiations with China, Japan and
ASEAN.
Importantly, early in his ministerial career as the Minister for
Transport and Regional Services, Mark was instrumental in the
establishment of the ARTC, which operates the Hunter Valley rail
network.
Mark brings significant experience as a Company Director having
been Chairman of Aston Resources, CBD Energy Limited and
SmartTrans Limited, a former independent Director on the board of
Virgin Australia Holdings Limited and former Director Trustee of
HostPlus Superfund. Mark is currently a Director of ServCorp Limited,
which is listed on the ASX (since June 2011), Stamford Land Corp,
which is listed on the Singapore Stock Exchange.
Former ASX-listed directorships in the last three years:
Nil
Chairman of the Governance & Nomination Committee
Member of the Audit & Risk Management Committee
Member of the Remuneration Committee
Member of the Health, Safety, Environment & Community Committee
Page 7 | Whitehaven Coal Annual Report 2023
Page 7 | Whitehaven Coal Annual Report 2023
Directors’ Report
For the year ended 30 June 2023
Dr Julie Beeby
BSc (Hons I), PhD
(Physical Chemistry),
MBA, FAICD, FTSE
Non-Executive Director
Appointed: 17 July 2015
Paul Flynn
BComm, FCA
Managing Director
Appointed:
25 March 2013
Previously Non-Executive
Director
Appointed: 3 May 2012
Fiona Robertson AM
MA (Oxon), FAICD,
MAusIMM
Non-Executive Director
Appointed:
16 February 2018
Julie has more than 25 years’ experience in the minerals and
petroleum industries in Australia, including major Australian and US
resources companies, and as Chief Executive Officer of the ASX-
listed coal seam gas producer WestSide Corporation Ltd. Julie has
technical, operations and strategy expertise and has held senior and
executive positions in coal mining, mining services and coal seam
gas, after commencing her career in coal and mineral processing
research. Julie was formerly the Chairman of the Queensland
Electricity Transmission Corporation Limited, and Non-Executive
Director of Gloucester Coal Limited, OzMinerals Limited, CRC Mining,
Queensland Resources Council and Australian Coal Research.
Currently, Julie is a Non-Executive Director of Tasmanian Networks
Pty Limited and a Non-Executive Director and Chair of ElectraNet
Pty Limited.
Former ASX-listed directorships in the last three years: Nil
Chairman of the Health, Safety, Environment & Community
Committee
Member of the Governance & Nomination Committee
Paul has extensive experience in the mining, infrastructure,
construction and energy sectors gained through 20 years as a
professional advisor at Ernst & Young. Paul was formerly Chief
Executive Officer and Managing Director of the Tinkler Group and
was instrumental in the merger of Whitehaven Coal with Aston
Resources. Paul joined the Board of Whitehaven on 3 May 2012 and
assumed the role of Managing Director and CEO on 27 March 2013.
Prior to joining the Tinkler Group, Paul was the managing partner of
Ernst & Young’s Sydney office and a member of its Oceania
executive team. As a partner for over eight years, Paul managed
many of the firm’s largest mining and energy clients across Australia,
Asia, South and North America. Paul has also fulfilled various
leadership roles with large corporations on secondment, including as
the CFO of a top 50 listed company.
Former ASX-listed directorships in the last three years: Nil
Fiona has a corporate finance background, with more than 20 years’
experience as CFO of ASX-listed emerging and mid-tier mining and
oil and gas companies, preceded by 14 years with Chase Manhattan
Bank in London, New York and Sydney in corporate banking, credit
risk management and mining finance roles. Previous Non-Executive
Directorships include ASX-listed oil and gas producer, Drillsearch
Energy Limited, where she chaired the Audit & Risk Committee and
Heron Resources Limited. Currently Fiona is a Non-Executive
Director of Bellevue Gold Limited (since May 2020) and 29Metals
Limited (since May 2021).
Former ASX-listed directorships in the last three years:
Nil
Chairman of the Audit & Risk Management Committee
Member of the Remuneration Committee
Member of the Governance & Nomination Committee
Page 8 | Whitehaven Coal Annual Report 2023
Page 8 | Whitehaven Coal Annual Report 2023
Directors’ Report
For the year ended 30 June 2023
Directors’ Report
For the year ended 30 June 2023
Dr Julie Beeby
Julie has more than 25 years’ experience in the minerals and
BSc (Hons I), PhD
(Physical Chemistry),
MBA, FAICD, FTSE
petroleum industries in Australia, including major Australian and US
resources companies, and as Chief Executive Officer of the ASX-
listed coal seam gas producer WestSide Corporation Ltd. Julie has
technical, operations and strategy expertise and has held senior and
Non-Executive Director
executive positions in coal mining, mining services and coal seam
Appointed: 17 July 2015
gas, after commencing her career in coal and mineral processing
research. Julie was formerly the Chairman of the Queensland
Electricity Transmission Corporation Limited, and Non-Executive
Director of Gloucester Coal Limited, OzMinerals Limited, CRC Mining,
Queensland Resources Council and Australian Coal Research.
Currently, Julie is a Non-Executive Director of Tasmanian Networks
Pty Limited and a Non-Executive Director and Chair of ElectraNet
Pty Limited.
Committee
Former ASX-listed directorships in the last three years: Nil
Chairman of the Health, Safety, Environment & Community
Member of the Governance & Nomination Committee
Paul has extensive experience in the mining, infrastructure,
construction and energy sectors gained through 20 years as a
professional advisor at Ernst & Young. Paul was formerly Chief
Paul Flynn
BComm, FCA
Appointed:
25 March 2013
Director
Appointed: 3 May 2012
Managing Director
Executive Officer and Managing Director of the Tinkler Group and
was instrumental in the merger of Whitehaven Coal with Aston
Resources. Paul joined the Board of Whitehaven on 3 May 2012 and
assumed the role of Managing Director and CEO on 27 March 2013.
Previously Non-Executive
Prior to joining the Tinkler Group, Paul was the managing partner of
Ernst & Young’s Sydney office and a member of its Oceania
executive team. As a partner for over eight years, Paul managed
many of the firm’s largest mining and energy clients across Australia,
Asia, South and North America. Paul has also fulfilled various
leadership roles with large corporations on secondment, including as
the CFO of a top 50 listed company.
Former ASX-listed directorships in the last three years: Nil
Fiona Robertson AM
Fiona has a corporate finance background, with more than 20 years’
MA (Oxon), FAICD,
MAusIMM
experience as CFO of ASX-listed emerging and mid-tier mining and
oil and gas companies, preceded by 14 years with Chase Manhattan
Bank in London, New York and Sydney in corporate banking, credit
Non-Executive Director
risk management and mining finance roles. Previous Non-Executive
Appointed:
16 February 2018
Directorships include ASX-listed oil and gas producer, Drillsearch
Energy Limited, where she chaired the Audit & Risk Committee and
Heron Resources Limited. Currently Fiona is a Non-Executive
Director of Bellevue Gold Limited (since May 2020) and 29Metals
Limited (since May 2021).
Former ASX-listed directorships in the last three years:
Nil
Chairman of the Audit & Risk Management Committee
Member of the Remuneration Committee
Member of the Governance & Nomination Committee
Raymond Zage
BSc Finance
Non-Executive Director
Appointed:
27 August 2013
Raymond is the founder and CEO of Tiga Investments Pte Ltd. He is
also senior advisor to Farallon Capital Management, L.L.C., one of the
largest alternative asset managers in the world, an independent Non-
Executive Director of Toshiba Corporation (listed on the Tokyo Stock
Exchange), a Non-Executive Director of PT Lippo Karawaci Tbk
(listed on the Indonesian Stock Exchange), and independent director
of EDBI Pte Ltd, the investment arm of the Singapore Economic
Development Board. Raymond has been involved in investments
throughout Asia in various industries, including financial services,
infrastructure, manufacturing, energy and real estate. Previously,
Raymond was on the Board of Commissioners of Indonesian
company Gojek, the Managing Director and CEO of Farallon Capital
Asia, and prior to that he worked in the investment banking division
of Goldman, Sachs & Co. in Singapore, New York and Los Angeles.
Former ASX-listed directorships in the last three years: Nil
Member of the Audit & Risk Management Committee
Nicole Brook
BE (Mining)(Hons), MBA,
FAusIMM
Non-Executive Director
Appointed:
3 November 2022
Nicole has a background in mining engineering, with over 25 years’
experience in the resources industry. After starting her career as an
underground miner, Nicole went on to hold a number of site technical
and consulting roles before taking on a leadership role with Glencore
Coal Australia, where she led a team of resources professionals
responsible for business development, project assessment and
technical governance of mining operations.
A Fellow of the Australasian Institute of Mining and Metallurgy
(AusIMM), Nicole has served as Chair of the AusIMM Hunter Region
Branch and sat on a number of industry advisory boards for tertiary
mining education. In 2018, Nicole was named Exceptional Woman in
NSW Mining at the NSW Minerals Council awards and was selected
for the 100 Global Inspirational Women in Mining in 2018.
Nicole was elected to the AusIMM Board in 2021, where she is
currently President of the Board and Chairs the Joint AIG/AusIMM
Competent Person Review Taskforce. She has a Bachelor of
Engineering (Mining) (Hons) from UNSW and a Master of Business
Administration from the University of Melbourne.
Former ASX-listed directorships in the last three years: Nil
Member of the Health, Safety, Environment & Community Committee
Page 8 | Whitehaven Coal Annual Report 2023
Page 9 | Whitehaven Coal Annual Report 2023
Page 9 | Whitehaven Coal Annual Report 2023
Directors’ Report
For the year ended 30 June 2023
Wallis Graham
BA Economics (Applied
Mathematics), GAICD
Non-Executive Director
Appointed:
20 February 2023
Wallis has over 20 years’ experience as a finance professional in
funds management, corporate finance, private equity and investment
banking. Wallis has spent more than two decades in diverse finance
roles in New York and Australia with Goldman Sachs, Saks Inc,
Forstmann Asset Management, Pequot Capital and Energy Capital
Partners.
Wallis is currently a Director of Servcorp Limited, where she chairs
the Remuneration Committee. She is also a Director of the Wenona
School, Wenona Foundation, Sydney Youth Orchestras, and the
Garvan Research Foundation. She also holds a Senior Consulting role
focused on energy transition with Energy Capital Partners. Wallis has
a BA in Economics Modified with Mathematics from Dartmouth
College in the United States.
Former ASX-listed directorships in the last three years: Nil
Chairman of the Remuneration Committee
Member of the Audit & Risk Management Committee
Lindsay Ward
BAppSc (Hons I),
GradDip (Mgt), FAICD
Non-Executive Director
Appointed:
15 February 2019
Retired:
31 December 2022
Lindsay has more than 35 years’ experience across industries
including mining, exploration, mineral processing, ports management,
rail haulage, power generation, gas transmission, renewables and
logistics. He is currently a Non-Executive director of Qube Holdings
Limited and Port of Portland. Prior to this, he was CEO of Palisade
Integrated Management Services, which had nine diverse
infrastructure assets under management including 750MW of
renewable energy, and President of Iris Energy, a sustainable Bitcoin
miner. Lindsay also has extensive senior operational experience in
ports, rail and coal fired power generation.
Lindsay started his career in the mining industry having worked with
BHP Australia Coal (Bowen Basin – Queensland), Camberwell Coal
(Hunter Valley – NSW) and Yallourn Energy (Latrobe Valley –
Victoria), as well as Western Mining and Westralian Sands, in
various mine engineering and senior leadership roles including
Mine Manager and General Manager.
Lindsay is a Fellow of the Australian Institute of Company Directors
and is an experienced Director of both listed and unlisted companies.
Former ASX-listed directorships in the last three years:
Nil
John has over 30 years of broad-based commercial experience
across a number of industries, including the energy sector, and was
Chairman of the company prior to the merger with Aston Resources.
John is Chairman of Cooper Energy Limited (since February 2013),
the Dexus Wholesale Property Fund and the McGrath Foundation, as
well as President of the Commonwealth Remuneration Tribunal. He
was Chairman of Bupa Australia and New Zealand, the Sydney
Symphony Orchestra, Ausgrid (formerly Energy Australia) and
Destination NSW. He was also formerly Chairman and Managing
Director of Broadcast Investment Holdings, as well as a Non-
Executive Director of BHP Billiton Limited, Excel Coal Limited and
Dexus Property Group.
Former ASX-listed directorships in the last three years: Director,
Dexus Property Group (April 2009 – September 2020)
John Conde AO
BSc, BE (Electrical)
(Hons), MBA (Dist)
Deputy Chairman
Non-Executive Director
Appointed: 3 May 2007
Retired:
26 October 2022
Page 10 | Whitehaven Coal Annual Report 2023
Page 10 | Whitehaven Coal Annual Report 2023
Directors’ Report
For the year ended 30 June 2023
Directors’ Report
For the year ended 30 June 2023
2 (b) Senior Executives
Paul Flynn —
Managing Director and Chief
Executive Officer
Kevin Ball —
Chief Financial Officer
BComm, CA
Refer to details set out in section
2(a) Directors on page 8.
Appointed Chief Financial Officer of
Whitehaven Coal in October 2013,
Kevin Ball has over 25 years’
experience working in the mineral
and energy industry across coal, oil
and gas, and in complex consulting
practices.
A finance graduate of the University
of New South Wales, Kevin is a
Chartered Accountant, having spent
11 years with Ernst & Young at the
commencement of his career,
predominantly in EY’s natural
resources group. Kevin has a
graduate Diploma in Geoscience
(Mineral Economics) from Macquarie
University.
Timothy Burt —
General Counsel and
Company Secretary
B.Ec, LLB (Hons) LLM
Timothy joined Whitehaven as
General Counsel and Company
Secretary in July 2009. He has more
than 20 years’ experience in legal,
secretarial and governance roles
across a range of industries for ASX-
listed companies. Prior to joining
Whitehaven, Timothy held senior
roles at the ASX-listed companies
Boral Limited, UGL Limited and
Australian National Industries
Limited. He holds a Master of Laws
from the University of Sydney.
Wallis Graham
Wallis has over 20 years’ experience as a finance professional in
BA Economics (Applied
Mathematics), GAICD
funds management, corporate finance, private equity and investment
banking. Wallis has spent more than two decades in diverse finance
roles in New York and Australia with Goldman Sachs, Saks Inc,
Non-Executive Director
Forstmann Asset Management, Pequot Capital and Energy Capital
Appointed:
20 February 2023
Partners.
Wallis is currently a Director of Servcorp Limited, where she chairs
the Remuneration Committee. She is also a Director of the Wenona
School, Wenona Foundation, Sydney Youth Orchestras, and the
Garvan Research Foundation. She also holds a Senior Consulting role
focused on energy transition with Energy Capital Partners. Wallis has
a BA in Economics Modified with Mathematics from Dartmouth
College in the United States.
Former ASX-listed directorships in the last three years: Nil
Chairman of the Remuneration Committee
Member of the Audit & Risk Management Committee
Lindsay Ward
Lindsay has more than 35 years’ experience across industries
BAppSc (Hons I),
GradDip (Mgt), FAICD
including mining, exploration, mineral processing, ports management,
rail haulage, power generation, gas transmission, renewables and
logistics. He is currently a Non-Executive director of Qube Holdings
Non-Executive Director
Limited and Port of Portland. Prior to this, he was CEO of Palisade
Appointed:
15 February 2019
Retired:
31 December 2022
Integrated Management Services, which had nine diverse
infrastructure assets under management including 750MW of
renewable energy, and President of Iris Energy, a sustainable Bitcoin
miner. Lindsay also has extensive senior operational experience in
ports, rail and coal fired power generation.
Lindsay started his career in the mining industry having worked with
BHP Australia Coal (Bowen Basin – Queensland), Camberwell Coal
(Hunter Valley – NSW) and Yallourn Energy (Latrobe Valley –
Victoria), as well as Western Mining and Westralian Sands, in
various mine engineering and senior leadership roles including
Mine Manager and General Manager.
Lindsay is a Fellow of the Australian Institute of Company Directors
and is an experienced Director of both listed and unlisted companies.
Former ASX-listed directorships in the last three years:
Nil
John Conde AO
John has over 30 years of broad-based commercial experience
BSc, BE (Electrical)
(Hons), MBA (Dist)
across a number of industries, including the energy sector, and was
Chairman of the company prior to the merger with Aston Resources.
John is Chairman of Cooper Energy Limited (since February 2013),
Deputy Chairman
the Dexus Wholesale Property Fund and the McGrath Foundation, as
Non-Executive Director
well as President of the Commonwealth Remuneration Tribunal. He
was Chairman of Bupa Australia and New Zealand, the Sydney
Appointed: 3 May 2007
Symphony Orchestra, Ausgrid (formerly Energy Australia) and
Retired:
26 October 2022
Destination NSW. He was also formerly Chairman and Managing
Director of Broadcast Investment Holdings, as well as a Non-
Executive Director of BHP Billiton Limited, Excel Coal Limited and
Dexus Property Group.
Former ASX-listed directorships in the last three years: Director,
Dexus Property Group (April 2009 – September 2020)
Page 10 | Whitehaven Coal Annual Report 2023
Page 11 | Whitehaven Coal Annual Report 2023
Page 11 | Whitehaven Coal Annual Report 2023
Directors’ Report
For the year ended 30 June 2023
Daniel Cram —
Executive General Manager –
People and Culture
BComm, MIR
Ian Humphris —
Executive General Manager –
Operations
BE Mining (Hons)
Daniel joined Whitehaven in March
2021 and was appointed Executive
General Manager – People and
Culture in June 2021. Daniel has 25
years’ experience as a HR
professional, including more than a
decade leading large resourcing,
remuneration, workplace relations
and organisational culture functions
for a range of publicly listed
companies. Most recently, Daniel ran
his own consultancy firm,
specialising in human resources,
employee relations and
remuneration strategy, mergers and
acquisitions and change
management. Prior to this, Daniel
spent over a decade in senior human
resources roles at AGL Energy
covering the industrial aspects of
that business, including its power
generation assets and coal mining
operations.
Appointed Executive General
Manager – Operations in April 2020,
Ian is a mining engineer with more
than 20 years’ experience in the
Australian resources sector, with a
diverse and deep background across
open cut and underground
operations. Ian was most recently
Vice President – Health, Safety and
Environment at Peabody Energy
Australia. Prior to this, he fulfilled a
broad range of senior roles covering
many aspects of Peabody Energy’s
business, including managing the
company’s open cut operations,
supply chain and infrastructure
assets. Ian began his career in
resources as a mining engineer in
various Queensland mines before
transferring to the New South Wales
coalfields and working in senior roles
for a number of mine owners and for
the mining services provider, Thiess.
Michael van Maanen —
Executive General Manager –
Corporate, Government and
Community Affairs
BA (Hons)
Michael has nearly 20 years’
experience across corporate
communications and public policy
roles in both the government and
private sectors. He was appointed
Executive General Manager –
Corporate, Government and
Community Affairs in May 2018. Prior
to joining Whitehaven, Michael was a
founding partner of Newgate
Communications and led the firm’s
mining and resources practice
group. Michael was previously a
ministerial advisor in the Howard
government and worked in a range
of national security policy roles for
the departments of the Prime
Minister and Cabinet, Foreign Affairs
and Trade and Defence.
Page 12 | Whitehaven Coal Annual Report 2023
Page 12 | Whitehaven Coal Annual Report 2023
Directors’ Report
For the year ended 30 June 2023
Directors’ Report
For the year ended 30 June 2023
Jason Nunn —
Executive General Manager –
Marketing and Logistics
BEng (Hons), MEMB
Mark Stevens —
Executive General Manager –
Project Delivery
BSc (Hons), MSc, MBA
Sarah Withell —
Executive General Manager –
Health, Safety and Environment
BSc, MEngSc
Jason was appointed Executive
General Manager – Marketing and
Logistics in December 2020. Before
joining the marketing team at
Whitehaven Coal in 2014, Jason held
a range of roles in the resources
sector, primarily in the coal industry,
across research, production and
commercial functions at Yancoal,
White Energy and BHP Billiton in
Australia and the Netherlands. Jason
holds a Bachelor of Engineering
(Chemical) and Master of
Environmental Management and
Business from the University of
Newcastle.
Mark joined Whitehaven as
Executive General Manager – Project
Delivery in January 2020. Mark has
more than 30 years of Australian
and international experience in
project management and delivery
across infrastructure, coal, and oil
and gas. A qualified mining engineer,
Mark has successfully delivered
projects across all phases, from
concept to completion, with a
combined capital cost in the billions,
most recently for the Australian Rail
Track Corporation’s Inland Rail
project and prior to that, for Santos
GLNG.
Sarah joined Whitehaven as
Executive General Manager – Health,
Safety and Environment in July
2020. Sarah has more than 20 years’
experience in the mining and
resources sector with a proven track
record of delivering major mining
approvals, effective safety and
governance systems, and excellent
HSEC performance. Sarah has held
senior positions across open cut and
underground operations in both
NSW and Queensland. Most recently,
Sarah led the HSE function for BHP’s
NSW Energy Coal and BMC division,
and has also held roles at Coal &
Allied and Peabody.
Daniel Cram —
Ian Humphris —
Michael van Maanen —
Executive General Manager –
Executive General Manager –
Executive General Manager –
People and Culture
BComm, MIR
Operations
BE Mining (Hons)
Corporate, Government and
Community Affairs
BA (Hons)
Daniel joined Whitehaven in March
Appointed Executive General
2021 and was appointed Executive
Manager – Operations in April 2020,
Michael has nearly 20 years’
General Manager – People and
Ian is a mining engineer with more
experience across corporate
Culture in June 2021. Daniel has 25
than 20 years’ experience in the
communications and public policy
years’ experience as a HR
Australian resources sector, with a
roles in both the government and
professional, including more than a
diverse and deep background across
private sectors. He was appointed
decade leading large resourcing,
open cut and underground
Executive General Manager –
remuneration, workplace relations
operations. Ian was most recently
Corporate, Government and
and organisational culture functions
Vice President – Health, Safety and
Community Affairs in May 2018. Prior
for a range of publicly listed
Environment at Peabody Energy
to joining Whitehaven, Michael was a
companies. Most recently, Daniel ran
Australia. Prior to this, he fulfilled a
founding partner of Newgate
his own consultancy firm,
broad range of senior roles covering
Communications and led the firm’s
specialising in human resources,
many aspects of Peabody Energy’s
mining and resources practice
employee relations and
business, including managing the
group. Michael was previously a
remuneration strategy, mergers and
company’s open cut operations,
ministerial advisor in the Howard
acquisitions and change
supply chain and infrastructure
government and worked in a range
management. Prior to this, Daniel
assets. Ian began his career in
of national security policy roles for
spent over a decade in senior human
resources as a mining engineer in
the departments of the Prime
resources roles at AGL Energy
various Queensland mines before
Minister and Cabinet, Foreign Affairs
covering the industrial aspects of
transferring to the New South Wales
and Trade and Defence.
that business, including its power
coalfields and working in senior roles
generation assets and coal mining
for a number of mine owners and for
operations.
the mining services provider, Thiess.
Page 12 | Whitehaven Coal Annual Report 2023
Page 13 | Whitehaven Coal Annual Report 2023
Page 13 | Whitehaven Coal Annual Report 2023
Directors’ Report
For the year ended 30 June 2023
2 (c) Directors’ interests
The following table lists each Director’s relevant Company-issued shares and options, as notified by the Directors to the
ASX in accordance with section 205G(1) of the Corporations Act 2001 (Cth), at the date of this report.
Mark Vaile
Julie Beeby
Nicole Brook
Paul Flynn
Wallis Graham
Fiona Robertson
Ray Zage
Ordinary shares
1,312,167
65,000
-
1,070,451
12,000
75,395
11,065,134
2 (d) Directors’ meetings
The following are the number of Directors’ meetings (including meetings of committees of Directors) and the number of
meetings each Director attended during the financial year.
Director
Directors’
Meetings
Audit & Risk
Management
Committee
Meetings
Remuneration
Committee
Meetings
Health, Safety,
Environment &
Community
Committee
Meetings
Governance &
Nominations
Committee
Meetings
Special Committee
Meetings
Mark Vaile
Julie Beeby
Nicole Brook
Paul Flynn
Wallis Graham
Fiona Robertson
Ray Zage
John Conde
Lindsay Ward
A
12
12
8
12
5
12
12
4
5
B
12
12
8
12
5
12
11
4
5
A
6
-
-
-
1
6
4
2
-
B
6
-
-
-
1
6
3
2
-
A
4
-
-
-
2
2
-
2
2
B
4
-
-
-
2
2
-
2
2
A
3
4
3
-
-
1
-
-
1
B
3
4
3
-
-
1
-
-
1
A
4
4
-
-
-
2
-
2
-
B
4
4
-
-
-
2
-
2
-
A
3
3
3
3
3
3
-
-
-
B
3
3
3
3
3
3
-
-
-
A – Number of meetings held during the time the Director held office during the year.
B – Number of meetings the Director attended.
Page 14 | Whitehaven Coal Annual Report 2023
Page 14 | Whitehaven Coal Annual Report 2023
Directors’ Report
For the year ended 30 June 2023
Directors’ Report
For the year ended 30 June 2023
2 (c) Directors’ interests
The following table lists each Director’s relevant Company-issued shares and options, as notified by the Directors to the
ASX in accordance with section 205G(1) of the Corporations Act 2001 (Cth), at the date of this report.
3. Other
3 (a) Dividends
Paid during the year
Dividends of $640,005,000 were paid to shareholders during the year ended 30 June 2023 (2022: $79,890,000).
Declared after end of year
On 24 August 2023, the Directors declared a fully franked final dividend of 42 cents per share totalling $337.1 million to
be paid on 15 September 2023.
3 (b) Share options
Shares issued on exercise of options
There were no options exercised during the reporting period.
Unissued shares under options
At the date of this report there were no unissued ordinary shares under options of the Company.
3 (c)
Indemnification and insurance of officers
Indemnification
The Company has agreed to indemnify, to the fullest extent permitted by law, all current and former Directors of the
Company against liabilities that may arise from their position as Directors of the Company and its controlled entities. The
agreement stipulates that the Company will meet the full amount of any such liabilities, including costs and expenses.
Insurance premiums
During the financial year the Company paid premiums in respect of Directors’ and officers’ liability and legal expenses
insurance contracts. Such insurance contracts insure persons who are or have been Directors or officers of the Company
or its controlled entities against certain liabilities (subject to certain exclusions).
The Directors have not included details of the nature of the liabilities covered or the amount of the premiums paid in
respect of the Directors’ and officers’ liability and legal expenses insurance contracts, as such disclosure is prohibited
under the terms of the contract.
3 (d)
Indemnification of auditors
To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young, as part of the terms of
its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No
payment has been made to indemnify Ernst & Young during or since the financial year.
3 (e) Rounding
The Company is of a kind referred to in ASIC Corporations Instrument 2016/191, dated 24 March 2016 and, in accordance
with that Class Order, all financial information presented in Australian dollars has been rounded to the nearest thousand
unless otherwise stated.
Mark Vaile
Julie Beeby
Nicole Brook
Paul Flynn
Wallis Graham
Fiona Robertson
Ray Zage
Ordinary shares
1,312,167
65,000
-
1,070,451
12,000
75,395
11,065,134
2 (d) Directors’ meetings
The following are the number of Directors’ meetings (including meetings of committees of Directors) and the number of
meetings each Director attended during the financial year.
Director
Directors’
Meetings
Audit & Risk
Management
Committee
Meetings
Remuneration
Committee
Meetings
Community
Committee
Meetings
Health, Safety,
Environment &
Governance &
Nominations
Committee
Special Committee
Meetings
Meetings
Mark Vaile
Julie Beeby
Nicole Brook
Paul Flynn
Wallis Graham
Fiona Robertson
Ray Zage
John Conde
Lindsay Ward
A
12
12
8
12
5
12
12
4
5
B
12
12
8
12
5
12
11
4
5
A
6
-
-
-
1
6
4
2
-
B
6
-
-
-
1
6
3
2
-
A
4
-
-
-
2
2
-
2
2
B
4
-
-
-
2
2
-
2
2
A
3
4
3
-
-
1
-
-
1
B
3
4
3
-
-
1
-
-
1
A
4
4
-
-
-
2
-
2
-
B
4
4
-
-
-
2
-
2
-
A
3
3
3
3
3
3
-
-
-
B
3
3
3
3
3
3
-
-
-
A – Number of meetings held during the time the Director held office during the year.
B – Number of meetings the Director attended.
Page 14 | Whitehaven Coal Annual Report 2023
Page 15 | Whitehaven Coal Annual Report 2023
Page 15 | Whitehaven Coal Annual Report 2023
Directors’ Report
Directors’ Report
For the year ended 30 June 2023
For the year ended 30 June 2023
4. Operating and financial review
4. Operating and financial review
Financial headlines
Financial headlines
Revenue ($m)
6,064.7
FY23
FY22
FY21
FY20
FY19
EBITDA ($m)
3,985.6
6,064.7
4,920.1
1,557.0
1,721.6
2,487.9
FY23
FY22
FY21
FY20
FY19
Cash generated from operations ($m)
4,211.6
Net cash/(debt) ($m)
2,652.2
FY23
FY22
FY21
FY20
FY19
4,211.6
2,582.0
169.5
189.9
964.1
FY23
FY22
FY21
FY20
FY19
Capital returned to shareholders ($m)
Capital allocated to shareholders ($m)
1,587.7
1,333.0
3,985.6
3,060.1
204.5
306.0
1,001.2
2,652.2
1,037.8
(808.5)
(787.5)
(161.6)
Total %
of NPAT
FY23
FY22
FY21
FY20
FY19
1,587.7
442.4
-
312.2
464.9
FY23
FY22
FY21
FY20
14.9
FY19
277.0 217.7
609.4
723.6
1,333.0
50%
446.3
587.9
1,034.2
53%
-
14.9
494.7
-
49%
94%
Capital returns paid during the period per the consolidated statement of cashflows.
Dividend
Buy-back
Special dividend
Capital returns allocated out of profits for the period.
− Safety remains a top priority for Whitehaven. The Company delivered an improved safety performance for the rolling
− Safety remains a top priority for Whitehaven. The Company delivered an improved safety performance for the rolling
12 months to 30 June 2023, with a TRIFR of 4.7 representing an improvement of 13% on FY22.
12 months to 30 June 2023, with a TRIFR of 4.7 representing an improvement of 13% on FY22.
− Whitehaven achieved strong environmental performance in FY23 with zero environmental enforceable actions
− Whitehaven achieved strong environmental performance in FY23 with zero environmental enforceable actions
received in the year, a significant improvement on recent years.
received in the year, a significant improvement on recent years.
− Whitehaven achieved record financial performance for the year:
− Whitehaven achieved record financial performance for the year:
− revenue of $6.1 billion
− revenue of $6.1 billion
− earnings before interest, tax and depreciation (EBITDA) of $4.0 billion
− earnings before interest, tax and depreciation (EBITDA) of $4.0 billion
− net profit after tax (NPAT) of $2.7 billion.
− net profit after tax (NPAT) of $2.7 billion.
− Reflecting the record financial performance, Whitehaven significantly increased shareholder returns in FY23 with $1.3
− Reflecting the record financial performance, Whitehaven significantly increased shareholder returns in FY23 with $1.3
billion allocated out of FY23 profits (~$1.59 per share) and $1.6 billion paid in the year (~$1.81 per share):
billion allocated out of FY23 profits (~$1.59 per share) and $1.6 billion paid in the year (~$1.81 per share):
− $1.6 billion was returned to shareholders through finalisation of the initial 10% share buy-back and commencement
− $1.6 billion was returned to shareholders through finalisation of the initial 10% share buy-back and commencement
of the next stage of the share buy-back ($948.9 million), the fully franked FY22 final dividend ($366.5 million) and
of the next stage of the share buy-back ($948.9 million), the fully franked FY22 final dividend ($366.5 million) and
FY23 interim dividend ($272.3 million).
FY23 interim dividend ($272.3 million).
− Total shareholder returns for FY23 of $1.3 billion (50% payout ratio) were made or are scheduled to be made from
− Total shareholder returns for FY23 of $1.3 billion (50% payout ratio) were made or are scheduled to be made from
the FY23 NPAT. This includes 92.8 million shares bought back for $723.6 million through the share buy-back and
the FY23 NPAT. This includes 92.8 million shares bought back for $723.6 million through the share buy-back and
Page 16 | Whitehaven Coal Annual Report 2023
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Page 16 | Whitehaven Coal Annual Report 2023
Directors’ Report
Directors’ Report
For the year ended 30 June 2023
For the year ended 30 June 2023
Directors’ Report
For the year ended 30 June 2023
4. Operating and financial review
4. Operating and financial review
Financial headlines
Financial headlines
− Safety remains a top priority for Whitehaven. The Company delivered an improved safety performance for the rolling
− Safety remains a top priority for Whitehaven. The Company delivered an improved safety performance for the rolling
12 months to 30 June 2023, with a TRIFR of 4.7 representing an improvement of 13% on FY22.
12 months to 30 June 2023, with a TRIFR of 4.7 representing an improvement of 13% on FY22.
− Whitehaven achieved strong environmental performance in FY23 with zero environmental enforceable actions
− Whitehaven achieved strong environmental performance in FY23 with zero environmental enforceable actions
received in the year, a significant improvement on recent years.
received in the year, a significant improvement on recent years.
− Whitehaven achieved record financial performance for the year:
− Whitehaven achieved record financial performance for the year:
− revenue of $6.1 billion
− revenue of $6.1 billion
− earnings before interest, tax and depreciation (EBITDA) of $4.0 billion
− earnings before interest, tax and depreciation (EBITDA) of $4.0 billion
− net profit after tax (NPAT) of $2.7 billion.
− net profit after tax (NPAT) of $2.7 billion.
billion allocated out of FY23 profits (~$1.59 per share) and $1.6 billion paid in the year (~$1.81 per share):
billion allocated out of FY23 profits (~$1.59 per share) and $1.6 billion paid in the year (~$1.81 per share):
− $1.6 billion was returned to shareholders through finalisation of the initial 10% share buy-back and commencement
− $1.6 billion was returned to shareholders through finalisation of the initial 10% share buy-back and commencement
of the next stage of the share buy-back ($948.9 million), the fully franked FY22 final dividend ($366.5 million) and
of the next stage of the share buy-back ($948.9 million), the fully franked FY22 final dividend ($366.5 million) and
FY23 interim dividend ($272.3 million).
FY23 interim dividend ($272.3 million).
− Total shareholder returns for FY23 of $1.3 billion (50% payout ratio) were made or are scheduled to be made from
− Total shareholder returns for FY23 of $1.3 billion (50% payout ratio) were made or are scheduled to be made from
the FY23 NPAT. This includes 92.8 million shares bought back for $723.6 million through the share buy-back and
the FY23 NPAT. This includes 92.8 million shares bought back for $723.6 million through the share buy-back and
dividends of $609.4 million (including the declared fully franked FY23 final dividend of $337.1 million and the FY23
interim dividend of $272.3 million).
− Whitehaven has maintained a strong balance sheet, with a net cash position of $2.65 billion, providing resilience and
optionality.
− Significant cash was generated from operations of $4.2 billion. Whitehaven is maintaining its disciplined approach to
capital expenditure and continues to invest to maintain and optimise operations.
− During the year, Whitehaven announced plans for early mining of the Vickery coal deposit which, for a relatively low
capital investment of $150 million, will take advantage of existing surplus coal processing and washing infrastructure as
well as existing road haulage, rail and port capacity.
The following table summarises the key reconciling items between the Group’s EBITDA and its NPAT.
Revenue
EBITDA
Net finance income/(expense)
Depreciation and amortisation
Income tax expense
NPAT
Basic earnings per share (cents)
FY23
$ million
6,064.7
3,985.6
41.9
(226.0)
(1,133.4)
2,668.1
307.7
FY22
$ million
4,920.1
3,060.1
(55.3)
(238.9)
(813.9)
1,952.0
197.6
Review of financial performance
Whitehaven delivered a strong safety performance with a TRIFR of 4.7 for the rolling 12 months to 30 June 2023, an
improvement of 13% on FY22.
The Company achieved record financial results with coal sales revenue of $6.1 billion, EBITDA of $4.0 billion and NPAT of
$2.7 billion. This reflects stronger high-quality thermal coal prices, predominantly in the first half, that were partially offset
by inflationary cost pressures and lower production as a result of operational constraints, including localised flooding
events and labour shortages.
Australian high-quality thermal coal prices reached record highs during the first half of the year, driven by strong demand
for reliable energy in a supply-constrained market, before moderating in the second half as prices retreated from their
highs. Whitehaven achieved a record realised average thermal coal price for FY23 of US$305/t, a US$3/t premium to the
average gC NEWC benchmark index for the year.
Operational productivity, rail, and port activities in FY23 were impacted by above-average rainfall and flooding in the first
half, which led to open cut production disruption because of flood-related loss of access, and ongoing lower productivity
when operating in wet conditions and in-pit water management. Compounding the operational productivity constraints
at our open cut mines were labour shortages, further intermittent weather interruptions, congestion arising from limited
dumping locations at the Maules Creek mine and a geotechnical slip at Werris Creek slowing the mine’s progression.
Strong earnings at a $310/t EBITDA margin (75%) translated into a substantial $1.6 billion increase in cash generated from
operations to $4.2 billion for the year. The balance sheet closed in a stronger position with a net cash position of
$2.65 billion, after returning a record $1.6 billion of capital to shareholders and maintaining a disciplined approach to
capital expenditure.
During the year, Whitehaven bought back 119.7 million shares for a total outlay of $948.9 million (average price of $7.93
per share). Since March 2022, 196.0 million shares have been bought back at an average price of $6.69 per share for a
total outlay of $1.3 billion.
− Reflecting the record financial performance, Whitehaven significantly increased shareholder returns in FY23 with $1.3
− Reflecting the record financial performance, Whitehaven significantly increased shareholder returns in FY23 with $1.3
The tax expense of $1.1 billion in FY23 represents an effective tax rate of 30%.
Page 16 | Whitehaven Coal Annual Report 2023
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Page 17 | Whitehaven Coal Annual Report 2023
Page 17 | Whitehaven Coal Annual Report 2023
Directors’ Report
For the year ended 30 June 2023
Earnings
Sales of produced coal (kt) 1
Average realised price after applicable royalties (A$/t) 1
Cost per tonne (A$/t) 1
EBITDA margin on sales of produced coal (A$/t) 1
1 Excluding coal reservation sales
FY23
12,706
413
103
310
FY22
14,166
300
84
216
Whitehaven’s EBITDA margin on sales of produced coal increased by $94/t to $310/t in FY23, due to:
− A $113/t increase in average realised price (after applicable royalties) from $300/t in FY22 to $413/t in FY23.
− Higher FOB unit costs, which at $103/t were $19/t above FY22 as a result of lower production volumes and rising costs
including inflationary pressure, higher diesel and explosives prices, port costs, and increased costs associated with
labour attraction and retention initiatives in a constrained labour market.
− Margins were enhanced by switching metallurgical coal into thermal blends while thermal price realisations were
favourable and by washing ROM coal ‘harder’ where available, to take advantage of the record spreads between
6000kcal/kg NAR and lower grades of coal.
Revenue
Price Indices
gC NEWC index price (US$/t)
JSM Quarterly (SSCC) index (US$/t)
Price achieved1
Average achieved price (A$/t)
Average achieved thermal price (US$/t)
Average achieved metallurgical price (US$/t)
Metallurgical coal sales (% of total)
Average AUD:USD exchange rate
1 Sales of produced coal, excluding coal reservation
FY23
FY22
302
244
445
305
261
6%
0.67
248
253
325
239
232
18%
0.73
Record-high coal prices in the first half of the year underpinned an increase in revenue of $1.1 billion to $6.1 billion in FY23.
Whitehaven achieved an average coal price of A$445/t for FY23 compared with A$325/t in the prior year. This was
underpinned by a realised average thermal coal price for FY23 of US$305/t, a US$3/t premium to the gC NEWC index. In
a stable pricing environment, Whitehaven expects to achieve a slight premium to the gC NEWC index.
Metallurgical sales remained relatively low in FY23 at 6% reflecting opportunities to sell SSCC volumes into thermal coal
markets to achieve more attractive price realisations.
Page 18 | Whitehaven Coal Annual Report 2023
Page 18 | Whitehaven Coal Annual Report 2023
Directors’ Report
For the year ended 30 June 2023
Directors’ Report
Directors’ Report
For the year ended 30 June 2023
For the year ended 30 June 2023
Earnings
Unit costs
Unit costs
Outlined below are the key factors that contributed to the increase in FOB unit costs to A$103/t in FY23:
Outlined below are the key factors that contributed to the increase in FOB unit costs to A$103/t in FY23:
$/t
84
3
4
5
7
103
FY23
FY22
FY22
Impact
of flooding
NCIG accelerated
debt amortisation
Maules Creek
operational
constraints
Other (incl.
diesel & labour)
FY23
Cyclical/seasonal
Inflationary cost
pressures
Key drivers of increased FY23 costs were:
Key drivers of increased FY23 costs were:
− Regional and localised flooding arising from La Niña weather events, resulting in site access being cut off for 24 days
− Regional and localised flooding arising from La Niña weather events, resulting in site access being cut off for 24 days
at Maules Creek, 17 days at Tarrawonga and 36 days for coal haulage to the Gunnedah CHPP, in the first half of FY23.
at Maules Creek, 17 days at Tarrawonga and 36 days for coal haulage to the Gunnedah CHPP, in the first half of FY23.
This reduced operational productivity and sales volumes at our open cut mines, resulting in a corresponding increase
This reduced operational productivity and sales volumes at our open cut mines, resulting in a corresponding increase
in unit costs and in underutilised rail and port costs.
in unit costs and in underutilised rail and port costs.
− Higher port costs, primarily due to the additional charge from NCIG, as debt amortisation has been accelerated in
− Higher port costs, primarily due to the additional charge from NCIG, as debt amortisation has been accelerated in
higher coal price scenarios. The additional toll charge is variable, dependent on coal prices, up to a maximum level of
higher coal price scenarios. The additional toll charge is variable, dependent on coal prices, up to a maximum level of
US$3/t.
US$3/t.
− Operational constraints at Maules Creek driven by labour shortages, congestion arising from limited dumping locations
− Operational constraints at Maules Creek driven by labour shortages, congestion arising from limited dumping locations
while maintaining separation of manned and unmanned AHS fleets, as well as productivity impacts and disruptions
while maintaining separation of manned and unmanned AHS fleets, as well as productivity impacts and disruptions
from weather and in-pit water management.
from weather and in-pit water management.
− General inflationary cost pressure including an increase in the cost of diesel used in production and coal transportation
− General inflationary cost pressure including an increase in the cost of diesel used in production and coal transportation
due to higher average crude oil prices, impacts of a tight labour market, increased prices by OEM suppliers, and other
due to higher average crude oil prices, impacts of a tight labour market, increased prices by OEM suppliers, and other
general cost pressures following a period of higher coal prices. While diesel prices have moderated from the peaks
general cost pressures following a period of higher coal prices. While diesel prices have moderated from the peaks
experienced in the first half, prices remain elevated relative to FY22.
experienced in the first half, prices remain elevated relative to FY22.
Whitehaven’s EBITDA margin on sales of produced coal increased by $94/t to $310/t in FY23, due to:
− A $113/t increase in average realised price (after applicable royalties) from $300/t in FY22 to $413/t in FY23.
− Higher FOB unit costs, which at $103/t were $19/t above FY22 as a result of lower production volumes and rising costs
including inflationary pressure, higher diesel and explosives prices, port costs, and increased costs associated with
labour attraction and retention initiatives in a constrained labour market.
− Margins were enhanced by switching metallurgical coal into thermal blends while thermal price realisations were
favourable and by washing ROM coal ‘harder’ where available, to take advantage of the record spreads between
Sales of produced coal (kt) 1
Average realised price after applicable royalties (A$/t) 1
Cost per tonne (A$/t) 1
EBITDA margin on sales of produced coal (A$/t) 1
1 Excluding coal reservation sales
6000kcal/kg NAR and lower grades of coal.
Revenue
Price Indices
gC NEWC index price (US$/t)
JSM Quarterly (SSCC) index (US$/t)
Price achieved1
Average achieved price (A$/t)
Average achieved thermal price (US$/t)
Average achieved metallurgical price (US$/t)
Metallurgical coal sales (% of total)
Average AUD:USD exchange rate
1 Sales of produced coal, excluding coal reservation
FY23
12,706
413
103
310
FY22
14,166
300
84
216
302
244
445
305
261
6%
0.67
248
253
325
239
232
18%
0.73
Record-high coal prices in the first half of the year underpinned an increase in revenue of $1.1 billion to $6.1 billion in FY23.
Whitehaven achieved an average coal price of A$445/t for FY23 compared with A$325/t in the prior year. This was
underpinned by a realised average thermal coal price for FY23 of US$305/t, a US$3/t premium to the gC NEWC index. In
a stable pricing environment, Whitehaven expects to achieve a slight premium to the gC NEWC index.
Metallurgical sales remained relatively low in FY23 at 6% reflecting opportunities to sell SSCC volumes into thermal coal
markets to achieve more attractive price realisations.
Page 18 | Whitehaven Coal Annual Report 2023
Page 19 | Whitehaven Coal Annual Report 2023
Page 19 | Whitehaven Coal Annual Report 2023
Page 19 | Whitehaven Coal Annual Report 2023
Directors’ Report
For the year ended 30 June 2023
Cash flows and capital management
Cash flow summary
Cash generated from operations
Investing cash flows
Shareholder returns1
Other financing cash flows
Cash at the end of the period
Capital management
Net cash2
Undrawn syndicated facility3
FY23
FY22
$ million
$ million
4,211.6
(306.9)
(1,585.6)
(131.0)
2,775.5
2,582.0
(177.2)
(438.8)
(793.6)
1,215.5
30 June 2023
30 June 2022
2,652.2
-
1,037.8
1,000.0
1
Includes a share trade entered into on 30 June 2022 for $3,588,000 that was settled and paid on 4 July 2022. Excludes share trade entered
into on 30 June 2023 for $5,663,000 that was settled and paid on 4 July 2023, bringing total share buy-backs for the year to $948.9 million
(2022: Excludes share trade entered into 30 June 2022 for $3,588,000 bringing total share buy-backs for the year to $362.5 million).
2 Calculated in accordance with the contingent facilities covenant requirements and therefore excludes lease liabilities recognised under AASB
16 Leases of $65,613,000 (2022: $67,006,000).
3 Syndicated facility was closed on 30 June 2023.
Cash generated from operations
There was a substantial increase of $1.6 billion in cash generated from operations to $4.2 billion in FY23 reflecting a
strong conversion of record earnings into cash along with a net working capital unwind due to a reduction in trade
receivables during the year.
Investing cash flows
Investing cash outflows during FY23 of $306.9 million (+$129.7 million above FY22), consisted of:
− capital allocated to mines to maintain safe and productive operations, with sustaining capital expenditure of $130.3
million (+$32.2 million above FY22) and mains development of $39.4 million (+$13.3 million above FY22)
− development projects expenditures of $62.5 million (+$28.7 million above FY22), reflecting further progression of the
Vickery, Winchester South and Narrabri Stage 3 projects
− purchase of land for an employee housing project ($10.4 million)
− acquisitions of $66.4 million (+$23.1 million above FY22), which included deferred consideration paid in respect of the
acquisition of EDF’s interest in the Narrabri mine ($16.1 million), the acquisition of APG’s rights to a 1% private royalty
on Narrabri coal sales ($12.4 million), and capital invested to internalise the outsourced road haulage services provided
by BIS Industries Ltd between our Tarrawonga mine and Gunnedah CHPP ($15.2 million), and other investing activities
($22.7 million).
Financing cash flows and capital management
Whitehaven finished the year in a strong balance sheet position, with a net cash position of $2.65 billion.
Net cash used in financing activities during FY23 was $1.7 billion. This included $1.6 billion of capital returns to
shareholders comprising share buy-backs ($1.0 billion) to drive long-term sustained shareholder value and fully franked
dividends (FY22 final dividend and FY23 interim dividend totalling $0.6 billion), $0.1 billion in lease and Export Credit
Agency (ECA) facility repayments.
Whitehaven will retain cash on balance sheet for flexibility and optionality, and to maintain adequate liquidity through the
cycle. As part of its recently completed refinancing the Company sourced contingent credit support facilities covering
guarantees for environmental bonding, rehabilitation, and port, rail and other financial guarantees. The Company chose
not to pursue renewal of the previously held $1.0 billion undrawn finance facility.
Page 20 | Whitehaven Coal Annual Report 2023
Page 20 | Whitehaven Coal Annual Report 2023
Cash flow summary
Cash generated from operations
Investing cash flows
Shareholder returns1
Other financing cash flows
Cash at the end of the period
Capital management
Net cash2
Undrawn syndicated facility3
4,211.6
(306.9)
(1,585.6)
(131.0)
2,775.5
2,652.2
-
2,582.0
(177.2)
(438.8)
(793.6)
1,215.5
1,037.8
1,000.0
30 June 2023
30 June 2022
1
Includes a share trade entered into on 30 June 2022 for $3,588,000 that was settled and paid on 4 July 2022. Excludes share trade entered
into on 30 June 2023 for $5,663,000 that was settled and paid on 4 July 2023, bringing total share buy-backs for the year to $948.9 million
(2022: Excludes share trade entered into 30 June 2022 for $3,588,000 bringing total share buy-backs for the year to $362.5 million).
2 Calculated in accordance with the contingent facilities covenant requirements and therefore excludes lease liabilities recognised under AASB
16 Leases of $65,613,000 (2022: $67,006,000).
3 Syndicated facility was closed on 30 June 2023.
Cash generated from operations
receivables during the year.
Investing cash flows
There was a substantial increase of $1.6 billion in cash generated from operations to $4.2 billion in FY23 reflecting a
strong conversion of record earnings into cash along with a net working capital unwind due to a reduction in trade
Investing cash outflows during FY23 of $306.9 million (+$129.7 million above FY22), consisted of:
− capital allocated to mines to maintain safe and productive operations, with sustaining capital expenditure of $130.3
million (+$32.2 million above FY22) and mains development of $39.4 million (+$13.3 million above FY22)
($22.7 million).
Financing cash flows and capital management
Whitehaven finished the year in a strong balance sheet position, with a net cash position of $2.65 billion.
Net cash used in financing activities during FY23 was $1.7 billion. This included $1.6 billion of capital returns to
shareholders comprising share buy-backs ($1.0 billion) to drive long-term sustained shareholder value and fully franked
dividends (FY22 final dividend and FY23 interim dividend totalling $0.6 billion), $0.1 billion in lease and Export Credit
Agency (ECA) facility repayments.
Whitehaven will retain cash on balance sheet for flexibility and optionality, and to maintain adequate liquidity through the
cycle. As part of its recently completed refinancing the Company sourced contingent credit support facilities covering
guarantees for environmental bonding, rehabilitation, and port, rail and other financial guarantees. The Company chose
not to pursue renewal of the previously held $1.0 billion undrawn finance facility.
Directors’ Report
For the year ended 30 June 2023
Directors’ Report
Directors’ Report
For the year ended 30 June 2023
For the year ended 30 June 2023
Cash flows and capital management
Review of operations
Review of operations
FY23
FY22
$ million
$ million
ROM Coal Production (kt)
Sales of Produced Coal (kt)
18,190
15,990
FY23
FY22
FY21
FY20
FY19
Safety
Safety
18,190
FY23
20,003
20,555
20,688
23,222
FY22
FY21
FY20
FY19
TRIFR
4.7
FY23
FY22
FY21
FY20
FY19
15,990
17,573
17,775
17,811
19,993
4.7
5.4
5.9
4.1
6.2
Whitehaven reported a TRIFR of 4.7 for its employees and contractors for the 12 months ended 30 June 2023. The
Whitehaven reported a TRIFR of 4.7 for its employees and contractors for the 12 months ended 30 June 2023. The
Company is committed to achieving zero harm to its people and the environment, and management continues to strive
Company is committed to achieving zero harm to its people and the environment, and management continues to strive
for better safety performance across all operations.
for better safety performance across all operations.
Production, sales and coal stocks
Production, sales and coal stocks
Whitehaven – Managed basis (000t)
Whitehaven – Managed basis (000t)
ROM coal production
ROM coal production
Saleable coal production
Saleable coal production
Sales of produced coal
Sales of produced coal
Sales of purchased coal
Sales of purchased coal
Total coal sales
Total coal sales
Coal stocks at year end
Coal stocks at year end
Tonnages in the table above are presented on a managed (100%) basis.
Tonnages in the table above are presented on a managed (100%) basis.
− development projects expenditures of $62.5 million (+$28.7 million above FY22), reflecting further progression of the
Whitehaven – Equity basis (000t)
Whitehaven – Equity basis (000t)
Vickery, Winchester South and Narrabri Stage 3 projects
− purchase of land for an employee housing project ($10.4 million)
− acquisitions of $66.4 million (+$23.1 million above FY22), which included deferred consideration paid in respect of the
acquisition of EDF’s interest in the Narrabri mine ($16.1 million), the acquisition of APG’s rights to a 1% private royalty
on Narrabri coal sales ($12.4 million), and capital invested to internalise the outsourced road haulage services provided
by BIS Industries Ltd between our Tarrawonga mine and Gunnedah CHPP ($15.2 million), and other investing activities
ROM coal production
ROM coal production
Saleable coal production
Saleable coal production
Sales of produced coal
Sales of produced coal
Sales of purchased coal
Sales of purchased coal
Total coal sales
Total coal sales
Coal stocks at year end
Coal stocks at year end
FY23
FY23
18,190
18,190
15,740
15,740
15,990
15,990
635
635
16,625
16,625
1,534
1,534
FY23
FY23
14,620
14,620
12,769
12,769
13,005
13,005
635
635
13,640
13,640
1,323
1,323
FY22
FY22
20,003
20,003
17,274
17,274
17,573
17,573
1,247
1,247
18,820
18,820
2,379
2,379
FY22
FY22
16,117
16,117
13,852
13,852
14,166
14,166
1,247
1,247
15,413
15,413
2,065
2,065
Movement
Movement
(9%)
(9%)
(9%)
(9%)
(9%)
(9%)
(49%)
(49%)
(12%)
(12%)
(36%)
(36%)
Movement
Movement
(9%)
(9%)
(8%)
(8%)
(8%)
(8%)
(49%)
(49%)
(12%)
(12%)
(36%)
(36%)
Tonnages in the table above are presented on an equity basis. Production tables and associated commentary set out in the mine-by-mine analysis
Tonnages in the table above are presented on an equity basis. Production tables and associated commentary set out in the mine-by-mine analysis
are presented on a managed (100%) basis.
are presented on a managed (100%) basis.
Whitehaven delivered FY23 ROM coal production of 18.2Mt, saleable coal production of 15.7Mt and sales of produced coal
Whitehaven delivered FY23 ROM coal production of 18.2Mt, saleable coal production of 15.7Mt and sales of produced coal
of 16.0Mt, which was lower than FY22. The key features for the period include:
of 16.0Mt, which was lower than FY22. The key features for the period include:
− Narrabri commenced the year with the successful longwall step around to avoid the fault zone in panel 110 and
− Narrabri commenced the year with the successful longwall step around to avoid the fault zone in panel 110 and
delivered consistently strong volumes of good quality coal to the end of the March quarter. In the June quarter,
delivered consistently strong volumes of good quality coal to the end of the March quarter. In the June quarter,
Narrabri completed its largest relocation of the longwall to operate in the southern 200 series panels, commencing in
Narrabri completed its largest relocation of the longwall to operate in the southern 200 series panels, commencing in
panel 203.
panel 203.
− Access was lost to the open cut mine sites and Gunnedah CHPP for approximately one month due to localised
− Access was lost to the open cut mine sites and Gunnedah CHPP for approximately one month due to localised
flooding in the first half.
flooding in the first half.
− Operational productivity at the open cut mines was constrained, including by industry-wide labour availability
− Operational productivity at the open cut mines was constrained, including by industry-wide labour availability
challenges.
challenges.
− A geotechnical slip at Werris Creek mine during the year restricted mining progression while remediation works were
− A geotechnical slip at Werris Creek mine during the year restricted mining progression while remediation works were
underway, with successful stabilisation allowing mining to resume in the June quarter.
underway, with successful stabilisation allowing mining to resume in the June quarter.
− Coal stocks at 30 June 2023 of 1.3Mt were 36% lower than stocks at 30 June 2022 of 2.1Mt, reflecting the drawdown of
− Coal stocks at 30 June 2023 of 1.3Mt were 36% lower than stocks at 30 June 2022 of 2.1Mt, reflecting the drawdown of
coal stocks to meet sales commitments.
coal stocks to meet sales commitments.
Page 20 | Whitehaven Coal Annual Report 2023
Page 21 | Whitehaven Coal Annual Report 2023
Page 21 | Whitehaven Coal Annual Report 2023
Page 21 | Whitehaven Coal Annual Report 2023
Directors’ Report
For the year ended 30 June 2023
Maules Creek
Ownership: Whitehaven 75% and Operator, ICRA MC Pty Ltd 15%, J-Power Australia Pty Ltd 10%
Maules Creek 100% (‘000t)
ROM coal production
Saleable coal production
Sales of produced coal
Coal stocks at year end
FY23
9,550
7,259
7,331
788
FY22
11,220
9,372
9,612
1,012
Movement
(15%)
(23%)
(24%)
(22%)
Note: Tonnages in the above table are presented on a managed basis.
FY23 was significantly impacted by localised flooding. Maules Creek delivered ROM coal production of 9.6Mt in FY23, 15%
below FY22. Labour constraints, congestion arising from limited dumping locations while keeping manned and unmanned
AHS fleets separate, and ongoing intermittent weather and in-pit water management also contributed to the lower
production.
Saleable coal production of 7.3Mt reflects lower ROM coal production and the processing of high opening ROM coal
stocks in FY22.
Sales volumes for the year of 7.3Mt were 24% below FY22, in line with saleable coal production.
Coal stocks of 0.8Mt were down 22% on FY22, reflecting the lower ROM production and the drawdown of stocks in FY23.
Narrabri
Ownership: Whitehaven 77.5% and Operator, J-Power 7.5%, Upper Horn Investments Limited 7.5%,
Daewoo International Corporation and Korea Resources Corporation 7.5%
Narrabri Mine 100% (‘000t)
ROM coal production
Saleable coal production
Sales of produced coal
Coal stocks at year end
FY23
5,252
5,140
5,305
66
FY22
4,802
4,795
4,617
270
Movement
9%
7%
15%
(76%)
Note: Tonnages in the above table are presented on a managed basis.
Narrabri delivered ROM coal production of 5.3Mt in FY23, 9% above FY22 reflecting consistent volumes of good quality
coal produced between a longwall step around in Panel 110 and the longwall relocation to the southern 200 series panels.
Strong first half ROM coal production volumes were achieved, reflecting consistent longwall performance following the
successful longwall step around to avoid the fault zone in panel 110. Production in the second half was impacted by the
slower than forecast completion of panel 110B and the completion of Narrabri’s largest longwall relocation from panel
110B to the southern 203 panel.
Saleable coal production of 5.1Mt was 7% above FY22, which was consistent with ROM coal production.
Sales volumes of 5.3Mt were 15% above FY22, reflecting saleable coal volumes and the drawdown of coal stocks in FY23.
Coal stocks of 0.1Mt were down 76%, reflecting the timing of ROM coal production and the longwall move in the year.
Page 22 | Whitehaven Coal Annual Report 2023
Page 22 | Whitehaven Coal Annual Report 2023
Directors’ Report
For the year ended 30 June 2023
Maules Creek
Maules Creek 100% (‘000t)
ROM coal production
Saleable coal production
Sales of produced coal
Coal stocks at year end
production.
stocks in FY22.
Narrabri
Narrabri Mine 100% (‘000t)
ROM coal production
Saleable coal production
Sales of produced coal
Coal stocks at year end
FY23
5,252
5,140
5,305
66
FY22
4,802
4,795
4,617
270
Movement
9%
7%
15%
(76%)
Note: Tonnages in the above table are presented on a managed basis.
Narrabri delivered ROM coal production of 5.3Mt in FY23, 9% above FY22 reflecting consistent volumes of good quality
coal produced between a longwall step around in Panel 110 and the longwall relocation to the southern 200 series panels.
Strong first half ROM coal production volumes were achieved, reflecting consistent longwall performance following the
successful longwall step around to avoid the fault zone in panel 110. Production in the second half was impacted by the
slower than forecast completion of panel 110B and the completion of Narrabri’s largest longwall relocation from panel
110B to the southern 203 panel.
Saleable coal production of 5.1Mt was 7% above FY22, which was consistent with ROM coal production.
Sales volumes of 5.3Mt were 15% above FY22, reflecting saleable coal volumes and the drawdown of coal stocks in FY23.
Coal stocks of 0.1Mt were down 76%, reflecting the timing of ROM coal production and the longwall move in the year.
Directors’ Report
For the year ended 30 June 2023
Gunnedah open cut mines
Ownership: Whitehaven 75% and Operator, ICRA MC Pty Ltd 15%, J-Power Australia Pty Ltd 10%
Ownership: Werris Creek Whitehaven 100% & Tarrawonga Whitehaven 100%
FY23
9,550
7,259
7,331
788
FY22
11,220
9,372
9,612
1,012
(15%)
(23%)
(24%)
(22%)
Movement
Open Cuts 100% (‘000t)
ROM coal production
Saleable coal production
Sales of produced coal
Coal stocks at year end
FY23
3,388
3,341
3,354
680
FY22
3,981
3,107
3,344
1,097
Movement
(15%)
8%
0%
(38%)
Note: Tonnages in the above table are presented on a managed basis.
FY23 was significantly impacted by localised flooding. Maules Creek delivered ROM coal production of 9.6Mt in FY23, 15%
below FY22. Labour constraints, congestion arising from limited dumping locations while keeping manned and unmanned
AHS fleets separate, and ongoing intermittent weather and in-pit water management also contributed to the lower
Saleable coal production of 7.3Mt reflects lower ROM coal production and the processing of high opening ROM coal
Sales volumes for the year of 7.3Mt were 24% below FY22, in line with saleable coal production.
Coal stocks of 0.8Mt were down 22% on FY22, reflecting the lower ROM production and the drawdown of stocks in FY23.
Gunnedah open cut mines consist of the Tarrawonga mine and Werris Creek mine. The combined ROM production of the
two mines was 3.4Mt for FY23, 15% below FY22. This reflects La Niña wet weather and flooding impacts at Tarrawonga in
the first half, and a geotechnical slip at Werris Creek in the second half, which delayed the release of ROM coal.
Despite the operational challenges, saleable coal production of 3.3Mt was 8% above FY22 and sales volumes of 3.4Mt
were in line with FY22 due to the drawdown of opening ROM coal stocks. As a result, coal stocks of 0.7Mt were 38%
below FY22.
Development projects
Whitehaven’s development projects includes the Vickery and Winchester South projects, which were acquired from Rio
Tinto in 2010 and 2018 respectively, and the Narrabri Stage 3 Extension project. All of Whitehaven’s development
projects are subject to the Company’s strict capital allocation framework, and any approved major development projects
(i.e. Vickery and Winchester South) will be constructed sequentially.
Ownership: Whitehaven 77.5% and Operator, J-Power 7.5%, Upper Horn Investments Limited 7.5%,
Daewoo International Corporation and Korea Resources Corporation 7.5%
Vickery
Ownership: Whitehaven 100%
In August 2020 the Vickery Extension Project received approval from the NSW Independent Planning Commission (IPC)
to operate an up to 10Mtpa open cut metallurgical and thermal coal mine, with onsite processing and rail infrastructure.
On 16 September 2021 the federal Minister for the Environment approved the Project under the Commonwealth’s
Environment Protection and Biodiversity Conservation Act 1999 (the EPBC Act).
In April 2023, Whitehaven announced that the Board had approved a ~$150m investment to commence early mining of
the Vickery coal deposit, which will utilise surplus coal processing and washing infrastructure capacity at the Gunnedah
CHPP as well as existing road haulage, rail and port capacity. Work commenced in the June 2023 quarter to advance the
Early Stage Mining project, including the design of temporary mine infrastructure facilities, preparation and tendering of
construction works and mobilisation of a dedicated project and operations team to the site.
Feasibility works are ongoing for the full scale project, with an investment in full scale development to be considered by
the Board at an appropriate time.
Winchester South
Ownership: Whitehaven 100%
The proposed Winchester South open cut metallurgical coal mine is located in Queensland’s Bowen Basin. At full
capacity the mine is targeting an average ROM production of 15Mtpa to supply the international market for about 30
years.
On 31 March 2023, the Winchester South project team submitted the Response to Submissions Report to the Office of
the Coordinator-General (OCG), which responded to all submissions received during the public notification of the
Revised Draft Environmental Impact Statement (EIS) in December 2022. On 7 July 2023, the EIS was formally accepted
by the OCG as the final EIS for the Winchester South project. The OCG now prepares a report evaluating the EIS. The
project continues to progress through the Queensland Government’s coordinated project approval process.
The project team is continuing to complete a feasibility study with detailed studies underway across all project work
streams.
Narrabri Stage 3 Extension
Ownership: Whitehaven 77.5%
The Narrabri Stage 3 Extension Project is an extension of the existing Narrabri underground mine. It will extend the
longwall panels planned for the mining lease south of the current main roads into the contiguous Narrabri South
Exploration Licence area, and extends the approved life of the mine from 2031 to 2044.
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Page 23 | Whitehaven Coal Annual Report 2023
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Directors’ Report
For the year ended 30 June 2023
The project seeks to convert Narrabri’s adjacent Exploration Licence into a Mining Lease and use the existing portals,
CHPP, rail loop and associated infrastructure to extract, process and export high-energy thermal coal and Pulverised Coal
Injection (PCI) coal products using the longwall mining method.
The Narrabri Stage 3 Extension Project has been approved by the IPC subject to meeting a range of IPC conditions,
including in relation to emissions mitigation technology and measures.
On 5 July 2023, the NSW Land and Environment Court dismissed judicial review proceedings brought by a client of the
Environmental Defenders Office (EDO) which sought to invalidate the NSW IPC Consent on climate change related
grounds. Whitehaven welcomes this result which reaffirms the important role that high-quality thermal coal plays in
energy security during the decarbonisation transition.
A second activist group the Environment Council of Central Queensland Inc, represented by a pro bono law firm, has
commenced judicial review proceedings in the Federal Court in respect of the federal Environment Minister’s decision
that a number of coal and gas projects, including the Narrabri Stage 3 Extension, would not be a substantial cause of the
physical effects of climate change on World Heritage properties and other matters of national environmental significance.
Whitehaven has joined these proceedings in support of the Minister's case. The matter is due to be heard in the Federal
Court in September 2023.
Meanwhile Federal EPBC approval is being finalised together with secondary approvals that are required prior to project
commencement.
Infrastructure
Rail track capacity
Whitehaven contracts its below-rail capacity from the Australian Rail Track Corporation (ARTC), a federal government
entity managing the network. We have been working with ARTC to minimise costs through FY23 and have sufficient
contracted capacity for all current and forecast production in FY24.
Rail haulage capacity
Whitehaven has capacity within its two long-term rail haulage contracts for all current NSW-based mine production
plans, including the Vickery Extension Project. Working with both above and below-rail providers, Whitehaven has been
improving its operations particularly during periods of wet weather.
Railing operations were temporarily impacted by flooding during the first half of FY23, but were consistent over the
second half of the year. We have continued to minimise maintenance costs related to the Whitehaven owned train.
Port capacity
Whitehaven exports coal through the Port of Newcastle using the two export terminal providers, PWCS and NCIG.
The Port of Newcastle has been operating under capacity for the majority of FY23 due to production shortfalls across the
industry (primarily caused by weather impacts and labour shortages) with demurrage costs being historically low
reflecting this surplus port capacity.
Regulatory
Domestic Coal Reservation Scheme
In January 2023, the NSW Government advised that it intended to expand its domestic coal reservation scheme to
include producers of export coal. On 16 February 2023, Whitehaven received finalised Directions for Coal Mines as part of
the NSW Government’s expanded domestic thermal coal reservation policy. From 1 April 2023, Whitehaven’s mines were
obliged to make available specific volumes of suitable thermal coal for supply to NSW domestic power stations. In
aggregate, these volumes are capped at the lower of 0.2Mt per quarter or 5% of each mine’s expected saleable thermal
coal production. The tonnage obligation for each mine must be made available to the extent the volumes expected to be
produced during the quarter were not contractually committed prior to 19 January 2023. Evergreen contracts are
recognised as being ‘committed’.
The directions are effective for the 15 months, from 1 April 2023 to 30 June 2024, with coal sold under the directions
subject to a price cap of A$125/t delivered for 5,500 kcal/kg products, energy adjusted.
Whitehaven has met all its obligations under the direction. During FY23 a total of 0.3Mt of coal was supplied to NSW
power stations, which includes a portion of the September 2023 quarter obligation supplied in advance. An average price
of $115/t was received for these volumes, reflecting the adjustment to the price cap for the quality of coal supplied.
The NSW Government is currently undertaking an industry consultation process on the future of the domestic reservation
policy and coal royalties in NSW. Whitehaven is participating in the consultation process. The NSW Government has
Page 24 | Whitehaven Coal Annual Report 2023
Page 24 | Whitehaven Coal Annual Report 2023
Directors’ Report
For the year ended 30 June 2023
Directors’ Report
For the year ended 30 June 2023
The project seeks to convert Narrabri’s adjacent Exploration Licence into a Mining Lease and use the existing portals,
CHPP, rail loop and associated infrastructure to extract, process and export high-energy thermal coal and Pulverised Coal
committed to maintain the existing royalty system in NSW for as long as the domestic coal reservation is in place. The
reservation scheme is currently legislated to end on 30 June 2024.
Safeguard Mechanism
Our Narrabri and Maules Creek mines are both covered by the Federal Government’s Safeguard Mechanism, and subject
to the reformed scheme’s requirements which commenced on 1 July 2023. The reforms require facilities’ Scope 1
emissions intensity to be reduced by 4.9% p.a. to FY30, in line with Australia’s emissions reduction target.
The Government has adopted a single production variable of ROM coal and corresponding industry average emissions
intensity for the coal sector. This does not acknowledge the distinct differences between open cut and underground coal
mine emissions profiles, and is favourable for open cut mines but unfavourable for underground mines. While itself having
a portfolio weighted towards open cut operations, Whitehaven advocated strongly to the Australian Government for an
approach that would deliver an equitable distribution of the emissions reduction task across the entire coal sector - one
that would recognise the characteristics and geology of underground mines and open cut mines.
Under the reformed scheme’s hybrid baseline model, Safeguard coal facilities will be required to transition from a baseline
weighted 95% to their site-specific emissions intensity in FY24, to one weighted 50% to the industry average emissions
intensity of 0.0653 CO2 tonne per ROM coal tonne by FY30.
The financial impact of the scheme on Whitehaven will be a function of the existence of and adoption of available
abatement technologies, the cost of carbon offsets, any scheme design changes arising from the Government’s
scheduled 2026/27 review and the emissions intensity profiles of Maules Creek and Narrabri.
We are continuing to assess site-based abatement opportunities, and undertake investigative projects to evaluate the
technical and financial viability of fugitive emissions abatement options at Narrabri. Where viable technologies are not
able to achieve our carbon reduction obligations, carbon offsets will be required.
Sustainability Reporting
In June 2023 the International Sustainability Standards Board (ISSB) issued its first two International Financial Reporting
Standards (IFRS) Sustainability Disclosure Standards, IFRS S1 General Requirements for Disclosure of Sustainability-
related Financial Information and IFRS S2 Climate-related Disclosures. IFRS S1 is effective for annual reporting periods
beginning on or after 1 January 2024 with earlier application permitted as long as IFRS S2 Climate-related Disclosures is
also applied. The Company is continuously monitoring the requirements of the IFRS Sustainability Disclosure Standards
and its Australian equivalent when it becomes available and effective for adoption.
Events subsequent to reporting date
In the interval between the end of the financial year and the date of this report there has not arisen any item, transaction
or event of a material and unusual nature likely, in the opinion of the Directors of the Company, to significantly affect the
operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial years, other
than the following:
− Subsequent to the end of the financial year, the Directors declared a fully franked final dividend of 42 cents per share
totalling $337.1 million to be paid on 15 September 2023.
Injection (PCI) coal products using the longwall mining method.
The Narrabri Stage 3 Extension Project has been approved by the IPC subject to meeting a range of IPC conditions,
including in relation to emissions mitigation technology and measures.
On 5 July 2023, the NSW Land and Environment Court dismissed judicial review proceedings brought by a client of the
Environmental Defenders Office (EDO) which sought to invalidate the NSW IPC Consent on climate change related
grounds. Whitehaven welcomes this result which reaffirms the important role that high-quality thermal coal plays in
energy security during the decarbonisation transition.
A second activist group the Environment Council of Central Queensland Inc, represented by a pro bono law firm, has
commenced judicial review proceedings in the Federal Court in respect of the federal Environment Minister’s decision
that a number of coal and gas projects, including the Narrabri Stage 3 Extension, would not be a substantial cause of the
physical effects of climate change on World Heritage properties and other matters of national environmental significance.
Whitehaven has joined these proceedings in support of the Minister's case. The matter is due to be heard in the Federal
Meanwhile Federal EPBC approval is being finalised together with secondary approvals that are required prior to project
Court in September 2023.
commencement.
Infrastructure
Rail track capacity
Rail haulage capacity
Whitehaven contracts its below-rail capacity from the Australian Rail Track Corporation (ARTC), a federal government
entity managing the network. We have been working with ARTC to minimise costs through FY23 and have sufficient
contracted capacity for all current and forecast production in FY24.
Whitehaven has capacity within its two long-term rail haulage contracts for all current NSW-based mine production
plans, including the Vickery Extension Project. Working with both above and below-rail providers, Whitehaven has been
improving its operations particularly during periods of wet weather.
Railing operations were temporarily impacted by flooding during the first half of FY23, but were consistent over the
second half of the year. We have continued to minimise maintenance costs related to the Whitehaven owned train.
Port capacity
Whitehaven exports coal through the Port of Newcastle using the two export terminal providers, PWCS and NCIG.
The Port of Newcastle has been operating under capacity for the majority of FY23 due to production shortfalls across the
industry (primarily caused by weather impacts and labour shortages) with demurrage costs being historically low
reflecting this surplus port capacity.
Regulatory
Domestic Coal Reservation Scheme
In January 2023, the NSW Government advised that it intended to expand its domestic coal reservation scheme to
include producers of export coal. On 16 February 2023, Whitehaven received finalised Directions for Coal Mines as part of
the NSW Government’s expanded domestic thermal coal reservation policy. From 1 April 2023, Whitehaven’s mines were
obliged to make available specific volumes of suitable thermal coal for supply to NSW domestic power stations. In
aggregate, these volumes are capped at the lower of 0.2Mt per quarter or 5% of each mine’s expected saleable thermal
coal production. The tonnage obligation for each mine must be made available to the extent the volumes expected to be
produced during the quarter were not contractually committed prior to 19 January 2023. Evergreen contracts are
recognised as being ‘committed’.
The directions are effective for the 15 months, from 1 April 2023 to 30 June 2024, with coal sold under the directions
subject to a price cap of A$125/t delivered for 5,500 kcal/kg products, energy adjusted.
Whitehaven has met all its obligations under the direction. During FY23 a total of 0.3Mt of coal was supplied to NSW
power stations, which includes a portion of the September 2023 quarter obligation supplied in advance. An average price
of $115/t was received for these volumes, reflecting the adjustment to the price cap for the quality of coal supplied.
The NSW Government is currently undertaking an industry consultation process on the future of the domestic reservation
policy and coal royalties in NSW. Whitehaven is participating in the consultation process. The NSW Government has
Page 24 | Whitehaven Coal Annual Report 2023
Page 25 | Whitehaven Coal Annual Report 2023
Page 25 | Whitehaven Coal Annual Report 2023
Directors’ Report
For the year ended 30 June 2023
Outlook
Thermal and Metallurgical Coal Outlook
Energy security remains paramount for governments globally as trade flows, sanctions and the lagging impact of La Niña
weather events disrupt thermal coal supply in the near term. Supply shortfalls are expected to impact reliable coal supply
in the longer term. An increasing number of Whitehaven’s customers are seeking to address these issues by extending
the tenor of new coal supply contracts.
FY23 saw record thermal coal pricing, due to significant trade flow disruptions and supply redirection caused by
sanctions imposed on Russian coal as well as supply disruptions from La Niña weather events. Historically, sanctions
remain in place for 10 to 15 years following the initial event, so there is an expectation that Russian sanctions and the
subsequent revised trade flows will endure.
With heightened energy security concerns following Russia’s invasion of Ukraine, thermal coal prices peaked at a record
high of US$453/t in September 2022.
Following the Northern hemisphere winter, both gas and thermal coal prices have retreated from their record highs.
Europe has filled gas storage reservoirs to levels approaching 90%, well ahead of the coming 2023 winter. While both
coal and gas prices have moderated, gC NEWC coal prices have shown strong correlation with European and Asian gas
prices. The gC NEWC index has rebounded from its June 2023 low of US$129/t to an August 2023 expected price of
~US$150/t. With the approaching Northern Hemisphere winter, upward pricing pressure for thermal coal is expected to
continue.
In the medium to longer term, policy formulation and absent or expensive capital is expected to continue to restrict new
supply. When coupled with Asian demand for high-quality coal, supply shortages are expected to underpin a continued
constructive pricing environment. In Asia, Whitehaven is seeing its Paris-aligned customers seek a higher quality of coal
to consume in higher-quality power stations to effectively reduce emissions and assist them to meet their
decarbonisation commitments while maintaining a reliable, low-cost supply of electricity.
Pricing in metallurgical coal markets been strong in 2022 and 2023, and is expected to remain well supported in the near
future. In the medium to longer term, growing industrialisation and urbanisation in India together with South East Asia is
expected to underpin robust pricing.
India has committed to significant steel capacity expansion, and new manufacturing capacity is being built throughout
South East Asia, both of which are translating directly into increased demand growth for seaborne metallurgical coal.
China’s influence on the seaborne metallurgical coal market has been tempered in the short term due to a slowing
economy and a slowdown in major stimulus projects.
In the coming decade, metallurgical coal demand is expected to exceed supply due to depletion and closure of current
mining operations compounded by the challenges of bringing new supply to market.
Page 26 | Whitehaven Coal Annual Report 2023
Page 26 | Whitehaven Coal Annual Report 2023
Directors’ Report
For the year ended 30 June 2023
Outlook
Thermal and Metallurgical Coal Outlook
Energy security remains paramount for governments globally as trade flows, sanctions and the lagging impact of La Niña
weather events disrupt thermal coal supply in the near term. Supply shortfalls are expected to impact reliable coal supply
in the longer term. An increasing number of Whitehaven’s customers are seeking to address these issues by extending
the tenor of new coal supply contracts.
FY23 saw record thermal coal pricing, due to significant trade flow disruptions and supply redirection caused by
sanctions imposed on Russian coal as well as supply disruptions from La Niña weather events. Historically, sanctions
remain in place for 10 to 15 years following the initial event, so there is an expectation that Russian sanctions and the
subsequent revised trade flows will endure.
high of US$453/t in September 2022.
With heightened energy security concerns following Russia’s invasion of Ukraine, thermal coal prices peaked at a record
Following the Northern hemisphere winter, both gas and thermal coal prices have retreated from their record highs.
Europe has filled gas storage reservoirs to levels approaching 90%, well ahead of the coming 2023 winter. While both
coal and gas prices have moderated, gC NEWC coal prices have shown strong correlation with European and Asian gas
prices. The gC NEWC index has rebounded from its June 2023 low of US$129/t to an August 2023 expected price of
~US$150/t. With the approaching Northern Hemisphere winter, upward pricing pressure for thermal coal is expected to
In the medium to longer term, policy formulation and absent or expensive capital is expected to continue to restrict new
supply. When coupled with Asian demand for high-quality coal, supply shortages are expected to underpin a continued
constructive pricing environment. In Asia, Whitehaven is seeing its Paris-aligned customers seek a higher quality of coal
to consume in higher-quality power stations to effectively reduce emissions and assist them to meet their
decarbonisation commitments while maintaining a reliable, low-cost supply of electricity.
Pricing in metallurgical coal markets been strong in 2022 and 2023, and is expected to remain well supported in the near
future. In the medium to longer term, growing industrialisation and urbanisation in India together with South East Asia is
expected to underpin robust pricing.
India has committed to significant steel capacity expansion, and new manufacturing capacity is being built throughout
South East Asia, both of which are translating directly into increased demand growth for seaborne metallurgical coal.
China’s influence on the seaborne metallurgical coal market has been tempered in the short term due to a slowing
economy and a slowdown in major stimulus projects.
In the coming decade, metallurgical coal demand is expected to exceed supply due to depletion and closure of current
mining operations compounded by the challenges of bringing new supply to market.
Directors’ Report
For the year ended 30 June 2023
Risks relating to Whitehaven’s future prospects
Whitehaven operates in the coal sector. There are many factors, both specific to Whitehaven and to the coal industry in
general, that may individually or in combination affect the future operating and financial performance of the Group, its
prospects and/or the value of Whitehaven. Many of the circumstances giving rise to these risks are beyond the control of
Whitehaven’s Directors and its management. The major risks believed to be associated with investment in Whitehaven
are as follows.
Volatility in coal prices
Whitehaven’s future financial performance will be impacted by future coal prices. Factors which affect coal prices include
the outcome of future sales contract negotiations, general economic activity, industrial production levels, changes in
foreign exchange rates, changes in coal demand, changes in the supply of seaborne coal, changes in international freight
rates and the cost of substitutes for coal. Whitehaven does not currently hedge against coal price volatility.
Foreign currency risk
As Whitehaven’s sales are predominately denominated in US dollars, adverse fluctuations in the USD:AUD exchange rate
may negatively impact the Group’s financial position.
Whitehaven uses forward exchange contracts to hedge some of this currency risk in accordance with a hedging policy
approved by the Board of Directors.
continue.
Acquisitions and commercial transactions
Acquisitions and commercial transactions undertaken with the objective of growing Whitehaven’s portfolio of assets are
subject to a number of risks which may impact the ability to deliver anticipated value. Risks associated with acquisitions
include:
− operational performance of acquired assets not meeting expectations
− anticipated synergies or cost savings delayed or not achieved
− adverse market reaction to proposed transactions
− the imposition of unfavourable or unforeseen conditions, obligations or liabilities.
Whitehaven’s commercial processes are designed to reduce the likelihood of these risks materialising as a result of a
commercial transaction.
Capital requirement and insurance risk
There is a risk that insufficient liquidity or the inability to access funding or insurance on acceptable terms may impact
ongoing operations and growth opportunities.
Whitehaven manages liquidity risk by holding a prudent level of available cash.
As at 30 June 2023, Whitehaven had $2.8 billion of cash on hand and net cash of $2.65 billion.
Capital allocation and development risks
There is a risk that circumstances (including unforeseen circumstances) may cause delays to project development,
exploration milestones or other operating factors, resulting in the receipt of revenue at a date later than expected.
Additionally, the construction of new projects/expansion by Whitehaven may exceed the currently envisaged timeframe
or cost for a variety of reasons outside of the control of Whitehaven.
Missed opportunities to invest or a failure to effectively allocate capital or achieve expected return from assets may also
lead to a failure to achieve expected commercial objectives.
Operating risks
Whitehaven’s mining operations are subject to operating risks that could impact the amount of coal produced at its coal
mines, delay coal deliveries or increase the cost of mining for varying lengths of time. Such difficulties include weather
and natural disasters, unexpected maintenance or technical problems, failure of key equipment, higher than expected
rehabilitation costs, industrial action, labour shortages and higher than expected labour costs.
Geological variability and uncertainty are inherent operational risks which could result in pit-wall failures or rock falls,
mine collapse, cave-ins or other failures to mine infrastructure. Variations in coal seam thickness, coal quality, rock
overlying coal deposits and geological conditions could impact production and cost outcomes.
Whitehaven has in place a framework for the management of operational risks and a comprehensive group insurance
program which provides insurance coverage for a number of these operating risks.
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Page 27 | Whitehaven Coal Annual Report 2023
Page 27 | Whitehaven Coal Annual Report 2023
Directors’ Report
For the year ended 30 June 2023
Water security and management
Water is critical to Whitehaven’s mining operations as it is used for various purposes, including dust suppression and coal
washing. Whitehaven’s ability to access water may be impacted by a number of factors, including drought, changes in
government policy and regulation, and scarcity of supply. The inability to access sufficient water may negatively impact
Whitehaven’s costs, future production and financial performance.
Proactive water management is also required to ensure operations are not impacted by excess water. The inability to
adequately dewater or store excess water onsite may limit production, sterilise coal and result in unauthorised water
discharge from site.
Whitehaven regularly monitors the water balance at each of its sites, invests in water management infrastructure and
investigates opportunities to minimise water usage and secure alternate, reliable water sources to build resilience against
water availability risks.
Outbound supply chain risks
Coal produced from Whitehaven’s mining operations is transported to customers by a combination of rail and ship. A
number of factors could disrupt these transport services, including a failure of infrastructure providers to increase
capacity in order to meet future export requirements.
Rail and port capacity is obtained predominantly through long-term contract arrangements which include take-or-pay
provisions which require payments to be made irrespective of whether the service is used. In the event utilised capacity is
below contracted capacity, there is a risk Whitehaven will be required to pay take-or-pay charges for capacity which is
not used. Whitehaven seeks to align these take-or-pay infrastructure obligations with Whitehaven’s forecasted future
production.
Geology risks
There are inherent risks associated with estimating Coal Resources and Reserves, including subjective judgements and
determinations as to coal quality, geological conditions, tonnage and strip ratio. Whitehaven’s Resource and Reserve
estimates are determined by suitably qualified competent persons in accordance with the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code).
Cyber risk
Whitehaven’s operations are supported by a robust information technology security framework and back-up data
infrastructure. However, computer viruses, unauthorised access, cyber-attack and other similar disruptions may threaten
the security of information and impact operational systems. Whitehaven manages this risk by continuing to invest in
systems to prevent such attacks and undertaking staff training programs.
Counterparty risk
Whitehaven deals with a number of counterparties, including joint venture partners, suppliers and customers.
Counterparty risks include:
− non-supply or changes to the quality of key inputs, which may impact costs and production at operations
− failure to reach agreement with joint venture partners, which could impact Whitehaven’s ability to optimise value from
its projects
− failure of customers to meet payment obligations.
Counterparty risk is assessed prior to entry into any new arrangements and, if necessary, appropriate risk control
mechanisms are put in place. Whitehaven proactively engages with its counterparties to manage instances of non-supply
and quality control and to ensure alignment of expectations.
Safety and environment risks and licence to operate
A range of health, safety and environmental risks exist with coal mining activities. Accidents, environmental incidents and
real or perceived threats to the environment or the amenity of local communities could result in a loss of Whitehaven’s
social licence to operate, leading to delays, disruption or the shutdown of operations. Potential safety risks include
equipment failure, dust exposure, vehicle and mining equipment interactions, roof fall hazards in underground operations,
spontaneous combustion and outburst risks.
Whitehaven engages with a number of different stakeholders in the communities within which it operates. Stakeholder
related risks include:
− the requirement to comply with the Native Title Act 1993 (Cth), which can delay the grant of mining tenements and
impact the timing of exploration, development and production operations
− the ability to reach agreement with local landholders in relation to acquisition and/or access terms, which may delay
the timing of project development
Page 28 | Whitehaven Coal Annual Report 2023
Page 28 | Whitehaven Coal Annual Report 2023
Directors’ Report
For the year ended 30 June 2023
Directors’ Report
For the year ended 30 June 2023
− notwithstanding the contributions made to the communities within which Whitehaven operates, local communities
may become dissatisfied with the impact of operations or oppose new development projects. There is also the
possibility of anti-coal activism targeted towards Whitehaven’s projects.
Whitehaven has a comprehensive environmental, health and safety management system to mitigate the risk of incidents
and to ensure compliance with environmental and safety laws. Whitehaven also has a dedicated community relations
team that engage with local communities to ensure that community issues are understood and addressed appropriately.
Further details in relation to how Whitehaven engages effectively with the communities in which we operate and steps
which Whitehaven takes to maintain its social licence to operate will be provided in Whitehaven’s 2023 Sustainability
Report, to be released later this year.
investigates opportunities to minimise water usage and secure alternate, reliable water sources to build resilience against
Legal, policy and regulatory risk
The coal sector is subject to a broad range of laws, regulations and standards including in relation to taxation, royalties,
environmental matters and greenhouse gas emissions. A change in the laws, regulations or standards applicable to
Whitehaven could result in increased costs, regulatory action, litigation or, in extreme cases, threaten the viability of an
operation.
Whitehaven actively monitors legislative and regulatory developments and engages appropriately with legislative and
regulatory bodies to manage this risk.
provisions which require payments to be made irrespective of whether the service is used. In the event utilised capacity is
Approvals risk
below contracted capacity, there is a risk Whitehaven will be required to pay take-or-pay charges for capacity which is
not used. Whitehaven seeks to align these take-or-pay infrastructure obligations with Whitehaven’s forecasted future
The process for obtaining government and regulatory approvals for coal mining projects is subject to ever increasing
difficulty, which has resulted in additional delay, costs and heightened risks of negative approval process outcomes.
Climate change risk
The physical and non-physical impacts of climate change are interlinked with multiple other risks and may affect
Whitehaven’s assets, production and the markets where its products are sold. These impacts may include severity and
frequency of weather patterns, policy and regulatory change and coal demand responses. Further details in relation to
climate change risks will be provided in Whitehaven’s 2023 Sustainability Report.
The International Energy Agency (IEA) has outlined under both its enduring Stated Policies Scenario and Announced
Policies Scenario (which assumes warming is limited to below 2 degrees), that coal demand in Whitehaven’s key export
market, Asia, will remain beyond 2040. The IEA regularly makes projections about world coal demand based on various
future scenarios for energy development. Its most recent World Energy Outlook (2021) including alternate scenarios and
further details is available at: https://www.iea.org/reports/world-energy-outlook-2022.
Attract and retain people
Whitehaven’s ability to achieve its business strategy depends on attracting, developing and retaining a wide range of
skilled and experienced employees and contractors. An inability to attract or retain such personnel could adversely affect
the success of Whitehaven’s business.
Whitehaven seeks to manage this risk by designing employment arrangements and succession plans to secure and retain
key personnel. Whitehaven also seeks to build a future supply of industry labour by actively promoting the resources
industry in the local communities where it operates.
Water security and management
Water is critical to Whitehaven’s mining operations as it is used for various purposes, including dust suppression and coal
washing. Whitehaven’s ability to access water may be impacted by a number of factors, including drought, changes in
government policy and regulation, and scarcity of supply. The inability to access sufficient water may negatively impact
Whitehaven’s costs, future production and financial performance.
Proactive water management is also required to ensure operations are not impacted by excess water. The inability to
adequately dewater or store excess water onsite may limit production, sterilise coal and result in unauthorised water
Whitehaven regularly monitors the water balance at each of its sites, invests in water management infrastructure and
discharge from site.
water availability risks.
Outbound supply chain risks
Coal produced from Whitehaven’s mining operations is transported to customers by a combination of rail and ship. A
number of factors could disrupt these transport services, including a failure of infrastructure providers to increase
capacity in order to meet future export requirements.
Rail and port capacity is obtained predominantly through long-term contract arrangements which include take-or-pay
production.
Geology risks
Cyber risk
There are inherent risks associated with estimating Coal Resources and Reserves, including subjective judgements and
determinations as to coal quality, geological conditions, tonnage and strip ratio. Whitehaven’s Resource and Reserve
estimates are determined by suitably qualified competent persons in accordance with the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code).
Whitehaven’s operations are supported by a robust information technology security framework and back-up data
infrastructure. However, computer viruses, unauthorised access, cyber-attack and other similar disruptions may threaten
the security of information and impact operational systems. Whitehaven manages this risk by continuing to invest in
systems to prevent such attacks and undertaking staff training programs.
Counterparty risk
Counterparty risks include:
Whitehaven deals with a number of counterparties, including joint venture partners, suppliers and customers.
− non-supply or changes to the quality of key inputs, which may impact costs and production at operations
− failure to reach agreement with joint venture partners, which could impact Whitehaven’s ability to optimise value from
Counterparty risk is assessed prior to entry into any new arrangements and, if necessary, appropriate risk control
mechanisms are put in place. Whitehaven proactively engages with its counterparties to manage instances of non-supply
its projects
− failure of customers to meet payment obligations.
and quality control and to ensure alignment of expectations.
Safety and environment risks and licence to operate
A range of health, safety and environmental risks exist with coal mining activities. Accidents, environmental incidents and
real or perceived threats to the environment or the amenity of local communities could result in a loss of Whitehaven’s
social licence to operate, leading to delays, disruption or the shutdown of operations. Potential safety risks include
equipment failure, dust exposure, vehicle and mining equipment interactions, roof fall hazards in underground operations,
spontaneous combustion and outburst risks.
Whitehaven engages with a number of different stakeholders in the communities within which it operates. Stakeholder
related risks include:
− the requirement to comply with the Native Title Act 1993 (Cth), which can delay the grant of mining tenements and
impact the timing of exploration, development and production operations
− the ability to reach agreement with local landholders in relation to acquisition and/or access terms, which may delay
the timing of project development
Page 28 | Whitehaven Coal Annual Report 2023
Page 29 | Whitehaven Coal Annual Report 2023
Page 29 | Whitehaven Coal Annual Report 2023
Directors’ Report
For the year ended 30 June 2023
5. Auditor independence and non-audit services
5 (a) Auditor’s independence declaration
The auditor’s independence declaration forms part of the Directors’ Report for the financial year ended 30 June 2023. It
is set out on page 31.
5 (b) Audit and non-audit services
Details of the amounts paid or payable to the auditor of the Company, Ernst & Young (Australia) are set out below:
In AUD
Audit services
Audit and review of statutory financial statements of the parent covering the Group
Audit of joint operations
Total audit services
Non-audit services
Other assurance services where there is discretion as to whether the service is provided by the
auditor or another firm
Review of National Greenhouse and Energy Reporting Act 2007 requirements
Debt capital markets assurance services
Total other assurance services1
Other services
Due diligence services2
Sustainability assurance services
Total other services1
Total auditor’s remuneration
Total non-audit services1
Non-audit services as a % of total auditor’s remuneration
Consolidated
2023
Consolidated
2022
$
$
626,405
357,435
983,840
602,315
343,685
946,000
52,000
7,280
59,280
688,000
37,309
725,309
115,000
209,741
324,741
-
-
-
1,768,429
1,270,741
784,589
44%
324,741
26%
1 During the year Ernst & Young (Australia), the Company’s auditor, has performed certain other assurance services and other services in
addition to their statutory duties.
The Board considered the non-audit services provided during the year by the auditor and, in accordance with written advice provided by
resolution of the Audit & Risk Management Committee, were satisfied that the provision of those non-audit services by the auditor was
compatible with, and did not compromise, the auditor independence requirements of the Corporations Act 2001 (Cth) for the following
reasons:
-
all non-audit services were subject to the corporate governance procedures adopted by the Company and were reviewed by the Audit
& Risk Management Committee to ensure they did not impact the integrity and objectivity of the auditor;
all non-audit services provided did not, and do not, undermine the general principles relating to auditor independence as set out in
APES 110 Code of Ethics for Professional Accountants, as they did not involve reviewing or auditing the auditor’s own work, acting in a
management or decision making capacity for the Company, acting as an advocate for the Company or jointly sharing risks and rewards;
there were no known conflict of interest situations nor any other circumstance arising out of a relationship between Whitehaven
(including its Directors and Officers) and EY which may impact on auditor independence.
-
-
2 The fees for non-audit services paid or payable to the auditor of the Parent Company (EY) have increased in the current year primarily due
to the provision of non-audit services in relation to transactional activities that took place during the year, which are considered to be
outside the ordinary course of business.
Page 30 | Whitehaven Coal Annual Report 2023
Page 30 | Whitehaven Coal Annual Report 2023
Directors’ Report
For the year ended 30 June 2023
Auditor’s independence declaration
Directors’ Report
For the year ended 30 June 2023
5. Auditor independence and non-audit services
5 (a) Auditor’s independence declaration
is set out on page 31.
5 (b) Audit and non-audit services
The auditor’s independence declaration forms part of the Directors’ Report for the financial year ended 30 June 2023. It
Details of the amounts paid or payable to the auditor of the Company, Ernst & Young (Australia) are set out below:
Consolidated
Consolidated
Audit and review of statutory financial statements of the parent covering the Group
Other assurance services where there is discretion as to whether the service is provided by the
Review of National Greenhouse and Energy Reporting Act 2007 requirements
In AUD
Audit services
Audit of joint operations
Total audit services
Non-audit services
auditor or another firm
Debt capital markets assurance services
Total other assurance services1
Other services
Due diligence services2
Sustainability assurance services
Total other services1
Total auditor’s remuneration
2023
$
626,405
357,435
983,840
52,000
7,280
59,280
688,000
37,309
725,309
2022
$
602,315
343,685
946,000
115,000
209,741
324,741
-
-
-
1,768,429
1,270,741
784,589
44%
324,741
26%
Total non-audit services1
Non-audit services as a % of total auditor’s remuneration
1 During the year Ernst & Young (Australia), the Company’s auditor, has performed certain other assurance services and other services in
addition to their statutory duties.
The Board considered the non-audit services provided during the year by the auditor and, in accordance with written advice provided by
resolution of the Audit & Risk Management Committee, were satisfied that the provision of those non-audit services by the auditor was
compatible with, and did not compromise, the auditor independence requirements of the Corporations Act 2001 (Cth) for the following
reasons:
-
-
-
all non-audit services were subject to the corporate governance procedures adopted by the Company and were reviewed by the Audit
& Risk Management Committee to ensure they did not impact the integrity and objectivity of the auditor;
all non-audit services provided did not, and do not, undermine the general principles relating to auditor independence as set out in
APES 110 Code of Ethics for Professional Accountants, as they did not involve reviewing or auditing the auditor’s own work, acting in a
management or decision making capacity for the Company, acting as an advocate for the Company or jointly sharing risks and rewards;
there were no known conflict of interest situations nor any other circumstance arising out of a relationship between Whitehaven
(including its Directors and Officers) and EY which may impact on auditor independence.
2 The fees for non-audit services paid or payable to the auditor of the Parent Company (EY) have increased in the current year primarily due
to the provision of non-audit services in relation to transactional activities that took place during the year, which are considered to be
outside the ordinary course of business.
Ernst & Young
200 George Street
Sydney NSW 2000 Australia
GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555
Fax: +61 2 9248 5959
ey.com/au
Auditor’s independence declaration to the directors of Whitehaven Coal
Limited
As lead auditor for the audit of the financial report of Whitehaven Coal Limited for the financial year
ended 30 June 2023, I declare to the best of my knowledge and belief, there have been:
a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit;
b. No contraventions of any applicable code of professional conduct in relation to the audit; and
c. No non-audit services provided that contravene any applicable code of professional conduct in
relation to the audit.
This declaration is in respect of Whitehaven Coal Limited and the entities it controlled during the
financial year.
Ernst & Young
Scott Jarrett
Partner
24th August 2023
Page 30 | Whitehaven Coal Annual Report 2023
Page 31 | Whitehaven Coal Annual Report 2023
Page 31 | Whitehaven Coal Annual Report 2023
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
2023 Remuneration Report
Directors’ Report
For the year ended 30 June 2023
(Audited)
Summary
On behalf of the Board, we are pleased to present
Whitehaven Coal Limited’s Remuneration Report for
the financial year ended 30 June 2023 (FY23).
Our executive remuneration framework is designed to
align with shareholder interests while incentivising and
rewarding senior executives to build a cost-competitive
asset portfolio, and to develop and operate that
portfolio of assets in a safe and sustainable way.
Whitehaven’s performance in FY23
The safety and wellbeing of our people, and protecting
the environment in the communities in which we work
remain our top priorities. We continue to invest in best-
practice health and safety procedures, training and
technologies. As a result of the efforts across our
workforce, our TRIFR has improved, reducing from 5.4
in FY22 to 4.7 in FY23, and continues to track
favourably to comparable industry performance. As a
result of our continued focus and investment, we have
also seen improvement in our environmental
performance with zero incidents occurring during the
performance year.
FY23 represents the second consecutive year of record
financial results for Whitehaven, while its total
shareholder return (TSR) of 52.0% for FY23 places it as
one of the best performers in the ASX 100 Group of
Companies. Reflecting this record financial
performance, Whitehaven significantly increased
shareholder returns in FY23. $1.6 billion was returned to
shareholders in the year, the highest level of
distributions in Whitehaven’s history.
The year was not without its challenges, however. Wet
weather events in the first half of FY23 disrupted
production schedules, impacting both ROM and FOB
cost results. Consistent with the broader mining
industry, Whitehaven also faced escalating diesel and
labour costs due to various external factors.
Overall, the Board is pleased with the performance of
the business in FY23 and recognises the significant
value created for shareholders as a result of
management’s strategic focus on driving production
despite the aforementioned headwinds, and executing
marketing and sales strategies to maximise earnings.
Remuneration outcomes for FY23
This year’s Executive key management personnel
(Executive KMP) remuneration outcomes reflect the
strong financial and non-financial performance of the
business over the past year:
− Record EBITDA of $4.0 billion, a 30% uplift from
prior year results
− 13% lower TRIFR in FY23, reducing from 5.4 in FY22
to 4.7
− Zero environmental enforcement actions during the
year, down from four in FY22.
As outlined in section 4.2 of this report, the Board has
assessed performance of both the Company and each
individual KMP in determining remuneration outcomes.
We achieved 68.0% of the maximum scorecard
outcome (102.1% of the target scorecard outcome),
reflecting strong performance against health, safety,
and environment (HSE) targets and a solid EBITDA
outcome, while also acknowledging the impact that
certain uncontrollable factors have had on
management’s ability to meet targets, specifically ROM
production and cash costs.
Long-term performance has also been exceptional,
resulting in vesting outcomes of between 97.4% to
100% for the three LTI tranches that vested this year
(see table 4.3 for details). Highlights include a 395.2%
TSR return for the period 1 July 2020 to 30 June 2023,
positioning Whitehaven as the top TSR performer in
the ASX 100, and representing a cost hurdle
achievement at the top quartile of peers as measured
by Wood Mackenzie.
The Board believes these remuneration outcomes are
consistent with our shareholders’ experience, and
reflect management’s ability to capitalise on market
opportunities for the overall benefit of our
shareholders.
Remuneration framework changes in FY23
Last year, we announced the outcomes of our strategic
remuneration review: a new remuneration framework
which is aligned to shareholder interests and is
attractive to employees. After receiving strong support
from shareholders, including a 92.45% ‘For’ vote on the
FY22 Remuneration Report, this framework was
implemented in FY23 and is detailed in section 3 of the
Remuneration Report.
At the core of our new remuneration framework is the
Single Incentive Plan (SIP), which replaced our Short-
term Incentive (STI) Plan and Long-term Incentive (LTI)
Plan. We believe the SIP better reflects shareholder
interests by placing a strong focus on key annual
operational imperatives, while also aligning with
shareholders through material equity components and
longer deferral periods.
Our remuneration arrangements must attract, motivate
and retain the best people. This is extremely
challenging in the coal industry, as underscored by our
recent experiences where potential candidates,
particularly for senior roles, have shown a preference
for opportunities in other sectors. As a result, we target
the 75th percentile for total fixed remuneration (TFR)
to ensure we can attract the capability needed to
deliver superior results.
TFR adjustments to reach this new policy position were
announced in last year’s Remuneration Report and
implemented in FY23. Following that adjustment, our
Executive KMP reviews for FY24 will be aligned with
market movements of 4.0%, which is below the
average increase for our broader workforce.
The Board continues to consider Executive KMP
remuneration in the context of our strategy, relevant
benchmarks and appropriate rewards for our
Page 32 | Whitehaven Coal Annual Report 2023
Page 32 | Whitehaven Coal Annual Report 2023
Directors’ Report
2023 Remuneration Report
For the year ended 30 June 2023
(Audited)
Directors’ Report Remuneration Report
For the year ended 30 June 2023
Whitehaven’s performance in FY23
production and cash costs.
Summary
On behalf of the Board, we are pleased to present
Whitehaven Coal Limited’s Remuneration Report for
the financial year ended 30 June 2023 (FY23).
Our executive remuneration framework is designed to
align with shareholder interests while incentivising and
rewarding senior executives to build a cost-competitive
asset portfolio, and to develop and operate that
portfolio of assets in a safe and sustainable way.
The safety and wellbeing of our people, and protecting
the environment in the communities in which we work
remain our top priorities. We continue to invest in best-
practice health and safety procedures, training and
technologies. As a result of the efforts across our
workforce, our TRIFR has improved, reducing from 5.4
in FY22 to 4.7 in FY23, and continues to track
favourably to comparable industry performance. As a
result of our continued focus and investment, we have
also seen improvement in our environmental
performance with zero incidents occurring during the
performance year.
FY23 represents the second consecutive year of record
financial results for Whitehaven, while its total
shareholder return (TSR) of 52.0% for FY23 places it as
one of the best performers in the ASX 100 Group of
Companies. Reflecting this record financial
performance, Whitehaven significantly increased
shareholder returns in FY23. $1.6 billion was returned to
shareholders in the year, the highest level of
distributions in Whitehaven’s history.
The year was not without its challenges, however. Wet
weather events in the first half of FY23 disrupted
production schedules, impacting both ROM and FOB
cost results. Consistent with the broader mining
industry, Whitehaven also faced escalating diesel and
labour costs due to various external factors.
Overall, the Board is pleased with the performance of
the business in FY23 and recognises the significant
value created for shareholders as a result of
management’s strategic focus on driving production
despite the aforementioned headwinds, and executing
Remuneration outcomes for FY23
This year’s Executive key management personnel
(Executive KMP) remuneration outcomes reflect the
strong financial and non-financial performance of the
business over the past year:
− Record EBITDA of $4.0 billion, a 30% uplift from
prior year results
− 13% lower TRIFR in FY23, reducing from 5.4 in FY22
to 4.7
− Zero environmental enforcement actions during the
year, down from four in FY22.
As outlined in section 4.2 of this report, the Board has
assessed performance of both the Company and each
individual KMP in determining remuneration outcomes.
We achieved 68.0% of the maximum scorecard
outcome (102.1% of the target scorecard outcome),
reflecting strong performance against health, safety,
and environment (HSE) targets and a solid EBITDA
outcome, while also acknowledging the impact that
certain uncontrollable factors have had on
management’s ability to meet targets, specifically ROM
Long-term performance has also been exceptional,
resulting in vesting outcomes of between 97.4% to
100% for the three LTI tranches that vested this year
(see table 4.3 for details). Highlights include a 395.2%
TSR return for the period 1 July 2020 to 30 June 2023,
positioning Whitehaven as the top TSR performer in
the ASX 100, and representing a cost hurdle
achievement at the top quartile of peers as measured
by Wood Mackenzie.
The Board believes these remuneration outcomes are
consistent with our shareholders’ experience, and
reflect management’s ability to capitalise on market
opportunities for the overall benefit of our
shareholders.
Remuneration framework changes in FY23
Last year, we announced the outcomes of our strategic
remuneration review: a new remuneration framework
which is aligned to shareholder interests and is
attractive to employees. After receiving strong support
from shareholders, including a 92.45% ‘For’ vote on the
FY22 Remuneration Report, this framework was
implemented in FY23 and is detailed in section 3 of the
Remuneration Report.
At the core of our new remuneration framework is the
Single Incentive Plan (SIP), which replaced our Short-
term Incentive (STI) Plan and Long-term Incentive (LTI)
Plan. We believe the SIP better reflects shareholder
interests by placing a strong focus on key annual
operational imperatives, while also aligning with
shareholders through material equity components and
longer deferral periods.
Our remuneration arrangements must attract, motivate
and retain the best people. This is extremely
challenging in the coal industry, as underscored by our
particularly for senior roles, have shown a preference
for opportunities in other sectors. As a result, we target
the 75th percentile for total fixed remuneration (TFR)
to ensure we can attract the capability needed to
deliver superior results.
TFR adjustments to reach this new policy position were
announced in last year’s Remuneration Report and
implemented in FY23. Following that adjustment, our
Executive KMP reviews for FY24 will be aligned with
market movements of 4.0%, which is below the
average increase for our broader workforce.
The Board continues to consider Executive KMP
remuneration in the context of our strategy, relevant
benchmarks and appropriate rewards for our
marketing and sales strategies to maximise earnings.
recent experiences where potential candidates,
management team. With our new SIP, we believe we
have balanced these interests appropriately and that
we remain focused on delivering sustainable long-term
returns to shareholders and valued outcomes for all our
stakeholders.
The transition to the SIP is a significant change
requiring active oversight. The Remuneration
Committee and Board will continue to monitor the
transition to the SIP to ensure it continues to enable
the delivery of Whitehaven’s remuneration principles –
‘Competitive’, ‘Equitable’, ‘Drives performance’, and
‘Aligned’ – over the transitionary phase.
Non-Executive Directors’ fees
During FY23, we undertook a comprehensive market
benchmarking exercise to ensure our Non-Executive
Directors' remuneration aligns with industry standards.
The Board, taking into account this exercise and the
ongoing commitment and contribution of our Non-
Executive Directors, deemed the current fee structure
appropriate. Despite expected increases in Non-
Executive Directors’ fees for the broader market in
FY24, the Board has decided to maintain the existing
fee levels (excluding superannuation) for the Non-
Executive Directors, and no adjustments are proposed
to the fee pool. As a result, the only year-on-year
change to the Non-Executives’ remuneration for FY24
is the mandatory uplift to superannuation guarantee
contributions.
Minimum shareholding requirements
To further support shareholder alignment, we
introduced a minimum shareholding requirement (MSR)
from 1 July 2022. Our focus on equity-based
remuneration encourages executives to continue to
behave like owners, focus on creating long-term value,
and remain with the organisation through market
cycles.
Under the MSR, Executives and Non-Executive
Directors will need to hold material holdings of
Whitehaven shares: 100% of TFR for the Managing
Director & CEO; 50% of TFR for other Executive KMP;
and 100% of base fees for Non-Executive Directors. All
individuals in these roles have met these requirements
or are on track to meet these requirements within the
requisite timeframes.
We thank the Executive KMP and their teams for their
continued commitment and contribution to
Whitehaven.
Page 32 | Whitehaven Coal Annual Report 2023
Page 33 | Whitehaven Coal Annual Report 2023
Page 33 | Whitehaven Coal Annual Report 2023
Directors’ Report Remuneration Report
For the year ended 30 June 2023
Table of Remuneration
Report contents
1.
Introduction
1.1. Key Management Personnel for FY23
2. Remuneration governance, principles and framework
2.1. Remuneration governance model
2.2. Remuneration principles
2.3. Connecting our principles to our remuneration framework
3.
FY23 remuneration framework
3.1. Mix and timing of Executive KMP remuneration in FY23
3.2. Fixed remuneration
3.3. FY23 SIP award structure
3.4. Policies and conditions of rights awarded under equity plans
3.5. Benchmarking total remuneration
4. FY23 Remuneration Outcomes
4.1. Summary of Company performance
4.2. FY23 Executive KMP SIP outcomes
4.3. FY23 Executive KMP performance rights vesting outcomes
4.4. Summary of Executive KMP total realised remuneration outcomes
5.
Executive KMP employment contracts
6. Non-Executive Director remuneration
6.1. FY23 and FY24 Board and Committee Fees
6.2. Minimum shareholding requirements (MSR) Policy
6.3. FY23 Non-Executive Director statutory remuneration table
7.
Executive KMP statutory tables and additional disclosures
7.1. Executive KMP statutory remuneration table
7.2. Movement in rights held by Executive KMP
7.3. Movement in ordinary shares held by KMP
7.4. Related party transactions and additional disclosures
Page 34 | Whitehaven Coal Annual Report 2023
Page 34 | Whitehaven Coal Annual Report 2023
Directors’ Report Remuneration Report
Table of Remuneration
For the year ended 30 June 2023
Report contents
Directors’ Report Remuneration Report
For the year ended 30 June 2023
1.
Introduction
1.1. Key Management Personnel for FY23
2. Remuneration governance, principles and framework
2.1. Remuneration governance model
2.2. Remuneration principles
2.3. Connecting our principles to our remuneration framework
3.
FY23 remuneration framework
3.1. Mix and timing of Executive KMP remuneration in FY23
3.2. Fixed remuneration
3.3. FY23 SIP award structure
3.4. Policies and conditions of rights awarded under equity plans
3.5. Benchmarking total remuneration
4. FY23 Remuneration Outcomes
4.1. Summary of Company performance
4.2. FY23 Executive KMP SIP outcomes
4.3. FY23 Executive KMP performance rights vesting outcomes
4.4. Summary of Executive KMP total realised remuneration outcomes
5.
Executive KMP employment contracts
6. Non-Executive Director remuneration
6.1. FY23 and FY24 Board and Committee Fees
6.2. Minimum shareholding requirements (MSR) Policy
6.3. FY23 Non-Executive Director statutory remuneration table
7.
Executive KMP statutory tables and additional disclosures
7.1. Executive KMP statutory remuneration table
7.2. Movement in rights held by Executive KMP
7.3. Movement in ordinary shares held by KMP
7.4. Related party transactions and additional disclosures
1. Introduction
This Remuneration Report forms part of the Directors’ Report.
In accordance with Section 308 (3C) of the Corporations Act 2001 (Cth), the external auditors, Ernst & Young, have
audited this Remuneration Report.
1.1. Key Management Personnel for FY23
This report details the FY23 remuneration and fees of the KMP of the Company, who are listed in the table below. For the
remainder of this Remuneration Report, the KMP are referred to as either Executive KMP or Non-Executive Directors.
The following table sets out the Company’s Non-Executive Directors during FY23.
Non-Executive
Directors
Role held during FY23
Committee positions held
The Hon. Mark Vaile AO Chairman and Non-Executive
Chairman of Governance & Nomination Committee
Director
Member of Audit & Risk Management Committee
Dr Julie Beeby
Non-Executive Director
Nicole Brook
Non-Executive Director
(appointed 3 November
2022)
Member of Remuneration Committee (Chairman from 26 October 2022 to 19
February 2023)
Member of Health, Safety, Environment & Community Committee (from 26 October
2022)
Chairman of Health, Safety, Environment & Community Committee
Member of Remuneration Committee (from 26 October 2022 to 19 February 2023)
Member of Governance & Nomination Committee
Member of Health, Safety, Environment & Community Committee (from 3 November
2022)
Wallis Graham
Non-Executive Director
Chairman of Remuneration Committee (from 20 February 2023)
(appointed 20 February
2023)
Member of Audit & Risk Management Committee (from 20 February 2023)
Fiona Robertson AM
Non-Executive Director
Chairman of Audit & Risk Management Committee
Member of Remuneration Committee (from 26 October 2022)
Member of Health, Safety, Environment & Community Committee (to 2 November
2022)
Member of Governance & Nomination Committee (from 26 October 2022)
Raymond Zage
Non-Executive Director
Member of Audit & Risk Management Committee (from 26 October 2022)
John Conde AO
(retired 26 October 2022)
Deputy Chairman and Non-
Executive Director
Chairman of Remuneration Committee (to 25 October 2022)
Member of Audit & Risk Management Committee (to 25 October 2022)
Member of Governance & Nomination Committee (to 25 October 2022)
Lindsay Ward
(retired 31 December 2022)
Non-Executive Director
Member of Health, Safety, Environment & Community Committee (to 25 October
2022)
Member of Remuneration Committee (to 25 October 2022)
The following table sets out the Company’s Executive KMP during FY23. All Executive KMPs listed below have held their
respective positions for the full financial year.
Executive KMP
Role held during FY23
Paul Flynn
Kevin Ball
Ian Humphris
Managing Director and CEO
CFO
EGM – Operations
Dates
Full year
Full year
Full year
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Page 35 | Whitehaven Coal Annual Report 2023
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Directors’ Report Remuneration Report
Directors’ Report Remuneration Report
For the year ended 30 June 2023
For the year ended 30 June 2023
2. Remuneration governance, principles and framework
2. Remuneration governance, principles and framework
2.1. Remuneration governance model
2.1. Remuneration governance model
This section describes the roles and responsibilities of the Board, Remuneration Committee, management, external
This section describes the roles and responsibilities of the Board, Remuneration Committee, management, external
remuneration advisers and shareholders when making remuneration decisions. It also provides an overview of the
remuneration advisers and shareholders when making remuneration decisions. It also provides an overview of the
principles and policies that underpin the Company’s remuneration framework.
principles and policies that underpin the Company’s remuneration framework.
BOARD
The Board maintains overall responsibility for the remuneration
policy and is responsible for ensuring that the Company’s
remuneration structures are equitable and aligned with the
long-term interests of the Company and its shareholders.
Delegation
and oversight
Recommendations
and reporting
REMUNERATION COMMITTEE
The Board has established
a Remuneration Committee,
whose role is to:
• review and approve the
remuneration of the
Executive KMP
• review and approve the
remuneration policies and
practices for the Group
generally, including incentive
plans and other benefits
• review and make
recommendations to the
Board regarding the
remuneration of
Non-Executive Directors.
The Remuneration Committee
has a formal charter, which
sets out its roles and
responsibilities, composition
structure and membership
requirements. A copy of this
charter can be viewed on
Whitehaven’s website.
Further information regarding
the Remuneration Committee’s
role, responsibilities and
membership is set out in the
Company’s Corporate
Governance Statement.
MANAGEMENT
The management team
provides reporting and
recommendations to the
Remuneration Committee
on a range of matters,
including executive
remuneration outcomes,
diversity progress and
succession planning.
EXTERNAL ADVISORS
From time to time, the
Remuneration Committee
seeks and considers advice
from external advisors who
are engaged by and report
directly to the Remuneration
Committee. Any advice
received from independent
advisors is used as a guide
and is not a substitute for
thorough consideration by
the Committee.
SHAREHOLDERS
Feedback received through
shareholder votes on the
Remuneration Report at the
AGM and consultation with
key stakeholders.
During FY23 the organisation commissioned Mercer as remuneration advisors to provide salary benchmarking data for
During FY23 the organisation commissioned Mercer as remuneration advisors to provide salary benchmarking data for
Executive KMP roles. Mercer did not provide any remuneration recommendations in relation to any KMP remuneration
Executive KMP roles. Mercer did not provide any remuneration recommendations in relation to any KMP remuneration
levels, as defined in the Corporations Act 2001 (Cth).
levels, as defined in the Corporations Act 2001 (Cth).
In addition, the Remuneration Committee engaged Godfrey Remuneration Group Pty Ltd (GRG) as remuneration
In addition, the Remuneration Committee engaged Godfrey Remuneration Group Pty Ltd (GRG) as remuneration
consultants. This included the provision of remuneration recommendations as defined under the Corporations Act 2001
consultants. This included the provision of remuneration recommendations as defined under the Corporations Act 2001
(Cth) for the following engagement: Review, analysis and advice regarding remuneration for Non-Executive Directors for
(Cth) for the following engagement: Review, analysis and advice regarding remuneration for Non-Executive Directors for
a fee of $19,250 (including GST). Outside of this engagement, GRG was engaged to provide market-based information on
a fee of $19,250 (including GST). Outside of this engagement, GRG was engaged to provide market-based information on
single incentive plans to Whitehaven during the financial year for a fee of $4,400 (including GST). No other remuneration
single incentive plans to Whitehaven during the financial year for a fee of $4,400 (including GST). No other remuneration
recommendations were obtained during FY23.
recommendations were obtained during FY23.
Page 36 | Whitehaven Coal Annual Report 2023
Page 36 | Whitehaven Coal Annual Report 2023
Page 36 | Whitehaven Coal Annual Report 2023
Directors’ Report Remuneration Report
Directors’ Report Remuneration Report
For the year ended 30 June 2023
For the year ended 30 June 2023
Directors’ Report Remuneration Report
For the year ended 30 June 2023
2. Remuneration governance, principles and framework
2. Remuneration governance, principles and framework
2.1. Remuneration governance model
2.1. Remuneration governance model
This section describes the roles and responsibilities of the Board, Remuneration Committee, management, external
This section describes the roles and responsibilities of the Board, Remuneration Committee, management, external
remuneration advisers and shareholders when making remuneration decisions. It also provides an overview of the
remuneration advisers and shareholders when making remuneration decisions. It also provides an overview of the
principles and policies that underpin the Company’s remuneration framework.
principles and policies that underpin the Company’s remuneration framework.
2.2. Remuneration principles
The following principles underpin the Company’s remuneration framework:
Remuneration principles
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It is recognised that attracting and
retaining talented employees to
the coal industry presents unique
challenges and therefore a
premium pay structure is
increasingly required to remain
competitive.
Structures are equitable and
reinforce relevant Company
policies, such as ensuring a focus
on a safe working environment for
all employees and on compliance
with environmental approval
conditions.
Reward outcomes are aligned with
performance, with a significant
portion of pay deemed ‘at risk’
based on challenging KPIs that are
linked to the creation of
sustainable shareholder returns.
Incentives are aligned with the
interests of the Company and its
stakeholders, including
shareholders, employees and the
communities in which we operate.
2.3. Connecting our principles to our remuneration framework
The Company’s Executive KMP remuneration framework is based on a set of core principles, and comprises both fixed
and at-risk remuneration components. The table below summarises the key elements of the remuneration framework with
respect to our core remuneration principles.
Structures are
equitable
and reinforce
relevant
Company policies
Attract and retain
skilled executives
TFR
Incentives are challenging
and linked to the creation of
sustainable shareholder returns
Incentives are aligned with the
long-term interests of the
Company and its stakeholders
SIP
Cash Components
Equity-Based Components
I
I
N
O
T
S
O
P
M
O
C
Includes salary
and superannuation
30% of SIP is
delivered
as cash
36% of SIP is deferred into rights to receive
shares in the Company subject to meeting
service-based vesting conditions. Awards
are made in three equal parts with vesting
periods of 1, 2, and 3 years.
34% of SIP is awarded as
performance-based rights with a
four-year vesting schedule.
I
Fixed remuneration is targeted
Y
T
N
U
T
R
O
P
P
O
at the 75th percentile relative to
organisations of comparable size
and operating in similar
industries, recognising the
challenge of attracting talent to
the coal industry
The SIP opportunity is set as a percentage of TFR. Opportunities vary by role, with stretch representing
150% of target outcomes:
-
-
CEO: 185% of TFR for target performance, 277.5% TFR for stretch performance.
Non-CEO Executive KMP: 125% of TFR for target performance, 187.5% TFR for stretch
performance.
During FY23 the organisation commissioned Mercer as remuneration advisors to provide salary benchmarking data for
During FY23 the organisation commissioned Mercer as remuneration advisors to provide salary benchmarking data for
Executive KMP roles. Mercer did not provide any remuneration recommendations in relation to any KMP remuneration
Executive KMP roles. Mercer did not provide any remuneration recommendations in relation to any KMP remuneration
levels, as defined in the Corporations Act 2001 (Cth).
levels, as defined in the Corporations Act 2001 (Cth).
In addition, the Remuneration Committee engaged Godfrey Remuneration Group Pty Ltd (GRG) as remuneration
In addition, the Remuneration Committee engaged Godfrey Remuneration Group Pty Ltd (GRG) as remuneration
consultants. This included the provision of remuneration recommendations as defined under the Corporations Act 2001
consultants. This included the provision of remuneration recommendations as defined under the Corporations Act 2001
(Cth) for the following engagement: Review, analysis and advice regarding remuneration for Non-Executive Directors for
(Cth) for the following engagement: Review, analysis and advice regarding remuneration for Non-Executive Directors for
a fee of $19,250 (including GST). Outside of this engagement, GRG was engaged to provide market-based information on
a fee of $19,250 (including GST). Outside of this engagement, GRG was engaged to provide market-based information on
single incentive plans to Whitehaven during the financial year for a fee of $4,400 (including GST). No other remuneration
single incentive plans to Whitehaven during the financial year for a fee of $4,400 (including GST). No other remuneration
recommendations were obtained during FY23.
recommendations were obtained during FY23.
Set based on skills, capabilities,
experience, performance and
role complexity with reference to
external benchmarking
Outcomes at the end of the initial annual performance period prioritising financial, production, and
HSE-focused metrics aimed at driving execution of business strategy and creating shareholder value.
Quantifiable measures represent 80% of the overall SIP grant, with rigorous individual performance
KPIs representing the remaining 20%.
Performance-based rights are then subject to two additional performance hurdles: an independently
verified Costs Hurdle and Strategic Priority Delivery. These two hurdles are tested independently of one
another. Measures are set by the Board and are underpinned by strategic projects, financial
considerations, and hurdles.
Reviewed annually by the
Remuneration Committee
The Board is able to adjust SIP outcomes to ensure alignment with shareholder expectations. This
includes adjustments to equity award allocations, where the Board is able to reduce the number of
unvested rights if subsequent events show such a reduction to be appropriate.
S
E
M
O
C
T
U
O
F
O
S
S
A
B
I
E
C
N
A
N
R
E
V
O
G
Page 36 | Whitehaven Coal Annual Report 2023
Page 36 | Whitehaven Coal Annual Report 2023
Page 37 | Whitehaven Coal Annual Report 2023
Page 37 | Whitehaven Coal Annual Report 2023
Directors’ Report Remuneration Report
Directors’ Report Remuneration Report
For the year ended 30 June 2023
For the year ended 30 June 2023
3. FY23 remuneration framework
3. FY23 remuneration framework
As detailed last year, the Board embarked on a comprehensive assessment of Whitehaven’s executive remuneration
As detailed last year, the Board embarked on a comprehensive assessment of Whitehaven’s executive remuneration
framework. This extensive review sought to ensure that our framework is fit for purpose; adequately acknowledging the
framework. This extensive review sought to ensure that our framework is fit for purpose; adequately acknowledging the
attraction and retention challenges unique to the coal industry. Additionally, the review aimed to align executive
attraction and retention challenges unique to the coal industry. Additionally, the review aimed to align executive
remuneration outcomes more closely with the experiences of our shareholders, while also bolstering the execution of the
remuneration outcomes more closely with the experiences of our shareholders, while also bolstering the execution of the
Company’s evolving strategy.
Company’s evolving strategy.
The review led to a revised pay structure, which was outlined in last year’s remuneration report and endorsed by
The review led to a revised pay structure, which was outlined in last year’s remuneration report and endorsed by
shareholders:
shareholders:
− A single incentive plan with traditional LTI measures no longer applicable
− A single incentive plan with traditional LTI measures no longer applicable
− competitive fixed remuneration reflecting a premium for coal, which the review found was approximately market
− competitive fixed remuneration reflecting a premium for coal, which the review found was approximately market
median plus 20%, positioning Executive KMP fixed remuneration at the 75th percentile of benchmarked companies
median plus 20%, positioning Executive KMP fixed remuneration at the 75th percentile of benchmarked companies
− minimum shareholding requirements for Executive KMP and Non-Executive Directors
− minimum shareholding requirements for Executive KMP and Non-Executive Directors
− Reviewed Non-Executive Director fees, where the review identified a need to lift base Board fees to align with the
− Reviewed Non-Executive Director fees, where the review identified a need to lift base Board fees to align with the
median of the market for FY23 (no changes to Committee fees).
median of the market for FY23 (no changes to Committee fees).
This framework provides a number of benefits:
This framework provides a number of benefits:
− better reflects shareholder interests by placing a strong focus on key annual operational imperatives
− better reflects shareholder interests by placing a strong focus on key annual operational imperatives
− makes yearly achievement of targets paramount, as there is no longer a long-term incentive acting as a fill gap in later
− makes yearly achievement of targets paramount, as there is no longer a long-term incentive acting as a fill gap in later
years
years
− recognises that Whitehaven operates in a cyclical and volatile industry with results materially influenced by coal price
− recognises that Whitehaven operates in a cyclical and volatile industry with results materially influenced by coal price
− recognises the unique challenges from a stock valuation and performance perspective due to ESG screening and
− recognises the unique challenges from a stock valuation and performance perspective due to ESG screening and
discounting
discounting
− addresses the challenges/risks of attracting and retaining Tier 1 executives by targeting top quartile fixed remuneration
− addresses the challenges/risks of attracting and retaining Tier 1 executives by targeting top quartile fixed remuneration
− is delivered with a large proportion of at risk remuneration in equity, deferred over several years, to align with
− is delivered with a large proportion of at risk remuneration in equity, deferred over several years, to align with
shareholder experience
shareholder experience
− rewards executives for delivering results against measurable criteria aimed at safe, responsible, efficient operations;
− rewards executives for delivering results against measurable criteria aimed at safe, responsible, efficient operations;
delivery of new long-term strategic projects; and optimising financial performance
delivery of new long-term strategic projects; and optimising financial performance
− supports decision making aligned to shareholder interests and requires executives and Board members to maintain a
− supports decision making aligned to shareholder interests and requires executives and Board members to maintain a
personally significant shareholding in WHC, with the same financial consequences
personally significant shareholding in WHC, with the same financial consequences
− features longer deferral period to extend shareholder alignment through the typical market cycle.
− features longer deferral period to extend shareholder alignment through the typical market cycle.
Details on the specifics of the remuneration framework are provided in the below sections.
Details on the specifics of the remuneration framework are provided in the below sections.
3.1. Mix and timing of Executive KMP remuneration in FY23
3.1. Mix and timing of Executive KMP remuneration in FY23
Executive KMP remuneration is delivered as a mix of fixed and at-risk remuneration. At-risk remuneration can be earned
Executive KMP remuneration is delivered as a mix of fixed and at-risk remuneration. At-risk remuneration can be earned
through the SIP and is delivered to Executive KMP over multi-year timeframes to create a layered retention effect and
through the SIP and is delivered to Executive KMP over multi-year timeframes to create a layered retention effect and
encourage sustained performance.
encourage sustained performance.
The graphs below illustrate the remuneration mix for Executive KMP for FY23 (based on maximum performance for at-
The graphs below illustrate the remuneration mix for Executive KMP for FY23 (based on maximum performance for at-
risk components):
risk components):
CEO
Other Executive KMP
26%
35%
74%
65%
Fixed TFR
At-risk SIP
To support executive retention and ensure executives are aligned appropriately to shareholder experience and to longer-
To support executive retention and ensure executives are aligned appropriately to shareholder experience and to longer-
term business performance, the vesting schedule has been lengthened relative to previous frameworks and is broadly
term business performance, the vesting schedule has been lengthened relative to previous frameworks and is broadly
consistent with other SIPs in the market. The following diagram shows the timing for determining and delivering
consistent with other SIPs in the market. The following diagram shows the timing for determining and delivering
Executive KMP remuneration for FY23:
Executive KMP remuneration for FY23:
Page 38 | Whitehaven Coal Annual Report 2023
Page 38 | Whitehaven Coal Annual Report 2023
Page 38 | Whitehaven Coal Annual Report 2023
Directors’ Report Remuneration Report
Directors’ Report Remuneration Report
For the year ended 30 June 2023
For the year ended 30 June 2023
Directors’ Report Remuneration Report
Directors’ Report Remuneration Report
Directors’ Report Remuneration Report
For the year ended 30 June 2023
For the year ended 30 June 2023
For the year ended 30 June 2023
3. FY23 remuneration framework
3. FY23 remuneration framework
As detailed last year, the Board embarked on a comprehensive assessment of Whitehaven’s executive remuneration
As detailed last year, the Board embarked on a comprehensive assessment of Whitehaven’s executive remuneration
framework. This extensive review sought to ensure that our framework is fit for purpose; adequately acknowledging the
framework. This extensive review sought to ensure that our framework is fit for purpose; adequately acknowledging the
attraction and retention challenges unique to the coal industry. Additionally, the review aimed to align executive
attraction and retention challenges unique to the coal industry. Additionally, the review aimed to align executive
remuneration outcomes more closely with the experiences of our shareholders, while also bolstering the execution of the
remuneration outcomes more closely with the experiences of our shareholders, while also bolstering the execution of the
Company’s evolving strategy.
Company’s evolving strategy.
shareholders:
shareholders:
The review led to a revised pay structure, which was outlined in last year’s remuneration report and endorsed by
The review led to a revised pay structure, which was outlined in last year’s remuneration report and endorsed by
− A single incentive plan with traditional LTI measures no longer applicable
− A single incentive plan with traditional LTI measures no longer applicable
− competitive fixed remuneration reflecting a premium for coal, which the review found was approximately market
− competitive fixed remuneration reflecting a premium for coal, which the review found was approximately market
median plus 20%, positioning Executive KMP fixed remuneration at the 75th percentile of benchmarked companies
median plus 20%, positioning Executive KMP fixed remuneration at the 75th percentile of benchmarked companies
− minimum shareholding requirements for Executive KMP and Non-Executive Directors
− minimum shareholding requirements for Executive KMP and Non-Executive Directors
− Reviewed Non-Executive Director fees, where the review identified a need to lift base Board fees to align with the
− Reviewed Non-Executive Director fees, where the review identified a need to lift base Board fees to align with the
median of the market for FY23 (no changes to Committee fees).
median of the market for FY23 (no changes to Committee fees).
This framework provides a number of benefits:
This framework provides a number of benefits:
− better reflects shareholder interests by placing a strong focus on key annual operational imperatives
− better reflects shareholder interests by placing a strong focus on key annual operational imperatives
− makes yearly achievement of targets paramount, as there is no longer a long-term incentive acting as a fill gap in later
− makes yearly achievement of targets paramount, as there is no longer a long-term incentive acting as a fill gap in later
− recognises that Whitehaven operates in a cyclical and volatile industry with results materially influenced by coal price
− recognises that Whitehaven operates in a cyclical and volatile industry with results materially influenced by coal price
− recognises the unique challenges from a stock valuation and performance perspective due to ESG screening and
− recognises the unique challenges from a stock valuation and performance perspective due to ESG screening and
years
years
discounting
discounting
− addresses the challenges/risks of attracting and retaining Tier 1 executives by targeting top quartile fixed remuneration
− addresses the challenges/risks of attracting and retaining Tier 1 executives by targeting top quartile fixed remuneration
− is delivered with a large proportion of at risk remuneration in equity, deferred over several years, to align with
− is delivered with a large proportion of at risk remuneration in equity, deferred over several years, to align with
shareholder experience
shareholder experience
− rewards executives for delivering results against measurable criteria aimed at safe, responsible, efficient operations;
− rewards executives for delivering results against measurable criteria aimed at safe, responsible, efficient operations;
delivery of new long-term strategic projects; and optimising financial performance
delivery of new long-term strategic projects; and optimising financial performance
− supports decision making aligned to shareholder interests and requires executives and Board members to maintain a
− supports decision making aligned to shareholder interests and requires executives and Board members to maintain a
personally significant shareholding in WHC, with the same financial consequences
personally significant shareholding in WHC, with the same financial consequences
− features longer deferral period to extend shareholder alignment through the typical market cycle.
− features longer deferral period to extend shareholder alignment through the typical market cycle.
Details on the specifics of the remuneration framework are provided in the below sections.
Details on the specifics of the remuneration framework are provided in the below sections.
3.1. Mix and timing of Executive KMP remuneration in FY23
3.1. Mix and timing of Executive KMP remuneration in FY23
Executive KMP remuneration is delivered as a mix of fixed and at-risk remuneration. At-risk remuneration can be earned
Executive KMP remuneration is delivered as a mix of fixed and at-risk remuneration. At-risk remuneration can be earned
through the SIP and is delivered to Executive KMP over multi-year timeframes to create a layered retention effect and
through the SIP and is delivered to Executive KMP over multi-year timeframes to create a layered retention effect and
encourage sustained performance.
encourage sustained performance.
risk components):
risk components):
The graphs below illustrate the remuneration mix for Executive KMP for FY23 (based on maximum performance for at-
The graphs below illustrate the remuneration mix for Executive KMP for FY23 (based on maximum performance for at-
To support executive retention and ensure executives are aligned appropriately to shareholder experience and to longer-
To support executive retention and ensure executives are aligned appropriately to shareholder experience and to longer-
term business performance, the vesting schedule has been lengthened relative to previous frameworks and is broadly
term business performance, the vesting schedule has been lengthened relative to previous frameworks and is broadly
consistent with other SIPs in the market. The following diagram shows the timing for determining and delivering
consistent with other SIPs in the market. The following diagram shows the timing for determining and delivering
Executive KMP remuneration for FY23:
Executive KMP remuneration for FY23:
FY23
FY24
FY25
FY26
FY27
FY28
Total Fixed
Remuneration
Subject to Market
benchmarking
VWAP date for
equity allocations
Annual
Performance
Period
At risk based
on quantifiable
measures
Individual
component
20%
80%
Whitehaven
Scorecard
Cash payment
(30%)
Deferred Rights (36%)
Tranche 1 (12%)
Performance Rights (34%)
Tranche 2 (12%)
Tranche 3 (12%)
Relative Quality Cost Measure (17%)
Strategic Priority Delivery Measure (17%)
Single Incentive Plan
3.2. Fixed remuneration
3.2. Fixed remuneration
3.2. Fixed remuneration
Executive KMP fixed remuneration consists of base salary and superannuation, and is subject to approval by the
Executive KMP fixed remuneration consists of base salary and superannuation, and is subject to approval by the
Executive KMP fixed remuneration consists of base salary and superannuation, and is subject to approval by the
Remuneration Committee. In line with Company policy and executive service agreements, remuneration levels are
Remuneration Committee. In line with Company policy and executive service agreements, remuneration levels are
Remuneration Committee. In line with Company policy and executive service agreements, remuneration levels are
reviewed annually having regard to market benchmarking, scope of role and sustained individual performance. While
reviewed annually having regard to market benchmarking, scope of role and sustained individual performance. While
reviewed annually having regard to market benchmarking, scope of role and sustained individual performance. While
remuneration is reviewed annually, increases are not guaranteed.
remuneration is reviewed annually, increases are not guaranteed.
remuneration is reviewed annually, increases are not guaranteed.
The combination of a limited and decreasing talent pool to draw from and increasingly demanding leadership roles has
The combination of a limited and decreasing talent pool to draw from and increasingly demanding leadership roles has
The combination of a limited and decreasing talent pool to draw from and increasingly demanding leadership roles has
made the attraction and retention of talented executives more and more challenging across the coal industry.
made the attraction and retention of talented executives more and more challenging across the coal industry.
made the attraction and retention of talented executives more and more challenging across the coal industry.
Consequently, from FY23, the Board determined to position fixed remuneration at the 75th percentile of its market
Consequently, from FY23, the Board determined to position fixed remuneration at the 75th percentile of its market
Consequently, from FY23, the Board determined to position fixed remuneration at the 75th percentile of its market
comparator groups where appropriate for the individual executive. See section 3.6 for further explanation of our
comparator groups where appropriate for the individual executive. See section 3.6 for further explanation of our
comparator groups where appropriate for the individual executive. See section 3.6 for further explanation of our
approach to remuneration benchmarking.
approach to remuneration benchmarking.
approach to remuneration benchmarking.
3.3. FY23 SIP award structure
3.3. FY23 SIP award structure
3.3. FY23 SIP award structure
The SIP structure has been designed to align executive remuneration outcomes with measures that support a range of
The SIP structure has been designed to align executive remuneration outcomes with measures that support a range of
The SIP structure has been designed to align executive remuneration outcomes with measures that support a range of
stakeholder interests, including the interests of our shareholders, our workforce and the communities in which we
stakeholder interests, including the interests of our shareholders, our workforce and the communities in which we
stakeholder interests, including the interests of our shareholders, our workforce and the communities in which we
operate. Its substantial equity component and wider differential between target and stretch opportunities helps support
operate. Its substantial equity component and wider differential between target and stretch opportunities helps support
operate. Its substantial equity component and wider differential between target and stretch opportunities helps support
strong alignment with shareholder experiences, and the extended deferral periods encourage a focus on long-term value
strong alignment with shareholder experiences, and the extended deferral periods encourage a focus on long-term value
strong alignment with shareholder experiences, and the extended deferral periods encourage a focus on long-term value
creation.
creation.
creation.
Feature
Feature
Feature
Description
Description
Description
Annual Performance
Annual Performance
Annual Performance
Period
Period
Period
EEaacchh aannnnuuaall ppeerrffoorrmmaannccee ppeerriioodd bbeeggiinnss aanndd eennddss wwiitthh tthhee ffiinnaanncciiaall yyeeaarr ((ii..ee.. 11 JJuullyy ttoo 3300 JJuunnee))
EEaacchh aannnnuuaall ppeerrffoorrmmaannccee ppeerriioodd bbeeggiinnss aanndd eennddss wwiitthh tthhee ffiinnaanncciiaall yyeeaarr ((ii..ee.. 11 JJuullyy ttoo 3300 JJuunnee))
EEaacchh aannnnuuaall ppeerrffoorrmmaannccee ppeerriioodd bbeeggiinnss aanndd eennddss wwiitthh tthhee ffiinnaanncciiaall yyeeaarr ((ii..ee.. 11 JJuullyy ttoo 3300 JJuunnee))
SIP Opportunity
SIP Opportunity
SIP Opportunity
CCEEOO:: target 185% of TFR and stretch 277.5% of TFR
CCEEOO:: target 185% of TFR and stretch 277.5% of TFR
CCEEOO:: target 185% of TFR and stretch 277.5% of TFR
OOtthheerr EExxeeccuuttiivvee KKMMPP:: target 125% of TFR and stretch 187.5% of TFR
OOtthheerr EExxeeccuuttiivvee KKMMPP:: target 125% of TFR and stretch 187.5% of TFR
OOtthheerr EExxeeccuuttiivvee KKMMPP:: target 125% of TFR and stretch 187.5% of TFR
Calculation of SIP award The value of SIP awards will be calculated as follows.
Calculation of SIP award The value of SIP awards will be calculated as follows.
Calculation of SIP award The value of SIP awards will be calculated as follows.
Value of
SIP Award
=
TFR
X
Target
Opportunity
X
(
(80% X
scorecard
result)
+
(20% X
individual
performance)
)
Scorecard KPIs and
Scorecard KPIs and
Scorecard KPIs and
weightings
weightings
weightings
The scorecard KPIs represent 80% of the overall SIP outcome and are based on quantifiable financial, production, and
The scorecard KPIs represent 80% of the overall SIP outcome and are based on quantifiable financial, production, and
The scorecard KPIs represent 80% of the overall SIP outcome and are based on quantifiable financial, production, and
HSE measures.
HSE measures.
HSE measures.
Whitehaven has chosen outcome-focused performance conditions that link to our strategy. Executives will no longer
Whitehaven has chosen outcome-focused performance conditions that link to our strategy. Executives will no longer
Whitehaven has chosen outcome-focused performance conditions that link to our strategy. Executives will no longer
be assessed against leading indicator KPIs such as Safety Hazard Identification and Environment Critical Control
be assessed against leading indicator KPIs such as Safety Hazard Identification and Environment Critical Control
be assessed against leading indicator KPIs such as Safety Hazard Identification and Environment Critical Control
Verification. While these leading indicators are important in creating a positive safety culture, and remain a feature in
Verification. While these leading indicators are important in creating a positive safety culture, and remain a feature in
Verification. While these leading indicators are important in creating a positive safety culture, and remain a feature in
Page 38 | Whitehaven Coal Annual Report 2023
Page 38 | Whitehaven Coal Annual Report 2023
Page 39 | Whitehaven Coal Annual Report 2023
Page 39 | Whitehaven Coal Annual Report 2023
Page 39 | Whitehaven Coal Annual Report 2023
Page 39 | Whitehaven Coal Annual Report 2023
Directors’ Report Remuneration Report
For the year ended 30 June 2023
Feature
Description
the site incentive plans, it is recognised following feedback from shareholders that outcomes are more relevant when
assessing executive performance.
The table below summarises the KPIs and the applicable weighting of each performance measure that have been
adopted in FY23:
KPI
Rationale
Weighting
Health, Safety and Environment
Measures (40%)
Safety (TRIFR)
- Key indicator of safety performance
- Reflects effectiveness of risk management
framework
Environmental Compliance (Enforceable
Actions)
- Key compliance measure
- Demonstrates commitment to sustainability
Financial Measures (40%)
EBITDA
FOB cost per tonne (equity basis)
Production Measures (20%)
- Key profit measure for shareholders
- Reflects underlying performance
- Key controllable value driver of profit
- Key operational measure of Management’s
performance
20%
20%
25%
15%
ROM production (managed basis)
- Key measure of operational efficiency and supply
20%
chain management
- Reflects sales potential and enables customer
satisfaction
The measures and weightings outlined above will be considered by the Board at the beginning of each financial year,
with changes expected as strategy evolves. For example, the EBITDA and FOB Cost weightings could be rebalanced
to reflect timing in the coal price cycle (i.e. higher cost weighting in low price years when managing costs is
increasingly critical).
Individual Performance
Assessment
The remaining 20% of the overall SIP outcome reflects each executive’s individual performance, as assessed relative to
achievement of the individual goals and objectives set at the beginning of the financial year. These quantitative and
qualitative objectives reflect both short- and longer-term strategic initiatives, as well as how executives demonstrate
behaviours aligned to Whitehaven’s STRIVE values. Performance against objectives is assessed annually as part of the
Company’s broader performance review process.
Form of delivery,
vesting and exercise
Following the conclusion of each annual performance period, any resulting SIP award will be delivered to executives in
a combination of cash, deferred rights and performance rights, as follows:
− 30% cash, expected to be paid in September following the end of the financial year
− 36% deferred rights, which vest in equal tranches (of 12% each) annually over 3 years subject to service conditions
− 34% performance rights, divided equally into two tranches (of 17% each) which are subject to additional
performance conditions over a four-year period commencing at grant.
The number of deferred rights and performance rights allocated to participants is calculated by dividing the award
value in dollars by the volume weighted average price (VWAP) of ordinary shares in the Company. The VWAP
incorporates a 20-trading day period, commencing 10 trading days prior to 30 June in the calendar year of the Annual
Performance Period’s commencement i.e. 1 July 2022. The single VWAP date at the beginning of the annual
performance period creates shareholder alignment over the incentive plan’s full operation.
Performance Rights
RReellaattiivvee QQuuaalliittyy CCoosstt MMeeaassuurree ((1177%% ooff SSIIPP aawwaarrdd wweeiigghhttiinngg)):: These Rights are subject to the Company
maintaining Whitehaven’s competitive position in the Australian industry for comparable mines (i.e. haulage cost and
quality adjusted, as measured by Wood Mackenzie). Target position will be defined by the Board at the time of grant.
Given Wood Mackenzie curves are produced on a calendar year basis, the cost measure will be tested based on the
average costs achieved on a Company-wide basis over the most recent calendar year prior to vesting. This ensures
like-for-like comparisons to the Wood Mackenzie cost curve.
SSttrraatteeggiicc PPrriioorriittyy DDeelliivveerryy MMeeaassuurree ((1177%% ooff SSIIPP aawwaarrdd wweeiigghhttiinngg)):: These Rights are linked to the delivery of
strategic priorities, aligning executives to the efficient and effective delivery of long-term projects i.e. often greater
than 10 years in duration and beyond average executive tenure. The strategic delivery condition is important to
address shareholder value creation from Whitehaven’s long-term strategic development projects and include
measures that are underpinned by financial considerations and hurdles. Projects represent significant commercial
opportunities for Whitehaven with quantified return on investment. This commercial value can be delivered through:
− extensions and enhancements to mining operations that will increase ROM coal production, driving sustained
productivity and revenue
− new initiatives that add to long-term coal reserves, enhancing resource security and supporting operational
sustainability
−
increasing production rates and our capacity for diverse coal products, enhancing market flexibility and resilience
to changing coal market demands.
Progress towards strategic priorities will be assessed by the Board at the end of the 4-year performance period, with
formal updates provided to the Remuneration Committee on an annual basis. Active projects include the Vickery
Extension, Winchester South, Narrabri Stage 3, and the Maules Creek Continuation Project (renewal of the mining
Page 40 | Whitehaven Coal Annual Report 2023
Page 40 | Whitehaven Coal Annual Report 2023
Directors’ Report Remuneration Report
For the year ended 30 June 2023
Directors’ Report Remuneration Report
For the year ended 30 June 2023
Feature
Description
Feature
Description
the site incentive plans, it is recognised following feedback from shareholders that outcomes are more relevant when
assessing executive performance.
The table below summarises the KPIs and the applicable weighting of each performance measure that have been
Rationale
Weighting
- Key indicator of safety performance
- Reflects effectiveness of risk management
framework
Environmental Compliance (Enforceable
- Key compliance measure
- Demonstrates commitment to sustainability
adopted in FY23:
KPI
Measures (40%)
Safety (TRIFR)
Health, Safety and Environment
Actions)
EBITDA
Financial Measures (40%)
FOB cost per tonne (equity basis)
Production Measures (20%)
- Key profit measure for shareholders
- Reflects underlying performance
- Key controllable value driver of profit
- Key operational measure of Management’s
performance
- Reflects sales potential and enables customer
chain management
satisfaction
ROM production (managed basis)
- Key measure of operational efficiency and supply
20%
lease), and are weighted according to potential shareholder value creation. Measures are commercially sensitive and
will be disclosed retrospectively.
When determining the underlying measures for these performance rights, the Board considered a number of
alternatives including various accounting measures, as well as retaining the existing relative TSR measure. Accounting
measures were deemed inappropriate given price-taking companies, like Whitehaven, do not have meaningful impact
over measures such as return on equity (ROE), earnings per share (EPS) or return on invested capital (ROIC). Relative
TSR was deemed to be inappropriate given the influence of ESG concerns on the Whitehaven share price, as a
significant proportion of investors are unwilling or unable to invest in coal stocks resulting in significant valuation
discounts and a disconnect of the traditional coal price to share price relationship. Further, the cyclicality of a
commodity business, coupled with the limited number of comparable ASX-listed pure coal producers, makes relative
performance comparisons problematic. TSR will still be considered when determining whether outcomes reflect
appropriate alignment, but it will not be a formal aspect of Whitehaven’s SIP framework.
As the quantum of vesting for both tranches of performance rights has been determined by a combination of the
upfront SIP scorecard and the tests on further measures detailed above, the Board is confident in the rigour of this
framework and its alignment to shareholder value creation.
Any component of the SIP award that does not vest following testing will lapse. There is no retesting of awards that
do not vest.
The Board maintains the discretion to adjust the formulaic outcomes outlined above. This can be implemented either
in response to unanticipated external factors that are beyond management's control, or if the results generate any
unintended outcomes. Such decisions will always take into account the perspectives of various stakeholders including,
but not limited to, shareholders, employees, and communities.
20%
20%
25%
15%
Retesting
Board Discretion
3.4. Policies and conditions of rights awarded under equity plans
Minimum shareholding requirements
The MSR Policy was introduced from July 2022 and is designed to align the interests of shareholders with those of the
executives. The MSR policy requires Executive KMP to hold applicable Whitehaven shares and/or rights to the value of at
least 50% of their TFR after a period of three years, and in the case of the CEO a minimum of 100% of his TFR within five
years. Currently the CEO and the Executive KMP satisfy the requirements of the MSR policy.
Malus and clawback
The Board has discretion to reduce or claw back all vested and unvested SIP, LTI and STI awards in certain circumstances
if subsequent events show a reduction to be appropriate. The circumstances in which the Board may exercise this
discretion include: where an Executive KMP engages in fraud, dishonesty or other misconduct; a material misstatement of
the Company’s financial statements or other material error which results in vesting; or any other factor that the Board
deems justifiable.
Following the conclusion of each annual performance period, any resulting SIP award will be delivered to executives in
Dividend and voting rights
Rights carry no entitlement to voting or dividends prior to exercise, and rights that fail to meet the vesting criteria return
nil value for the participants. However, for rights that do satisfy the vesting conditions, participants are entitled to receive
a dividend equivalent payment (DEP) for the period between the start of the performance period and exercise. This DEP
can be delivered in cash or as additional fully paid ordinary shares in the Company, at the discretion of the Board.
The provision of a DEP effectively addresses the value discrepancy between shares and rights, ensuring that participants'
allocations, which are based on the face value of a share, are not undervalued. This system also carries significant benefits
for shareholders and helps in mitigating potential market signalling risks:
− Enhanced shareholder alignment: Without any entitlement to dividends, participants may be incentivised to favour
strategies that spur short-term share price growth over dividend returns. Adopting the DEP reduces this risk and
promotes stronger alignment with shareholder interests. It also sends a positive signal to the market about the
alignment of our executives’ remuneration arrangements with shareholder returns.
− Encouragement of long-term holdings: Without a DEP, participants could feel motivated to exercise vested rights
promptly to access the value tied to dividends. This early exercise of rights triggers a tax event and potential tax
liability, often leading participants to sell some of their equity holdings. Such a scenario could send negative signals to
the market about insider confidence. However, with the DEP in place, participants can hold their awards for a longer
term without foregoing the value of dividends and without triggering early tax events. This policy also communicates
to the market our commitment to long-term performance and the stability of our executive team.
Prohibition on hedging
Participants are required to comply with the Company’s securities trading policy in respect of their performance rights,
options and any shares they receive upon exercise.
They are prohibited from hedging or otherwise protecting the value of their performance rights and options.
Page 40 | Whitehaven Coal Annual Report 2023
Page 41 | Whitehaven Coal Annual Report 2023
Page 41 | Whitehaven Coal Annual Report 2023
The measures and weightings outlined above will be considered by the Board at the beginning of each financial year,
with changes expected as strategy evolves. For example, the EBITDA and FOB Cost weightings could be rebalanced
to reflect timing in the coal price cycle (i.e. higher cost weighting in low price years when managing costs is
increasingly critical).
Individual Performance
The remaining 20% of the overall SIP outcome reflects each executive’s individual performance, as assessed relative to
Assessment
achievement of the individual goals and objectives set at the beginning of the financial year. These quantitative and
qualitative objectives reflect both short- and longer-term strategic initiatives, as well as how executives demonstrate
behaviours aligned to Whitehaven’s STRIVE values. Performance against objectives is assessed annually as part of the
Company’s broader performance review process.
Form of delivery,
vesting and exercise
a combination of cash, deferred rights and performance rights, as follows:
− 30% cash, expected to be paid in September following the end of the financial year
− 36% deferred rights, which vest in equal tranches (of 12% each) annually over 3 years subject to service conditions
− 34% performance rights, divided equally into two tranches (of 17% each) which are subject to additional
performance conditions over a four-year period commencing at grant.
The number of deferred rights and performance rights allocated to participants is calculated by dividing the award
value in dollars by the volume weighted average price (VWAP) of ordinary shares in the Company. The VWAP
incorporates a 20-trading day period, commencing 10 trading days prior to 30 June in the calendar year of the Annual
Performance Period’s commencement i.e. 1 July 2022. The single VWAP date at the beginning of the annual
performance period creates shareholder alignment over the incentive plan’s full operation.
maintaining Whitehaven’s competitive position in the Australian industry for comparable mines (i.e. haulage cost and
quality adjusted, as measured by Wood Mackenzie). Target position will be defined by the Board at the time of grant.
Given Wood Mackenzie curves are produced on a calendar year basis, the cost measure will be tested based on the
average costs achieved on a Company-wide basis over the most recent calendar year prior to vesting. This ensures
like-for-like comparisons to the Wood Mackenzie cost curve.
SSttrraatteeggiicc PPrriioorriittyy DDeelliivveerryy MMeeaassuurree ((1177%% ooff SSIIPP aawwaarrdd wweeiigghhttiinngg)):: These Rights are linked to the delivery of
strategic priorities, aligning executives to the efficient and effective delivery of long-term projects i.e. often greater
than 10 years in duration and beyond average executive tenure. The strategic delivery condition is important to
address shareholder value creation from Whitehaven’s long-term strategic development projects and include
measures that are underpinned by financial considerations and hurdles. Projects represent significant commercial
opportunities for Whitehaven with quantified return on investment. This commercial value can be delivered through:
− extensions and enhancements to mining operations that will increase ROM coal production, driving sustained
− new initiatives that add to long-term coal reserves, enhancing resource security and supporting operational
productivity and revenue
sustainability
−
increasing production rates and our capacity for diverse coal products, enhancing market flexibility and resilience
to changing coal market demands.
Progress towards strategic priorities will be assessed by the Board at the end of the 4-year performance period, with
formal updates provided to the Remuneration Committee on an annual basis. Active projects include the Vickery
Extension, Winchester South, Narrabri Stage 3, and the Maules Creek Continuation Project (renewal of the mining
Performance Rights
RReellaattiivvee QQuuaalliittyy CCoosstt MMeeaassuurree ((1177%% ooff SSIIPP aawwaarrdd wweeiigghhttiinngg)):: These Rights are subject to the Company
Directors’ Report Remuneration Report
For the year ended 30 June 2023
Change of control
In the event of a takeover bid or other transaction, event or state of affairs that in the Board’s opinion is likely to result in
a change in control of the Company, the Board has discretion to determine that vesting of some or all of any unvested
performance awards should be accelerated.
Cessation of employment
Unless the Board determines otherwise, cessation of employment for the following reasons will result in different
treatments of unvested performance awards as set out below:
− Termination for cause: unvested performance awards will lapse.
− Resignation or by mutual agreement with the Company: unvested performance awards will remain on foot and be
subject to the original performance hurdle. However, the Board may at its discretion determine to lapse any or all of
the unvested performance awards and ordinarily, in the case of a resignation, would be expected to do so.
− Other circumstances: unvested performance awards will remain on foot and be subject to the original performance
hurdle, with Board discretion to determine that some of the performance awards (up to a pro rata portion based on
how much of the performance period remains) will lapse. The performance awards that remain on foot will be tested in
the normal course following the end of the relevant performance period.
3.5. Benchmarking total remuneration
While benchmarking is a useful starting point, it is only one input the Board uses to determine total remuneration for
Executive KMP. Actual market positioning for each individual is an outcome of multiple factors such as internal relativities,
experience, tenure in role, individual performance and retention considerations.
Fixed and total remuneration are benchmarked against appropriate market comparator groups adopted by the Board
with the assistance of remuneration consultants. As with many commodity-based organisations, Whitehaven’s share price
(and consequently market capitalisation) is highly dependent on the price of coal, therefore the Board now benchmarks
remuneration against two primary comparator groups. Group 1 is based on current Company size (on third to three times
Whitehaven’s market capitalisation) plus a coal industry premium, and Group 2 reflects a more stable group of industry-
aligned comparators. Both comparator groups consist of Australian listed companies, which have been identified as
Whitehaven’s relevant competitors for talent, operating in similar business environments.
In determining appropriate remuneration, having both benchmarking groups helps the Board to make decisions that
balance the market capitalisation challenges the business faces, addresses the difficulties of attracting top executives to
Whitehaven and the coal industry in light of evolving ESG-related concerns, and seeks to retain our talented management
team.
Comparator groups used to benchmark FY24 fixed and total remuneration:
Groups
Companies
Group 1 - Comparable size and industry
This group had a median market
capitalisation of $4.7 billion
(as at the time of benchmarking).
Group 2 – ASX200 Industrials
This group had a median market
capitalisation of $7.7 billion
(as at the time of benchmarking).
AGL Energy Ltd
APA Group
Beach Energy Ltd
BlueScope Steel Ltd
Boral Ltd
Coronado Global Resources Inc.
CSR Ltd
Evolution Mining Ltd
IGO Limited
Iluka Resources Ltd
Incitec Pivot Ltd
Adbri Ltd
Alumina Ltd
Ampol Ltd
Beach Energy Ltd
BHP Group Ltd
BlueScope Steel Ltd
Boral Ltd
Coronado Global Resources Inc.
Evolution Mining Ltd
Fletcher Building Ltd
Fortescue Metals Group Ltd
IGO Ltd
Iluka Resources Ltd
Incitec Pivot Ltd
Mineral Resources Ltd
Lynas Rare Earths Ltd
Mineral Resources Ltd
New Hope Corporation Ltd
Nufarm Ltd
Orica Ltd
Orora Ltd
OZ Minerals Ltd
Sims Ltd
Viva Energy Group Ltd
Yancoal Australia Ltd
New Hope Corporation Ltd
Newcrest Mining Ltd
Northern Star Resources Ltd
Orica Ltd
Orora Ltd
OZ Minerals Ltd
Regis Resources Ltd
Rio Tinto Ltd
Santos Ltd
Sims Ltd
South32 Ltd
Washington H Soul Pattinson and Company Ltd
Woodside Energy Group Limited
Worley Ltd
Yancoal Australia Ltd
Page 42 | Whitehaven Coal Annual Report 2023
Page 42 | Whitehaven Coal Annual Report 2023
Directors’ Report Remuneration Report
For the year ended 30 June 2023
Directors’ Report Remuneration Report
For the year ended 30 June 2023
In the event of a takeover bid or other transaction, event or state of affairs that in the Board’s opinion is likely to result in
a change in control of the Company, the Board has discretion to determine that vesting of some or all of any unvested
Change of control
performance awards should be accelerated.
Cessation of employment
Unless the Board determines otherwise, cessation of employment for the following reasons will result in different
treatments of unvested performance awards as set out below:
− Termination for cause: unvested performance awards will lapse.
− Resignation or by mutual agreement with the Company: unvested performance awards will remain on foot and be
subject to the original performance hurdle. However, the Board may at its discretion determine to lapse any or all of
the unvested performance awards and ordinarily, in the case of a resignation, would be expected to do so.
− Other circumstances: unvested performance awards will remain on foot and be subject to the original performance
hurdle, with Board discretion to determine that some of the performance awards (up to a pro rata portion based on
how much of the performance period remains) will lapse. The performance awards that remain on foot will be tested in
the normal course following the end of the relevant performance period.
3.5. Benchmarking total remuneration
While benchmarking is a useful starting point, it is only one input the Board uses to determine total remuneration for
Executive KMP. Actual market positioning for each individual is an outcome of multiple factors such as internal relativities,
experience, tenure in role, individual performance and retention considerations.
Fixed and total remuneration are benchmarked against appropriate market comparator groups adopted by the Board
with the assistance of remuneration consultants. As with many commodity-based organisations, Whitehaven’s share price
(and consequently market capitalisation) is highly dependent on the price of coal, therefore the Board now benchmarks
remuneration against two primary comparator groups. Group 1 is based on current Company size (on third to three times
Whitehaven’s market capitalisation) plus a coal industry premium, and Group 2 reflects a more stable group of industry-
aligned comparators. Both comparator groups consist of Australian listed companies, which have been identified as
Whitehaven’s relevant competitors for talent, operating in similar business environments.
In determining appropriate remuneration, having both benchmarking groups helps the Board to make decisions that
balance the market capitalisation challenges the business faces, addresses the difficulties of attracting top executives to
Whitehaven and the coal industry in light of evolving ESG-related concerns, and seeks to retain our talented management
Comparator groups used to benchmark FY24 fixed and total remuneration:
team.
Groups
Group 1 - Comparable size and industry
This group had a median market
capitalisation of $4.7 billion
(as at the time of benchmarking).
Group 2 – ASX200 Industrials
This group had a median market
capitalisation of $7.7 billion
(as at the time of benchmarking).
Coronado Global Resources Inc.
Companies
AGL Energy Ltd
APA Group
Beach Energy Ltd
BlueScope Steel Ltd
Boral Ltd
CSR Ltd
Evolution Mining Ltd
IGO Limited
Iluka Resources Ltd
Incitec Pivot Ltd
Adbri Ltd
Alumina Ltd
Ampol Ltd
Beach Energy Ltd
BHP Group Ltd
BlueScope Steel Ltd
Boral Ltd
Lynas Rare Earths Ltd
Mineral Resources Ltd
New Hope Corporation Ltd
Nufarm Ltd
Orica Ltd
Orora Ltd
OZ Minerals Ltd
Sims Ltd
Viva Energy Group Ltd
Yancoal Australia Ltd
New Hope Corporation Ltd
Newcrest Mining Ltd
Northern Star Resources Ltd
Orica Ltd
Orora Ltd
OZ Minerals Ltd
Regis Resources Ltd
Coronado Global Resources Inc.
Rio Tinto Ltd
Evolution Mining Ltd
Fletcher Building Ltd
Fortescue Metals Group Ltd
Santos Ltd
Sims Ltd
South32 Ltd
IGO Ltd
Iluka Resources Ltd
Incitec Pivot Ltd
Washington H Soul Pattinson and Company Ltd
Woodside Energy Group Limited
Worley Ltd
Mineral Resources Ltd
Yancoal Australia Ltd
4. FY23 Remuneration Outcomes
4.1. Summary of Company performance
A snapshot of key Company statutory performance for the past five financial years is set out below:
Revenue ($m)
Statutory EBITDA ($m)
Net profit/(loss) after tax ($m)
Share price at year end (dollars per share)
Basic EPS (cents per share)
Diluted EPS (cents per share)
Shareholder dividends paid (cents per share)
Share buy-back ($m)
TRIFR1
Saleable production (Mt)
FY23
6,064.7
3,985.6
2,668.1
$6.71
307.7
302.8
72
948.9
4.7
15.7
FY22
4,920.1
3,060.1
1,952.0
$4.84
197.6
195.1
8
362.6
5.4
17.3
FY21
1,557.0
204.5
(543.9)
$1.94
(54.6)
(54.6)
-
-
5.9
16.9
FY20
1,721.6
306.0
30.0
$1.43
3.0
3.0
31.5
-
4.1
18.4
FY19
2,487.9
1,001.2
527.9
$3.66
53.5
52.4
47
-
6.2
19.8
1 TRIFR is the total number of injuries resulting in lost time, restricted work duties or medical treatment per million hours worked.
4.2. FY23 Executive KMP SIP outcomes
At the start of each financial year, the Board sets target KPIs for the SIP to drive outperformance of annual business
plans. At financial year end, the Board Chairman recommends to the Board the SIP outcome for the CEO based on a
combination of scorecard and individual outcomes, while the CEO recommends SIP outcomes for other Executive KMP
on a similar basis. The Board then assesses and approves the overall SIP outcomes for the CEO and Executive KMP.
Scorecard targets and outcomes
The table below summarises results against each KPI, including instances where the Board has considered the experience
of shareholders in determining outcomes that reflect management performance, value created beyond KPI results, and
significant unforeseen circumstances.
Impressive financial outcomes, underpinned by record EBITDA of $4.0 billion, and above target health, safety and
environment performance led to an overall result of 68.0% of the maximum scorecard outcome (102.1% of the target
scorecard outcome) for FY23.
Threshold performance has been determined for the FY23 SIP outcome for FOB unit costs, an allowance made by the
Board in recognition of significant weather and flooding impacts, sharply escalated diesel costs, and labour shortages.
The SIP outcome for ROM production was also determined at threshold performance, following consideration of localised
flooding events in the first half of the reporting year which disrupted production schedules and resulted in access being
cut off for 24 days at Maules Creek, 17 days at Tarrawonga, and 36 days for coal haulage to the CHPP. Labour constraints
also affected production, a challenge seen across the broader mining industry. As outlined in the relevant sections below,
the Board therefore recognised and made allowance for the reasonably unforeseeable and uncontrollable circumstances
that management encountered during FY23. The Board based its assessments on detailed quantitative analysis of these
circumstances, with the outcomes reflecting conservative adjustments.
Page 42 | Whitehaven Coal Annual Report 2023
Page 43 | Whitehaven Coal Annual Report 2023
Page 43 | Whitehaven Coal Annual Report 2023
Directors’ Report Remuneration Report
For the year ended 30 June 2023
KPI Unit
Weighting
FY23
Result
Gateway
(50%)
Target
(100%)
Stretch
(150%)
FY23 SIP Outcome
(% of max)
FY23 Targets and Results
HEALTH, SAFETY AND ENVIRONMENT
TRIFR
20%
4.7
6.5
Environmental Compliance
20%
0
3
(Enforceable Actions)
5.5
2
4.9
100%
4.7
1
100%
0
Safety remains our first and foremost priority across sites, and following ongoing investment and focus, TRIFR continued to improve, reducing
from 5.4 to 4.7 in FY22 and FY23 respectively. This outcome continues to track favourably to comparable industry performance.
Similarly, as a result of continued attention and commitment, environmental performance improved in FY23 with no environmental incidents
triggering or likely to trigger enforcement actions, leading to a Stretch outcome.
KPI Unit
FINANCIALS
EBITDA
(A$m)
FOB Unit Cost
(A$/tonne)
Weighting
FY23
Result
Gateway
(50%)
Target
(100%)
Stretch
(150%)
FY23 SIP Outcome
(% of max)
FY23 Targets and Results
25%
$3,986
$3,600
$4,000
$4,300
65%
15% $103.00
$96.00
$3,986
$92.50
$89.00
33%
$103.00
The FY23 record EBITDA of $4.0 billion, up from $3.1 billion in FY22, reflects exceptionally strong coal prices throughout most of the financial
year, and managing through operational challenges to deliver an operational performance within adjusted ROM production guidance. This strong
result was supported by a record average achieved coal price of $445/t, up from $325/t in the prior year (before applicable royalties). The cost
scorecard ranges for FY23 were set above corresponding FY22 ranges due to Whitehaven’s higher quality strategy, which has added significantly
to profitability in FY22 and FY23, but has increased unit costs.
Group costs were in the mid-range of our revised cost guidance, which increased to $100/t-$107/t in April 2023, from the original $89/t-$96/t
guidance. Costs were higher relative to FY22, reflecting lower ROM and saleable coal production volumes due to major weather and flooding
disruptions in the first half of FY23, operational constraints at Maules Creek, and inflationary cost impacts across the business. Diesel prices were
markedly higher than FY22, port costs increased due primarily to the additional variable toll charge implemented at NCIG, and a tight labour
market put upward pressure on labour costs across the industry.
After reviewing quantitative analysis of the impact of flooding, diesel, and labour constraints, the Board determined to adopt an outcome aligned
to threshold performance to ensure SIP outcomes reflect management’s FY23 performance. The net result of these adjustments has delivered an
above threshold result. However, the Board set the outcome to threshold, which it considered a fair and conservative adjustment given the
magnitude of these uncontrollable circumstances.
KPI Unit
OPERATIONS
ROM Production
(Mt)
Weighting
FY23
Result
Gateway
(50%)
Target
(100%)
Stretch
(150%)
FY23 SIP Outcome
(% of max)
FY23 Targets and Results
20%
18.2
20.0
21.5
23.0
33%
18.2
Despite challenging operational conditions, including significant wet weather events and labour shortages, FY23 ROM Production was 18.2Mt. This
result was at the lower end of our adjusted market guidance range.
After reviewing quantitative analysis of the impact of flooding and labour constraints, the Board determined to adopt an outcome aligned to
Threshold performance to ensure SIP outcomes reflect management’s FY23 performance. The net result of these adjustments would have
delivered an above-threshold result. However, the Board set the outcome to threshold, which it considered a fair and conservative adjustment
given the magnitude of these uncontrollable circumstances.
Page 44 | Whitehaven Coal Annual Report 2023
Page 44 | Whitehaven Coal Annual Report 2023
Directors’ Report Remuneration Report
For the year ended 30 June 2023
Directors’ Report Remuneration Report
For the year ended 30 June 2023
Weighting
FY23
Result
Gateway
(50%)
Target
(100%)
Stretch
(150%)
FY23 SIP Outcome
(% of max)
In determining FY23 SIP outcomes, the Board considered the performance of each KMP against their respective strategic
and operational priorities as agreed at the commencement of the financial year.
FY23 Targets and Results
Executive KMP individual performance and SIP outcomes
Recognising the successful delivery against these Individual priorities, notably the exceptional execution of the
Company’s value-creating strategy to produce coal at a quality level higher than originally budgeted, the Managing
Director & CEO was assessed as ‘Exceeds Expectations’ by the Board and the other Executive KMP were assessed as
‘Achieves Expectations’ by the Board. Key performance objectives and highlights are detailed below:
Individual Performance: FY23 Summary
− Stakeholder Engagement and Industry Advocacy: Continued to champion the coal industry, promoted
regional development and constructively engaged numerous stakeholders.
− Strategy Execution: Furthered delivery of shareholder accretive projects and progressed key Company
initiatives whilst managing unforeseen headwinds from flooding-related impacts and regulatory changes.
− Product Quality Focus: Optimised product quality levels for maximum value creation.
− Capital Management: Ensured a strong focus on capital allocation, and oversaw significant return to
shareholders.
Paul Flynn
Managing Director and CEO
Result: 80% of maximum for individual performance component (120% of target)
− Financial Resilience: Successfully managed Whitehaven’s capital structure, positioning it strongly amidst
industry challenges.
− Capital Management: Refined the Capital Allocation framework, ensuring clarity for both internal teams and
external stakeholders. Oversaw significant return to shareholders.
− Budgeting: Addressed challenges in the budgeting process, with a focus on refining planning and
alignment.
− Strategic Focus: Prioritised aligning cash flow scenarios with business strategies.
Kevin Ball
Chief Financial Officer
Result: 66.7% of maximum for individual performance component (100% of target)
− Project Advancement & Operational Efficiency: Advanced key projects (Narrabri Stage 3 and Vickery), and
addressed operational challenges efficiently.
− Environmental Stewardship & Compliance: Reduced environmental compliance issues and managed flood
impacts adeptly.
− Strategic Partnerships & Business Alignment: Progressed Autonomous Haulage System (AHS) at Maules.
− Operational Safety & Risk Management: Achieved commendable safety outcomes; introduced fatigue
monitoring and improved injury management.
−
Innovation & Performance Optimisation: Optimised blasting performance at Maules and established in-
house Business Intelligence teams.
Result: 66.7% of maximum for individual performance component (100% of target)
Ian Humphris
EGM – Operations
Based on the above performance, this resulted in an overall SIP outcome of 70.4% of maximum opportunity for the
Managing Director & CEO, and 67.8% of maximum opportunity for the other Executive KMP. This is detailed in the table
below, which takes into account performance being assessed as combination of the Group-wide scorecard metrics with a
weighting of 80%, and individual KMP performance with a weighting of 20%.
Percentage of maximum SIP received
Paid as
cash
Deferred
rights
Performance
rights
Executive KMP
($)
($)
($)
Total
($)
Scorecard
component
(80%
weighting)
Individual
component
(20%
weighting)
Overall
outcome
Percentage
of maximum
SIP forfeited
Paul Flynn
1,106,944
1,328,333
1,254,537 3,689,814
Kevin Ball
335,414
402,497
380,136
1,118,047
Ian Humphris
323,979
388,775
367,177
1,079,931
68.0%
68.0%
68.0%
80.0%
70.4%
66.7%
66.7%
67.8%
67.8%
29.6%
32.2%
32.2%
The total SIP opportunity at target and stretch, by Executive KMP, as a percentage of TFR is detailed in section 3.3.
Page 44 | Whitehaven Coal Annual Report 2023
Page 45 | Whitehaven Coal Annual Report 2023
Page 45 | Whitehaven Coal Annual Report 2023
KPI Unit
TRIFR
HEALTH, SAFETY AND ENVIRONMENT
20%
4.7
6.5
4.9
100%
Environmental Compliance
20%
0
3
1
100%
(Enforceable Actions)
Safety remains our first and foremost priority across sites, and following ongoing investment and focus, TRIFR continued to improve, reducing
from 5.4 to 4.7 in FY22 and FY23 respectively. This outcome continues to track favourably to comparable industry performance.
Similarly, as a result of continued attention and commitment, environmental performance improved in FY23 with no environmental incidents
triggering or likely to trigger enforcement actions, leading to a Stretch outcome.
5.5
2
4.7
0
Weighting
FY23
Result
Gateway
(50%)
Target
(100%)
Stretch
(150%)
FY23 SIP Outcome
(% of max)
FY23 Targets and Results
25%
$3,986
$3,600
$4,000
$4,300
65%
15% $103.00
$96.00
$89.00
33%
$3,986
$92.50
$103.00
The FY23 record EBITDA of $4.0 billion, up from $3.1 billion in FY22, reflects exceptionally strong coal prices throughout most of the financial
year, and managing through operational challenges to deliver an operational performance within adjusted ROM production guidance. This strong
result was supported by a record average achieved coal price of $445/t, up from $325/t in the prior year (before applicable royalties). The cost
scorecard ranges for FY23 were set above corresponding FY22 ranges due to Whitehaven’s higher quality strategy, which has added significantly
to profitability in FY22 and FY23, but has increased unit costs.
Group costs were in the mid-range of our revised cost guidance, which increased to $100/t-$107/t in April 2023, from the original $89/t-$96/t
guidance. Costs were higher relative to FY22, reflecting lower ROM and saleable coal production volumes due to major weather and flooding
disruptions in the first half of FY23, operational constraints at Maules Creek, and inflationary cost impacts across the business. Diesel prices were
markedly higher than FY22, port costs increased due primarily to the additional variable toll charge implemented at NCIG, and a tight labour
market put upward pressure on labour costs across the industry.
After reviewing quantitative analysis of the impact of flooding, diesel, and labour constraints, the Board determined to adopt an outcome aligned
to threshold performance to ensure SIP outcomes reflect management’s FY23 performance. The net result of these adjustments has delivered an
above threshold result. However, the Board set the outcome to threshold, which it considered a fair and conservative adjustment given the
magnitude of these uncontrollable circumstances.
Weighting
FY23
Result
Gateway
(50%)
Target
(100%)
Stretch
(150%)
FY23 SIP Outcome
(% of max)
FY23 Targets and Results
20%
18.2
20.0
21.5
23.0
33%
18.2
Despite challenging operational conditions, including significant wet weather events and labour shortages, FY23 ROM Production was 18.2Mt. This
result was at the lower end of our adjusted market guidance range.
After reviewing quantitative analysis of the impact of flooding and labour constraints, the Board determined to adopt an outcome aligned to
Threshold performance to ensure SIP outcomes reflect management’s FY23 performance. The net result of these adjustments would have
delivered an above-threshold result. However, the Board set the outcome to threshold, which it considered a fair and conservative adjustment
given the magnitude of these uncontrollable circumstances.
KPI Unit
FINANCIALS
EBITDA
(A$m)
FOB Unit Cost
(A$/tonne)
KPI Unit
OPERATIONS
ROM Production
(Mt)
Directors’ Report Remuneration Report
For the year ended 30 June 2023
4.3. FY23 Executive KMP performance rights vesting outcomes
The table below sets out the performance rights awards capable of vesting in 2023 and the results of the respective
performance condition testing.
Award type
TSR Award
TSR Award
Award
year
2019
(FY20)
2020
(FY21)
Performance
period
1 July 2019 –
30 June 2023
1 July 2020 –
30 June 2023
Costs Hurdle
Award2
2020
(FY21)
1 January 2022 –
31 December 2022
Tranche
Full-Vesting Target
Performance
achieved
Vesting outcome1
2 of 2
1 of 2
1 of 1
75th percentile or
above
74th Percentile
(TSR of 125.3%)
75th percentile or
above
100th Percentile
(TSR of 395.2%)
75th percentile or
above
75th Percentile
97.4%
100.0%
100.0%
1 The remaining proportion of each award due to vest in FY23 was forfeited.
2 50% of vested 2020 Costs Rights become exercisable following the end of the testing period, while the remaining 50% of vested Costs
Rights are subject to a further one-year service condition to 30 June 2024.
The TSR Award outcomes are compiled and reported by independent consultants Guerdon Associates, while the Cost
Hurdle Award is compiled and reported by independent consultants Wood Mackenzie. Further, as noted in the table
above, cost comparisons were made on a calendar basis, as industry data is calculated and presented on this basis by
Wood Mackenzie. It is therefore not feasible for Whitehaven to compare financial year costs to industry data, in this or
subsequent years.
Additional information about the terms of these prior year performance rights awards allocated under the LTI plan is
available in the Remuneration Report for the relevant financial years.
Executive KMP performance rights awards vesting in FY23
Executive
KMP
Paul Flynn
Kevin Ball
Ian Humphris
2019
TSR Hurdle
(Tranche 2)
2020
TSR Hurdle
(Tranche 1)
2020
Costs
Hurdle1
Performance
Rights value
Vested
Performance
Rights
at face value
of award2
Vested
Performance
Rights
share price
appreciation2
Performance Rights
$
$
$
121,107
37,678
-
210,000
600,000
6,275,661
1,686,185
4,589,476
65,334
73,453
186,668
1,952,443
209,866
1,909,570
524,595
433,478
1,427,848
1,476,092
Award Test Date
30 June 2023
30 June 2023
30 June 2023
VWAP – Face value
VWAP - Award Test Date
3.69
6.74
1.53
6.74
1.53
6.74
1 50% of these vested awards remain subject to a one-year service condition.
2 As presented in section 4.4.
4.4. Summary of Executive KMP total realised remuneration outcomes
The Board and Remuneration Committee are of the view that the Company and the Executive KMP have continued to
successfully execute the Group’s long-term strategy and in FY23 have realised exceptional benefits for stakeholders,
including shareholders, employees and the communities in which we operate.
The below table summarises the total remuneration outcomes realised by the Executive KMP. This information differs to
that provided in the statutory remuneration table in section 8.1 and may be helpful to shareholders as it provides a
summary of the actual Executive KMP remuneration outcomes in FY23. Unlike the statutory remuneration table in section
8.1, the below table has not been prepared in accordance with the requirements of the Australian Accounting Standards
and is unaudited. It has been included on a voluntary basis and includes:
− fixed remuneration earned in FY23
− SIP award earned in respect of FY23 performance (including the cash component payable in September 2023 and the
deferred and performance-based components awarded in equity, which may vest and become exercisable in later
years)
− LTI that vested in FY23, including the impact of share price growth between grant and vesting
− any non-monetary benefits provided to Executive KMP in FY23 (including fringe benefits).
Page 46 | Whitehaven Coal Annual Report 2023
Page 46 | Whitehaven Coal Annual Report 2023
Directors’ Report Remuneration Report
For the year ended 30 June 2023
Directors’ Report Remuneration Report
For the year ended 30 June 2023
Total remuneration increased significantly in 2023, predominantly due to the increased value of vested performance
rights. The two primary drivers for this increase were near-full vesting of performance rights in 2023 due to high
performance, and a total shareholder return of 395.23% for the period 1 July 2020 to 30 June 2023. That total
shareholder return was the highest in the ASX 100, resulting in significant upside for participants and shareholders.
For further details on SIP and LTI outcomes for FY23 refer to sections 4.2 and 4.3 respectively.
Cash
incentives2
Total
cash
Deferred
rights3
Performance
rights4 vested
at face value
of award Other5
Total
remuneration
Vested
Performance
Rights share
price growth6
Total including
share price
growth
$
$
$
$
$
$
$
$
TFR1
$
1,888,000
1,106,944
2,994,944
1,328,333
1,686,185
27,412
6,036,874
4,589,476
10,626,350
1,560,500
936,300
2,496,800
936,300
1,316,596
12,900
4,762,596
410,336
5,172,933
880,000
335,414
1,215,414
402,497
524,595
34,107
2,176,613
1,427,848
3,604,461
728,250
305,850
1,034,100
305,850
409,609
8,600
1,758,159
127,661
1,885,819
850,000
323,979
1,173,979
388,775
433,478
78,443
2,074,675
1,476,092
3,550,767
700,000
294,000
994,000
294,000
-
12,900
1,300,900
-
1,300,900
FY
Paul Flynn
2023
2022
Kevin Ball
2023
2022
Ian Humphris
2023
2022
1 TFR comprises base salary and superannuation.
2 Cash incentives represent the amount of cash incentive that each Executive KMP will be paid in September of the relevant year, based on
annual performance. Refer to sections 3.3 and section 4.2 for further details.
3 Deferred rights refer to the face value of SIP (for 2023) or STI (for 2022) grants deferred into rights that are subject to further service
conditions. The deferred rights for 2023 will be issued at a VWAP of $4.84. It is expected that the deferred rights for 2023 will vest and
become exercisable in three equal tranches following the completion of FY24, FY25, and FY26. Refer to section 3.3 for further details.
4 Performance rights represent LTI awards made in 2019 and 2020 (FY22: 2018 and 2019) for which the test period ended during the financial
year and which have vested (noting ‘Costs Hurdle’ awards may have additional service-based conditions). The amounts shown are the face
value of the awards at the grant date. Refer to section 4.3 for further details.
5 Other includes parking, motor vehicle benefits and other similar items.
6 Vested rights share price growth shows the growth between the grant value of the deferred rights and performance rights relative to the
vesting values. Face values have been used based on grant and vesting volume weighted average price.
4.3. FY23 Executive KMP performance rights vesting outcomes
The table below sets out the performance rights awards capable of vesting in 2023 and the results of the respective
performance condition testing.
Award type
TSR Award
TSR Award
Award
year
2019
(FY20)
2020
(FY21)
Performance
1 July 2019 –
30 June 2023
1 July 2020 –
30 June 2023
period
Tranche
Full-Vesting Target
Vesting outcome1
Performance
achieved
74th Percentile
(TSR of 125.3%)
100th Percentile
(TSR of 395.2%)
2 of 2
75th percentile or
1 of 2
75th percentile or
above
above
above
97.4%
100.0%
100.0%
Costs Hurdle
Award2
2020
(FY21)
1 January 2022 –
31 December 2022
1 of 1
75th percentile or
75th Percentile
1 The remaining proportion of each award due to vest in FY23 was forfeited.
2 50% of vested 2020 Costs Rights become exercisable following the end of the testing period, while the remaining 50% of vested Costs
Rights are subject to a further one-year service condition to 30 June 2024.
The TSR Award outcomes are compiled and reported by independent consultants Guerdon Associates, while the Cost
Hurdle Award is compiled and reported by independent consultants Wood Mackenzie. Further, as noted in the table
above, cost comparisons were made on a calendar basis, as industry data is calculated and presented on this basis by
Wood Mackenzie. It is therefore not feasible for Whitehaven to compare financial year costs to industry data, in this or
subsequent years.
Additional information about the terms of these prior year performance rights awards allocated under the LTI plan is
available in the Remuneration Report for the relevant financial years.
Executive KMP performance rights awards vesting in FY23
2019
TSR Hurdle
(Tranche 2)
2020
TSR Hurdle
(Tranche 1)
2020
Costs
Hurdle1
Performance
Rights value
at face value
of award2
share price
appreciation2
Performance
Performance
Vested
Rights
Vested
Rights
Performance Rights
$
$
$
210,000
600,000
6,275,661
1,686,185
4,589,476
186,668
1,952,443
209,866
1,909,570
524,595
433,478
1,427,848
1,476,092
Executive
KMP
Paul Flynn
Kevin Ball
Ian Humphris
121,107
37,678
-
3.69
6.74
65,334
73,453
1.53
6.74
Award Test Date
30 June 2023
30 June 2023
30 June 2023
VWAP – Face value
VWAP - Award Test Date
1.53
6.74
1 50% of these vested awards remain subject to a one-year service condition.
2 As presented in section 4.4.
4.4. Summary of Executive KMP total realised remuneration outcomes
The Board and Remuneration Committee are of the view that the Company and the Executive KMP have continued to
successfully execute the Group’s long-term strategy and in FY23 have realised exceptional benefits for stakeholders,
including shareholders, employees and the communities in which we operate.
The below table summarises the total remuneration outcomes realised by the Executive KMP. This information differs to
that provided in the statutory remuneration table in section 8.1 and may be helpful to shareholders as it provides a
summary of the actual Executive KMP remuneration outcomes in FY23. Unlike the statutory remuneration table in section
8.1, the below table has not been prepared in accordance with the requirements of the Australian Accounting Standards
and is unaudited. It has been included on a voluntary basis and includes:
− fixed remuneration earned in FY23
− SIP award earned in respect of FY23 performance (including the cash component payable in September 2023 and the
deferred and performance-based components awarded in equity, which may vest and become exercisable in later
years)
− LTI that vested in FY23, including the impact of share price growth between grant and vesting
− any non-monetary benefits provided to Executive KMP in FY23 (including fringe benefits).
Page 46 | Whitehaven Coal Annual Report 2023
Page 47 | Whitehaven Coal Annual Report 2023
Page 47 | Whitehaven Coal Annual Report 2023
Directors’ Report Remuneration Report
For the year ended 30 June 2023
5. Executive KMP employment contracts
This section sets out an overview of key terms of employment for the Executive KMP, as provided in their service
agreements.
All Executive KMP contracts give the Company discretion to make payment in lieu of notice. No notice is required where
termination is for cause. The contracts do not provide for any termination payments other than payment in lieu of notice.
Treatment of unvested incentives is dealt with in accordance with the terms of grant. In general, under the SIP, STI, and
LTI arrangements, unvested entitlements will be forfeited where an executive is terminated for cause or, at the Board’s
discretion, where they resign. In all other circumstances where the Board considers the executive to be a ‘good leaver’,
outgoing executives will generally retain their entitlements (subject to any applicable performance conditions in the case
of SIP performance rights and LTI awards).
Managing Director and CEO
Paul Flynn was appointed as Managing Director and CEO of the Company on 25 March 2013. This table outlines the key
terms of Mr Flynn’s contract of employment:
Fixed remuneration
Mr Flynn’s annual TFR for FY24 is $1,964,000 (FY23: $1,888,000). It includes salary, superannuation
contributions, any components under Whitehaven’s salary packaging guidelines and all Director fees. TFR is
reviewed annually.
Single Incentive Plan
Mr Flynn is eligible to participate in the SIP. At target performance, his FY24 SIP opportunity is 185% of TFR,
with up to 277.5% of TFR for stretch performance.
Other key terms
Other key terms of Mr Flynn’s service agreement include the following:
− His employment is ongoing, subject to 12 months’ notice of termination by Whitehaven or 6 months’ notice
of termination by Mr Flynn.
− The Company may terminate without notice in certain circumstances, including serious misconduct or
negligence in the performance of duties. Mr Flynn may terminate immediately in the case of fundamental
changes to his role (that is, there is a substantial diminution in his responsibilities), in which case his
entitlements will be the same as if the Company terminated him without cause.
− The consequences for unvested incentive awards on termination of Mr Flynn’s employment will be in
accordance with the equity incentive plans.
− Mr Flynn will have post-employment restraints for a period of 3 months. No additional amounts will be
payable in respect of this restraint period.
Other Executive KMP contracts
A summary of the notice periods and key terms of the current Executive KMP contracts is set out in the table below. All
of the contracts below are of ongoing duration.
Name and position (at year-end)
Notice
Kevin Ball
Chief Financial Officer
Appointed 16 December 2013
Ian Humphris
Executive General Manager – Operations
Appointed 6 April 2020
3 months by employee
6 months by the Company
6 months by employee or the Company
Page 48 | Whitehaven Coal Annual Report 2023
Page 48 | Whitehaven Coal Annual Report 2023
Directors’ Report Remuneration Report
For the year ended 30 June 2023
Directors’ Report Remuneration Report
For the year ended 30 June 2023
5. Executive KMP employment contracts
This section sets out an overview of key terms of employment for the Executive KMP, as provided in their service
agreements.
All Executive KMP contracts give the Company discretion to make payment in lieu of notice. No notice is required where
termination is for cause. The contracts do not provide for any termination payments other than payment in lieu of notice.
Treatment of unvested incentives is dealt with in accordance with the terms of grant. In general, under the SIP, STI, and
LTI arrangements, unvested entitlements will be forfeited where an executive is terminated for cause or, at the Board’s
discretion, where they resign. In all other circumstances where the Board considers the executive to be a ‘good leaver’,
outgoing executives will generally retain their entitlements (subject to any applicable performance conditions in the case
of SIP performance rights and LTI awards).
Managing Director and CEO
terms of Mr Flynn’s contract of employment:
Paul Flynn was appointed as Managing Director and CEO of the Company on 25 March 2013. This table outlines the key
Fixed remuneration
Mr Flynn’s annual TFR for FY24 is $1,964,000 (FY23: $1,888,000). It includes salary, superannuation
contributions, any components under Whitehaven’s salary packaging guidelines and all Director fees. TFR is
reviewed annually.
Single Incentive Plan
Mr Flynn is eligible to participate in the SIP. At target performance, his FY24 SIP opportunity is 185% of TFR,
with up to 277.5% of TFR for stretch performance.
Other key terms
Other key terms of Mr Flynn’s service agreement include the following:
− His employment is ongoing, subject to 12 months’ notice of termination by Whitehaven or 6 months’ notice
of termination by Mr Flynn.
− The Company may terminate without notice in certain circumstances, including serious misconduct or
negligence in the performance of duties. Mr Flynn may terminate immediately in the case of fundamental
changes to his role (that is, there is a substantial diminution in his responsibilities), in which case his
entitlements will be the same as if the Company terminated him without cause.
− The consequences for unvested incentive awards on termination of Mr Flynn’s employment will be in
accordance with the equity incentive plans.
− Mr Flynn will have post-employment restraints for a period of 3 months. No additional amounts will be
payable in respect of this restraint period.
A summary of the notice periods and key terms of the current Executive KMP contracts is set out in the table below. All
Other Executive KMP contracts
of the contracts below are of ongoing duration.
Name and position (at year-end)
Notice
Kevin Ball
Chief Financial Officer
Appointed 16 December 2013
Ian Humphris
Executive General Manager – Operations
Appointed 6 April 2020
3 months by employee
6 months by the Company
6 months by employee or the Company
6. Non-Executive Director remuneration
This section explains the fees paid to Non-Executive Directors during FY23 and approved fees for FY24.
Non-Executive Director fees are designed to ensure that the Company can attract and retain suitably qualified and
experienced Non-Executive Directors. Non-Executive Directors do not receive shares or any performance-related
incentives as part of their fees from the Company.
Non-Executive Directors are also reimbursed for travel and other expenses reasonably incurred when attending meetings
of the Board or in connection with the business of the Company.
The Remuneration Committee reviews and makes recommendations to the Board with respect to Non-Executive Director
fees and Committee fees.
In 2012 shareholders approved a total aggregate maximum amount of Non-Executive Director fees of $2,500,000 per
annum. No change is being sought to the total aggregate Non-Executive Director fees pool for FY24.
6.1. FY23 and FY24 Board and Committee Fees
Non-Executive Director fees are reviewed annually, with the last adjustment to fees effective on 1 July 2022. For the
review of FY24 remuneration, a market benchmarking exercise was conducted with the support of independent
consultants Godfrey Remuneration Group. The review determined that no increases would apply to Board and
Committee fees (excluding superannuation), despite challenges attracting non-executive directors to the coal industry.
Non-Executive Directors’ FY24 fees include the increase in the statutory superannuation guarantee contribution rate on
1 July 2023 from 10.5% to 11.0%. Historically we have disclosed Non-Executive Directors fees on a superannuation
exclusive basis, with any applicable superannuation paid in addition to base fees. From FY24, Non-Executive Director
fees will be disclosed inclusive of superannuation, better aligning with common practice.
The table below sets out Board and Committee fees for FY23 and FY24. When comparing the policy fee levels from FY23
to FY24, there is no change to fees when excluding superannuation.
FY23 (incl. superannuation)
FY24 (incl. superannuation)
CChhaaiirrmmaann11
DDeeppuuttyy
CChhaaiirrmmaann11,,22
MMeemmbbeerr
CChhaaiirrmmaann11
MMeemmbbeerr
Board
$475,292
$340,292
$198,900
$477,399
$199,800
Audit & Risk Management Committee
Remuneration Committee
Governance & Nominations Committee
$44,200
$44,200
No fee
Health, Safety, Environment & Community Committee
$44,200
$22,100
$22,100
No fee
$22,100
$44,400
$44,400
No fee
$44,400
$22,200
$22,200
No fee
$22,200
1 The Chairman and Deputy Chairman of the Board do not receive committee member fees in addition to their Board fees.
2 The Deputy Chairman position ceased in FY23
6.2. Minimum shareholding requirements (MSR) Policy
The MSR policy requires Non-Executive Directors to acquire and hold Whitehaven shares to the value of at least 100% of
Board member fees (excluding any Committee fees) by the later of 30 June 2025 or three years after appointment to the
Board.
Currently, all Non-Executive Directors meet the MSR except Ms Brook and Ms Graham who joined Whitehaven on
3 November 2022 and 20 February 2023 respectively. See Table Section 7.3 for details.
Page 48 | Whitehaven Coal Annual Report 2023
Page 49 | Whitehaven Coal Annual Report 2023
Page 49 | Whitehaven Coal Annual Report 2023
Directors’ Report Remuneration Report
For the year ended 30 June 2023
6.3. FY23 Non-Executive Director statutory remuneration table
The statutory disclosures required under the Corporations Act 2001 (Cth) and in accordance with the Accounting
Standards are set out in the table below:
Short-term
benefits, $
Post-employment
benefits, $
FY
Board and
Committee fees
Non-monetary
benefits
Other long-term
benefits (non-
cash)
Superannuation
benefits
Total fees for
services as a Non-
Executive Director1
NNoonn--EExxeeccuuttiivvee DDiirreeccttoorrss
Mark Vaile (Chairman)
Dr Julie Beeby
Nicole Brook2
Wallis Graham3
Fiona Robertson
Raymond Zage
FFoorrmmeerr NNoonn--EExxeeccuuttiivvee
DDiirreeccttoorrss
John Conde
(Deputy Chairman)4
Lindsay Ward5
Total
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
450,000
375,000
233,651
180,000
131,818
-
86,429
-
240,469
200,000
193,651
140,000
105,000
262,500
102,698
180,000
1,543,716
1,337,500
-
-
-
-
-
-
-
-
-
-
-
-
6,887
-
-
-
6,887
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
25,292
23,568
24,533
18,000
13,841
-
9,075
-
25,249
20,000
-
-
9,079
23,568
10,783
18,000
117,852
103,136
475,292
398,568
258,184
198,000
145,659
-
95,504
-
265,718
220,000
193,651
140,000
120,966
286,068
113,481
198,000
1,668,455
1,440,636
1 No termination benefits or share-based payments are paid or are payable to Non-Executive Directors.
2 Ms Brook commenced on 3 November 2022.
3 Ms Graham commenced on 20 February 2023.
4 Mr Conde retired on 26 October 2022.
5 Mr Ward retired on 31 December 2022.
Page 50 | Whitehaven Coal Annual Report 2023
Page 50 | Whitehaven Coal Annual Report 2023
Directors’ Report Remuneration Report
For the year ended 30 June 2023
Directors’ Report Remuneration Report
For the year ended 30 June 2023
6.3. FY23 Non-Executive Director statutory remuneration table
The statutory disclosures required under the Corporations Act 2001 (Cth) and in accordance with the Accounting
Standards are set out in the table below:
Short-term
benefits, $
Post-employment
benefits, $
7. Executive KMP statutory tables and additional disclosures
7.1. Executive KMP statutory remuneration table
The following table sets out the statutory remuneration disclosures required under the Corporations Act 2001 (Cth) and
has been prepared in accordance with the appropriate accounting standards:
FY
Committee fees
benefits
cash)
benefits
Executive Director1
Board and
Non-monetary
benefits (non-
Superannuation
services as a Non-
Year
Salary &
fees
Non-monetary
benefits
Cash
incentives
Superannuation
benefits
Termination
benefits
Deferred
Rights
Performance
Rights
Total
remuneration
Performance
related
Other long-term
Total fees for
Short-term benefits, $
Post-employment benefits, $
Share-based payments, $
NNoonn--EExxeeccuuttiivvee DDiirreeccttoorrss
Mark Vaile (Chairman)
Dr Julie Beeby
Nicole Brook2
Wallis Graham3
Fiona Robertson
Raymond Zage
FFoorrmmeerr NNoonn--EExxeeccuuttiivvee
DDiirreeccttoorrss
John Conde
(Deputy Chairman)4
Lindsay Ward5
Total
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
450,000
375,000
233,651
180,000
131,818
86,429
-
-
240,469
200,000
193,651
140,000
105,000
262,500
102,698
180,000
1,543,716
1,337,500
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,887
6,887
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9,075
95,504
25,292
23,568
24,533
18,000
13,841
25,249
20,000
-
-
-
-
9,079
23,568
10,783
18,000
117,852
103,136
475,292
398,568
258,184
198,000
145,659
-
-
265,718
220,000
193,651
140,000
120,966
286,068
113,481
198,000
1,668,455
1,440,636
1 No termination benefits or share-based payments are paid or are payable to Non-Executive Directors.
2 Ms Brook commenced on 3 November 2022.
3 Ms Graham commenced on 20 February 2023.
4 Mr Conde retired on 26 October 2022.
5 Mr Ward retired on 31 December 2022.
(A)
(B)
(B)
(C)
Executive Directors
Paul Flynn
2023
2022
1,860,500
27,412
1,106,944
1,533,000
12,900
936,300
27,500
27,500
Other Executive KMP
Kevin Ball
2023
2022
854,708
703,250
34,107
335,414
8,600
305,850
Ian Humphris
2023
2022
Total
2023
2022
822,500
672,500
78,443
323,979
12,900
294,000
3,537,708
139,962
1,766,337
2,908,750
34,400
1,536,150
25,292
25,000
27,500
27,500
80,292
80,000
-
-
-
-
-
-
-
-
1,157,795
1,738,820
5,918,971
593,442
1,401,410
4,504,552
362,014
537,877
2,149,412
193,457
435,997
1,672,154
347,776
486,669
2,086,867
170,189
292,835
1,469,924
1,867,585
2,763,366
10,155,250
957,088
2,130,242
7,646,630
%
68%
65%
57%
56%
56%
52%
(A) The amounts disclosed as non-monetary benefits relate to car spaces, motor vehicle benefits and other similar items.
(B) Comprises the cash component of current year incentive (refer to sections 3.3 and 4.1 for details) and the fair value at each grant date of
deferred rights expensed over the relevant period for the service vesting condition (which is included in the share-based payments column
of the table). The fair value of grants is based on the volume weighted average price of Whitehaven shares over the 20-trading day period
commencing 10 trading days prior to 30 June of each respective grant. For SIP and LTI awards, this is done at the start of the performance
period. For deferred STI, this is done at the end of the performance period.
(C) The fair value for performance rights granted to KMP is based on the fair value at each grant date expensed over the vesting period. The
factors and assumptions used in determining the fair value are set out in note 5.5 to the financial statements.
Page 50 | Whitehaven Coal Annual Report 2023
Page 51 | Whitehaven Coal Annual Report 2023
Page 51 | Whitehaven Coal Annual Report 2023
Instrument
Executive KMP
Paul Flynn
Directors’ Report Remuneration Report
For the year ended 30 June 2023
7.2. Movement in rights held by Executive KMP
The movement during the reporting period by number and value of equity instruments in the Company held by each
Executive KMP is detailed below:
Balance as at
1 July 2022
(number)
Granted
(number)
Granted
($)
Vested/awarded
during the year
(number)
Exercised
(number)
Exercised
($)
DEP
Grants @
Exercise
(number)
DEP
Exercised
(number)
Lapsed
(number)
Lapsed
(year of
grant)
Balance as
at 30 June
2023
(number)
Vested and
exercisable
at 30 June
2023
(A)
(B)
(C)
(D)
-
-
-
(E)
(F)
(G)
(98,599) 2018/2019
2,633,318
987,909
-
540,894
217,472
Performance Rights
2,731,917
-
-
987,909
Deferred Rights
347,444
193,450 936,298
217,472
-
-
-
-
-
-
Kevin Ball
Performance Rights
849,937
-
-
307,352
(72,307)
266,813
12,616
(12,616)
(30,674) 2018/2019
746,956
235,045
Deferred Rights
113,498
63,192 305,849
71,041
(71,041)
126,950
4,909
(4,909)
Ian Humphris
Performance Rights
705,445
-
-
178,386
-
-
-
-
Deferred Rights
95,717
60,744 294,001
47,858
(53,973)
100,529
3,730
(3,730)
-
-
-
105,649
-
705,445
178,386
102,488
-
(A) The number of rights granted during FY23 includes the deferred rights component of the FY22 STI award, calculated by reference to the
VWAP of the Company’s shares for the 20-day trading period commencing 10 trading days prior to 30 June 2022. The granting of rights
occurred on 6 December 2022.
(B) The value of deferred STI rights granted in the year has been calculated using the volume weighted average price of the Company’s shares
for the 20-day trading period commencing 10 trading days prior to 30 June 2022 as fair value, being $4.84 per share.
Unvested LTI and STI awards have a minimum value of zero if they do not meet the relevant performance or service conditions.
The maximum value of unvested LTI and STI awards is the sale price of the Company’s shares at the date of vesting, or where applicable, on
exercise (plus the value of any dividend equivalent payment attaching to the award on vesting or, where applicable, on exercise).
(C) All of the 2018 LTI TSR Hurdle Tranche 2 Rights and a portion of the 2019 LTI TSR Hurdle Tranche 1 Rights lapsed during the year due to the
performance conditions not being fully satisfied.
All of Tranche 1 of the FY21 STI deferred rights, all of Tranche 2 of the FY20 STI deferred rights, all of the 2019 LTI Costs Target Hurdle
Rights, and a portion of the 2019 LTI TSR Hurdle Tranche 1 Rights vested during the period. The value at exercise has been calculated using
the volume weighted average price of the Company’s shares for the 20-day trading period commencing 10 trading days prior to 30 June in
the year the awards were granted.
(D) DEP grants are awarded when previously awarded rights are exercised. The awards represent compensation for any dividends foregone
between the grant date and the exercise date, removing a financial incentive to exercise their awards immediately after vesting. The value of
the DEP is incorporated into the grant values, hence the DEP allocations themselves have a NIL grant value for accounting purposes.
(E) The year in which the lapsed performance rights, options or deferred rights were granted.
(F) The year-end balance reflects the sum of the following entries: ‘Balance as at 1 July 2022 (number)’, ‘Granted (number)’, ‘Exercised (number)’,
‘DEP Grants @ Exercise (number)’, ‘DEP Exercised (number)’, and ‘Lapsed (number)’.
(G) 50% of the '2020 Costs Hurdle' LTI vesting in FY23 remains subject to a one-year service condition. See the table 'Executive KMP
Performance Rights awards vesting in FY23' (section 4.3) for details of the vested values.
Page 52 | Whitehaven Coal Annual Report 2023
Page 52 | Whitehaven Coal Annual Report 2023
Instrument
(number)
(number)
($)
(number)
(number)
($)
(number)
(number)
(number)
grant)
(number)
2023
Balance as at
Vested/awarded
Grants @
DEP
Lapsed
at 30 June
exercisable
1 July 2022
Granted
Granted
during the year
Exercised
Exercised
Exercise
Exercised
Lapsed
(year of
2023
at 30 June
(A)
(B)
(C)
(D)
(E)
(F)
(G)
Executive KMP
Paul Flynn
Kevin Ball
Ian Humphris
Performance Rights
2,731,917
987,909
(98,599) 2018/2019
2,633,318
987,909
Deferred Rights
347,444
193,450 936,298
217,472
540,894
217,472
-
-
-
-
-
-
Performance Rights
849,937
307,352
(72,307)
266,813
12,616
(12,616)
(30,674) 2018/2019
746,956
235,045
Deferred Rights
113,498
63,192 305,849
71,041
(71,041)
126,950
4,909
(4,909)
105,649
Performance Rights
705,445
178,386
-
-
-
-
705,445
178,386
Deferred Rights
95,717
60,744 294,001
47,858
(53,973)
100,529
3,730
(3,730)
102,488
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(A) The number of rights granted during FY23 includes the deferred rights component of the FY22 STI award, calculated by reference to the
VWAP of the Company’s shares for the 20-day trading period commencing 10 trading days prior to 30 June 2022. The granting of rights
occurred on 6 December 2022.
(B) The value of deferred STI rights granted in the year has been calculated using the volume weighted average price of the Company’s shares
for the 20-day trading period commencing 10 trading days prior to 30 June 2022 as fair value, being $4.84 per share.
Unvested LTI and STI awards have a minimum value of zero if they do not meet the relevant performance or service conditions.
The maximum value of unvested LTI and STI awards is the sale price of the Company’s shares at the date of vesting, or where applicable, on
exercise (plus the value of any dividend equivalent payment attaching to the award on vesting or, where applicable, on exercise).
(C) All of the 2018 LTI TSR Hurdle Tranche 2 Rights and a portion of the 2019 LTI TSR Hurdle Tranche 1 Rights lapsed during the year due to the
performance conditions not being fully satisfied.
All of Tranche 1 of the FY21 STI deferred rights, all of Tranche 2 of the FY20 STI deferred rights, all of the 2019 LTI Costs Target Hurdle
Rights, and a portion of the 2019 LTI TSR Hurdle Tranche 1 Rights vested during the period. The value at exercise has been calculated using
the volume weighted average price of the Company’s shares for the 20-day trading period commencing 10 trading days prior to 30 June in
the year the awards were granted.
(D) DEP grants are awarded when previously awarded rights are exercised. The awards represent compensation for any dividends foregone
between the grant date and the exercise date, removing a financial incentive to exercise their awards immediately after vesting. The value of
the DEP is incorporated into the grant values, hence the DEP allocations themselves have a NIL grant value for accounting purposes.
(E) The year in which the lapsed performance rights, options or deferred rights were granted.
(F) The year-end balance reflects the sum of the following entries: ‘Balance as at 1 July 2022 (number)’, ‘Granted (number)’, ‘Exercised (number)’,
‘DEP Grants @ Exercise (number)’, ‘DEP Exercised (number)’, and ‘Lapsed (number)’.
(G) 50% of the '2020 Costs Hurdle' LTI vesting in FY23 remains subject to a one-year service condition. See the table 'Executive KMP
Performance Rights awards vesting in FY23' (section 4.3) for details of the vested values.
Directors’ Report Remuneration Report
For the year ended 30 June 2023
Directors’ Report Remuneration Report
For the year ended 30 June 2023
7.2. Movement in rights held by Executive KMP
7.3. Movement in ordinary shares held by KMP
The movement during the reporting period by number and value of equity instruments in the Company held by each
Executive KMP is detailed below:
The movement during the reporting period in the number of ordinary shares in the Company held directly, indirectly or
beneficially by Executive KMP and each Non-Executive Director, including their related parties, is as follows:
DEP
Balance as
Vested and
Held at
Number of shares
1 July 2022 Received on exercise of rights
Non-Executive Directors
Other net
change1
Held at
30 June 2023
Mark Vaile
Dr Julie Beeby
Nicole Brook2
Wallis Graham3
Fiona Robertson
Raymond Zage
Executive KMP
Paul Flynn
Kevin Ball
Ian Humphris
1,509,317
85,000
-
-
75,395
10,783,134
1,970,451
202,090
19,695
-
-
-
-
-
-
-
160,873
57,703
(197,150)
(20,000)
-
12,000
-
282,000
(900,000)
(242,963)
(77,398)
1,312,167
65,000
-
12,000
75,395
11,065,134
1,070,451
120,000
-
Includes shares sold and purchased during FY23.
1
2 Ms Brook commenced on 3 November 2022.
3 Ms Graham commenced on 20 February 2023.
7.4. Related party transactions and additional disclosures
Loans with Executive KMP and Non-Executive Directors
There were no loans outstanding to Executive KMP or any Non-Executive Director or their related parties at any time in
the current or prior reporting periods.
Other KMP Transactions
Apart from the details disclosed in this report, no Executive KMP or Non-Executive Director or their related parties has
entered into a material contract with the consolidated entity since the end of the previous financial year and there were
no material contracts involving those people’s interests existing at year end.
Signed in accordance with a resolution of the Directors:
The Hon. Mark Vaile AO
Chairman
Paul Flynn
Managing Director
Sydney
24 August 2023
Page 52 | Whitehaven Coal Annual Report 2023
Page 53 | Whitehaven Coal Annual Report 2023
Page 53 | Whitehaven Coal Annual Report 2023
Financial Report
For the year ended 30 June 2023
Table of Contents
Directors’ Report Remuneration Report
For the year ended 30 June 2023
Consolidated financial statements
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the consolidated financial statements
Directors’ declaration
Independent Auditor’s report
56
57
58
59
60
98
99
1. About this report
5. Capital structure and financing
1.1. Reporting entity
1.2. Basis of preparation
1.3. Significant accounting judgements, estimates
and assumptions
1.4. Summary of other significant accounting
policies
1.5. New standards, interpretations and
amendments adopted by the Group
2. Group performance
2.1. Segment reporting
2.2. Taxes
2.3. Earnings per share
Interest-bearing liabilities
5.1.
5.2. Finance income and expense
5.3. Financial risk management objectives and
policies
5.4. Share capital and reserves
5.5. Share-based payments
6. Group structure
6.1. Group’s subsidiaries
6.2. Interest in joint operations
6.3. Parent entity information
6.4. Deed of cross guarantee
6.5. Related parties
3. Working capital and cash flows
7. Other notes
3.1. Trade and other receivables
3.2. Inventories
3.3. Trade and other payables
3.4. Reconciliation of cash flows from operating
activities
7.1. Employee benefits
7.2. Auditor’s Remuneration
7.3. Commitments
7.4. Contingencies
7.5. Subsequent events
4. Resource assets and liabilities
4.1. Property, plant and equipment
4.2. Exploration and evaluation
4.3. Intangible assets
4.4. Provisions
Page 55 | Whitehaven Coal Annual Report 2023
Page 55 | Whitehaven Coal Annual Report 2023
Consolidated statement
Directors’ Report Remuneration Report
For the year ended 30 June 2023
of comprehensive income
For the year ended 30 June 2023
Revenue
Other income
Operating expenses
Coal purchases
Selling and distribution expenses
Royalties
Depreciation and amortisation
Administrative expenses
Share-based payments expense
Net foreign exchange gain
Profit before net finance income/expense
Finance income
Finance expense
Net finance income/(expense)
Profit before tax
Income tax expense
Net profit for the year
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Net movement in cash flow hedges
Income tax effect
Total items that may be reclassified subsequently to profit or loss, net of tax
Items that will not be reclassified subsequently to profit or loss
Net loss on equity instruments designated at fair value through
other comprehensive income
Income tax effect
Total items that will not be reclassified subsequently to profit or loss, net of tax
Note
2.1
5.5(a)
2023
$’000
2022
$’000
6,064,739
4,920,102
7,595
7,136
(911,053)
(317,918)
(764,331)
(308,049)
(369,753)
(377,395)
(437,539)
(368,778)
(226,000)
(61,453)
(10,897)
21,876
(238,881)
(46,886)
(9,234)
7,570
3,759,597
2,821,254
81,908
1,464
(40,010)
(56,825)
5.2
41,898
(55,361)
3,801,495
2,765,893
2.2(a)
(1,133,441)
(813,928)
2,668,054
1,951,965
2.2(b)
2.2(b)
2,248
(674)
1,574
(5,402)
1,621
(3,781)
(88)
26
(62)
-
-
-
Total comprehensive income for the year, net of tax
2,665,847
1,951,903
Earnings per share
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
2.3
2.3
307.7
302.8
197.6
195.1
The consolidated statement of comprehensive income is to be read in conjunction with the notes to the consolidated
financial statements.
Page 56 | Whitehaven Coal Annual Report 2023
Page 56 | Whitehaven Coal Annual Report 2023
Directors’ Report Remuneration Report
Consolidated statement
For the year ended 30 June 2023
of comprehensive income
For the year ended 30 June 2023
Consolidated statement
Notes to the consolidated financial statements
For the year ended 30 June 2023
of financial position
As at 30 June 2023
Revenue
Other income
Operating expenses
Coal purchases
Selling and distribution expenses
Royalties
Depreciation and amortisation
Administrative expenses
Share-based payments expense
Net foreign exchange gain
Finance income
Finance expense
Net finance income/(expense)
Profit before tax
Income tax expense
Net profit for the year
Profit before net finance income/expense
Note
2.1
5.5(a)
2.2(b)
2.2(b)
2023
$’000
2022
$’000
6,064,739
4,920,102
7,595
7,136
(911,053)
(317,918)
(764,331)
(308,049)
(369,753)
(377,395)
(437,539)
(368,778)
(226,000)
(61,453)
(10,897)
21,876
(238,881)
(46,886)
(9,234)
7,570
3,759,597
2,821,254
81,908
1,464
(40,010)
(56,825)
2,248
(674)
1,574
(5,402)
1,621
(3,781)
(88)
26
(62)
-
-
-
2.2(a)
(1,133,441)
(813,928)
2,668,054
1,951,965
Assets
Cash and cash equivalents
Trade and other receivables
Inventories
Derivatives
Total current assets
Trade and other receivables
Investments
Property, plant and equipment
Exploration and evaluation assets
Intangible assets
Derivatives
Total non-current assets
Total assets
5.2
41,898
(55,361)
3,801,495
2,765,893
Liabilities
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Net movement in cash flow hedges
Income tax effect
Total items that may be reclassified subsequently to profit or loss, net of tax
Items that will not be reclassified subsequently to profit or loss
Net loss on equity instruments designated at fair value through
other comprehensive income
Income tax effect
Total items that will not be reclassified subsequently to profit or loss, net of tax
Total comprehensive income for the year, net of tax
2,665,847
1,951,903
Earnings per share
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
2.3
2.3
307.7
302.8
197.6
195.1
The consolidated statement of comprehensive income is to be read in conjunction with the notes to the consolidated
financial statements.
Trade and other payables
Interest-bearing liabilities
Employee benefits
Income tax payable
Provisions
Derivatives
Total current liabilities
Non-current liabilities
Other payables
Interest-bearing liabilities
Deferred tax liability
Provisions
Derivatives
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Share-based payments reserve
Other reserves
Retained earnings
Total equity
Note
3.1
3.2
5.3(d)
3.1
5.3(d)
4.1
4.2
4.3
5.3(d)
3.3
5.1
7.1
2.2(c)
4.4
5.3(d)
3.3
5.1
2.2(c)
4.4
5.3(d)
5.4(a)
5.4(b)
5.4(b)
2023
$’000
2022
$’000
2,775,510
1,215,460
324,857
133,875
56
657,459
157,039
31
3,234,298
2,029,989
5,203
18,183
7,298
856
3,802,408
3,426,847
438,637
647,289
12,180
-
12,180
74
4,276,611
4,094,544
7,510,909
6,124,533
309,045
71,835
38,802
871,095
14,723
5,235
361,897
77,843
33,987
551,830
16,461
7,774
1,310,735
1,049,792
30,100
117,113
542,207
249,883
346
48,464
166,854
405,169
242,516
104
939,649
863,107
2,250,384
1,912,899
5,260,525
4,211,634
1,659,897
2,642,338
19,774
(7,648)
14,867
(5,441)
3,588,502
1,559,870
5,260,525
4,211,634
The consolidated statement of financial position is to be read in conjunction with the notes to the consolidated
financial statements.
Page 56 | Whitehaven Coal Annual Report 2023
Page 57 | Whitehaven Coal Annual Report 2023
Page 57 | Whitehaven Coal Annual Report 2023
Consolidated statement
Notes to the consolidated financial statements
For the year ended 30 June 2023
of changes in equity
For the year ended 30 June 2023
Purchase of shares through employee share plan
5.4(a)
(12,879)
-
Balance at 30 June 2022
2,642,338
14,867
(5,441)
1,559,870
4,211,634
2,642,338
14,867
(5,441)
1,559,870
4,211,634
Balance at 1 July 2021
Net profit for the year
Other comprehensive loss
Total comprehensive income for the year
Transactions with owners in their capacity as owners
Share buy-back
Dividends paid
Share-based payments
5.5(a)
Share issues/transfers to settle share-based payments
Transfer on lapse of share-based payments
Balance at 1 July 2022
Net profit for the year
Other comprehensive loss
Total comprehensive income for the year
Transactions with owners in their capacity as owners
Share buy-back
Dividends paid
Issued
capital
Share-based
payments
reserve
Other
reserves
Retained
earnings
Total equity
$’000
$’000
$’000
$’000
$’000
Note
5.4(b)
5.4(b)
3,013,661
12,213
(5,379)
(314,757)
2,705,738
-
-
-
5.4(a)
(362,568)
-
-
4,124
-
-
-
-
5.4(a)
(948,908)
-
-
-
-
-
-
-
9,234
(4,337)
(2,243)
-
-
-
-
-
10,897
-
1,951,965
1,951,965
(62)
(62)
-
(62)
1,951,965
1,951,903
-
-
-
-
-
-
-
(362,568)
(79,794)
(79,794)
-
213
2,243
9,234
-
-
-
(12,879)
-
2,668,054
2,668,054
(2,207)
-
(2,207)
(2,207)
2,668,054
2,665,847
-
-
-
-
-
-
-
-
(948,908)
(638,801)
(638,801)
-
10,897
(1,475)
(200)
1,054
-
(265)
-
-
(39,879)
Share-based payments
5.5(a)
Transfer on exercise of share-based payments
6,346
(4,871)
Settlement of share-based payments
Transfer on lapse of share-based payments
-
-
Purchase of shares through employee share plan
5.4(a)
(39,879)
(65)
(1,054)
-
Balance at 30 June 2023
1,659,897
19,774
(7,648)
3,588,502
5,260,525
The consolidated statement of changes in equity is to be read in conjunction with the notes to the consolidated
financial statements.
Page 58 | Whitehaven Coal Annual Report 2023
Page 58 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
Consolidated statement
For the year ended 30 June 2023
of changes in equity
For the year ended 30 June 2023
Consolidated statement
Notes to the consolidated financial statements
For the year ended 30 June 2023
of cash flows
For the year ended 30 June 2023
Issued
capital
Share-based
payments
reserve
Other
reserves
Retained
earnings
Total equity
$’000
$’000
$’000
$’000
$’000
Note
5.4(b)
5.4(b)
3,013,661
12,213
(5,379)
(314,757)
2,705,738
-
1,951,965
1,951,965
(62)
(62)
-
(62)
1,951,965
1,951,903
Cash flows from operating activities
Cash receipts from customers
Cash paid to suppliers and employees
Cash generated from operations
Interest paid
Interest received
Income taxes paid
Note
2023
$’000
2022
$’000
6,402,761
4,385,223
(2,191,124)
(1,803,269)
4,211,637
2,581,954
(29,337)
77,538
(676,190)
(41,637)
1,464
(11,958)
Net cash from operating activities
3.4
3,583,648
2,529,823
Cash flows from investing activities
Proceeds from sale of property, plant and equipment
Purchase of property, plant and equipment
Expenditure on projects
Purchase of haulage equipment from BIS Industries Ltd
Acquisition of interest in Narrabri
Other investing activities
Net cash used in investing activities
Cash flows from financing activities
Share buy-back1
Payment of dividends
Repayment of senior bank facility
Proceeds from senior bank facility
Repayment of lease principal
Purchase of shares
Repayment of secured loans – ECA facility
Payment of finance facility upfront costs
Net cash used in financing activities
Net change in cash and cash equivalents
Cash and cash equivalents at 1 July
Cash and cash equivalents at 30 June
2,083
(180,700)
(61,904)
(15,171)
(28,515)
(22,729)
3,860
(124,210)
(33,781)
-
(22,245)
(819)
(306,936)
(177,195)
(946,832)
(638,801)
-
-
(81,644)
(39,879)
(9,470)
(36)
(358,981)
(79,794)
(728,000)
40,000
(76,673)
(12,879)
(9,795)
(6,248)
(1,716,662)
(1,232,370)
1,560,050
1,215,460
1,120,258
95,202
2,775,510
1,215,460
1
Includes a share trade entered into on 30 June 2022 for $3,588,000 that was settled and paid on 4 July 2022. Excludes share trade entered
into on 30 June 2023 for $5,663,000 that was settled and paid on 4 July 2023, bringing total share buy-backs for the year to $948.9 million
(2022: Excludes share trade entered into 30 June 2022 for $3,588,000, bringing total share buy-backs for the year to $362.5 million).
The consolidated statement of cash flows is to be read in conjunction with the notes to the consolidated
financial statements.
Balance at 1 July 2021
Net profit for the year
Other comprehensive loss
Total comprehensive income for the year
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Transactions with owners in their capacity as owners
Share buy-back
Dividends paid
5.4(a)
(362,568)
Share-based payments
5.5(a)
Share issues/transfers to settle share-based payments
4,124
Transfer on lapse of share-based payments
9,234
(4,337)
(2,243)
-
(362,568)
(79,794)
(79,794)
-
213
2,243
9,234
-
-
Purchase of shares through employee share plan
5.4(a)
(12,879)
-
(12,879)
Balance at 30 June 2022
2,642,338
14,867
(5,441)
1,559,870
4,211,634
Balance at 1 July 2022
Net profit for the year
Other comprehensive loss
Total comprehensive income for the year
2,642,338
14,867
(5,441)
1,559,870
4,211,634
-
2,668,054
2,668,054
(2,207)
-
(2,207)
(2,207)
2,668,054
2,665,847
Transactions with owners in their capacity as owners
Share buy-back
Dividends paid
5.4(a)
(948,908)
Share-based payments
5.5(a)
10,897
-
10,897
Transfer on exercise of share-based payments
6,346
(4,871)
Settlement of share-based payments
Transfer on lapse of share-based payments
(65)
(1,054)
Purchase of shares through employee share plan
5.4(a)
(39,879)
-
(39,879)
Balance at 30 June 2023
1,659,897
19,774
(7,648)
3,588,502
5,260,525
-
(948,908)
(638,801)
(638,801)
(1,475)
(200)
1,054
(265)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
The consolidated statement of changes in equity is to be read in conjunction with the notes to the consolidated
financial statements.
Page 58 | Whitehaven Coal Annual Report 2023
Page 59 | Whitehaven Coal Annual Report 2023
Page 59 | Whitehaven Coal Annual Report 2023
Notes to the consolidated
Notes to the consolidated financial statements
For the year ended 30 June 2023
financial statements
For the year ended 30 June 2023
1. About this report
1.1. Reporting entity
Whitehaven Coal Limited (‘Whitehaven’ or ‘the Company’) is a for-profit entity, and the principal activity of Whitehaven
and its controlled entities (referred to as ‘the Group’) is the development and operation of coal mines in New South
Wales and Queensland. The consolidated general purpose financial report of the Group for the year ended 30 June 2023
was authorised for issue in accordance with a resolution of the Directors on 24 August 2023. Whitehaven Coal Limited is
a company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the Australian
Securities Exchange. The address of the Company’s registered office is Level 28, 259 George Street, Sydney NSW 2000.
1.2. Basis of preparation
The financial report is a general purpose financial report, which has been prepared in accordance with the requirements
of the Corporations Act 2001 (Cth), Australian Accounting Standards (AAS) and other authoritative pronouncements of
the Australian Accounting Standards Board (AASB). The financial report also complies with International Financial
Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and interpretations of the
International Financial Reporting Interpretations Committee (IFRIC).
The financial report has been prepared on a historical cost basis, except for derivative financial instruments that have
been measured at fair value (refer to note 5.3).
The Company is of a kind referred to in ASIC Corporations Instrument 2016/191 and dated 24 March 2016. In accordance
with that Class Order, all financial information has been presented in Australian dollars and rounded to the nearest
thousand dollars unless otherwise stated.
1.3. Significant accounting judgements, estimates and assumptions
In the process of applying the Group’s accounting policies, management has made a number of judgements and applied
estimates of future events that form the basis of the carrying values of assets and liabilities, which are not readily
apparent from other sources.
Judgements and estimates that are material to the financial report are found in the following notes:
4.1
4.2
4.4
6.2
Property, plant and equipment
Exploration and evaluation
Provisions
Interest in joint operations
page 76
page 77
page 79
page 96
1.4. Summary of other significant accounting policies
The accounting policies set out below and in the notes have been applied consistently to all periods presented in these
consolidated financial statements, and have been applied consistently by all subsidiaries in the Group. Other significant
accounting policies are contained in the notes to the consolidated financial statements to which they relate.
(i) Basis of consolidation
The consolidated financial report of the Company for the financial year ended 30 June 2023 comprises the
Company and its controlled entities (together referred to as ‘the Group’). A list of the Group’s significant controlled
entities is presented in Note 6.1.
Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the
investee and has the ability to affect those returns through its power over the investee. The Group reassesses
whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of
the three elements of control. Specifically, the Group controls an investee if, and only if, the Group has all of the
following:
− power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the
investee)
− exposure, or rights, to variable returns from its involvement with the investee
− the ability to use its power over the investee to affect its returns.
Page 60 | Whitehaven Coal Annual Report 2023
Page 60 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
Notes to the consolidated
For the year ended 30 June 2023
financial statements
For the year ended 30 June 2023
1. About this report
1.1. Reporting entity
Whitehaven Coal Limited (‘Whitehaven’ or ‘the Company’) is a for-profit entity, and the principal activity of Whitehaven
and its controlled entities (referred to as ‘the Group’) is the development and operation of coal mines in New South
Wales and Queensland. The consolidated general purpose financial report of the Group for the year ended 30 June 2023
was authorised for issue in accordance with a resolution of the Directors on 24 August 2023. Whitehaven Coal Limited is
a company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the Australian
Securities Exchange. The address of the Company’s registered office is Level 28, 259 George Street, Sydney NSW 2000.
1.2. Basis of preparation
The financial report is a general purpose financial report, which has been prepared in accordance with the requirements
of the Corporations Act 2001 (Cth), Australian Accounting Standards (AAS) and other authoritative pronouncements of
the Australian Accounting Standards Board (AASB). The financial report also complies with International Financial
Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and interpretations of the
International Financial Reporting Interpretations Committee (IFRIC).
The financial report has been prepared on a historical cost basis, except for derivative financial instruments that have
been measured at fair value (refer to note 5.3).
The Company is of a kind referred to in ASIC Corporations Instrument 2016/191 and dated 24 March 2016. In accordance
with that Class Order, all financial information has been presented in Australian dollars and rounded to the nearest
thousand dollars unless otherwise stated.
1.3. Significant accounting judgements, estimates and assumptions
In the process of applying the Group’s accounting policies, management has made a number of judgements and applied
estimates of future events that form the basis of the carrying values of assets and liabilities, which are not readily
apparent from other sources.
Judgements and estimates that are material to the financial report are found in the following notes:
4.1
4.2
4.4
6.2
Property, plant and equipment
Exploration and evaluation
Provisions
Interest in joint operations
page 76
page 77
page 79
page 96
1.4. Summary of other significant accounting policies
The accounting policies set out below and in the notes have been applied consistently to all periods presented in these
consolidated financial statements, and have been applied consistently by all subsidiaries in the Group. Other significant
accounting policies are contained in the notes to the consolidated financial statements to which they relate.
(i) Basis of consolidation
The consolidated financial report of the Company for the financial year ended 30 June 2023 comprises the
Company and its controlled entities (together referred to as ‘the Group’). A list of the Group’s significant controlled
entities is presented in Note 6.1.
Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the
investee and has the ability to affect those returns through its power over the investee. The Group reassesses
whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of
the three elements of control. Specifically, the Group controls an investee if, and only if, the Group has all of the
− power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the
following:
investee)
− exposure, or rights, to variable returns from its involvement with the investee
− the ability to use its power over the investee to affect its returns.
Notes to the consolidated financial statements
For the year ended 30 June 2023
Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the
consolidated financial statements from the date the Group gains control until the date the Group ceases to control
the subsidiary.
(ii) Foreign currency translation
Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange rates
ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are
retranslated at the rate of exchange ruling at the balance date. Foreign exchange differences arising on translation
are recognised in the consolidated statement of profit or loss and other comprehensive income.
Both the functional and presentation currency of the Company and all entities in the Group is Australian dollars ($).
(iii) Goods and services tax
Revenues, expenses and assets (excluding receivables) are recognised net of the amount of goods and services tax
(GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these
circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or
payable to, the ATO is included as a current asset or liability in the consolidated statement of financial position.
Cash flows are included in the consolidated statement of cash flows on a gross basis and the GST components of
cash flows arising from investing and financing activities, which are recoverable from or payable to the ATO, are
classified as operating cash flows.
(iv) Notes to the consolidated financial statements
The notes to these consolidated financial statements have been organised into logical groupings to present more
meaningful and dynamic information to users. To the extent possible, the relevant accounting policies and numbers
have been provided in the same note. The Group has also reviewed the notes for materiality and relevance, and
provided additional information where considered material and relevant to the operations, financial position or
performance of the Group.
1.5. New standards, interpretations and amendments adopted by the Group
(i) Changes in accounting policy and disclosures
The accounting policies adopted in the preparation of the consolidated financial statements are consistent with
those of the previous financial year.
Several amendments apply for the first time in the current year. However, they do not impact the annual
consolidated financial statements of the Group.
(ii) Accounting standards and interpretations issued but not yet effective
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
effective and have not been adopted by the Group for the annual reporting period ended 30 June 2023 are outlined
below:
Amendments to IAS 1: Classification of Liabilities as Current or Non-current
In January 2020, the IASB issued amendments to IAS 1 Presentation of Financial Statements to clarify the
requirements for classifying liabilities as current or non-current. Specifically:
− The amendments specify that the conditions which exist at the end of the reporting period are those which will
be used to determine if a right to defer settlement of a liability exists.
− Management’s intention or expectation does not affect classification of liabilities.
− In cases where an instrument with a conversion option is classified as a liability, the transfer of equity instruments
would constitute settlement of the liability for the purpose of classifying it as current or non-current.
These amendments are effective for annual periods beginning on or after 1 January 2024. They are not expected to
have a significant impact on the Group’s consolidated financial statements.
Page 60 | Whitehaven Coal Annual Report 2023
Page 61 | Whitehaven Coal Annual Report 2023
Page 61 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
2. Group performance
2.1. Segment reporting
Identification of reportable segments
The Group identifies its operating segments based on the internal reports that are reviewed and used by the executive
management team in assessing performance and determining the allocation of resources. The performance of operating
segments is evaluated at least monthly based on revenues and profit before taxes and is measured in accordance with
the Group’s accounting policies.
The Group has determined that it has three reportable segments: open cut operations, underground operations and coal
trading and blending.
Unallocated operations represent the development projects and those functions that are not specifically related to the
other reportable segments.
The Group’s treasury and financing (including finance costs and finance income), and depreciation and income taxes are
managed on a group basis and are not allocated to reportable segments.
The following table represents revenue, profit and capital expenditure information for reportable segments:
Year ended 30 June 2023
Revenue
Sales to external customers
Revenue by product type:
Metallurgical coal
Thermal coal
Open Cut
Operations
Underground
Operations
Coal Trading
and Blending
Unallocated
Operations
Total
$’000
$’000
$’000
$’000
$’000
3,739,174
1,659,948
610,464
55,153
6,064,739
306,669
31,966
-
-
338,635
3,432,505
1,627,982
610,464
55,153
5,726,104
Total revenue from contracts with customers
3,739,174
1,659,948
610,464
55,153
6,064,739
Result
Segment EBITDA result
Depreciation and amortisation
Income tax expense
Net finance income
Net profit after tax per consolidated statement
of comprehensive income
2,471,567
1,200,031
292,546
21,453
3,985,597
(226,000)
(1,133,441)
41,898
2,668,054
Capital expenditure
60,342
114,524
-
67,738
242,604
Page 62 | Whitehaven Coal Annual Report 2023
Page 62 | Whitehaven Coal Annual Report 2023
2. Group performance
2.1. Segment reporting
Identification of reportable segments
the Group’s accounting policies.
trading and blending.
other reportable segments.
Year ended 30 June 2023
Revenue
Sales to external customers
Revenue by product type:
Metallurgical coal
Thermal coal
Result
Segment EBITDA result
Depreciation and amortisation
Income tax expense
Net finance income
Net profit after tax per consolidated statement
of comprehensive income
The Group identifies its operating segments based on the internal reports that are reviewed and used by the executive
management team in assessing performance and determining the allocation of resources. The performance of operating
segments is evaluated at least monthly based on revenues and profit before taxes and is measured in accordance with
The Group’s treasury and financing (including finance costs and finance income), and depreciation and income taxes are
managed on a group basis and are not allocated to reportable segments.
The following table represents revenue, profit and capital expenditure information for reportable segments:
Open Cut
Operations
Underground
Coal Trading
Unallocated
Operations
and Blending
Operations
Total
$’000
$’000
$’000
$’000
$’000
3,739,174
1,659,948
610,464
55,153
6,064,739
2,471,567
1,200,031
292,546
21,453
3,985,597
(226,000)
(1,133,441)
41,898
2,668,054
Capital expenditure
60,342
114,524
-
67,738
242,604
Notes to the consolidated financial statements
For the year ended 30 June 2023
Notes to the consolidated financial statements
Notes to the consolidated financial statements
For the year ended 30 June 2023
For the year ended 30 June 2023
The Group has determined that it has three reportable segments: open cut operations, underground operations and coal
Total revenue from contracts with customers
Total revenue from contracts with customers
3,443,772
3,443,772
953,810
953,810
492,083
492,083
30,437
30,437
4,920,102
4,920,102
Unallocated operations represent the development projects and those functions that are not specifically related to the
Result
Result
Year ended 30 June 2022
Year ended 30 June 2022
Revenue
Revenue
Sales to external customers
Sales to external customers
Revenue by product type:
Revenue by product type:
Metallurgical coal
Metallurgical coal
Thermal coal
Thermal coal
Open Cut
Open Cut
Operations
Operations
Underground
Underground
Operations
Operations
Coal Trading
Coal Trading
and Blending
and Blending
Unallocated
Unallocated
Operations
Operations
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Total
Total
$’000
$’000
3,443,772
3,443,772
953,810
953,810
492,083
492,083
30,437
30,437
4,920,102
4,920,102
724,507
724,507
2,719,265
2,719,265
121,446
121,446
832,364
832,364
99,261
99,261
-
-
945,214
945,214
392,822
392,822
30,437
30,437
3,974,888
3,974,888
Segment EBITDA result
Segment EBITDA result
Depreciation and amortisation
Depreciation and amortisation
Income tax expense
Income tax expense
Net finance expense
Net finance expense
Net profit after tax per consolidated statement
Net profit after tax per consolidated statement
of comprehensive income
of comprehensive income
2,240,273
2,240,273
617,446
617,446
184,034
184,034
18,382
18,382
3,060,135
3,060,135
(238,881)
(238,881)
(813,928)
(813,928)
(55,361)
(55,361)
1,951,965
1,951,965
Capital expenditure
Capital expenditure
63,267
63,267
57,775
57,775
-
-
36,949
36,949
157,991
157,991
Total revenue from contracts with customers
3,739,174
1,659,948
610,464
55,153
6,064,739
Revenue from external customers is attributed to geographic location based on final shipping destination.
Revenue from external customers is attributed to geographic location based on final shipping destination.
306,669
31,966
-
-
338,635
3,432,505
1,627,982
610,464
55,153
5,726,104
Other segment information
Other segment information
Revenue by
Revenue by
geographic location
geographic location
Japan
Japan
Taiwan
Taiwan
Korea
Korea
Malaysia
Malaysia
Europe
Europe
New Caledonia
New Caledonia
Indonesia
Indonesia
Vietnam
Vietnam
Other
Other
India
India
Domestic
Domestic
2023
2023
$’000
$’000
2022
2022
$’000
$’000
4,015,385
4,015,385
2,570,531
2,570,531
753,850
753,850
476,094
476,094
416,825
416,825
108,931
108,931
103,654
103,654
58,547
58,547
36,224
36,224
40,949
40,949
-
-
54,280
54,280
706,948
706,948
540,430
540,430
168,657
168,657
96,784
96,784
66,857
66,857
216,719
216,719
64,275
64,275
38,826
38,826
437,593
437,593
12,482
12,482
Total revenue
Total revenue
6,064,739
6,064,739
4,920,102
4,920,102
2023/2022 Comparison
Revenue by
geographic location
2022
2023
Page 62 | Whitehaven Coal Annual Report 2023
Page 63 | Whitehaven Coal Annual Report 2023
Page 63 | Whitehaven Coal Annual Report 2023
Page 63 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Major customers
The Group has three major customers, who account for 42.5% (2022: 43.4%) of external revenue.
Recognition and measurement
The Group recognises sales revenue related to the transfer of promised goods or services when control of the goods
or services is transferred to the customer. The amount of revenue recognised reflects the consideration to which the
Group is or expects to be entitled to in exchange for those goods or services.
Sales revenue is recognised on individual sales when control transfers to the customer. The title, risks and rewards,
and fulfilment of performance obligation occurs when the product is loaded onto the vessel for delivery to the
customer.
The Group sells its products on Free on Board terms where the Group has no responsibility for freight or insurance
once control of the goods has passed at the loading port. Under these terms there is only one performance
obligation: the provision of goods at the point when control passes to the customer.
The Group’s products are sold to customers under contracts that vary in tenure and pricing mechanisms, primarily
being monthly or quarterly indexes. Certain sales may be provisionally priced at the date revenue is recognised;
however, substantially all coal sales are reflected at final prices by the end of the reporting period. The final selling
price is based on the price for the quotational period stipulated in the contract.
Page 64 | Whitehaven Coal Annual Report 2023
Page 64 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
The Group has three major customers, who account for 42.5% (2022: 43.4%) of external revenue.
Major customers
Recognition and measurement
The Group recognises sales revenue related to the transfer of promised goods or services when control of the goods
or services is transferred to the customer. The amount of revenue recognised reflects the consideration to which the
Group is or expects to be entitled to in exchange for those goods or services.
Sales revenue is recognised on individual sales when control transfers to the customer. The title, risks and rewards,
and fulfilment of performance obligation occurs when the product is loaded onto the vessel for delivery to the
customer.
The Group sells its products on Free on Board terms where the Group has no responsibility for freight or insurance
once control of the goods has passed at the loading port. Under these terms there is only one performance
obligation: the provision of goods at the point when control passes to the customer.
The Group’s products are sold to customers under contracts that vary in tenure and pricing mechanisms, primarily
being monthly or quarterly indexes. Certain sales may be provisionally priced at the date revenue is recognised;
however, substantially all coal sales are reflected at final prices by the end of the reporting period. The final selling
price is based on the price for the quotational period stipulated in the contract.
2.2. Taxes
a)
Income tax expense
Current tax expense
Current period
Adjustments for prior periods
Deferred tax expense
Origination and reversal of temporary differences
Recognition of tax losses
Adjustments for prior periods
2023
$’000
2022
$’000
(1,040,545)
(742,653)
(339)
21
(92,557)
(92,339)
-
-
21,771
(728)
Income tax expense reported in the consolidated statement of comprehensive income
(1,133,441)
(813,928)
Reconciliation between tax expense and profit before tax
Profit before tax
3,801,495
2,765,893
Income tax expense using the Company’s domestic tax rate of 30% (2022: 30%)
(1,140,449)
(829,768)
Non-deductible expenses:
Share-based payments
Other non-deductible expenses
Recognition of tax losses
On-market share purchases by employee share scheme trust reimbursed by the Group
(Under)/over provided in prior periods
Total income tax expense
b)
Income tax recognised directly in other comprehensive income
Deferred income tax related to items charged directly to equity
Net movement in cash flow hedges
Net loss on equity instruments designated at fair value through other comprehensive income
Net income tax benefit recorded in equity
(3,629)
(988)
-
11,964
(339)
(2,770)
(7,109)
21,771
3,927
21
(1,133,441)
(813,928)
2023
$’000
(674)
1,621
947
2022
$’000
26
-
26
Page 64 | Whitehaven Coal Annual Report 2023
Page 65 | Whitehaven Coal Annual Report 2023
Page 65 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
c) Recognised tax assets and liabilities
2023
2023
2022
2022
Current income
tax payable
Deferred
income tax
Current income
tax payable
Deferred
income tax
Opening balance
$’000
$’000
(551,830)
(405,169)
$’000
-
Charged to income – corporate tax
(1,040,545)
(92,557)
(742,653)
Charged to equity
-
947
-
$’000
(155,055)
(92,339)
26
Recognition/(utilisation) of deferred tax asset on current year
losses
27,592
(27,592)
178,865
(178,865)
Recognition of tax losses
Adjustment for prior periods
Payments
Closing balance
-
17,498
676,190
-
(17,836)
-
-
-
11,958
21,771
(707)
-
(871,095)
(542,207)
(551,830)
(405,169)
Deferred income tax assets and liabilities are attributable to the following:
Property, plant and equipment
Exploration and evaluation
Receivables
Inventory
Investments
Right-of-use assets and lease liabilities (net)
Deferred stripping
Deferred foreign exchange gain
Provisions
Tax losses
Other items
Deferred tax assets/(liabilities)
Set-off of deferred tax assets
Net deferred tax liabilities
Deferred Tax Assets
Deferred Tax Liabilities
2023
$’000
2022
$’000
-
-
-
-
-
-
-
-
1,979
359
-
-
-
89,207
-
4,884
96,070
-
-
-
86,178
27,589
584
114,710
2023
$’000
(484,680)
(115,113)
(13,025)
(1,737)
-
(11,268)
(8,988)
(3,466)
-
-
-
2022
$’000
(417,868)
(82,200)
(3,433)
(1,394)
-
(6,088)
(6,509)
(2,387)
-
-
-
(638,277)
(519,879)
(96,070)
(114,710)
96,070
114,710
-
-
(542,207)
(405,169)
Page 66 | Whitehaven Coal Annual Report 2023
Page 66 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
c) Recognised tax assets and liabilities
d) Unrecognised deferred tax assets
2023
2023
2022
2022
There were no unrecognised income tax losses at 30 June 2023 (2022: Nil).
Current income
tax payable
Deferred
Current income
income tax
tax payable
Deferred
income tax
Recognition and measurement
Opening balance
Charged to equity
losses
Recognition of tax losses
Adjustment for prior periods
Payments
Closing balance
Property, plant and equipment
Exploration and evaluation
Right-of-use assets and lease liabilities (net)
Deferred stripping
Deferred foreign exchange gain
Receivables
Inventory
Investments
Provisions
Tax losses
Other items
Charged to income – corporate tax
(1,040,545)
(92,557)
(742,653)
$’000
$’000
$’000
(551,830)
(405,169)
Recognition/(utilisation) of deferred tax asset on current year
27,592
(27,592)
178,865
(178,865)
Deferred income tax assets and liabilities are attributable to the following:
17,498
676,190
(17,836)
11,958
(871,095)
(542,207)
(551,830)
(405,169)
Deferred Tax Assets
Deferred Tax Liabilities
2023
$’000
2022
$’000
947
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2023
$’000
(484,680)
(115,113)
(13,025)
(1,737)
(11,268)
(8,988)
(3,466)
$’000
(155,055)
(92,339)
26
21,771
(707)
-
2022
$’000
(417,868)
(82,200)
(3,433)
(1,394)
(6,088)
(6,509)
(2,387)
-
-
-
-
1,979
359
89,207
4,884
96,070
86,178
27,589
584
114,710
-
-
-
-
-
-
-
-
-
-
-
Deferred tax assets/(liabilities)
Set-off of deferred tax assets
Net deferred tax liabilities
(96,070)
(114,710)
96,070
114,710
(638,277)
(519,879)
-
(542,207)
(405,169)
Income tax on the profit or loss for the year comprises
current and deferred tax. Income tax relating to items
recognised directly in other comprehensive income is
recognised in other comprehensive income and not in
the net profit or loss for the year.
Offsetting deferred tax balances
Deferred tax assets and liabilities are offset only if a
legally enforceable right exists, and the deferred tax
assets and liabilities relate to income taxes levied by the
same taxation authority on the same taxable entity.
Current tax
Current tax assets and liabilities are measured at the
amount expected to be recovered or paid to the
taxation authorities based on the taxable income for the
year, using tax rates enacted or substantively enacted at
the balance date.
Deferred tax
The deferred tax expense is the movement in the
temporary differences between the carrying amount of
an asset or liability in the consolidated statement of
financial position and its tax base.
Deferred tax liabilities are recognised for all taxable
temporary differences. Deferred tax assets, including
unused tax losses, are recognised in relation to
deductible temporary differences and carried forward
income tax losses only to the extent that it is probable
sufficient future taxable profits will be available to utilise
them. Deferred tax assets and liabilities are not
recognised for taxable temporary differences that arise
from goodwill or from the initial recognition (other than
in a business combination) of assets and liabilities in a
transaction that affects neither accounting profit nor the
taxable profit.
The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be
available to allow all or part of the deferred tax asset to
be utilised.
Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the period in
which the liability is settled or the asset is realised,
based on tax rates and laws that have been enacted or
substantively enacted at the balance date.
Tax consolidation
Whitehaven Coal Limited and its wholly owned
Australian resident subsidiaries formed a tax
consolidated group with effect from 29 May 2007 and
have therefore been taxed as a single entity from that
date. Whitehaven Coal Limited is the head entity of the
tax consolidated group. The entities within the tax
consolidated group have entered into a tax sharing
arrangement which provides for the allocation of income
tax liabilities between the entities should the head entity
default on its tax payment obligations.
The entities within the tax consolidated group have also
entered into a tax funding agreement. The Group has
applied the Group allocation approach in determining
the appropriate amount of current taxes and deferred
taxes to allocate to its members. Under the terms of the
tax-funding arrangement, Whitehaven Coal Limited and
each of the entities in the tax consolidated group have
agreed to pay (or receive) a tax equivalent payment to
(or from) the head entity, based on the current tax
liability or current tax asset of the entity.
Whitehaven Coal Limited and the subsidiaries in the tax
consolidated group continue to account for their own
current and deferred tax amounts. The amounts are
measured as if each entity in the tax consolidated group
continues to be a standalone taxpayer in its own right.
The current tax balances are then transferred to
Whitehaven Coal Limited via intercompany balances.
Page 66 | Whitehaven Coal Annual Report 2023
Page 67 | Whitehaven Coal Annual Report 2023
Page 67 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
2.3. Earnings per share
Basic earnings per share
The calculation of basic earnings per share is based on the profit attributable to ordinary shareholders and a weighted
average number of ordinary shares outstanding during the year calculated as follows:
Profit attributable to ordinary shareholders
Net profit attributable to ordinary shareholders ($‘000)
2,668,054
1,951,965
2023
2022
Weighted average number of ordinary shares
Issued ordinary shares at 1 July (‘000s)
Effect of shares acquired during the year (‘000s)1
Weighted average number of ordinary shares at 30 June (‘000s)
922,252
(55,049)
867,203
998,624
(10,820)
987,804
Basic earnings per share attributable to ordinary shareholders (cents)
307.7
197.6
1 Reflects the movements of shares during the year including in the balance of shares held by the Company for the share plan. For detail, refer
to Note 5.4(a).
Diluted earnings per share
Diluted earnings per share is based on the profit attributable to ordinary shareholders and a weighted average number of
ordinary shares outstanding adjusted for the diluting impact of potential equity instruments, calculated as follows:
Profit attributable to ordinary shareholders (diluted)
Net profit attributable to ordinary shareholders (diluted) ($’000)
2,668,054
1,951,965
2023
2022
Weighted average number of ordinary shares (diluted)
Weighted average number of ordinary shares (basic) (‘000s)
Effect of performance rights on issue (‘000s)
Weighted average number of ordinary shares (diluted) (‘000s)
867,203
13,982
881,185
987,804
12,603
1,000,407
Diluted earnings per share attributable to ordinary shareholders (cents)
302.8
195.1
Not included within the basic and diluted earnings per share calculation are the 34,020,000 milestone shares which are
restricted from receiving dividend payments.
Page 68 | Whitehaven Coal Annual Report 2023
Page 68 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
2.3. Earnings per share
Basic earnings per share
The calculation of basic earnings per share is based on the profit attributable to ordinary shareholders and a weighted
average number of ordinary shares outstanding during the year calculated as follows:
3. Working capital and cash flows
3.1. Trade and other receivables
Profit attributable to ordinary shareholders
Net profit attributable to ordinary shareholders ($‘000)
2,668,054
1,951,965
2023
2022
922,252
(55,049)
867,203
998,624
(10,820)
987,804
Current
Trade receivables
Other receivables and prepayments
Receivables due from other investors in joint operations
Non-current
Other receivables and prepayments
2023
$’000
223,054
80,368
21,435
324,857
2022
$’000
600,700
28,549
28,210
657,459
5,203
7,298
Basic earnings per share attributable to ordinary shareholders (cents)
307.7
197.6
1 Reflects the movements of shares during the year including in the balance of shares held by the Company for the share plan. For detail, refer
Recognition and measurement
Diluted earnings per share is based on the profit attributable to ordinary shareholders and a weighted average number of
ordinary shares outstanding adjusted for the diluting impact of potential equity instruments, calculated as follows:
Trade receivables, which generally have between 5 and 21 day terms, are recognised initially at fair value and
subsequently measured at amortised cost using the effective interest method, less any allowance for impairment.
Recoverability of trade receivables is reviewed on an ongoing basis.
Weighted average number of ordinary shares
Issued ordinary shares at 1 July (‘000s)
Effect of shares acquired during the year (‘000s)1
Weighted average number of ordinary shares at 30 June (‘000s)
to Note 5.4(a).
Diluted earnings per share
Profit attributable to ordinary shareholders (diluted)
Net profit attributable to ordinary shareholders (diluted) ($’000)
2,668,054
1,951,965
2023
2022
3.2. Inventories
Weighted average number of ordinary shares (diluted)
Weighted average number of ordinary shares (basic) (‘000s)
Effect of performance rights on issue (‘000s)
Weighted average number of ordinary shares (diluted) (‘000s)
867,203
13,982
881,185
987,804
12,603
1,000,407
Coal stocks1
Consumables and stores
1 Coal stocks include run-of-mine and product coal.
Diluted earnings per share attributable to ordinary shareholders (cents)
302.8
195.1
Recognition and measurement
2023
$’000
94,843
39,032
2022
$’000
119,282
37,757
133,875
157,039
Not included within the basic and diluted earnings per share calculation are the 34,020,000 milestone shares which are
restricted from receiving dividend payments.
Inventories are measured at the lower of cost and net realisable value. Net realisable value is the estimated selling
price in the ordinary course of business, less the estimated costs of completion and selling expenses.
The cost of coal inventories is determined using a weighted average basis. Cost includes direct material, overburden
removal, mining, processing, labour, mine rehabilitation costs incurred in the extraction process and other fixed and
variable overhead costs directly related to mining activities. Stockpiles are measured by estimating the number of
tonnes added and removed from the stockpile. The tonnes of contained coal are based on assay data, and the
estimated recovery percentage is based on the expected processing method. Stockpile tonnages are verified by
periodic surveys.
Page 68 | Whitehaven Coal Annual Report 2023
Page 69 | Whitehaven Coal Annual Report 2023
Page 69 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
3.3. Trade and other payables
Current
Trade payables
Other payables and accruals
Non-current
Other payables
2023
$’000
67,226
241,819
309,045
2022
$’000
59,948
301,949
361,897
30,100
48,464
Included within current and non-current other payables and accruals is the deferred consideration payable for the
acquisition of EDF Trading Australia Pty Limited and the deferred consideration for the acquisition of the 1% private
royalty over the Narrabri Coal mine from Anglo Pacific Group plc (APG).
Recognition and measurement
Trade and other payables are initially recognised at fair value and subsequently measured at amortised cost when
goods and services are received, whether or not billed to the Group, prior to the end of the reporting period. Short-
term trade and other payables are not discounted. The amounts are unsecured and are usually paid within 30 days of
recognition. Long-term trade and other payables are discounted to their present value based on expected future
cash flows. The unwinding effect of discounting trade and other payables is recorded as a finance cost in the
consolidated statement of comprehensive income.
Page 70 | Whitehaven Coal Annual Report 2023
Page 70 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
3.3. Trade and other payables
3.4. Reconciliation of cash flows from operating activities
Current
Trade payables
Other payables and accruals
Non-current
Other payables
2023
$’000
67,226
241,819
309,045
2022
$’000
59,948
301,949
361,897
30,100
48,464
Included within current and non-current other payables and accruals is the deferred consideration payable for the
acquisition of EDF Trading Australia Pty Limited and the deferred consideration for the acquisition of the 1% private
royalty over the Narrabri Coal mine from Anglo Pacific Group plc (APG).
Recognition and measurement
Trade and other payables are initially recognised at fair value and subsequently measured at amortised cost when
goods and services are received, whether or not billed to the Group, prior to the end of the reporting period. Short-
term trade and other payables are not discounted. The amounts are unsecured and are usually paid within 30 days of
recognition. Long-term trade and other payables are discounted to their present value based on expected future
cash flows. The unwinding effect of discounting trade and other payables is recorded as a finance cost in the
consolidated statement of comprehensive income.
Profit for the period
Adjustments for:
Depreciation and amortisation
Amortisation of deferred development costs
Development costs deferred
Amortisation of finance facility upfront costs
Non-cash interest income accruals
Foreign exchange gains unrealised
Unwinding of discounts on provisions
Share-based compensation payments
Cash-settled share-based payments
Gain on sale of non-current assets
Subtotal
Change in trade and other receivables
Change in inventories and deferred stripping
Change in trade and other payables
Change in provisions and employee benefits
Change in tax payable
Change in deferred taxes
Note
4.1
4.1
4.4
5.5(a)
2023
$’000
2022
$’000
2,668,054
1,951,965
226,000
41,497
(118,269)
3,324
(5,478)
(13,142)
8,457
10,897
(265)
(120)
238,881
10,953
(101,605)
16,458
(5,448)
(17,281)
4,178
9,234
-
(1,905)
2,820,955
2,105,430
339,067
(498,811)
8,911
(33,491)
(8,097)
319,265
137,038
(4,641)
133,331
(7,430)
551,830
250,114
Cash flows from operating activities
3,583,648
2,529,823
Recognition and measurement
Cash and cash equivalents comprise cash at bank and in hand and short-term deposits. For the purpose of the
consolidated statement of cash flows, cash and cash equivalents are equal to the balance disclosed in the
consolidated statement of financial position.
Page 70 | Whitehaven Coal Annual Report 2023
Page 71 | Whitehaven Coal Annual Report 2023
Page 71 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
4. Resource assets and liabilities
4.1. Property, plant and equipment
Year ended
30 June 2023
Cost
Balance at
1 July 2022
Additions
Disposals
Transfers
Transfer from
Exploration &
Evaluation Asset
Balance at
30 June 2023
Freehold
land
Plant and
equipment
Leased
plant and
equipment
Mining
property and
development
Subtotal
Deferred
development
Deferred
stripping
Subtotal
Total
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
182,324
1,136,032
622,297
3,288,004
5,228,657
663,540
3,335,550
3,999,090
9,227,747
-
116,981
71,670
53,292
241,943
118,269
526,187
644,456
886,399
-
(24,164)
(28,035)
(122)
(52,321)
(347,126)
-
(347,126)
(399,447)
-
49,177
(49,177)
-
-
-
-
-
-
-
-
-
270,556
270,556
-
-
-
270,556
182,324
1,278,026
616,755
3,611,730
5,688,835
434,683
3,861,737
4,296,420
9,985,255
Accumulated depreciation and impairment
Balance at
1 July 2022
Depreciation
charge for the year
Transfers
Disposals
Balance at
30 June 2023
Carrying amount
at 30 June 2023
(5,335) (500,842)
(384,051)
(1,067,445) (1,957,673)
(529,377)
(3,313,850) (3,843,227) (5,800,900)
-
(66,301)
(85,244)
(68,463)
(220,008)
(41,497)
(517,926)
(559,423)
(779,431)
-
(27,512)
27,512
-
-
-
-
22,201
28,035
122
50,358
347,126
-
-
-
-
347,126
397,484
(5,335)
(572,454)
(413,748)
(1,135,786)
(2,127,323)
(223,748)
(3,831,776)
(4,055,524)
(6,182,847)
176,989
705,572
203,007
2,475,944
3,561,512
210,935
29,961
240,896
3,802,408
Page 72 | Whitehaven Coal Annual Report 2023
Page 72 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
-
-
-
36,565
36,565
Disposals
(2,138)
(4,037)
(48,955)
(306)
(55,436)
-
-
-
-
-
-
36,565
(55,436)
Year ended
30 June 2022
Cost
Balance at
1 July 2021
Additions
Purchase of
Narrabri private
royalty1
Freehold
land
Plant and
equipment
Leased
plant and
equipment
Mining
property and
development
Subtotal
Deferred
development
Deferred
stripping
Subtotal
Total
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
178,801
1,087,916
610,668
3,178,746
5,056,131
561,935 2,888,397
3,450,332
8,506,463
5,661
52,153
60,584
72,999
191,397
101,605
447,153
548,758
740,155
4. Resource assets and liabilities
4.1. Property, plant and equipment
Freehold
Plant and
plant and
property and
Deferred
land
equipment
equipment
development
Subtotal
development
Subtotal
Total
Deferred
stripping
Leased
Mining
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
182,324
1,136,032
622,297
3,288,004
5,228,657
663,540
3,335,550
3,999,090
9,227,747
-
116,981
71,670
53,292
241,943
118,269
526,187
644,456
886,399
-
(24,164)
(28,035)
(122)
(52,321)
(347,126)
-
(347,126)
(399,447)
-
49,177
(49,177)
-
-
-
-
-
-
Year ended
30 June 2023
Cost
Balance at
1 July 2022
Additions
Disposals
Transfers
Transfer from
Exploration &
Evaluation Asset
Balance at
30 June 2023
Balance at
1 July 2022
Depreciation
charge for the year
Transfers
Disposals
Balance at
30 June 2023
Carrying amount
at 30 June 2023
Balance at
30 June 2022
182,324
1,136,032
622,297
3,288,004
5,228,657
663,540 3,335,550
3,999,090
9,227,747
-
-
-
270,556
270,556
-
-
-
270,556
Accumulated depreciation and impairment
182,324
1,278,026
616,755
3,611,730
5,688,835
434,683
3,861,737
4,296,420
9,985,255
Accumulated depreciation and impairment
(5,335) (500,842)
(384,051)
(1,067,445) (1,957,673)
(529,377)
(3,313,850) (3,843,227) (5,800,900)
-
(66,301)
(85,244)
(68,463)
(220,008)
(41,497)
(517,926)
(559,423)
(779,431)
-
(27,512)
27,512
-
-
-
-
-
-
22,201
28,035
122
50,358
347,126
347,126
397,484
-
-
(5,335)
(572,454)
(413,748)
(1,135,786)
(2,127,323)
(223,748)
(3,831,776)
(4,055,524)
(6,182,847)
Balance at
1 July 2021
Depreciation
charge for the year
Disposals
Balance at
30 June 2022
Carrying amount
at 30 June 2022
(5,335)
(444,313)
(332,172)
(992,996)
(1,774,816)
(518,424) (2,882,810) (3,401,234) (5,176,050)
-
-
(60,566)
(96,142)
(74,755)
(231,463)
(10,953)
(431,040)
(441,993)
(673,456)
4,037
44,263
306
48,606
-
-
-
48,606
(5,335)
(500,842)
(384,051)
(1,067,445)
(1,957,673)
(529,377) (3,313,850) (3,843,227) (5,800,900)
176,989
635,190
238,246
2,220,559
3,270,984
134,163
21,700
155,863
3,426,847
1 On 14th October 2021, the Company entered into an agreement to acquire the 1% private royalty over the Narrabri Coal mine held by Anglo
Pacific Group plc (APG) with effect from 31 December 2021. Upon acquisition, the Group recognised an asset of $36.6 million representing
the consideration payable. This will unwind over the life of the Narrabri mine.
176,989
705,572
203,007
2,475,944
3,561,512
210,935
29,961
240,896
3,802,408
Impairment
Based on the impairment analysis performed, no impairment loss or reversal of previous impairments were recognised for
FY23 (FY22: $nil).
Refer to Significant accounting judgements, estimates and assumptions for further details in relation to the recoverable
amount of assets.
Page 72 | Whitehaven Coal Annual Report 2023
Page 73 | Whitehaven Coal Annual Report 2023
Page 73 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Leased plant and equipment disclosures
All right-of-use assets recognised as ‘Leased plant and equipment’ above in note 4.1 relate to the plant and equipment
classification.
The cost relating to variable lease payments that do not depend on an index or a rate amounted to $44,470,000 in the
year ended 30 June 2023 (2022: $32,600,000).
The cost relating to leases with a contract term of less than twelve months amounted to $20,043,000 for the year ended
30 June 2023 (2022: $14,822,000).
A maturity analysis of lease liabilities is shown in Note 5.3(c).
Recognition and measurement
Property, plant and equipment
Mining property and development
Property, plant and equipment are measured at cost less
accumulated depreciation and any accumulated
impairment losses. Cost includes expenditure that is
directly attributable to the acquisition of the items and
costs incurred in bringing assets into use. Subsequent
expenditure is capitalised when it is probable that the
future economic benefits associated with the
expenditure will flow to the Group.
Depreciation
Depreciation and amortisation is charged to the
consolidated statement of comprehensive income on a
units of production basis for mine specific assets,
including mining property and development, deferred
development and deferred stripping.
All remaining assets are depreciated on a straight-line
basis at the rates indicated below. Depreciation
commences on assets when they are deemed capable of
operating in the manner intended by management.
− Freehold land
− Plant and equipment
− Leased plant
and equipment
− Mining property and
development, deferred
development and
deferred stripping
Not depreciated
2% – 50%
3% – 20%
Units of production
The residual value, the useful life and the depreciation
method applied to an asset are reassessed at least
annually. Any changes are accounted for prospectively.
When an asset is surplus to requirements or no longer
has an economic value, the carrying amount of the asset
is written down to its recoverable amount.
Mine property and development assets include costs
transferred from exploration and evaluation assets once
technical feasibility and commercial viability of an area
of interest are demonstrable. After transfer, all
subsequent mine development expenditure is similarly
capitalised, to the extent that commercial viability
conditions continue to be satisfied.
The costs of dismantling and site rehabilitation are
capitalised, if the recognition criteria is met and included
within mining property and development.
Biodiversity assets are included within mining property
and development and relate to land acquired and
managed to fulfil the biodiversity obligations associated
with mine approval. The cost of the land is capitalised as
a mining property and development asset which is
subsequently depreciated via the units of production
method.
Leased plant and equipment
The Group has lease contracts for various items of plant,
machinery and other equipment used in its operations.
At the inception of a contract, the Group assesses
whether a contract is, or contains, a lease based on the
right to use or control an identified asset for a period of
time, in exchange for consideration.
At the commencement date of the lease, the Group
recognises a lease liability and a corresponding right-of-
use asset. The lease liability is initially recognised for the
present value of non-cancellable lease payments
discounted using the interest rate implicit in the lease or,
if that rate cannot be readily determined, the Group’s
incremental borrowing rate. The right-of-use asset is
initially measured at cost, which comprises the initial
amount of the lease liability plus any initial direct costs
incurred and an estimate of costs to dismantle and
remove the underlying asset.
Page 74 | Whitehaven Coal Annual Report 2023
Page 74 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Leased plant and equipment disclosures
classification.
All right-of-use assets recognised as ‘Leased plant and equipment’ above in note 4.1 relate to the plant and equipment
The cost relating to variable lease payments that do not depend on an index or a rate amounted to $44,470,000 in the
year ended 30 June 2023 (2022: $32,600,000).
The cost relating to leases with a contract term of less than twelve months amounted to $20,043,000 for the year ended
30 June 2023 (2022: $14,822,000).
A maturity analysis of lease liabilities is shown in Note 5.3(c).
Recognition and measurement
Property, plant and equipment
Mining property and development
Property, plant and equipment are measured at cost less
Mine property and development assets include costs
accumulated depreciation and any accumulated
transferred from exploration and evaluation assets once
impairment losses. Cost includes expenditure that is
technical feasibility and commercial viability of an area
directly attributable to the acquisition of the items and
of interest are demonstrable. After transfer, all
costs incurred in bringing assets into use. Subsequent
subsequent mine development expenditure is similarly
expenditure is capitalised when it is probable that the
capitalised, to the extent that commercial viability
future economic benefits associated with the
conditions continue to be satisfied.
expenditure will flow to the Group.
Depreciation
Depreciation and amortisation is charged to the
The costs of dismantling and site rehabilitation are
capitalised, if the recognition criteria is met and included
within mining property and development.
consolidated statement of comprehensive income on a
Biodiversity assets are included within mining property
units of production basis for mine specific assets,
and development and relate to land acquired and
including mining property and development, deferred
managed to fulfil the biodiversity obligations associated
development and deferred stripping.
with mine approval. The cost of the land is capitalised as
a mining property and development asset which is
subsequently depreciated via the units of production
All remaining assets are depreciated on a straight-line
basis at the rates indicated below. Depreciation
commences on assets when they are deemed capable of
method.
operating in the manner intended by management.
Leased plant and equipment
− Freehold land
− Plant and equipment
− Leased plant
and equipment
− Mining property and
development, deferred
development and
deferred stripping
Not depreciated
2% – 50%
3% – 20%
Units of production
The residual value, the useful life and the depreciation
method applied to an asset are reassessed at least
annually. Any changes are accounted for prospectively.
When an asset is surplus to requirements or no longer
has an economic value, the carrying amount of the asset
is written down to its recoverable amount.
The Group has lease contracts for various items of plant,
machinery and other equipment used in its operations.
At the inception of a contract, the Group assesses
whether a contract is, or contains, a lease based on the
right to use or control an identified asset for a period of
time, in exchange for consideration.
At the commencement date of the lease, the Group
recognises a lease liability and a corresponding right-of-
use asset. The lease liability is initially recognised for the
present value of non-cancellable lease payments
discounted using the interest rate implicit in the lease or,
if that rate cannot be readily determined, the Group’s
incremental borrowing rate. The right-of-use asset is
initially measured at cost, which comprises the initial
amount of the lease liability plus any initial direct costs
incurred and an estimate of costs to dismantle and
remove the underlying asset.
The right-of-use asset is depreciated to the earlier of the
asset’s useful life or the lease term using the straight-line
method and is recognised in the statement of
comprehensive income in depreciation and amortisation.
Where the lease transfers ownership of the underlying
asset to the Group by the end of the lease term, the
right-of-use asset is depreciated from the
commencement date to the end of the useful life of the
underlying asset.
The unwinding of the financial charge on the lease
liability is recognised in the statement of comprehensive
income in financial expenses, and is based on the
implied interest rate or, if used, the Group’s incremental
borrowing rate.
The Group does not recognise leases that have a lease
term of 12 months or less, or are of low value, as a right-
of-use asset or lease liability. Lease payments associated
with these leases are recognised as an expense in the
consolidated statement of comprehensive income in
operating expenses on a straight-line basis over the
lease term.
Deferred development
Deferred development mainly comprises capitalised
costs (deferred development expenditure) related to
underground mining incurred to expand the capacity of
an underground mine and to maintain production.
Deferred stripping
Expenditure incurred to remove overburden or waste
material during the production phase of an open cut
mining operation is deferred to the extent it gives rise to
future economic benefits. This expenditure is charged to
operating costs on a units of production basis using the
estimated average stripping ratio for the area being
mined. Changes in estimates of average stripping ratios
are accounted for prospectively. The stripping activity
asset is subsequently depreciated on a units of
production basis over the life of the identified
component of the ore body that became more
accessible as a result of the stripping activity.
For the purposes of assessing impairment, deferred
stripping assets are grouped with other assets of the
relevant cash generating unit (CGU).
Impairment
The carrying amounts of the Group’s non-financial
assets are reviewed at each balance date to determine
whether there is any indication of impairment. If any
such indication exists, the asset’s recoverable amount is
estimated. For intangible assets that have indefinite lives
or that are not yet available for use, the recoverable
amount is estimated at each reporting date.
For the purpose of impairment testing, assets are
grouped together into the smallest group of assets that
generates cash inflows from continuing use, and which
are largely independent of the cash inflows of other
assets or groups of assets – the CGU. The recoverable
amount of an asset or CGU is the greater of its value in
use and its fair value less costs of disposal (‘FVLCD’). In
assessing FVLCD, the estimated future cash flows are
discounted to their present value using a pre-tax
discount rate that reflects current market assessments
of the time value of money and the risks specific to the
asset.
An impairment loss is recognised whenever the carrying
amount of an asset or its CGU exceeds its recoverable
amount. In accordance with AASB 136 Impairment of
Assets, impairment losses have been allocated such that
the carrying value of individual assets within the Group’s
CGU were not reduced below their recoverable amount.
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Notes to the consolidated financial statements
For the year ended 30 June 2023
Significant accounting judgements, estimates and assumptions
Recoverable amount of assets
Operating costs and capital expenditure
Operating costs and capital expenditure are based on
the latest budgets and forecasts and longer-term life of
mine plans. These projections can include expected
operating performance improvements reflecting
management experience and expectations.
Discount rate
The discount rate is derived using the weighted average
cost of capital methodology adjusted for any risks that
are not reflected in the underlying cash flows. A real
post-tax discount rate is applied to post-tax cash flows.
Mineral reserves and resources
The estimated quantities of economically recoverable
Reserves and Resources are based on interpretations of
geological and geophysical models, which require
assumptions to be made of factors such as estimates of
future operating performance, future capital
requirements and short and long-term coal prices. The
Group is required to determine and report Reserves and
Resources under the Australian Code for Reporting
Mineral Resources and Ore Reserves December 2012
(the JORC Code).
The JORC Code requires the use of reasonable
investment assumptions to calculate reserves and
resources. Changes in reported Reserves and Resources
can impact the carrying value of property, plant and
equipment, as well as provisions for rehabilitation and
the amount charged for amortisation and depreciation.
At the end of each period, the Group assesses whether
there is any indication that an asset may be impaired. If
any such indication exists, the Group estimates the
recoverable amount of the asset.
For the purpose of assessing the existence of
impairment indicators, assets are grouped together into
the smallest group of assets that generates cash inflows
from continuing use, and which are largely independent
of the cash inflows of other assets or groups of assets –
the CGU.
The recoverable amount of the CGU and individual
assets are determined based on value-in-use
calculations. These calculations require the use of
estimates and assumptions.
Expected future cash flows used to determine the
recoverable value of tangible assets are inherently
uncertain and could materially change over time. They
are affected by a number of factors including reserves
and expected production and sales volumes together
with economic factors, such as spot and future coal
prices, discount rates, foreign currency exchange rates,
estimates of costs to produce reserves, stripping ratio,
production rates and future capital expenditure. It is
possible that these assumptions may change, which
could impact the estimated life of a mine and result in a
material adjustment to the carrying value of tangible
assets.
The recoverable amount of the CGU is sensitive to the
below key assumptions:
Demand for fossil fuels/coal price
The recoverable value of the Group’s Coal Reserves and
of its plant and equipment is most sensitive to future
USD coal prices and the AUD:USD foreign exchange
rate, which together impact the AUD price that the
company receives for the sale of its products in the
global energy and steel manufacturing complexes.
Page 76 | Whitehaven Coal Annual Report 2023
Page 76 | Whitehaven Coal Annual Report 2023
The discount rate is derived using the weighted average
cost of capital methodology adjusted for any risks that
are not reflected in the underlying cash flows. A real
post-tax discount rate is applied to post-tax cash flows.
The estimated quantities of economically recoverable
Reserves and Resources are based on interpretations of
geological and geophysical models, which require
assumptions to be made of factors such as estimates of
future operating performance, future capital
requirements and short and long-term coal prices. The
Group is required to determine and report Reserves and
Resources under the Australian Code for Reporting
Mineral Resources and Ore Reserves December 2012
(the JORC Code).
The JORC Code requires the use of reasonable
investment assumptions to calculate reserves and
resources. Changes in reported Reserves and Resources
can impact the carrying value of property, plant and
equipment, as well as provisions for rehabilitation and
the amount charged for amortisation and depreciation.
the smallest group of assets that generates cash inflows
from continuing use, and which are largely independent
of the cash inflows of other assets or groups of assets –
the CGU.
The recoverable amount of the CGU and individual
assets are determined based on value-in-use
calculations. These calculations require the use of
estimates and assumptions.
Expected future cash flows used to determine the
recoverable value of tangible assets are inherently
uncertain and could materially change over time. They
are affected by a number of factors including reserves
and expected production and sales volumes together
with economic factors, such as spot and future coal
prices, discount rates, foreign currency exchange rates,
estimates of costs to produce reserves, stripping ratio,
production rates and future capital expenditure. It is
possible that these assumptions may change, which
could impact the estimated life of a mine and result in a
material adjustment to the carrying value of tangible
assets.
The recoverable amount of the CGU is sensitive to the
below key assumptions:
Demand for fossil fuels/coal price
The recoverable value of the Group’s Coal Reserves and
of its plant and equipment is most sensitive to future
USD coal prices and the AUD:USD foreign exchange
rate, which together impact the AUD price that the
company receives for the sale of its products in the
global energy and steel manufacturing complexes.
Notes to the consolidated financial statements
For the year ended 30 June 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Significant accounting judgements, estimates and assumptions
Recoverable amount of assets
Operating costs and capital expenditure
At the end of each period, the Group assesses whether
Operating costs and capital expenditure are based on
there is any indication that an asset may be impaired. If
the latest budgets and forecasts and longer-term life of
any such indication exists, the Group estimates the
mine plans. These projections can include expected
recoverable amount of the asset.
operating performance improvements reflecting
management experience and expectations.
For the purpose of assessing the existence of
impairment indicators, assets are grouped together into
Discount rate
4.2. Exploration and evaluation
Exploration and evaluation assets
Balance at 1 July 2022
Transfer to property, plant and equipment
Exploration and evaluation expenditure
Balance at 30 June 2023
Balance at 1 July 2021
Exploration and evaluation expenditure
Balance at 30 June 2022
$’000
647,289
(270,556)
61,904
438,637
613,508
33,781
647,289
Mineral reserves and resources
Vickery Project
In March 2023, approval for early mining of the Vickery Project was granted, thereby demonstrating its technical
feasibility and commercial viability. The exploration and evaluation assets relating to the Vickery Project of $270.6 million
were tested for impairment and then reclassified to mining, property and development assets (refer note 4.1).
Recognition and measurement
Exploration and evaluation assets, including the costs of
acquiring licences, are capitalised on an area of interest
basis and only after the Company has obtained the legal
rights to explore the area.
Exploration and evaluation assets are only recognised if
the rights of the area of interest are current and either:
i)
The expenditures are expected to be recouped
through successful development and exploitation
of the area of interest.
ii) Activities in the area of interest have not (at the
reporting date) reached a stage that permits a
reasonable assessment of the existence or
otherwise of economically recoverable reserves,
and active and significant operations in, or in
relation to, the area of interest are continuing.
Exploration and evaluation assets are assessed for
impairment if:
i)
ii)
Sufficient data exists to determine technical
feasibility and commercial viability.
Facts and circumstances suggest that the carrying
amount exceeds the recoverable amount. For the
purposes of impairment testing, exploration and
evaluation assets are not allocated to CGUs.
Where a potential impairment is indicated, an
assessment is performed for each area of interest or at
the CGU level, in line with the assessment disclosed at
note 4.1. To the extent that capitalised expenditure is not
expected to be recovered, it is charged to the
consolidated statement of comprehensive income. Once
the technical feasibility and commercial viability of the
extraction of mineral resources in an area of interest are
demonstrable, exploration and evaluation assets
attributable to that area of interest are first tested for
impairment and then reclassified to mining property and
development assets within property, plant and
equipment.
Significant accounting judgements, estimates and assumptions
The application of the Group’s accounting policy for exploration and evaluation expenditure requires judgement in
determining whether future economic benefits are likely, which may be based on assumptions about future events or
circumstances. Estimates and assumptions made may change if new information becomes available. If, after
expenditure is capitalised, information becomes available indicating that the recovery of expenditure is unlikely, the
amount capitalised is written off in the consolidated statement of comprehensive income in the period when the new
information becomes available. The recoverability of the carrying amount of exploration and evaluation assets is
dependent on the successful development and commercial exploitation or sale of the respective areas of interest.
Page 76 | Whitehaven Coal Annual Report 2023
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Page 77 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
4.3. Intangible assets
Balance at 1 July 2022
Balance at 30 June 2023
Balance at 1 July 2021
Additions
Balance at 30 June 2022
Recognition and measurement
Water access rights
Water access
rights Total
$’000 $’000
12,180
12,180
12,180 12,180
11,828
11,828
352
352
12,180 12,180
The Group holds water access rights, which have been determined to have an indefinite life. The water access rights
have been recognised at cost and are assessed annually for impairment.
4.4. Provisions
Movement in mine rehabilitation and biodiversity obligations provisions
Balance at 1 July 2022
Payments made on rehabilitation and biodiversity activities
Change in cost estimates
Unwinding of discount
Balance at 30 June 2023
Current
Non-current
Balance at 30 June
$’000
258,977
(13,465)
10,637
8,457
264,606
2022
$’000
16,461
242,516
258,977
2023
$’000
14,723
249,883
264,606
Under the terms of its mining licenses and project approvals, the Group is required to comply with certain rehabilitation
and biodiversity obligations. The Group maintains provisions for these rehabilitation and biodiversity requirements. The
Group continues to assess estimates of these obligations as further developments occur and additional commitments
arise that may be required to settle its obligations. However, based on current estimates, any potential changes to these
obligations and commitments in addition to those already recognised in the financial statements are not financially
significant to the Group.
Page 78 | Whitehaven Coal Annual Report 2023
Page 78 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
4.3. Intangible assets
Balance at 1 July 2022
Balance at 30 June 2023
Balance at 1 July 2021
Additions
Balance at 30 June 2022
Recognition and measurement
Water access rights
4.4. Provisions
Balance at 1 July 2022
Change in cost estimates
Unwinding of discount
Balance at 30 June 2023
Current
Non-current
Balance at 30 June
The Group holds water access rights, which have been determined to have an indefinite life. The water access rights
have been recognised at cost and are assessed annually for impairment.
Movement in mine rehabilitation and biodiversity obligations provisions
Payments made on rehabilitation and biodiversity activities
Under the terms of its mining licenses and project approvals, the Group is required to comply with certain rehabilitation
and biodiversity obligations. The Group maintains provisions for these rehabilitation and biodiversity requirements. The
Group continues to assess estimates of these obligations as further developments occur and additional commitments
arise that may be required to settle its obligations. However, based on current estimates, any potential changes to these
obligations and commitments in addition to those already recognised in the financial statements are not financially
significant to the Group.
Water access
rights Total
$’000 $’000
12,180
12,180
12,180 12,180
11,828
11,828
352
352
12,180 12,180
$’000
258,977
(13,465)
10,637
8,457
264,606
2022
$’000
16,461
242,516
258,977
2023
$’000
14,723
249,883
264,606
Recognition and measurement
Provisions are recognised when:
− the Group has a present legal or constructive
obligation as a result of a past event
− it is probable that resources will be expended to
settle the obligation
− the amount of the provision can be measured reliably.
Mine rehabilitation and closure
Provisions are made for the estimated cost of
rehabilitation relating to areas disturbed during the
mine’s operation up to reporting date but not yet
rehabilitated. The nature of rehabilitation activities
includes dismantling and removing operating facilities,
recontouring and topsoiling the mine, and restoration,
reclamation and revegetation of affected areas.
Provision has been made in full for all disturbed areas at
the reporting date based on current estimates of costs
to rehabilitate such areas, discounted to their present
value based on expected future cash flows.
The obligation to rehabilitate arises at the
commencement of the mining project and/or when the
environment is disturbed at the mining location. At this
point, the provision is recognised as a liability with a
corresponding asset included in mining property and
development assets. Additional disturbances or changes
in the rehabilitation costs are reflected in the present
value of the rehabilitation provision, with a
corresponding change in the cost of the associated
asset. In the event the restoration provision is reduced,
the cost of the related asset is reduced by an amount
not exceeding its carrying value.
The unwinding of the effect of discounting the provision
is recorded as a finance cost in the consolidated
statement of comprehensive income. The carrying
amount capitalised as a part of mining property and
development assets is depreciated over the useful life of
the related asset.
For closed mines, changes to estimated costs are
recognised immediately in the consolidated statement
of comprehensive income.
The amount of the provision relating to rehabilitation of
environmental disturbance caused by ongoing
production and extraction activities is recognised in the
consolidated statement of comprehensive income as
incurred.
Biodiversity obligations
The Group has, under the terms of certain mining
licenses, obligations to perform works to establish or
upgrade biodiversity offset areas and to set aside and
maintain those areas. Provisions are made for the
estimated cost of the Group’s biodiversity obligations
based on current estimates of certain activities that the
Group has committed to perform. These costs are
discounted to their present value based on expected
future cash flows. The provision is recognised as a
liability with a corresponding asset included in mining
property and development assets. The unwinding of the
effect of discounting the provision is recorded as a
finance cost in the consolidated statement of
comprehensive income. The carrying amount capitalised
as a part of mining property and development is
depreciated via the units of production method.
Significant accounting judgements, estimates and assumptions
Significant estimates and assumptions are made in determining the provision for mine rehabilitation and biodiversity
as there are numerous factors that will affect the ultimate liability payable. These factors include estimates of the
extent and costs of rehabilitation activities and biodiversity, technological changes, regulatory changes, cost
increases and changes in discount rates. Those uncertainties may result in future actual expenditure differing from
the amounts currently provided. The provisions at balance date represent management’s best estimate of the present
value of the future rehabilitation and biodiversity costs required.
Page 78 | Whitehaven Coal Annual Report 2023
Page 79 | Whitehaven Coal Annual Report 2023
Page 79 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
5. Capital structure and financing
5.1. Interest-bearing liabilities
Current liabilities
Lease liabilities
Secured loans – ECA facility
Capitalised borrowing costs
Non-current liabilities
Lease liabilities
Secured loans – ECA facility
Capitalised borrowing costs
Financing facilities
Facilities utilised at reporting date
Facilities not utilised at reporting date
2023
$’000
63,232
9,470
(867)
71,835
89,690
29,260
(1,837)
117,113
188,948
2022
$’000
71,665
9,470
(3,292)
77,843
130,825
38,730
(2,701)
166,854
244,697
191,652
1,250,690
191,652
250,690
-
1,000,000
Financing activities during the financial year
During the current year, there was no debt drawn under the senior bank facility to be repaid (30 June 2022: $728 million)
and $nil was redrawn (30 June 2022: $40 million). The Group repaid $9.5 million of the ECA facility during the year
(30 June 2022: $9.8 million) and $nil was drawn down (30 June 2022: $nil). The senior bank facility was closed on
30 June 2023 and will not be renewed. The ECA facility is secured over the assets to which it relates.
Included within current and non-current lease liabilities are leases recognised in accordance with AASB 16 Leases of
$27,201,000 and $38,412,000 respectively (30 June 2022: $24,725,000 and $42,281,000 respectively) which would have
been accounted for as operating leases under the old accounting standard. Lease liabilities are secured over the leased
assets to which they relate.
The fair values of loans and borrowings materially approximate their respective carrying values as at 30 June 2023 and
30 June 2022.
Recognition and measurement
All loans and borrowings are initially recognised at the fair value of the consideration received less directly
attributable transaction costs. After initial recognition, interest-bearing loans and borrowings are subsequently
measured at amortised cost using the effective interest method.
Refer to note 4.1 for the recognition and measurement policy for lease liabilities.
Page 80 | Whitehaven Coal Annual Report 2023
Page 80 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
5. Capital structure and financing
5.1. Interest-bearing liabilities
Current liabilities
Lease liabilities
Secured loans – ECA facility
Capitalised borrowing costs
Non-current liabilities
Lease liabilities
Secured loans – ECA facility
Capitalised borrowing costs
Financing facilities
Facilities utilised at reporting date
Facilities not utilised at reporting date
2023
$’000
63,232
9,470
(867)
71,835
89,690
29,260
(1,837)
117,113
188,948
2022
$’000
71,665
9,470
(3,292)
77,843
130,825
38,730
(2,701)
166,854
244,697
191,652
1,250,690
191,652
250,690
-
1,000,000
5.2. Finance income and expense
Recognised in the statement of comprehensive income
Interest income
Finance income
Interest expense on lease liabilities
Interest on drawn debt facility
Other financing costs
Interest and financing costs
Net interest income/(expense)
Unwinding of discounts on provisions
Amortisation of finance facility upfront costs
Other finance expenses
2023
$’000
81,908
81,908
(7,417)
-
(19,929)
(27,346)
54,562
(8,457)
(4,207)
(12,664)
2022
$’000
1,464
1,464
(9,322)
(10,266)
(18,691)
(38,279)
(36,815)
(4,178)
(14,368)
(18,546)
Net finance income/(expense)
41,898
(55,361)
Recognition and measurement
Finance income comprises interest income on funds invested. Interest income is recognised as it accrues, using the
effective interest method.
Finance expenses comprise interest expense on borrowings, unwinding of the discount on provisions, changes in the
fair value of financial assets at fair value through profit or loss, impairment losses recognised on financial assets, and
losses on hedging instruments that are recognised in profit or loss. All borrowing costs are recognised in the
consolidated statement of comprehensive income using the effective interest method, except where capitalised as
part of a qualifying asset.
Financing activities during the financial year
During the current year, there was no debt drawn under the senior bank facility to be repaid (30 June 2022: $728 million)
and $nil was redrawn (30 June 2022: $40 million). The Group repaid $9.5 million of the ECA facility during the year
(30 June 2022: $9.8 million) and $nil was drawn down (30 June 2022: $nil). The senior bank facility was closed on
30 June 2023 and will not be renewed. The ECA facility is secured over the assets to which it relates.
Included within current and non-current lease liabilities are leases recognised in accordance with AASB 16 Leases of
$27,201,000 and $38,412,000 respectively (30 June 2022: $24,725,000 and $42,281,000 respectively) which would have
been accounted for as operating leases under the old accounting standard. Lease liabilities are secured over the leased
The fair values of loans and borrowings materially approximate their respective carrying values as at 30 June 2023 and
assets to which they relate.
30 June 2022.
Recognition and measurement
All loans and borrowings are initially recognised at the fair value of the consideration received less directly
attributable transaction costs. After initial recognition, interest-bearing loans and borrowings are subsequently
measured at amortised cost using the effective interest method.
Refer to note 4.1 for the recognition and measurement policy for lease liabilities.
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Page 81 | Whitehaven Coal Annual Report 2023
Page 81 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
5.3. Financial risk management objectives and policies
a) Overview
The Group’s overall risk management program seeks to mitigate risks and reduce the volatility of its financial
performance. Financial risk management is carried out centrally by Group Treasury and monitored by the Group’s Audit &
Risk Management Committee under policies approved by the Board of Directors. The Committee reports regularly to the
Board on its activities and also reviews policies and systems regularly to reflect changes in market conditions and the
Group’s activities.
The Group’s principal financial risks are associated with:
− market risk
− credit risk
− liquidity risk.
b) Capital management
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to
sustain future development of the business. The Group defines capital as the total of shareholders’ equity and debt. The
Board manages its capital structure and makes adjustments in light of changes to economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Group may adjust the dividend
payment to shareholders, return capital to shareholders, seek waivers or restructure its arrangements with its financiers
or issue new shares. The Group monitors capital through the cycle using a gearing ratio, which is net debt divided by
total capital plus net debt.
During the year ended 30 June 2023, the Group did not renew its $1 billion undrawn syndicated facility. Cash will be
retained on the balance sheet for flexibility and optionality, and to maintain adequate liquidity through the cycle.
Interest-bearing liabilities
Less cash and cash equivalents
Net cash
2023
$’000
(188,948)
2,775,510
2022
$’000
(244,697)
1,215,460
2,586,562
970,763
Page 82 | Whitehaven Coal Annual Report 2023
Page 82 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
5.3. Financial risk management objectives and policies
a) Overview
c) Risk exposures and responses
Market risk - foreign currency risk
The Group’s overall risk management program seeks to mitigate risks and reduce the volatility of its financial
performance. Financial risk management is carried out centrally by Group Treasury and monitored by the Group’s Audit &
Risk Management Committee under policies approved by the Board of Directors. The Committee reports regularly to the
Board on its activities and also reviews policies and systems regularly to reflect changes in market conditions and the
The Group’s principal financial risks are associated with:
Group’s activities.
− market risk
− credit risk
− liquidity risk.
b) Capital management
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to
sustain future development of the business. The Group defines capital as the total of shareholders’ equity and debt. The
Board manages its capital structure and makes adjustments in light of changes to economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Group may adjust the dividend
payment to shareholders, return capital to shareholders, seek waivers or restructure its arrangements with its financiers
or issue new shares. The Group monitors capital through the cycle using a gearing ratio, which is net debt divided by
total capital plus net debt.
During the year ended 30 June 2023, the Group did not renew its $1 billion undrawn syndicated facility. Cash will be
retained on the balance sheet for flexibility and optionality, and to maintain adequate liquidity through the cycle.
The Group is exposed to currency risk on sales, purchases and demurrage that are denominated in a currency other than
the respective functional currency of the Group, the Australian dollar (AUD). The currency in which these transactions
primarily are denominated is US dollars (USD).
The Group may use forward exchange contracts (FECs) to hedge its currency risk in relation to contracted sales where
both volume and US dollar price are fixed.
In respect of other monetary assets and liabilities denominated in foreign currencies, the Group ensures that its net
exposure is kept to an acceptable level by buying and selling foreign currencies at spot rates when necessary to address
short-term imbalances.
During the current year ended 30 June 2023, a net foreign exchange gain of $21.9 million was recognised (30 June 2022:
net foreign exchange gain of $7.6 million).
The Group designates its forward exchange contracts in cash flow hedges and measures them at fair value.
The fair value of forward exchange contracts used as hedges at 30 June 2023 was a $5.5 million liability (30 June 2022:
$7.8 million liability), comprising assets and liabilities that were recognised as derivatives.
At 30 June 2023, the Group had the following financial instruments that were not designated in cash flow hedges that
were exposed to foreign currency risk:
Interest-bearing liabilities
Less cash and cash equivalents
Net cash
2023
$’000
(188,948)
2,775,510
2022
$’000
(244,697)
1,215,460
Cash and cash equivalents
Trade and other receivables
Trade and other payables
Net statement of financial position exposure
2,586,562
970,763
The following exchange rates applied during the year:
2023
$’000
USD
675,017
130,188
(25,905)
779,300
2022
$’000
USD
147,409
4,904
(34,205)
118,108
Fixed-rate instruments
USD
Sensitivity analysis
Average rate
Reporting date spot rate
2023
0.6734
2022
0.7258
2023
0.6630
2022
0.6889
A change of 10% in the Australian dollar against the following currencies at 30 June would have increased/(decreased)
equity and pre-tax profit or loss by the amounts shown below. The analysis assumes that all other variables, in particular
interest rates, remain constant.
30 June 2023
AUD:USD strengthening by 10%
AUD:USD weakening by 10%
30 June 2022
AUD:USD strengthening by 10%
AUD:USD weakening by 10%
Equity
Profit or (loss)
$’000
$’000
25,630
(28,380)
(106,856)
130,602
1,978
(19,684)
(15,586)
19,049
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Page 83 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Market risk - interest rate risk
The Group‘s borrowings comprise both variable and fixed rate instruments. The variable rate borrowings expose the
Group to the risk of changes in cash flows due to the changes in interest rates. Management analyses interest rate
exposure on an ongoing basis.
The interest rate profile of the Group‘s interest-bearing financial instruments at the reporting date was:
Fixed rate instruments
Lease liabilities
Variable rate instruments
Financial assets
Financial liabilities
Carrying amount
2023
$’000
2022
$’000
(152,922)
(202,490)
(152,922)
(202,490)
2,775,510
(38,730)
1,215,460
(48,201)
2,736,780
1,167,259
Sensitivity analysis for variable rate instruments
A change of 100 basis points (bp) in interest rates at the reporting date would have increased/(decreased) equity and
profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency
rates, remain constant.
30 June 2023
100bp increase
100bp decrease
30 June 2022
100bp increase
100bp decrease
Equity
Profit or (loss)
$’000
$’000
-
-
-
-
27,368
(27,368)
11,673
(11,673)
Market risk - commodity price risk
The Group’s major commodity price exposure is to the price of coal. The Group has chosen not to hedge against the
movement in coal prices.
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Group is exposed to credit risk from its financial assets, including trade receivables,
deposits with banks and other financial institutions, foreign exchange transactions and other financial instruments.
Maximum exposure is equal to the carrying amount of the financial assets, as outlined below.
Page 84 | Whitehaven Coal Annual Report 2023
Page 84 | Whitehaven Coal Annual Report 2023
Sensitivity analysis for variable rate instruments
A change of 100 basis points (bp) in interest rates at the reporting date would have increased/(decreased) equity and
profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency
rates, remain constant.
Carrying amount
2023
$’000
2022
$’000
(152,922)
(202,490)
(152,922)
(202,490)
2,775,510
(38,730)
1,215,460
(48,201)
2,736,780
1,167,259
Equity
Profit or (loss)
$’000
$’000
-
-
-
-
27,368
(27,368)
11,673
(11,673)
Market risk - interest rate risk
exposure on an ongoing basis.
Fixed rate instruments
Lease liabilities
Variable rate instruments
Financial assets
Financial liabilities
30 June 2023
100bp increase
100bp decrease
30 June 2022
100bp increase
100bp decrease
Market risk - commodity price risk
movement in coal prices.
Credit risk
Notes to the consolidated financial statements
For the year ended 30 June 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
The Group‘s borrowings comprise both variable and fixed rate instruments. The variable rate borrowings expose the
The Group’s maximum exposure to credit risk at the reporting date was:
Group to the risk of changes in cash flows due to the changes in interest rates. Management analyses interest rate
Exposure to credit risk
The interest rate profile of the Group‘s interest-bearing financial instruments at the reporting date was:
Cash and cash equivalents
Trade and other receivables
Derivative financial instruments
Investments
Note
3.1
5.3(d)
5.3(e)
Carrying amount
2023
$’000
2,775,510
223,054
56
18,183
2022
$’000
1,215,460
600,700
105
856
3,016,803
1,817,121
The Group’s maximum exposure to credit risk for trade receivables at the reporting date by geographic region was:
Asia
Australia
Europe
Trade receivables
189,398
33,622
34
564,062
36,630
8
223,054
600,700
The Group‘s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
demographics of the Group’s customer base, including the default risk of the industry and country in which customers
operate, has less of an influence on credit risk. Approximately 42.5% of the Group’s revenue is attributable to sales
transactions with three customers (2022: 43.4% with three customers).
The Group trades only with recognised, creditworthy third parties and generally does not require collateral with respect
to trade receivables.
Receivable balances are monitored on an ongoing basis and as a result the exposure to bad debts is not significant.
No impairment losses on trade receivables were recognised during the year ended 30 June 2023 (2022: $nil).
The aging of the Group’s trade receivables at the reporting date was:
The Group’s major commodity price exposure is to the price of coal. The Group has chosen not to hedge against the
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Group is exposed to credit risk from its financial assets, including trade receivables,
deposits with banks and other financial institutions, foreign exchange transactions and other financial instruments.
Maximum exposure is equal to the carrying amount of the financial assets, as outlined below.
Not past due
Past due 0-30 days
Past due 31-120 days
Past due 121 days to one year
More than one year
Guarantees
Gross
2023
$’000
221,407
1,408
239
-
-
Gross
2022
$’000
598,217
2,064
419
-
-
223,054
600,700
The policy of the Group is to provide bank and surety guarantees for bonding requirements associated with mining
operations (including environmental and rehabilitation), infrastructure assets and other purposes such as security of
leased premises. Guarantees are provided under contingent credit support facilities. The Company recently completed its
refinancing of guarantees. Details of outstanding guarantees are provided in note 7.4.
Page 84 | Whitehaven Coal Annual Report 2023
Page 85 | Whitehaven Coal Annual Report 2023
Page 85 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage
to the Group’s reputation.
Typically, the Group ensures that it has sufficient cash on demand to meet all expected operational expenses as and
when due, including the servicing of financial obligations. This excludes the potential impact of extreme circumstances
that cannot reasonably be predicted, such as natural disasters.
The following are the contractual undiscounted maturities of financial liabilities, including estimated interest payments:
30 June 2023
Carrying
amount
Contractual
cash flows
6 months
or less
6-12
months
1-2 years
2-5 years
More than
5 years
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Financial liabilities
Lease liabilities
Secured loans
152,922
38,730
176,556
37,268
31,113
59,792
14,850
33,533
Trade and other payables
339,145
341,502
305,447
43,499
5,776
5,629
5,799
10,132
21,963
20,398
9,858
Forward exchange contracts:
Outflow
Inflow
336,936
335,532
319,483
(331,411)
(331,411)
(314,993)
-
-
16,049
(16,418)
-
-
-
-
-
-
536,322
565,678
352,981
42,541
89,952
46,671
33,533
Carrying amount
Contractual
cash flows
6 months
or less
6-12
months
1-2 years
2-5 years
More than
5 years
$’000
$’000
$’000
$’000
$’000
$’000
$’000
30 June 2022
Financial liabilities
Lease liabilities
Secured loans
Trade and other payables
Forward exchange contracts:
Outflow
Inflow
208,283
208,672
176,337
(200,510)
(200,510)
(168,270)
202,490
232,440
38,072
40,532
48,296
68,910
36,630
48,201
410,361
50,657
412,239
5,174
354,309
5,124
7,248
209
(212)
10,121
20,426
23,746
30,256
16,077
16,049
(16,014)
(16,014)
6,492
-
-
-
668,825
703,498
405,622
52,901
78,906
122,947
43,122
Page 86 | Whitehaven Coal Annual Report 2023
Page 86 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Liquidity risk
d) Net fair values
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage
to the Group’s reputation.
Typically, the Group ensures that it has sufficient cash on demand to meet all expected operational expenses as and
when due, including the servicing of financial obligations. This excludes the potential impact of extreme circumstances
that cannot reasonably be predicted, such as natural disasters.
The following are the contractual undiscounted maturities of financial liabilities, including estimated interest payments:
The following table provides the fair value measurement hierarchy of the Group’s financial assets and financial liabilities as
at 30 June 2023 and 30 June 2022:
− Level 1: measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities
− Level 2: measurements based on inputs other than quoted prices included within level 1 that are observable for the
asset or liability, either directly (as prices) or indirectly (derived from prices)
− Level 3: measurements based on inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
The Group held the following financial instruments carried at fair value in the consolidated statement of financial position:
30 June 2023
Carrying
amount
Contractual
cash flows
6 months
or less
6-12
months
1-2 years
2-5 years
More than
5 years
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Financial liabilities
Lease liabilities
Secured loans
Forward exchange contracts:
Outflow
Inflow
Trade and other payables
339,145
341,502
305,447
20,398
9,858
152,922
38,730
176,556
37,268
31,113
59,792
14,850
33,533
43,499
5,776
10,132
21,963
5,629
5,799
336,936
335,532
319,483
(331,411)
(331,411)
(314,993)
-
-
16,049
(16,418)
-
-
536,322
565,678
352,981
42,541
89,952
46,671
33,533
Carrying amount
Contractual
cash flows
6 months
6-12
More than
or less
months
1-2 years
2-5 years
5 years
$’000
$’000
$’000
$’000
$’000
$’000
$’000
30 June 2022
Financial liabilities
Lease liabilities
Secured loans
Trade and other payables
Forward exchange contracts:
Outflow
Inflow
202,490
232,440
38,072
40,532
48,296
68,910
36,630
48,201
410,361
50,657
412,239
5,174
354,309
10,121
20,426
23,746
30,256
6,492
208,283
208,672
176,337
16,077
16,049
(200,510)
(200,510)
(168,270)
(16,014)
(16,014)
668,825
703,498
405,622
52,901
78,906
122,947
43,122
5,124
7,248
209
(212)
-
-
-
-
-
-
-
Assets measured at fair value
Equity investments
Forward exchange contracts - receivable
Liabilities measured at fair value
Forward exchange contracts - payable
Assets measured at fair value
Equity investments
Forward exchange contracts - receivable
Liabilities measured at fair value
Forward exchange contracts - payable
2023
$’000
18,183
56
18,239
(5,581)
(5,581)
2022
$’000
856
105
961
(7,878)
(7,878)
Level 1
$’000
6,260
-
6,260
-
-
Level 1
$’000
-
-
-
-
-
Level 2
$’000
Level 3
$’000
-
56
56
(5,581)
(5,581)
Level 2
$’000
-
105
105
(7,878)
(7,878)
11,923
-
11,923
-
-
Level 3
$’000
856
-
856
-
-
The fair value of derivative financial instruments are derived using valuation techniques based on observable market
inputs, such as forward currency rates, at the end of the reporting period. The amounts disclosed in the consolidated
statement of financial position are the fair values and are classified under level 2 in the fair value measurement hierarchy.
During the period the Group entered into forward exchange contracts to hedge some foreign exchange risk. A number of
these contracts remained open at 30 June 2023.
The carrying values of financial assets and financial liabilities recorded in the financial statements materially approximates
their respective net fair values, determined in accordance with the accounting policies disclosed in notes 3.1, 3.3 and 5.1 to
the financial statements.
Page 86 | Whitehaven Coal Annual Report 2023
Page 87 | Whitehaven Coal Annual Report 2023
Page 87 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
e)
Financial assets and liabilities by categories
Financial assets
Cash and cash equivalents
Trade and other receivables
Investments
Other financial assets1
Total financial assets
2023
Amortised
cost
Note
$’000
3.1
5.3(d)
5.3(d)
2,775,510
330,060
-
-
2022
Amortised
cost
$’000
1,215,460
664,757
-
-
Other
$’000
-
-
18,183
56
3,105,570
18,239
1,880,217
1 Other financial assets at 30 June 2023 include $0.1 million (2022: $0.1 million) relating to derivatives in designated hedges.
Financial liabilities
Trade and other payables
Interest-bearing liabilities
Other financial liabilities2
Total financial liabilities
2023
Amortised
cost¹
Note
$’000
3.3
5.1
5.3(d)
339,145
188,948
-
528,093
2022
Amortised
cost¹
$’000
410,361
244,697
-
655,058
Other
$’000
-
-
5,581
5,581
Other
$’000
-
-
856
105
961
Other
$’000
-
-
7,878
7,878
1 Loans at amortised cost are non-derivatives with fixed or determinable payments and are not quoted on an active market. Loans and
payables are valued at amortised cost.
2 Other financial liabilities include $5.6 million (2022: $7.9 million) relating to derivatives in designated hedges.
f)
Changes in liabilities arising from financing activities
As at 1 July
Outflows from secured loans
Outflows from lease liabilities
Outflows from senior bank facility
Increase in lease liabilities
As at 30 June
Consisting of:
Current interest-bearing liabilities1
Non-current interest-bearing liabilities2
2023
$’000
250,690
(9,470)
(81,644)
2022
$’000
1,008,916
(9,795)
(76,673)
-
(688,000)
32,076
191,652
16,242
250,690
72,702
118,950
81,135
169,555
1 Current interest-bearing liabilities does not include capitalised borrowing costs of $867,000 (2022: $3,292,000).
2 Non-current interest-bearing liabilities does not include capitalised borrowing costs of $1,837,000 (2022: $2,701,000).
The Group classifies interest paid as cash flows from operating activities.
Page 88 | Whitehaven Coal Annual Report 2023
Page 88 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
e)
Financial assets and liabilities by categories
Recognition and measurement
Financial assets
Derivatives and hedge accounting:
The Group classifies its financial assets into the following
categories: those to be measured subsequently at fair
value (either through other comprehensive income, or
profit or loss) and those to be held at amortised cost.
Classification depends on the business model for
managing the financial assets and the contractual terms
of the cash flows.
At initial recognition, the Group measures a financial
asset at its fair value.
The Group uses derivative financial instruments to
hedge its risks associated with foreign currency and
interest rate fluctuations arising from operating
activities. Such derivative financial instruments are
initially recognised at fair value as at the date on which a
derivative contract is entered into and are subsequently
remeasured at fair value. Derivatives are carried as
financial assets when the fair value is positive and as
financial liabilities when the fair value is negative.
1 Other financial assets at 30 June 2023 include $0.1 million (2022: $0.1 million) relating to derivatives in designated hedges.
3,105,570
18,239
1,880,217
Financial liabilities
Financial liabilities are classified, at initial recognition, as
financial liabilities at fair value through profit or loss,
loans and borrowings, payables, or derivatives
designated as hedging instruments.
All financial liabilities are recognised initially at fair value.
The Group’s financial liabilities include trade and other
payables, loans and borrowings and derivative financial
instruments.
Cash flow hedges:
The effective portion of the gain or loss on the hedging
instrument is recognised in other comprehensive income
in the cash flow hedge reserve. To the extent that the
hedge is ineffective, changes in fair value are recognised
in profit or loss. Amounts taken to other comprehensive
income are transferred out of other comprehensive
income and included in the measurement of the hedged
transaction when the forecast transaction occurs. Hedge
accounting is discontinued prospectively when a
hedging instrument expires, or is sold or terminated, or
when a hedge no longer meets the criteria for hedge
accounting. The cumulative gain or loss previously
recognised in other comprehensive income remains in
other comprehensive income until the forecast
transaction occurs.
1 Loans at amortised cost are non-derivatives with fixed or determinable payments and are not quoted on an active market. Loans and
payables are valued at amortised cost.
2 Other financial liabilities include $5.6 million (2022: $7.9 million) relating to derivatives in designated hedges.
f)
Changes in liabilities arising from financing activities
Financial assets
Cash and cash equivalents
Trade and other receivables
Investments
Other financial assets1
Total financial assets
Financial liabilities
Trade and other payables
Interest-bearing liabilities
Other financial liabilities2
Total financial liabilities
As at 1 July
Outflows from secured loans
Outflows from lease liabilities
Outflows from senior bank facility
Increase in lease liabilities
As at 30 June
Consisting of:
Current interest-bearing liabilities1
Non-current interest-bearing liabilities2
2023
Amortised
cost
Note
$’000
3.1
5.3(d)
5.3(d)
2,775,510
330,060
-
-
2023
Amortised
cost¹
Note
$’000
3.3
5.1
5.3(d)
339,145
188,948
-
528,093
2022
Amortised
cost
$’000
1,215,460
664,757
-
-
2022
Amortised
cost¹
$’000
410,361
244,697
-
655,058
Other
$’000
-
-
18,183
56
Other
$’000
-
-
5,581
5,581
Other
$’000
-
-
856
105
961
Other
$’000
-
-
7,878
7,878
2023
$’000
250,690
(9,470)
(81,644)
32,076
191,652
2022
$’000
1,008,916
(9,795)
(76,673)
16,242
250,690
-
(688,000)
72,702
118,950
81,135
169,555
1 Current interest-bearing liabilities does not include capitalised borrowing costs of $867,000 (2022: $3,292,000).
2 Non-current interest-bearing liabilities does not include capitalised borrowing costs of $1,837,000 (2022: $2,701,000).
The Group classifies interest paid as cash flows from operating activities.
Page 88 | Whitehaven Coal Annual Report 2023
Page 89 | Whitehaven Coal Annual Report 2023
Page 89 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
5.4. Share capital and reserves
a)
Share capital
Fully paid ordinary share capital
Ordinary share capital at the beginning of the
period
Share buy-back1
Transfer of shares by share plan
Shares purchased by share plan
2023
2022
Number of shares
$’000
Number of shares
$’000
956,271,652
2,642,338
1,032,644,232
3,013,661
(119,670,868)
(948,908)
(76,372,580)
(362,568)
-
-
6,346
(39,879)
-
-
4,124
(12,879)
Ordinary share capital at the end of the period
836,600,784
1,659,897
956,271,652
2,642,338
1
Includes share trade entered into on 30 June 2023 for 839,845 shares totalling $5,663,327, which was settled and paid on 4 July 2023.
At 30 June 2023, a trust on behalf of the Company held 6,610,252 ordinary fully paid shares in the Company (30 June 2022: 2,502,186). During the
year, 1,891,934 of these shares were transferred to performance rights plan recipients and 6,000,000 purchased by the share plan. These were
purchased during the year for the purpose of allowing the Group to satisfy performance rights to certain management of the Group. Refer to note
5.5 for further details on the performance rights plan.
Terms and conditions of issued capital
Ordinary shares are classified as equity. Fully paid ordinary shares carry one vote per share (either in person or by proxy)
at a meeting of the Company and carry the right to receive dividends as declared. In the event of a winding up of the
Company, fully paid ordinary shares carry the right to participate in the proceeds from the sale of all surplus assets in
proportion to the number of and amounts paid up on shares held. Under the terms of the acquisition of Boardwalk
Resources Limited, 34,020,000 ordinary shares are subject to a restriction deed, which removes their entitlement to vote,
receive dividends as declared or participate in the proceeds from the sale of all surplus assets. These restrictions will be
released on reaching certain milestones.
Incremental costs directly attributable to the issue of ordinary shares and share options are recognised as a deduction
from equity, net of any related income tax benefit.
Page 90 | Whitehaven Coal Annual Report 2023
Page 90 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
5.4. Share capital and reserves
a)
Share capital
Fully paid ordinary share capital
period
Share buy-back1
Transfer of shares by share plan
Shares purchased by share plan
Ordinary share capital at the beginning of the
956,271,652
2,642,338
1,032,644,232
3,013,661
(119,670,868)
(948,908)
(76,372,580)
(362,568)
-
-
6,346
(39,879)
-
-
4,124
(12,879)
Ordinary share capital at the end of the period
836,600,784
1,659,897
956,271,652
2,642,338
1
Includes share trade entered into on 30 June 2023 for 839,845 shares totalling $5,663,327, which was settled and paid on 4 July 2023.
2023
2022
Number of shares
$’000
Number of shares
$’000
The share-based payment reserve is used to record the value of share-based payments provided to Director-related
entities and senior employees under share option and long-term incentive plans. Refer to note 5.5 for further details of
these plans.
b) Nature and purpose of reserves
Share-based payment reserve
Other reserves
Other reserves
Hedge reserve, net of tax
Revaluation reserve, net of tax
Total
Hedge reserve
2023
$’000
(3,867)
(3,781)
(7,648)
2022
$’000
(5,441)
-
(5,441)
At 30 June 2023, a trust on behalf of the Company held 6,610,252 ordinary fully paid shares in the Company (30 June 2022: 2,502,186). During the
year, 1,891,934 of these shares were transferred to performance rights plan recipients and 6,000,000 purchased by the share plan. These were
purchased during the year for the purpose of allowing the Group to satisfy performance rights to certain management of the Group. Refer to note
The hedging reserve comprises the effective portion of the cumulative change in the fair value of cash flow hedging
instruments related to hedged transactions that have not yet occurred.
5.5 for further details on the performance rights plan.
Terms and conditions of issued capital
Ordinary shares are classified as equity. Fully paid ordinary shares carry one vote per share (either in person or by proxy)
at a meeting of the Company and carry the right to receive dividends as declared. In the event of a winding up of the
Company, fully paid ordinary shares carry the right to participate in the proceeds from the sale of all surplus assets in
proportion to the number of and amounts paid up on shares held. Under the terms of the acquisition of Boardwalk
Resources Limited, 34,020,000 ordinary shares are subject to a restriction deed, which removes their entitlement to vote,
receive dividends as declared or participate in the proceeds from the sale of all surplus assets. These restrictions will be
Revaluation reserve
The revaluation reserve comprises the revaluation of listed equity investments to market value as at period end.
c) Dividends
Dividends of $640,005,000 were paid to shareholders during the year ended 30 June 2023 (2022: $79,890,000).
On 24 August 2023, the Directors declared a fully franked final dividend of 42 cents per share totalling $337.1 million to
be paid on 15 September 2023.
released on reaching certain milestones.
Dividend franking account
Incremental costs directly attributable to the issue of ordinary shares and share options are recognised as a deduction
from equity, net of any related income tax benefit.
As at 30 June 2023, $401,801,423 franking credits were available to shareholders of Whitehaven Coal Limited (30 June
2022: $nil).
Page 90 | Whitehaven Coal Annual Report 2023
Page 91 | Whitehaven Coal Annual Report 2023
Page 91 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
5.5. Share-based payments
a) Recognised share-based payment expenses
Employee expenses
Performance rights – senior employees
Recognition and measurement:
2023
$’000
10,897
2022
$’000
9,234
The grant date fair value of options and performance rights granted to employees is recognised as an expense, with
a corresponding increase in equity, over the period in which the employees become unconditionally entitled to the
equity instruments. The amount recognised is adjusted to reflect the actual number of instruments that vest, except
for those that fail to vest due to market conditions not being met. Once the instruments have vested, no further
expenses are recognised nor reserves reversed in respect to costs already charged. However, where the share rights
or options have lapsed after vesting, the Group transfers the equivalent amount of the cumulative cost for the lapsed
awards from the share-based payments reserve to another component of equity.
b) Types of share-based payment plans
Performance right grant to CEO and senior employees
In FY22, the Company issued performance rights to the CEO and senior employees under the Company’s FY22 medium
and long-term incentive (MTI and LTI) programs. No performance rights under the Company’s FY23 SIP program were
issued during the year. The terms and conditions of the FY22 grant are as follows:
Performance rights
MTI
LTI tranche 1
LTI tranche 2
LTI tranche 3
LTI tranche 4
Total
2023
2022
Number of
instruments
Vesting date
-
-
-
-
-
-
-
-
-
-
-
Number of
instruments
Vesting date
2,424,720
30 June 2024
671,499
30 June 2024
671,499
30 June 2025
1,764,165
30 June 2024/251
421,171
30 June 2025
5,953,054
1 To the extent that the Costs Hurdle Award is satisfied at the end of the year of testing, 50% of the awards will vest and become exercisable
immediately and the remaining 50% will continue on foot, subject to a further one-year service condition.
The performance rights issued under the FY22 MTI and LTI programs are subject to a performance measure linked to
relative TSR, a Costs Hurdle and a Strategic Priority Delivery (SPD) metric. The TSR performance measure compares the
TSR performance of the Company with the TSR performance of the S&P ASX 100 index. The Costs Hurdle performance
measure relates to the Company achieving a cost per tonne target referenced to the industry first quartile. The SPD
performance measure drives a focus on the efficient delivery of long-term projects that directly impact shareholder value.
The SPD hurdle also requires the Company to achieve positive TSR performance. Detailed disclosures of LTI outcomes
against the target are provided in the Remuneration Report.
The table below details the outcomes of MTI awards that were tested in FY23 (or for which the test period concluded on
30 June 2023) and the results of the relevant test:
MTI Year
Test Type
2020
2020
Relative TSR
Costs Target Hurdle
Performance
100th percentile
75th percentile
Outcomes
Vested
100%
100%
Lapsed
0%
0%
Page 92 | Whitehaven Coal Annual Report 2023
Page 92 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
c) Movement in options and performance rights
The following table illustrates the number and weighted average exercise prices of, and movements in, options and
performance rights during the year:
Outstanding at beginning of period
Exercised during the period1
Granted during the period
Forfeited during the period
Lapsed during the period
Outstanding at 30 June
Exercisable at 30 June
Weighted
average
exercise price
2023
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Number
of rights
2023
16,117,001
(1,545,148)
871,0432
(1,132,805)
(328,157)
13,981,934
630,639
Weighted
average
exercise price
Number of
options/rights
2022
$0.17
$0.72
$0.00
$0.00
$0.78
$0.00
$0.00
2022
14,178,517
(1,393,492)
6,805,5613
(1,605,058)
(1,868,527)
16,117,001
32,549
1 During the year ended 30 June 2023, 1,545,148 performance rights were exercised (2022: 562,961 performance rights and 830,531 share
options).
Includes performance rights granted during the year under the following schemes: 143,983 (FY21 LTI scheme), 58,256 (FY21 MTI scheme) and
668,804 (FY22 STI scheme).
Includes 852,507 performance rights granted during the year under the FY21 STI scheme.
2
3
The outstanding balance as at 30 June 2023 is represented by:
Performance rights over ordinary
shares
Performance rights
Performance rights
Performance rights
Performance rights
Outstanding at 30 June 2023
Number
Exercise price
Dates exercisable between
1,055,346
6,039,647
6,218,137
668,804
13,981,934
$nil
$nil
$nil
$nil
30 June 2023 - 28 October 2029
30 June 2023 - 31 October 2030
30 June 2023 - 31 October 2031
30 June 2023 - 31 October 2032
The weighted average remaining contractual life of performance rights outstanding at 30 June 2023 is 7.7 years (2022:
8.6 years).
5.5. Share-based payments
a) Recognised share-based payment expenses
Employee expenses
Performance rights – senior employees
Recognition and measurement:
2023
$’000
10,897
2022
$’000
9,234
The grant date fair value of options and performance rights granted to employees is recognised as an expense, with
a corresponding increase in equity, over the period in which the employees become unconditionally entitled to the
equity instruments. The amount recognised is adjusted to reflect the actual number of instruments that vest, except
for those that fail to vest due to market conditions not being met. Once the instruments have vested, no further
expenses are recognised nor reserves reversed in respect to costs already charged. However, where the share rights
or options have lapsed after vesting, the Group transfers the equivalent amount of the cumulative cost for the lapsed
awards from the share-based payments reserve to another component of equity.
b) Types of share-based payment plans
Performance right grant to CEO and senior employees
In FY22, the Company issued performance rights to the CEO and senior employees under the Company’s FY22 medium
and long-term incentive (MTI and LTI) programs. No performance rights under the Company’s FY23 SIP program were
issued during the year. The terms and conditions of the FY22 grant are as follows:
Performance rights
MTI
LTI tranche 1
LTI tranche 2
LTI tranche 3
LTI tranche 4
Total
2023
2022
Number of
instruments
Vesting date
Vesting date
Number of
instruments
-
-
-
-
-
-
-
-
-
-
-
2,424,720
30 June 2024
671,499
30 June 2024
671,499
30 June 2025
1,764,165
30 June 2024/251
421,171
30 June 2025
5,953,054
1 To the extent that the Costs Hurdle Award is satisfied at the end of the year of testing, 50% of the awards will vest and become exercisable
immediately and the remaining 50% will continue on foot, subject to a further one-year service condition.
The performance rights issued under the FY22 MTI and LTI programs are subject to a performance measure linked to
relative TSR, a Costs Hurdle and a Strategic Priority Delivery (SPD) metric. The TSR performance measure compares the
TSR performance of the Company with the TSR performance of the S&P ASX 100 index. The Costs Hurdle performance
measure relates to the Company achieving a cost per tonne target referenced to the industry first quartile. The SPD
performance measure drives a focus on the efficient delivery of long-term projects that directly impact shareholder value.
The SPD hurdle also requires the Company to achieve positive TSR performance. Detailed disclosures of LTI outcomes
against the target are provided in the Remuneration Report.
The table below details the outcomes of MTI awards that were tested in FY23 (or for which the test period concluded on
30 June 2023) and the results of the relevant test:
MTI Year
Test Type
2020
2020
Relative TSR
Costs Target Hurdle
Performance
100th percentile
75th percentile
Outcomes
Vested
100%
100%
Lapsed
0%
0%
Page 92 | Whitehaven Coal Annual Report 2023
Page 93 | Whitehaven Coal Annual Report 2023
Page 93 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
d) Pricing models
The fair value of performance rights granted under the LTI and MTI programs with a TSR performance hurdle is measured
using a Monte Carlo simulation model incorporating the probability of the performance hurdles being met. The fair value
of performance rights with the non-market performance hurdle (costs target) is measured using the Black-Scholes option
pricing formula.
The fair value of options with a TSR performance hurdle and non-market performance hurdle is measured using a
combination of the Monte Carlo simulation model and Binomial Option Pricing methods.
There were no performance rights granted under the FY23 SIP program during the year ended 30 June 2023.
The following table lists the inputs to the models used for the year ended 30 June 2022:
2022
Performance hurdle
Grant date
Vesting date
Fair value at grant date
Share price
Expected volatility
MTI
TSR
MTI
Cost
Rights
LTI
TSR
LTI
TSR
LTI
Cost
LTI
LTI
Cost TSR/Strategic
Objectives
26 Nov 21
26 Nov 21
26 Nov 21
26 Nov 21
26 Nov 21
26 Nov 21
26 Nov 21
30 Jun 24
30 Jun 24
30 Jun 24
30 Jun 25
30 Jun 24
30 Jun 25
30 Jun 25
$1.78
$2.44
40%
$2.44
$2.44
40%
$1.78
$2.44
40%
$1.80
$2.44
40%
$2.44
$2.44
40%
$2.44
$2.44
40%
$1.85
$2.44
40%
Performance right life
10 years
10 years
10 years
10 years
10 years
10 years
10 years
Risk-free interest rate
0.40%
0.40%
0.40%
0.74%
0.40%
0.74%
0.74%
All share-based payments for existing employees are equity settled.
Page 94 | Whitehaven Coal Annual Report 2023
Page 94 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
d) Pricing models
pricing formula.
The fair value of performance rights granted under the LTI and MTI programs with a TSR performance hurdle is measured
using a Monte Carlo simulation model incorporating the probability of the performance hurdles being met. The fair value
of performance rights with the non-market performance hurdle (costs target) is measured using the Black-Scholes option
The fair value of options with a TSR performance hurdle and non-market performance hurdle is measured using a
combination of the Monte Carlo simulation model and Binomial Option Pricing methods.
There were no performance rights granted under the FY23 SIP program during the year ended 30 June 2023.
The following table lists the inputs to the models used for the year ended 30 June 2022:
2022
Performance hurdle
Grant date
Vesting date
Fair value at grant date
Share price
Expected volatility
MTI
TSR
MTI
Cost
Rights
LTI
TSR
LTI
TSR
LTI
Cost
LTI
LTI
Cost TSR/Strategic
Objectives
26 Nov 21
26 Nov 21
26 Nov 21
26 Nov 21
26 Nov 21
26 Nov 21
26 Nov 21
30 Jun 24
30 Jun 24
30 Jun 24
30 Jun 25
30 Jun 24
30 Jun 25
30 Jun 25
$1.78
$2.44
40%
$2.44
$2.44
40%
$1.78
$2.44
40%
$1.80
$2.44
40%
$2.44
$2.44
40%
$2.44
$2.44
40%
$1.85
$2.44
40%
Performance right life
10 years
10 years
10 years
10 years
10 years
10 years
10 years
Risk-free interest rate
0.40%
0.40%
0.40%
0.74%
0.40%
0.74%
0.74%
All share-based payments for existing employees are equity settled.
6. Group structure
6.1. Group’s subsidiaries
The below is a list of the Group’s subsidiaries, all of which are incorporated in Australia unless otherwise noted:
Ownership interest
2023
2022
Ownership interest
2023
2022
Parent entity
Whitehaven Coal Limited
Subsidiaries
Whitehaven Coal Mining Limited1
Namoi Mining Pty Ltd1
Namoi Agriculture & Mining Pty Ltd
Betalpha Pty Ltd1
Tarrawonga Coal Pty Ltd1
Tarrawonga Coal Sales Pty Ltd2
Whitehaven Coal Holdings Pty Ltd1
Whitehaven MetCoal Holdings Pty Ltd3
Australian Resource Financing Pty Ltd3
A.C.N. 664 400 382 Pty Ltd3
Whitehaven Coal Infrastructure Pty Ltd1
Narrabri Coal Australia Pty Ltd2
Narrabri Coal Pty Ltd1
Narrabri Coal Operations Pty Ltd1
Narrabri Coal Sales Pty Ltd1
Creek Resources Pty Ltd1
Werris Creek Coal Sales Pty Ltd1
Werris Creek Coal Pty Ltd1
WC Contract Hauling Pty Ltd1
Whitehaven Blackjack Pty Ltd1
Whitehaven Project Pty Ltd1
Whitehaven Employee Share Plan Pty Ltd1
Whitehaven WS Pty Ltd2
Aston Resources Limited1
Aston Coal 2 Pty Ltd1
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Aston Coal 3 Pty Ltd1
100%
Maules Creek Coal Pty Ltd1
100%
Boardwalk Resources Limited1
100%
Boardwalk Coal Management Pty Ltd1
100%
Boardwalk Coal Marketing Pty Ltd1
100%
Boardwalk Sienna Pty Ltd1
100%
Boardwalk Monto Pty Ltd1
-
-
-
Boardwalk Dingo Pty Ltd1
Boardwalk Ferndale Pty Ltd1
Coalworks Limited1
100%
Yarrawa Coal Pty Ltd1
100%
Loyal Coal Pty Ltd
100%
Ferndale Coal Pty Ltd
100%
Coalworks (Oaklands North) Pty Ltd1
100%
CWK Nominees Pty Ltd1
100%
Oaklands Land Pty Ltd1
100%
Coalworks (Vickery South) Pty Ltd1
100%
Coalworks Vickery South Operations Pty Ltd1
100%
Vickery South Marketing Pty Ltd1
100%
Vickery South Operations Pty Ltd1
100%
Vickery South Pty Ltd1
100%
Vickery Coal Pty Ltd2
100%
Vickery Coal Operations Pty Ltd3
100%
Winchester South Coal Operations Pty Ltd2
100%
Gunnedah Basin Haulage Pty Ltd3
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
92.5%
92.5%
92.5%
92.5%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
-
100%
-
1 These subsidiaries entered into a Class Instrument 2016/785 dated 28 September 2016 and related deed of cross guarantee with Whitehaven
Coal Limited. Refer to Note 6.4 for further information.
2 These subsidiaries entered into a Class Instrument 2016/785 dated 24 June 2020 and related deed of cross guarantee with Whitehaven Coal
Limited. Refer to Note 6.4 for further information.
3 These subsidiaries entered into a Class Instrument 2016/785 dated 30 June 2023 and related deed of cross guarantee with Whitehaven Coal
Limited. Refer to Note 6.4 for further information.
Recognition and measurement
Subsidiaries are entities controlled by the Company. Control exists when the Company is exposed to, or has rights to,
variable returns from its involvement with an entity and has the ability to affect those returns through its power over
the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date
on which control commences until that control ceases. All intercompany balances and transactions have been
eliminated in preparing the consolidated financial statements.
Page 94 | Whitehaven Coal Annual Report 2023
Page 95 | Whitehaven Coal Annual Report 2023
Page 95 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
6.2. Interest in joint operations
The Group has interests in the following joint operations that are measured in accordance with the terms of each
arrangement, which are in proportion to the Group’s interest in each asset, liability, income and expense of the joint
operations:
Narrabri Coal Joint Venture1
Maules Creek Joint Venture1
Dingo Joint Venture1
Ferndale Joint Venture1
Boggabri-Maules Creek Rail Spur Joint Venture1
Maules Creek Marketing Pty Ltd2
Boggabri-Maules Creek Rail Pty Ltd2
Country of incorporation
Australia
Australia
Ownership interest and voting rights
2023
77.5%
75%
70%
92.5%
39%
75%
39%
2022
77.5%
75%
70%
92.5%
39%
75%
39%
1 These entities have been classified as joint operations under AASB 11 Joint Arrangements, as these joint arrangements are not structured
through separate vehicles.
2 The joint operations above operate as the sales and marketing vehicles or manager of the related unincorporated joint operations and require
joint consent from all joint venture partners on all significant management and financial decisions. The Group recognises its share of assets,
liabilities, revenues and expenses of the above entities as joint operations under AASB 11 Joint Arrangements.
Recognition and measurement
Joint arrangements are arrangements in which two or more parties have joint control. Joint control is the
contractually agreed sharing of control over an arrangement, which exists only when decisions about relevant
strategic and/or key operating decisions require the unanimous consent of the parties sharing control.
The consolidated financial statements of the Group include its share of the assets and liabilities, revenues and
expenses arising jointly or otherwise from those operations, and its revenue derived from the sale of its share of
goods and services from the joint operation. All such amounts are measured in proportion to the Group’s interest in
the joint operation.
Significant accounting judgements, estimates and assumptions
The Group assesses whether it has the power to direct the relevant activities of the investee by considering the rights
it holds with respect to the work program and budget approval, investment decision approval, voting rights in joint
operating committees and changes to joint arrangement participant holdings. Where the Group has joint control,
judgement is also required to assess whether the arrangement is a joint operation or a joint venture.
6.3. Parent entity information
Information relating to Whitehaven Coal Limited
Current assets
Total assets
Current liabilities
Total liabilities
Issued capital
Retained earnings
Share-based payments reserve
Total shareholders’ equity
Profit/(loss) of the parent entity
Total comprehensive income/(loss) of the parent entity
Company
2023
$’000
1,909,178
3,419,785
-
-
1,831,187
1,568,824
19,774
2022
$’000
504,802
2,321,112
-
-
2,780,095
(473,850)
14,867
3,419,785
2,321,112
2,083,300
2,083,300
(2,812)
(2,812)
Page 96 | Whitehaven Coal Annual Report 2023
Page 96 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
6.2. Interest in joint operations
6.4. Deed of cross guarantee
The Group has interests in the following joint operations that are measured in accordance with the terms of each
arrangement, which are in proportion to the Group’s interest in each asset, liability, income and expense of the joint
operations:
Narrabri Coal Joint Venture1
Maules Creek Joint Venture1
Dingo Joint Venture1
Ferndale Joint Venture1
Boggabri-Maules Creek Rail Spur Joint Venture1
Maules Creek Marketing Pty Ltd2
Boggabri-Maules Creek Rail Pty Ltd2
Country of incorporation
Ownership interest and voting rights
2023
77.5%
75%
70%
92.5%
39%
75%
39%
2022
77.5%
75%
70%
92.5%
39%
75%
39%
Australia
Australia
1 These entities have been classified as joint operations under AASB 11 Joint Arrangements, as these joint arrangements are not structured
through separate vehicles.
2 The joint operations above operate as the sales and marketing vehicles or manager of the related unincorporated joint operations and require
joint consent from all joint venture partners on all significant management and financial decisions. The Group recognises its share of assets,
liabilities, revenues and expenses of the above entities as joint operations under AASB 11 Joint Arrangements.
Recognition and measurement
Joint arrangements are arrangements in which two or more parties have joint control. Joint control is the
contractually agreed sharing of control over an arrangement, which exists only when decisions about relevant
strategic and/or key operating decisions require the unanimous consent of the parties sharing control.
The consolidated financial statements of the Group include its share of the assets and liabilities, revenues and
expenses arising jointly or otherwise from those operations, and its revenue derived from the sale of its share of
goods and services from the joint operation. All such amounts are measured in proportion to the Group’s interest in
the joint operation.
Significant accounting judgements, estimates and assumptions
it holds with respect to the work program and budget approval, investment decision approval, voting rights in joint
operating committees and changes to joint arrangement participant holdings. Where the Group has joint control,
judgement is also required to assess whether the arrangement is a joint operation or a joint venture.
Pursuant to ASIC Corporations Instrument 2016/785 dated 28 September 2016, the wholly owned subsidiaries listed in
Note 6.1 (refer footnotes 1 to 3) are relieved from the Corporations Act 2001 (Cth) requirements for the preparation, audit
and lodgement of financial reports, and directors’ reports.
It is a condition of the Class Order that the Company and each of the subsidiaries enter into a deed of cross guarantee
(the ‘Deed’). The effect of the Deed is that the Company guarantees to each creditor payment of any debt in full in the
event of winding up of any of the subsidiaries under certain provisions of the Corporations Act 2001 (Cth). If a winding up
occurs under other provisions of the Corporations Act 2001 (Cth), the Company will only be liable in the event that after
six months any creditor has not been paid in full. The subsidiaries have also given similar guarantees in the event that the
Company is wound up.
The Company and each of the relevant subsidiaries entered into the Deed on 27 June 2008 with subsequent assumption
deeds entered into on 27 June 2012, 25 June 2013, 24 June 2020 and 30 June 2023.
The following consolidated statement of comprehensive income and statement of financial position comprises the
Company and its controlled entities which are party to the Deed (‘Closed Group’) after eliminating all transactions
between parties to the Deed.
Statement of comprehensive income
Profit before tax
Income tax expense
Net profit for the year
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Net movement on cash flow hedges
Income tax effect
Total items that may be reclassified subsequently to profit or loss, net of tax
Items that will not be reclassified subsequently to profit or loss
Net loss on equity instruments designated at fair value through
The Group assesses whether it has the power to direct the relevant activities of the investee by considering the rights
other comprehensive income
Income tax effect
Total items that will not be reclassified subsequently to profit or loss, net of tax
Total comprehensive income for the year, net of tax
6.3. Parent entity information
Information relating to Whitehaven Coal Limited
Current assets
Total assets
Current liabilities
Total liabilities
Issued capital
Retained earnings
Share-based payments reserve
Total shareholders’ equity
Profit/(loss) of the parent entity
Total comprehensive income/(loss) of the parent entity
Company
2023
$’000
1,909,178
3,419,785
-
-
1,831,187
1,568,824
19,774
2022
$’000
504,802
2,321,112
-
-
2,780,095
(473,850)
14,867
3,419,785
2,321,112
2,083,300
2,083,300
(2,812)
(2,812)
Statement of financial position
Assets
Cash and cash equivalents
Trade and other receivables
Inventories
Derivatives
Total current assets
Trade and other receivables
Investments
Property, plant and equipment
Exploration and evaluation assets
Intangible assets
Derivatives
Total non-current assets
Total assets
Page 96 | Whitehaven Coal Annual Report 2023
Page 97 | Whitehaven Coal Annual Report 2023
Page 97 | Whitehaven Coal Annual Report 2023
Closed Group
2023
$’000
3,801,495
(1,133,441)
2,668,054
2,248
(674)
1,574
(5,402)
1,621
(3,781)
2,665,847
2,775,430
326,787
133,875
56
2022
$’000
2,765,893
(813,928)
1,951,965
(88)
26
(62)
-
-
(62)
1,951,903
1,215,375
659,392
157,039
31
3,236,148
2,031,837
5,203
18,183
3,802,111
438,637
12,180
-
4,276,314
7,512,462
7,298
856
3,426,550
647,289
12,180
74
4,094,247
6,126,084
Notes to the consolidated financial statements
For the year ended 30 June 2023
Statement of financial position
Liabilities
Trade and other payables
Interest-bearing liabilities
Employee benefits
Income tax payable
Provisions
Derivatives
Total current liabilities
Non-current liabilities
Other payables
Interest-bearing liabilities
Deferred tax liabilities
Provisions
Derivatives
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Share-based payments reserve
Other reserves
Retained earnings
Total Equity
6.5. Related parties
Compensation to Executive KMP and Non-Executive Directors of the Group
Short-term employee benefits
Contributions to superannuation plans
Share-based compensation payments
Total compensation
Closed Group
2023
$’000
2022
$’000
309,044
361,894
71,835
38,802
871,095
14,723
5,235
77,843
33,987
551,830
16,461
7,774
1,310,734
1,049,789
30,100
117,113
542,207
249,883
346
48,464
166,854
405,169
242,516
104
939,649
863,107
2,250,383
1,912,896
5,262,079
4,213,188
1,657,497
2,639,938
19,774
(7,648)
14,867
(5,441)
3,592,456
1,563,824
5,262,079
4,213,188
2023
$’000
6,995
198
4,631
11,824
2022
$’000
5,817
183
3,087
9,087
Page 98 | Whitehaven Coal Annual Report 2023
Page 98 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Statement of financial position
Liabilities
Trade and other payables
Interest-bearing liabilities
Employee benefits
Income tax payable
Provisions
Derivatives
Total current liabilities
Non-current liabilities
Other payables
Interest-bearing liabilities
Deferred tax liabilities
Total non-current liabilities
Provisions
Derivatives
Total liabilities
Net assets
Equity
Issued capital
Other reserves
Retained earnings
Total Equity
Share-based payments reserve
6.5. Related parties
Compensation to Executive KMP and Non-Executive Directors of the Group
Short-term employee benefits
Contributions to superannuation plans
Share-based compensation payments
Total compensation
Closed Group
2023
$’000
2022
$’000
7. Other notes
7.1. Employee benefits
309,044
361,894
Consolidated statement of comprehensive income
Wages and salaries
Contributions to superannuation plans
Other associated personnel expenses
Increase in liability for annual leave
Increase in liability for long service leave
Share-based compensation payments
Consolidated statement of financial position
Salaries and wages accrued
Liability for long service leave
Liability for annual leave
2023
$’000
2022
$’000
235,889
205,975
16,783
9,945
2,795
206
10,897
14,236
8,976
3,614
112
9,234
276,515
242,147
9,646
655
28,501
38,802
7,832
449
25,706
33,987
Recognition and measurement
Wages, salaries, annual leave and sick leave
Liabilities for wages, salaries, annual leave and sick leave are recognised in respect of employees’ services up to the
reporting date. They are measured at the amounts expected to be paid when the liabilities are settled – that is, at
undiscounted amounts based on remuneration wage and salary rates including related on-costs, such as workers’
compensation insurance and payroll tax.
Long-term service benefits
Liabilities for long service leave and other long-term benefits are recognised and measured at the present value of
the estimated future cash outflows resulting from employees’ services provided up to the reporting date. Long-term
benefits not expected to be settled within twelve months are discounted using the rates attached to high-quality
corporate bonds at the reporting date, which most closely match the maturity dates of the related liability.
Defined contribution superannuation funds
Obligations for contributions to defined contribution superannuation funds are recognised as an expense in the
consolidated statement of comprehensive income as incurred.
1,310,734
1,049,789
71,835
38,802
871,095
14,723
5,235
30,100
117,113
542,207
249,883
346
77,843
33,987
551,830
16,461
7,774
48,464
166,854
405,169
242,516
104
939,649
863,107
2,250,383
1,912,896
5,262,079
4,213,188
1,657,497
2,639,938
19,774
(7,648)
14,867
(5,441)
3,592,456
1,563,824
5,262,079
4,213,188
2023
$’000
6,995
198
4,631
11,824
2022
$’000
5,817
183
3,087
9,087
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Page 99 | Whitehaven Coal Annual Report 2023
Page 99 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
7.2. Auditor’s Remuneration
Auditors of the Company - Ernst & Young (Australia)
Fees to the auditor for
Audit and review of statutory financial statements of the parent covering the Group
Audit of joint operations
Total audit services
Other assurance services where there is discretion as to whether the service is provided by the
auditor or another firm
Review of National Greenhouse and Energy Reporting Act 2007 requirements
Debt capital markets assurance services
Total other assurance services1
Other services
Due diligence services2
Sustainability assurance services
Total other services1
Total auditor’s remuneration
Total non-audit services1
Non-audit services as a % of total auditor’s remuneration
2023
$
626,405
357,435
983,840
52,000
7,280
59,280
688,000
37,309
725,309
2022
$
602,315
343,685
946,000
115,000
209,741
324,741
-
-
-
1,768,429
1,270,741
784,589
44%
324,741
26%
1 During the year Ernst & Young (Australia), the Company’s auditor, has performed certain other assurance services and other services in
addition to their statutory duties.
The Board considered the non-audit services provided during the year by the auditor and, in accordance with written advice provided by
resolution of the Audit & Risk Management Committee, were satisfied that the provision of those non-audit services by the auditor was
compatible with, and did not compromise, the auditor independence requirements of the Corporations Act 2001 (Cth) for the following
reasons:
-
all non-audit services provided were subjected to the corporate governance procedures adopted by the Company and were reviewed
by the Audit & Risk Management Committee to ensure they did not impact the integrity and objectivity of the auditor;
all non-audit services provided did not, and do not, undermine the general principles relating to auditor independence as set out in
APES 110 Code of Ethics for Professional Accountants, as they did not involve reviewing or auditing the auditor’s own work, acting in a
management or decision making capacity for the Company, acting as an advocate for the Company or jointly sharing risks and rewards;
there were no known conflict of interest situations nor any other circumstance arising out of a relationship between Whitehaven
(including its Directors and Officers) and EY which may impact on auditor independence.
-
-
2 The fees for non-audit services paid or payable to the auditor of the Parent Company (EY) have increased in the current year due to the
provision of non-audit services in relation to transactional activities that took place during the year, which are considered to be outside the
ordinary course of business.
7.3. Commitments
a) Capital expenditure commitments
Contracted for but not provided for and payable:
Within one year1
1 There were no commitments for capital expenditure beyond one year.
2023
$’000
2022
$’000
44,210
42,598
Page 100 | Whitehaven Coal Annual Report 2023
Page 100 | Whitehaven Coal Annual Report 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
Notes to the consolidated financial statements
For the year ended 30 June 2023
7.4. Contingencies
a) Guarantees
The Group provided bank and surety guarantees to:
i)
ii)
iii)
iv)
v)
government departments as a condition of continuation of mining and exploration licences
rail capacity providers
port capacity providers
electricity network access supplier
other
2023
$’000
239,336
23,449
158,836
20,493
4,920
2022
$’000
256,468
25,529
156,564
20,493
3,688
447,034
462,742
b) Other
As previously reported, representative proceedings were commenced against the Group on 21 December 2018 in the
Supreme Court of Queensland by Nathan Tinkler as representative applicant. The proceedings were brought on behalf of
a number of parties who were issued with Milestone Shares (subject to restrictions on voting and transfer until various
development milestones are met) in Whitehaven Coal Limited in May 2012. The proceedings have since been transferred
to the Supreme Court of New South Wales and the representative applicant has been replaced by Les & Zelda
Investments Pty Ltd (ACN 148 907 573) as Trustee for the Les & Zelda Family Trust. The pleadings make various
allegations against the Group in relation to the Milestone Shares. The Group denies those allegations. The proceedings are
ongoing, and no trial date has yet been set.
Other than the above, there are a number of legal and potential claims against the Group that have arisen in the ordinary
course of business. The Group does not believe that these matters will result in any material adverse outcome based on
information currently available.
1 During the year Ernst & Young (Australia), the Company’s auditor, has performed certain other assurance services and other services in
7.5. Subsequent events
addition to their statutory duties.
In the interval between the end of the financial year and the date of this report there has not arisen any item, transaction
or event of a material or unusual nature likely, in the opinion of the Directors of the Company, to affect significantly the
operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial years, other
than the following:
− Subsequent to the end of the financial year, the Directors declared a fully franked final dividend of 42 cents per share
totalling $337.1 million to be paid on 15 September 2023.
Audit and review of statutory financial statements of the parent covering the Group
Other assurance services where there is discretion as to whether the service is provided by the
Review of National Greenhouse and Energy Reporting Act 2007 requirements
7.2. Auditor’s Remuneration
Auditors of the Company - Ernst & Young (Australia)
Fees to the auditor for
Audit of joint operations
Total audit services
auditor or another firm
Debt capital markets assurance services
Total other assurance services1
Other services
Due diligence services2
Sustainability assurance services
Total other services1
Total auditor’s remuneration
Total non-audit services1
Non-audit services as a % of total auditor’s remuneration
2023
$
626,405
357,435
983,840
52,000
7,280
59,280
688,000
37,309
725,309
2022
$
602,315
343,685
946,000
115,000
209,741
324,741
-
-
-
1,768,429
1,270,741
784,589
44%
324,741
26%
The Board considered the non-audit services provided during the year by the auditor and, in accordance with written advice provided by
resolution of the Audit & Risk Management Committee, were satisfied that the provision of those non-audit services by the auditor was
compatible with, and did not compromise, the auditor independence requirements of the Corporations Act 2001 (Cth) for the following
reasons:
-
-
-
all non-audit services provided were subjected to the corporate governance procedures adopted by the Company and were reviewed
by the Audit & Risk Management Committee to ensure they did not impact the integrity and objectivity of the auditor;
all non-audit services provided did not, and do not, undermine the general principles relating to auditor independence as set out in
APES 110 Code of Ethics for Professional Accountants, as they did not involve reviewing or auditing the auditor’s own work, acting in a
management or decision making capacity for the Company, acting as an advocate for the Company or jointly sharing risks and rewards;
there were no known conflict of interest situations nor any other circumstance arising out of a relationship between Whitehaven
(including its Directors and Officers) and EY which may impact on auditor independence.
2 The fees for non-audit services paid or payable to the auditor of the Parent Company (EY) have increased in the current year due to the
provision of non-audit services in relation to transactional activities that took place during the year, which are considered to be outside the
ordinary course of business.
7.3. Commitments
a) Capital expenditure commitments
Contracted for but not provided for and payable:
Within one year1
1 There were no commitments for capital expenditure beyond one year.
2023
$’000
2022
$’000
44,210
42,598
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Page 101 | Whitehaven Coal Annual Report 2023
Directors’ declaration
Directors’ declaration
Notes to the consolidated financial statements
For the year ended 30 June 2023
For the year ended 30 June 2023
For the year ended 30 June 2022
In accordance with a resolution of the directors of Whitehaven Coal Limited, I state that:
In the opinion of the Directors:
(a) The financial statements and notes of Whitehaven Coal Limited are in accordance with the Corporations Act 2001
(Cth), including:
(i) Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2023 and of its
performance for the year ended on that date, and
(ii) Complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and
the Corporations Regulations 2001
(b) The financial statements and notes also comply with International Financial Reporting Standards as disclosed in
note 1
(c) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable
(d) This declaration has been made after receiving the declarations required to be made to the Directors in accordance
with section 295A of the Corporations Act 2001 (Cth) for the financial year ending 30 June 2023
(e) As at the date of this declaration, there are reasonable grounds to believe that the members of the Closed Group
identified in note 6.4 will be able to meet any obligations or liabilities to which they are or may become subject, by
virtue of the Deed of Cross Guarantee.
On behalf of the Board
The Hon. Mark Vaile AO
Chairman
Paul Flynn
Managing Director
Sydney
24 August 2023
Page 102 | Whitehaven Coal Annual Report 2023
Page 102 | Whitehaven Coal Annual Report 2023
In accordance with a resolution of the directors of Whitehaven Coal Limited, I state that:
In the opinion of the Directors:
(Cth), including:
(a) The financial statements and notes of Whitehaven Coal Limited are in accordance with the Corporations Act 2001
(i) Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2023 and of its
performance for the year ended on that date, and
(ii) Complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and
the Corporations Regulations 2001
(b) The financial statements and notes also comply with International Financial Reporting Standards as disclosed in
note 1
due and payable
(d) This declaration has been made after receiving the declarations required to be made to the Directors in accordance
with section 295A of the Corporations Act 2001 (Cth) for the financial year ending 30 June 2023
(e) As at the date of this declaration, there are reasonable grounds to believe that the members of the Closed Group
identified in note 6.4 will be able to meet any obligations or liabilities to which they are or may become subject, by
virtue of the Deed of Cross Guarantee.
On behalf of the Board
The Hon. Mark Vaile AO
Chairman
Paul Flynn
Managing Director
Sydney
24 August 2023
Notes to the consolidated financial statements
Directors’ declaration
Directors’ declaration
For the year ended 30 June 2023
For the year ended 30 June 2022
For the year ended 30 June 2023
Independent Auditor’s report
Independent Auditor’s report
For the year ended 30 June 2023
For the year ended 30 June 2023
(c) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
Independent auditor’s report to the members of Whitehaven Coal Limited
Ernst & Young
200 George Street
Sydney NSW 2000 Australia
GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555
Fax: +61 2 9248 5959
ey.com/au
Report on the audit of the financial report
Opinion
We have audited the financial report of Whitehaven Coal Limited (the Company) and its subsidiaries
(collectively the Group), which comprises the consolidated statement of financial position as at 30
June 2023, the consolidated statement of comprehensive income, consolidated statement of changes
in equity and consolidated statement of cash flows for the year then ended, notes to the financial
statements, including a summary of significant accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
a. Giving a true and fair view of the consolidated financial position of the Group as at 30 June 2023
and of its consolidated financial performance for the year ended on that date; and
b.
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial
report section of our report. We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (including Independence Standards) (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial report of the current year. These matters were addressed in the context of
our audit of the financial report, and in forming our opinion thereon, but we do not provide a separate
opinion on these matters. For each matter below, our description of how our audit addressed the
matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the
financial report section of our report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of
material misstatement of the financial report. The results of our audit procedures, including the
procedures performed to address the matters below, provide the basis for our audit opinion on the
accompanying financial report.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
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Independent Auditor’s report
For the year ended 30 June 2023
Carrying value of property, plant and equipment and recoverability of exploration and
evaluation assets
Why significant
How our audit addressed the key audit matter
At 30 June 2023, the Group’s consolidated statement of
financial position included $3,802m of property, plant and
equipment and $438.6m of exploration and evaluation
assets.
As disclosed in Note 4.1 of the financial report, the Group
assesses property, plant and equipment for indicators of
impairment or impairment reversal at each balance date.
This involved an assessment of any potential indicators
which includes, but is not limited to, assessing the demand
for fossil fuels, forecast coal prices, changes in operating
costs and capital expenditure, discount rates and changes in
mineral reserves and resources. Where an indicator of
impairment or impairment reversal is identified, a full
impairment testing is required.
With regards to exploration and evaluation assets, Note 4.2
outlines how the Group assesses its exploration and
evaluation assets for indicators of impairment. The decision
as to whether there are indicators that require the Group’s
exploration assets to be assessed for impairment include,
but is not limited to, judgements determining whether future
economic benefits are likely by successful development,
commercial exploitation or sale of the respective areas of
interest.
At 30 June 2023, the Group concluded no impairment
indicators were present however an impairment test was
required in respect of the Vickery Project ($270.6m) as it
was transferred from exploration and evaluation to
property, plant and equipment.
Forecast assumptions in relation to commodity prices are
inherently uncertain. There is a risk that the assumptions
may not appropriately reflect changes in supply and
demand, including the impact of climate change and energy
transition.
Due to the size of these assets relative to the Group’s total
assets, and the significant judgement involved in the
assessment of indicators of impairment, including changes in
the coal demand and forecast commodity price as a result of
climate risk and energy transition, this was considered a key
audit matter.
Our audit procedures in respect of property, plant and
equipment included the following:
•
•
Consideration of the appropriateness of the Group’s
identification of its single cash generating unit.
Evaluating the Group’s assessment of the existence of
impairment indicators, including:
o Assessment of changes in forecast coal demand
and coal prices with reference to external
observable market data and independent
economic analysis which has considered climate
change and energy transition.
o Comparison of other key assumptions including
coal reserves, discount rates, inflation rates,
and foreign exchange rates to corresponding
amounts used in impairment testing in prior
years.
o Analysis of actual operating and capital costs
for the current year compared with budget data
for the same period to assess forecast accuracy
and also consideration of the existence of
information contrary to the Group’s impairment
indicators conclusion.
o Analysis of Group’s cost forecasts associated
with complying with changes to the National
Greenhouse and Energy Reporting Scheme
Safeguard Mechanism.
With regards to exploration and evaluation assets, our
procedures in relation to the Group’s assessment of
indicators of impairment for each area of interest included
the following:
•
•
•
Obtained evidence to support title to the areas of
interest and the regulatory approvals received for the
Vickery Project and Narrabri Stage 3 Extension.
Considered the Group’s intention to carry out
significant exploration and evaluation activity in the
relevant areas of interest, which included reviewing the
Group’s Board approved budget.
Inquired of management as to the intentions and
strategy of the Group in relation to the potential
development of the assets.
In conjunction with our valuation specialists, we evaluated
the Group’s impairment test for the Vickery Project,
performed on transfer of the assets from exploration and
evaluation to the Group’s single CGU. Our audit procedures
included:
•
Assessing the key assumptions used in the
impairment test, including forecast coal prices,
discount rates, inflation rates and foreign
exchange rates for consistency with the Group’s
assumptions referred to above that we considered
in our impairment indicator assessment.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Page 104 | Whitehaven Coal Annual Report 2023
Page 104 | Whitehaven Coal Annual Report 2023
Independent Auditor’s report
For the year ended 30 June 2023
Independent Auditor’s report
For the year ended 30 June 2023
Why significant
How our audit addressed the key audit matter
•
•
Assessing the recoverable coal reserves and
forecast operating and capital cost used in the
impairment test; and
Testing the mathematical accuracy of the
impairment model.
We evaluated the adequacy of the related disclosures in the
financial report.
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
information included in the Group’s 2023 annual report but does not include the financial report and
our auditor’s report thereon. We obtained the directors’ report that is to be included in the annual
report, prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the
annual report after the date of this auditor’s report.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
and our related assurance opinion.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
If, based on the work we have performed on the other information obtained prior to the date of this
auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Page 104 | Whitehaven Coal Annual Report 2023
Page 105 | Whitehaven Coal Annual Report 2023
Page 105 | Whitehaven Coal Annual Report 2023
Independent Auditor’s report
For the year ended 30 June 2023
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:
► Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
► Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
► Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause the Group to
cease to continue as a going concern.
► Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events
in a manner that achieves fair presentation.
► Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Page 106 | Whitehaven Coal Annual Report 2023
Page 106 | Whitehaven Coal Annual Report 2023
Independent Auditor’s report
For the year ended 30 June 2023
Independent Auditor’s report
For the year ended 30 June 2023
From the matters communicated to the directors, we determine those matters that were of most
significance in the audit of the financial report of the current year and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the audit of the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 32 to 53 of the directors’ report for the
year ended 30 June 2023.
In our opinion, the Remuneration Report of Whitehaven Coal Limited for the year ended 30 June
2023, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.
Ernst & Young
Scott Jarrett
Partner
Sydney
24 August 2023
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Page 107 | Whitehaven Coal Annual Report 2023
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
ASX additional information
Additional information required by the Australian Securities Exchange Limited Listing Rules and not disclosed elsewhere
in this report is set out below.
Shareholdings
Substantial shareholders
The number of shares recorded as owned by substantial shareholders and their associates in the most recent substantial
shareholder notices advised to the Company by these shareholders are set out below:
Shareholder
UBS Group AG and its related bodies corporate
The Vanguard Group, Inc. and its controlled entities
JPMorgan Chase & Co. and its affiliates
Percentage of
capital held
Number of ordinary
shares held
Date of substantial
shareholder notice
5.99%
5.00%
5.02%
50,188,643
43,673,310
41,997,989
7 Jul 2023
9 May 2023
22 August 2023
Voting rights
Ordinary shares
Refer to note 5.4 in the financial statements
Options
There are no voting rights attached to the options.
Distribution of equity security holders
Category
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Number of equity security holders
% of Units
11,373
11,184
3,284
2,975
214
0.61
3.49
3.01
9.38
83.51
29,030
100.00
There are no holders of options over ordinary shares.
The number of shareholders holding less than a marketable parcel of ordinary shares is 901.
Page 108 | Whitehaven Coal Annual Report 2023
Page 108 | Whitehaven Coal Annual Report 2023
ASX additional information
Securities exchange
The Company is listed on the Australian Securities Exchange.
Other information
Additional information required by the Australian Securities Exchange Limited Listing Rules and not disclosed elsewhere
Whitehaven Coal Limited, incorporated and domiciled in Australia, is a publicly listed company limited by shares.
in this report is set out below.
Shareholdings
Substantial shareholders
The number of shares recorded as owned by substantial shareholders and their associates in the most recent substantial
shareholder notices advised to the Company by these shareholders are set out below:
Shareholder
UBS Group AG and its related bodies corporate
The Vanguard Group, Inc. and its controlled entities
JPMorgan Chase & Co. and its affiliates
Percentage of
capital held
Number of ordinary
shares held
Date of substantial
shareholder notice
5.99%
5.00%
5.02%
50,188,643
43,673,310
41,997,989
7 Jul 2023
9 May 2023
22 August 2023
Refer to note 5.4 in the financial statements
There are no voting rights attached to the options.
Distribution of equity security holders
Voting rights
Ordinary shares
Options
Category
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Number of equity security holders
% of Units
11,373
11,184
3,284
2,975
214
0.61
3.49
3.01
9.38
83.51
Twenty largest shareholders (legal ownership)
Name
HSBC CUSTODY NOMINEES (AUSTRALIA) LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
CITICORP NOMINEES PTY LTD
MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED
BNP PARIBAS NOMS PTY LTD
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