Whitehaven Coal Annual Report 2024 | Page A
Annual Report
2024
QUEENSLAND
Port of Gladstone
RG Tanna Coal Terminal
Rockhampton
Moranbah
Mackay
Port of Hay Point
Winchester South Project
Dalrymple Bay Terminal
Daunia
Blackwater
NEW SOUTH
WALES
Narrabri
Boggabri
Gunnedah
Gunnedah CHPP
Newcastle
Sydney
Tamworth
Gunnedah
Basin
Bowen
Basin
Maules Creek Mine
Tarrawonga Mine
Werris Creek
Mine rehabilitation2
Narrabri Mine
(PWCS and NCIG
Coal Terminals)
Vickery Mine1
Our business
Whitehaven has transformed into a
leading Australian metallurgical coal
producer, while maintaining our position
as a producer of high-quality, high
CV thermal coal. Our metallurgical
(steelmaking) and thermal coal products
are exported predominantly to Asia.
Our strategy
1
FY24 in Review
2
Chairman’s introduction
4
Managing Director and
CEO’s introduction
5
Directors’ Report
6
Operating and
financial review
16
Remuneration Report
31
Financial Report
59
ASX additional information
118
Resources and Reserves
120
Glossary
122
Financial History
123
1.
Vickery is an approved development project. Early mining, which commenced in
the June 2024 quarter, is a smaller scale project ahead of full scale development.
2. Werris Creek reached the end of its mine life and transitioned to a rehabilitation site
in the June 2024 quarter.
Our operations
Key
Projects
Current operations
Railway
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
Contents
Whitehaven Coal Annual Report 2024 | Page 1
1.
On an equity basis. Q4 FY24 is first quarter of ownership of Queensland mines.
2. Ratio of metallurgical managed coal sales is expected to increase with higher sales from Queensland.
3. Other includes: Vietnam, Indonesia, New Caledonia, Chile, Europe and Australia.
Our strategy
Our strategy is to own and sustainably operate large, cost-efficient
mines producing high quality coal to meet the energy needs of
our customers and support economic development. Our long-held
strategic goal has been to grow our metallurgical coal business.
We are delivering on our strategy.
We are playing an
important role in the
energy transition and
economic growth
Our steelmaking coal is supporting mature
and emerging Asian countries to develop
and thrive, including by meeting steel
demand to build renewable energy and
critical infrastructure.
Our high energy thermal coal is supporting
energy security through the energy
transition and offering lower emissions
outcomes than other coal products.
At the same time, we contribute significantly
to Australia’s economic prosperity and
sustain regional economies.
We have pivoted
our product
portfolio towards
steelmaking coal
We are operating in
markets with strong
underlying demand and
structural supply shortfalls
We are delivering exceptional
growth, while focused on
managing safe, responsible
and efficient operations
90%
10%
41%
59%
Thermal
Metallurgical2
Managed ROM coal
production (M tonnes)
Revenue by product1
Revenue by end market1
FY24 excluding
acquisition
Q4 FY24
FY24
50% Japan
5% Europe
6% India
14% Taiwan
8% Other3
10% Malaysia
7% Korea
FY23
FY24
FY25
Guidance
Acquired
Queensland
mines
NSW mines
18.2
35-39.5
24.5
$3.8b
FY24 in review
FY24 was a year of transformation
for Whitehaven. The highly attractive
and earnings-accretive acquisition
of Daunia and Blackwater coal mines
in Queensland completed in the
fourth quarter, doubling the size
of the business and transforming
Whitehaven into a metallurgical
coal producer, in line with strategy.
Importantly, Whitehaven’s NSW
business, which remains focused
on meeting customers’ needs for
high quality, high CV thermal coal,
delivered solid results in FY24.
Delivered solid financial results
`
An average realised coal price for the NSW business
of A$217/t for FY24 and A$271/t for the QLD
business in Q4 FY24
`
Unit costs of A$120/t reflecting lower Narrabri
volumes, inflationary impacts and one quarter of
ownership of QLD
`
Revenue of $3.8b
`
Underlying EBITDA of $1.4b
`
Underlying NPAT of $740m, before $385m
of non-recurring costs (primarily acquisition related)
Maintained balance sheet strength
and returned capital
`
Funded the acquisition with a new 5-year US$1.1b
credit facility and cash held on the balance sheet
`
Maintaining prudent gearing
`
Net debt at 30 June 2024 of $1.3b
`
Returned $392m of capital to shareholders through
dividends in FY24
`
Fully franked FY24 dividend of 20 cps
(13 cps final + 7 cps interim)
`
23% TSR ranked #30 in ASX100
Whitehaven Coal Annual Report 2024 | Page 2
Whitehaven Coal Annual Report 2024 | Page 3
1.
Deferred payments consist of US$500m, US$500m and US$100m payable in separate tranches on the first, second and third anniversary of the completion
date. Contingent payments paid from 35% revenue share, capped at US$350m each year and a total of US$900m over three years post completion. Subject
to average realised prices achieved by the Assets exceeding respective thresholds of US$159/t in the 12-month period 12 months post-completion, US$134/t
in the 12-month period 24 months post-completion and US$134/t in the 12-month period 36 months post completion.
2. Excludes the acquired QLD businesses, which reported a TRIFR of 6.6 for the first quarter of ownership Q4 FY24. Results will be consolidated from FY25.
3. EEAs includes penalty notices, enforceable undertakings, suspensions, prevention notices and prosecutions.
Completed a transformational,
strategically-aligned acquisition
`
18 Oct-23: acquisition of Daunia & Blackwater
announced for an upfront payment of US$2.1b,
US$1.1b of deferred payments over three years and
up to US$900m of coal-price linked contingent
payments over three years1
`
2 Apr-24: completed the acquisition
`
Delivers diversification and scale benefits,
and expansion in attractive growth market
`
22 Aug-24: announced sale of 30% of Blackwater
to Nippon Steel and JFE Steel for US$1.08b,
expected to complete Q1 CY25
Played a key role in the energy transition
while meeting decarbonisation goals
`
Provided energy security and helped reduce
customers’ emissions by supplying high CV coal
to fuel high efficiency, low emissions (HELE)
power stations
`
1.2m tonnes of Scope 1 CO2-e emissions including
244k tonnes from QLD business in Q4 FY24
`
Revised Scope 1 emissions intensity
reduction target of 32% by FY30 (from FY23),
incorporating the QLD mines and aligned with the
Safeguard Mechanism.
Significantly improved safety,
environmental and diversity outcomes
`
Employee and contractor TRIFR of 3.32,
a 30% improvement on FY23
`
Zero environmental enforcement actions3
(EEAs) – in line with FY23 and compared with
an average of 4.5 p.a. over the prior 4 years
`
Acquired QLD businesses TRIFR of 6.6
and zero EEAs in first quarter of ownership
(Q4 FY24)
`
22.7% female empolyees, and 19.7% in legacy
business up from 17.3% in FY23
Responsibly closed old mines
and progressed developments
`
Werris Creek reached the end of its mine
life and transitioned to a rehabilitation site
in Q4 FY24
`
Early stage mining of Vickery project delivered on
time and within budget in FY24;
first coal sold in Jun-24 increasing to ~0.9-1Mtpa
sales following ramp up (partially replacing Werris
Creek volumes)
`
Feb-24: QLD government decision to approve the
Winchester South Draft Environmental Authority
received; progressing through EPBC process
Supplied strong demand from long-term
and new customers
`
NSW run-of-mine (ROM) managed coal production
of 19.7Mt (8% above FY23) and QLD Q4 ROM of
4.8Mt, both within guidance
`
Strong operational performance at NSW open cuts
offset weaker results at Narrabri underground mine
`
Total managed sales of produced coal of
19.5Mt in FY24
`
Each day, our coal powered Japan for 34 minutes,
Malaysia for 35 minutes, Taiwan for 22 minutes and
South Korea for 8 minutes
Meaningfully contributed
to communities
`
$1.5 billion of Australian taxes and
royalties paid in FY24
`
$1.25 million contributed in corporate community
partnerships and donations
`
$462 million spent with local suppliers
in NSW including $17 million with 14 Aboriginal
and Torres Strait Islander businesses
`
Published Whitehaven’s Stakeholder Engagement
and Community Investment Strategy 2024–26
Chairman’s introduction
Whitehaven Coal Annual Report 2024 | Page 4
We have successfully repositioned the
Company in line with our long-held
strategy to grow in metallurgical coal.
By carefully deploying capital we have
rewarded shareholders and funded
sensible, value-enhancing growth that
strengthens Whitehaven for the future.”
“
FY24 was an exceptionally busy year for Whitehaven, including the start of early mining
of Vickery, the transition of Werris Creek to a rehabilitation site, and more significantly,
the acquisition of Daunia and Blackwater metallurgical coal mines in Queensland. This
acquisition provides diversification and scale benefits and positions the business to deliver
sustained value for our shareholders, customers, communities and other stakeholders.
The successful transition of Daunia
and Blackwater into the Whitehaven
portfolio, and the subsequent sell
down of 30% of Blackwater, required
substantial effort and commitment.
On behalf of the Board and
shareholders I extend my
gratitude to Paul Flynn, the
Executive Leadership Team
and all of Whitehaven’s people,
including those who joined us in
FY24, for their dedication and
hard work that contributed to the
safe and successful outcomes we
have achieved.
From the underlying NPAT
of $740 million reported for
FY24, we are returning 22% to
shareholders through a 20 cent
fully franked dividend (being a 7 cent
interim and 13 cent final dividend).
When surplus capital emerges after
making the deferred payments for the
Queensland acquisition, we expect to
increase returns to shareholders.
A highlight for FY24 was the 30%
year-on-year improvement in total
recordable injury frequency rate
to 3.3, and the zero environmental
enforceable actions, consolidating
the significant improvement
delivered in FY231.
We now operate in two supply
constrained coal markets – the high
CV seaborne thermal coal market
and the seaborne metallurgical coal
market. In both cases, demand is
forecast to grow in the next few
decades while supply is expected to
reduce due to large mines reaching
their end of mine-life and
underinvestment in development
projects. This means Whitehaven’s
products will continue to be
highly sought after, and that our
development projects provide us
with a competitive advantage and
further growth opportunities.
With the five key markets of Japan,
Taiwan, South Korea, Malaysia
and India representing nearly
90% of our sales, we stay very
close to our customers to ensure
we understand their current and
future needs. The agreement to
sell 30% of our Blackwater mine
to Nippon Steel and JFE Steel
for US$1.08 billion in addition to
long-term offtake arrangements,
which we announced in August,
demonstrates the enduring demand
for our metallurgical coal and the
importance of supply security for
our customers.
The Board spends time with
customers and other stakeholders
from key markets to stay up to
date with plans and developments
that could impact their thermal
and metallurgical coal needs. Our
confidence in the demand outlook
for our products remains strong.
As a Board, we also spent time at
our new Queensland operations.
We are impressed by the quality
of the assets we have acquired,
the capability and enthusiasm
of our people who have joined
Whitehaven, and the opportunities
for the business, in the near and
longer term.
In FY24 we invested considerable
time engaging with shareholders,
including to ensure we understand
and consider shareholders’
perspectives on executive
remuneration. Our 2024
Remuneration Report incorporates
the feedback we received.
In February 2024 we welcomed
Mick McCormack to the Board.
We are benefitting from his
40 years of experience in the energy
and infrastructure sectors, adding
to the Board’s breadth and depth of
operational, financial and leadership
experience across resources, energy
and funds management industries.
I thank my fellow directors for their
contribution and dedication in FY24,
and I also thank our shareholders for
your support and trust as we have
worked to strengthen Whitehaven
for the future.
I look forward to reporting a
full year of results in FY25 as
a transformed business.
The Hon. Mark Vaile, AO
Chairman
1.
TRIFR for employees and contractors of 3.3 excludes the acquired QLD operations, which delivered a TRIFR of 6.6 in
Q4 FY24, the first quarter of ownership. The QLD operations delivered zero environmental enforceable actions in Q4 FY24.
Whitehaven Coal Annual Report 2024 | Page 5
Managing Director and CEO’s introduction
FY24 was a pivotal year for Whitehaven,
marked by strategic growth that
delivered immediate and long-term
value for Whitehaven’s shareholders.
At the same time, we maintained our
focus on safe, responsible and efficient
operational performance.”
“
Despite being an extremely busy and dynamic year, our people delivered impressive safety
and environmental results, with a 30% reduction in TRIFR to 3.3 and no environmental
enforceable actions.
Operationally, we produced
24.5 million tonnes of managed
ROM for the year, 34% higher than
FY23, reflecting strong performance
from our open-cut mines in NSW
and a promising start from our
Queensland operations in their first
quarter of our ownership.
We reported $3.8 billion of revenue
and $1.4 billion in underlying EBITDA
including a Q4 FY24 revenue
and EBITDA contribution from
the acquired Queensland assets
of $869 million and $272 million,
respectively. We reported
$740 million in underlying NPAT and
Statutory NPAT of $355 million after
$385 million of non-recurring items,
primarily related to the acquisition.
Whitehaven ended FY24 in the top
third of ASX100 companies, with a
23% Total Shareholder Return. Over
a three-year and four-year period,
Whitehaven was ranked as the top
returning stock in the ASX100.
The highlight of the period was
completion of the Queensland
metallurgical coal acquisition on
2 April 2024 for an upfront payment
of US$2.1 billion and deferred
payments of US$1.1 billion over three
years, together with revenue sharing
over three years if certain coal price
thresholds are realised.
When we announced the acquisition,
we said we would consider a sell
down to global steel producers as
strategic joint venture partners.
After a highly competitive process,
we executed binding agreements
with Nippon Steel and JFE Steel
in August 2024 to sell a combined
30% equity stake in the Blackwater
mine, for a total cash consideration
of US$1.08 billion.
This strategic joint venture,
which includes off-take
arrangements, validates
Whitehaven’s acquisition and
the ongoing importance of
Blackwater coal in the metallurgical
coal market. This is a tremendous
conclusion to the acquisition
process that has transformed
Whitehaven into a metallurgical
coal producer, and now with a very
solid financial footing. Proceeds
from the sell down will provide
enhanced flexibility to allocate
capital in line with our capital
allocation framework, while meeting
deferred and contingent payments.
The transactions are expected to
complete in Q1 of CY25.
Our high-quality NSW thermal
coal assets remain strategically
important and will continue to
support global energy security,
particularly in Asia where there
continues to be strong demand
for its use in high-efficiency,
low-emissions coal-fired
power stations.
In FY25, we are focused on
building a solid foundation to
support sustainable long-term
success. We have taken a measured
approach to guidance for our new
assets in this first year of ownership,
and in NSW, production volumes
and costs will be impacted by the
closure of Werris Creek and ramp
up of Vickery; lower volumes from
Tarrawonga as we mine through a
higher strip ratio area; and an
eight-week longwall move
at Narrabri.
We expect between 35 and
39.5 million tonnes of managed
ROM production in FY25 and 28 to
31.5 million tonnes of managed coal
sales. We expect unit costs to be in
the range of $140 to $155 per tonne
and we are aiming to lower these
costs over time, including through a
$100 million cost reduction program
in Queensland, and higher volumes
in both Queensland and NSW.
As we look forward to the
opportunities ahead, I thank our
Board of Directors and Whitehaven’s
people for their dedication and
hard work in FY24. I also thank our
customers, suppliers, joint venture
partners and shareholders for their
continued support.
Finally, I thank our local communities
and Traditional Owner groups who
are valued partners. We are proud
of our relationships in NSW and
the connections we are building in
Queensland. Our 2024 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.
Paul Flynn
Managing Director and CEO
Directors’ Report
For the year ended 30 June 2024
Whitehaven Coal Annual Report 2024 | Page 7
Directors’ Report
For the year ended 30 June 2024
The Directors present their report together with the consolidated financial report of
Whitehaven Coal Limited (the ‘Company’) and its controlled entities (the ‘Group’) for
the year ended 30 June 2024.
1. Principal activities
The principal activity of the Group during the period was the development and operation of coal mines in Queensland
and New South Wales.
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 a former Director Trustee of
HostPlus Superfund. Mark is currently a Director of ServCorp Limited
which is listed on the ASX (since June 2011) and 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 Remuneration Committee
Whitehaven Coal Annual Report 2024 | Page 8
Directors’ Report
For the year ended 30 June 2024
Nicole Brook
BE (Mining)(Hons), MBA,
FAusIMM
Non-Executive Director
Appointed:
3 November 2022
With a background in mining engineering, Nicole has 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 is currently Chair of the Board and President of the AusIMM.
She has a Bachelor of Engineering (Mining) (Hons) from University of
New South Wales and a Master of Business Administration from the
University of Melbourne.
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 Flynn
BComm, FCA
Managing Director
Appointed:
25 March 2013
Previously Non-Executive
Director
Appointed: 3 May 2012
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
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 is currently a Director of Servcorp Limited, where she chairs
the Remuneration Committee, and is 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
Whitehaven Coal Annual Report 2024 | Page 9
Directors’ Report
For the year ended 30 June 2024
Tony Mason
BA, DipFinMgt,
DipAppFinInv, CPA,
MAICD, F Fin
Non-Executive Director
Appointed:
25 August 2023
Tony has more than 40 years’ experience in the mining sector
predominantly in the coal mining industry in NSW and Queensland,
working for North Broken Hill Limited, Pasminco, Peabody, Rio Tinto
and Xstrata. He has experience across a variety of finance and
business development roles, including six years until his retirement
from executive roles in 2018 as the Director of Finance for Glencore
Coal Assets Australia, Australia’s largest coal exporter.
Tony has sat on numerous joint venture Boards and investment
committees, including as Chair. He joined the Board of Whitehaven as
an independent non-Executive Director in August 2023.
Tony has a Bachelor of Arts majoring in English and Politics from
University of New England with post graduate qualifications in
Financial Management, Business, Leadership and Applied Finance &
Investment. He is a member of the Australian Institute of Company
Directors.
Former ASX-listed directorships in the last three years: Nil
Member of the Audit & Risk Management Committee
Member of the Health, Safety, Environment & Community Committee
Mick McCormack
MBA, BASc, FAICD,
GradDipEng
Non-Executive Director
Appointed:
16 February 2024
Mick has more than 40 years of experience in the energy and
infrastructure sectors, including gas-fired and renewable energy
power generation, gas processing, LNG and underground storage.
Mick worked for 15 years at AGL Energy and 20 years at APA group,
including 15 years as the Managing Director & CEO. Mick is Chair of
Central Petroleum Limited (since November 2020), and a Non-
Executive Director of Origin Energy (since December 2020). He is
also Chair of the Australian Brandenburg Orchestra Foundation, a
director of the Clontarf Foundation, and is a patron of the Australian
Ice Hockey League.
Mick holds a Masters of Business Administration from the University
of Queensland, a Graduate Diploma of Engineering from Monash
University, and a Bachelor of Applied Science from the University of
Queensland, and is a fellow of the Australian Institute of Company
Directors.
Former ASX-listed directorships in the last three years: Non-
Executive Director, Austral Limited (September 2020 – March 2024)
Member of the Health, Safety, Environment & Community Committee
Fiona Robertson AM
MA (Oxon), FAICD,
FAusIMM
Non-Executive Director
Appointed:
16 February 2018
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
Whitehaven Coal Annual Report 2024 | Page 10
Directors’ Report
For the year ended 30 June 2024
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 an 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
Dr Julie Beeby
Dr. Julie Beeby was also a director during the financial year ended 30
June 2024, having been appointed on 17 July 2015 and retired with
effect from 26 October 2023.
Whitehaven Coal Annual Report 2024 | Page 11
Directors’ Report
For the year ended 30 June 2024
2 (b) Senior Executives
Paul Flynn —
Managing Director and Chief
Executive Officer
Refer to details set out in section
2(a) Directors on page 8.
Kevin Ball —
Chief Financial Officer
BComm, CA
Appointed Chief Financial Officer of
in October 2013, Kevin has more
than 30 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 25 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.
Whitehaven Coal Annual Report 2024 | Page 12
Directors’ Report
For the year ended 30 June 2024
Daniel Cram —
Executive General Manager –
People and Culture
BComm, MIR
Daniel was appointed Executive
General Manager – People and
Culture in July 2021. Daniel is a
highly experienced HR professional
with more than 25 years’ experience,
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 their power
generation assets and coal mining
operations. Daniel also spent 12 years
at Westpac and BT financial group
where he worked in a number of
human resource and employee
relations roles.
Ian Humphris —
Chief Operating Officer
BE Mining (Hons)
Ian was appointed in April 2020,
initially as Executive General
Manager – Operations and
subsequently as Chief Operating
Officer in June 2024. Ian is a Mining
Engineer with more than 25 years’
experience in the Australian
resources sector, with a diverse and
deep background across open cut
and underground operations. Ian is a
proven leader, whose operational
credentials are complemented by a
successful track record of leading a
large workforce with strategic
oversight of multiple mining
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 that 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 was appointed as Executive
General Manager – Corporate,
Government and Community Affairs
in May 2018.
Michael has 25 years’ experience
across corporate communications
and public policy roles in both the
government and private sectors.
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,
Defence and Trade.
Whitehaven Coal Annual Report 2024 | Page 13
Directors’ Report
For the year ended 30 June 2024
Jason Nunn —
Executive General Manager –
Marketing and Logistics
BEng (Hons), MEMB
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 Stevens —
Executive General Manager –
Project Delivery
BSc (Hons), MSc, MBA
Mark was appointed 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,
rail, oilsands, coal, and oil and gas.
Mark has successfully delivered
projects across all phases, from
concept to completion and
handover, with a combined capital
cost in the billions.
Mark holds a Bachelor and Master of
Engineering (Mining) from
Camborne School of Mines and MBA
from University of Queensland.
Sarah Withell —
Executive General Manager –
Health, Safety and Environment
BSc, MEngSc
Sarah was appointed Executive
General Manager – Health, Safety
and Environment in July 2020. Sarah
has more than 25 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. She brings diverse
greenfield, brownfield and project
development experience, having
held senior positions across open cut
and underground operations in both
NSW and Queensland. Most recently
Sarah led the HSE function for BHP
Billiton’s NSW Energy Coal and BMC
division, and has also held roles at
Coal & Allied and Peabody. Sarah
started her career as an
environmental specialist and has a
Masters in Engineering Science. She
was the winner of the 2019
Exceptional Woman in NSW Mining
award and a finalist in the 2019
Women in Resources National
Award.
Whitehaven Coal Annual Report 2024 | Page 14
Directors’ Report
For the year ended 30 June 2024
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.
Ordinary shares
Mark Vaile
1,321,977
Nicole Brook
15,602
Paul Flynn
1,085,033
Wallis Graham
17,000
Tony Mason
18,000
Mick McCormack
30,000
Fiona Robertson
75,395
Raymond Zage
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
A
B
A
B
A
B
A
B
A
B
A
B
Mark Vaile
12
12
2
2
6
6
3
3
4
4
8
8
Julie Beeby2
5
5
-
-
-
-
1
1
2
2
8
8
Nicole Brook
12
12
-
-
-
-
4
4
2
2
8
8
Paul Flynn
12
12
-
-
-
-
-
-
-
-
8
8
Wallis Graham
12
12
6
6
6
6
-
-
-
-
8
8
Fiona Robertson
12
12
6
6
6
6
1
1
4
4
8
8
Raymond Zage
12
12
6
5
-
-
-
-
-
-
-
-
Tony Mason1
10
10
4
4
-
-
3
3
-
-
5
5
Mick McCormack1
4
4
-
-
-
-
1
1
-
-
-
-
A – Number of meetings held during FY24 while the Director was a member of the Board or Committee.
B – Number of meetings the Director attended during FY24.
1
Tony Mason and Mick McCormack were appointed as Directors effective 25 August 2023 and 16 February 2024 respectively.
2 Julie Beeby retired as a Director effective 26 October 2023.
Whitehaven Coal Annual Report 2024 | Page 15
Directors’ Report
For the year ended 30 June 2024
3. Other
3 (a) Dividends
Paid during the year
Dividends of $393m were paid to shareholders during the year ended 30 June 2024 (2023: $640m).
Declared after end of year
On 21 August 2024, the Directors resolved to pay a fully franked final dividend of 13 cents per share ($104m) to be paid
on 17 September 2024.
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 million
unless otherwise stated.
Whitehaven Coal Annual Report 2024 | Page 16
Directors’ Report
For the year ended 30 June 2024
4. Operating and financial review
Financial review
1
Underlying EBITDA is a non-IFRS measure. Refer to note 2.2 (a) of the annual financial report for a reconciliation of underlying earnings to
net profit after tax per the statement of comprehensive income.
Whitehaven’s acquisition of BMA’s Daunia and Blackwater mines completed on 2 April 2024 with successful integration
during the June quarter.
The acquisition transforms Whitehaven into a metallurgical coal producer, in line with strategy, and delivers diversification
and scale benefits.
The QLD operations, which are the Daunia and Blackwater mines combined, achieved an average coal price of A$271/t in
the first quarter of ownership and cash generated from operations of $0.3 billion. Whitehaven’s expansion into the
metallurgical coal market is reflected in total revenues for the year being 31% metallurgical coal sales (FY23: 6%) and 69%
thermal coal sales (FY23: 94%).
ROM coal production of 25.4Mt and sales of produced coal of 19.5Mt for the Group increased by 40% and 25%
respectively in FY24 compared with FY23, driven by the contribution of the newly acquired mines as well as more
consistent production from Maules Creek. An average coal price achieved for the NSW business of A$217/t (FY23:
A$445/t) combined with the A$271/t average coal price from QLD operations in June respectively, helped deliver the
solid full year results with coal sales revenue of $3.8 billion, underlying EBITDA of $1.4 billion and an underlying NPAT of
$0.7 billion before significant items.
Cash generated from operations of $1.3 billion reflected strong conversion of earnings into cash for the year.
FY24
FY23
$m
$m
Underlying EBITDA1
1,399
3,967
Depreciation and amortisation
(319)
(226)
Underlying net finance (expense)/income
(22)
42
Underlying income tax expense
(318)
(1,128)
Underlying NPAT1
740
2,655
Total adjustments to net profit1
(385)
13
NPAT
355
2,668
Whitehaven Coal Annual Report 2024 | Page 17
Directors’ Report
For the year ended 30 June 2024
Whitehaven’s balance sheet remains robust, finishing the year in a net debt position of $1.3 billion following the $3.3
billion consideration paid to BMA in relation to the acquisition, the payment of the balance of FY23 income tax of $0.9
billion, capital returns to shareholders of $0.4 billion and the $1.3 billion in cash generated from operations, as illustrated
below.
Whitehaven has a US$1.1 billion credit facility, with a range of senior financiers, which is now fully drawn, and a US$100m
revolver facility, which remains undrawn.
The tax expense of $0.1 billion in FY24 represents an effective tax rate of 30%.
A fully franked final dividend of 13 cents for FY24 has been announced, to be paid 17 September 2024.
Revenue
FY24
FY23
Whitehaven results
Average achieved price
A$/t
228
445
Metallurgical sales
% of total
31%
6%
Thermal sales
% of total
69%
94%
QLD
Platts PLV HCC index1
US$/t
243
-
Average realised metallurgical coal price
US$/t
180
-
% of indices
%
74%
-
Average achieved price
A$/t
271
-
NSW
gC NEWC index
US$/t
136
302
Average realised thermal coal price2
US$/t
140
305
% of indices
%
103%
101%
Average achieved price
A$/t
217
445
Average AUD:USD exchange rate
0.66
0.67
1
Platts PLV HCC index relating only to the quarter ending 30 June 2024
2 Sales of produced coal, excluding coal reservation
For the 12 months ended 30 June 2024, Whitehaven’s average achieved coal price was A$228/t.
Whitehaven Coal Annual Report 2024 | Page 18
Directors’ Report
For the year ended 30 June 2024
The gC NEWC index averaged US$136/t for FY24 and Whitehaven’s NSW operations delivered an average realised
thermal coal price of US$140/t. The Platts PLV HCC index averaged US$243/t for the June quarter and the QLD
operations delivered an average realised metallurgical coal price of US$180/t representing a realisation of 74% of the
Platts PLV HCC index. During FY24, the differential between SSCC and PCI and PLV HCC widened relative to historical
levels, which is reflected in the price realisations for SSCC and PCI.
Metallurgical coal sales represented 59% of equity coal sales in the June quarter, lifting the metallurgical contribution for
the FY24 year to 31%.
AUD:USD exchange rates were broadly in line with the prior year, averaging 0.66 in FY24 compared to an average of
0.67 for FY23.
Earnings
FY24
FY23
Sales of produced coal
Kt
16,417
13,005
Average realised price after applicable royalties
A$/t
204
406
Cost per tonne1
A$/t
120
103
EBITDA margin on sales of produced coal 1
A$/t
84
303
1
Excluding significant items as disclosed in note 2.2 (b) of the annual financial report.
Whitehaven’s FY24 Underlying EBITDA of $1.4 billion reflects robust thermal and metallurgical coal prices, the solid
operational performance from the NSW open cut operations, and the June quarter contribution from the acquired QLD
operations, offset by the impacts of operational challenges at Narrabri underground mine during the year.
Operating EBITDA margin of $84/t (or 41%) was lowered primarily by the reduction in realised coal prices relative to
FY23. Unit costs were also up on FY23, reflecting inflationary pressures primarily related to labour, electricity and OEM
parts compounded by the lower ROM coal production volumes at Narrabri. The NSW business reported a unit cost of
$114/t for FY24, and after taking into account the QLD operations in the June quarter, Whitehaven’s overall unit cost of
coal totalled $120/t for FY24.
Sales of produced coal of 16.4Mt for FY24 includes June quarter QLD sales of 3.2Mt, which reflect some slippage into the
September quarter largely due to transition-related railing constraints from Daunia. NSW sales for FY24 of 13.2Mt were
marginally higher than the prior year reflecting the strong production from NSW open cut mines.
Whitehaven Coal Annual Report 2024 | Page 19
Directors’ Report
For the year ended 30 June 2024
Cash flows and capital management
Operating cash flows
1
Reflects cash outflows for significant items disclosed in note 2.2 (b) of the annual financial report.
Whitehaven generated $1,307m from operations (FY23: $4,190m) reflecting a strong conversion of earnings into cash for
the year. Net working capital invested reduced in FY24 due to a collection of receivables during the year.
Income taxes paid in FY24 of $1.0b included $0.9b paid in relation to FY23.
Investing cash flows
FY24
FY23
$m
$m
Capital expenditure
(454)
(241)
Acquisition of Daunia and Blackwater
(3,308)
-
Other acquisitions
(43)
(66)
Investing cash flows
(3,805)
(307)
Capital expenditure of $454m (FY23: $241m), consisted of:
− capital allocated to mines to maintain safe and productive operations, with sustaining capital expenditure of $210m
(FY23: $130m) and mains development of $39m (FY23: $39m). This included an investment in the newly acquired QLD
operations of $74m during the June 2024 quarter.
− $128m was invested in construction and capitalised mining activities for early mining at Vickery.
− Other development projects expenditure of $73m (FY23: $61m) for further progression of the full scale Vickery project,
and the Winchester South and Narrabri Stage 3 projects.
During the year, $3,308m was paid for the acquisition of Daunia and Blackwater mines, reflecting US$2,044m paid on
completion on 2 April 2024 together with the US$100m deposit paid on execution of the sales agreements in October
2023.
Other acquisitions of $43m (FY23: $66m) included deferred consideration paid in respect of the acquisition of EDF’s
interest in the Narrabri mine ($16m), the acquisition of APG’s rights to a 1% private royalty on Narrabri coal sales ($3m),
and other investing activities ($25m).
FY24
FY23
$m
$m
Underlying EBITDA
1,399
3,967
Significant items1
(197)
(4)
Working capital and other
105
227
Cash generated from operations
1,307
4,190
Net interest received
37
49
Income taxes paid
(1,017)
(677)
Operating cash flows
327
3,562
Whitehaven Coal Annual Report 2024 | Page 20
Directors’ Report
For the year ended 30 June 2024
Financing and capital management
FY24
FY23
$m
$m
Cash and cash equivalents
405
2,776
Credit facility
(1,661)
-
ECA
(29)
(39)
Finance leases1
(55)
(87)
Capitalised upfront financing fees
62
2
Net (debt)/cash
(1,278)
2,652
Gearing ratio1,2
20%
n/a
Effect of exchange rate changes on net debt
43
22
Undrawn revolving credit facility
151
-
1
Net debt is calculated in accordance with covenant requirements and therefore right-of use leases recognised in accordance with AASB16
Leases of $208m (FY23: $66m) have been excluded
2 Gearing ratio is calculated as net debt/(net debt plus equity)
Whitehaven maintains an appropriately geared and robust balance sheet, ending the year in a net debt position of $1.3
billion. The acquisition of Daunia and Blackwater was accomplished with a prudent, low-risk funding structure. Total
purchase consideration was funded with cash of US$1.0 billion, a US$1.1 billion 5-year credit facility and vendor financing.
As anticipated when entering into arrangements with BMA to acquire Daunia and Blackwater, consideration payments due
to BMA on the anniversary of the acquisition and stamp duty payable upon finalisation of the purchase price, has meant
the Group is in a net current liability position as at 30 June 2024 of $615m. At 30 June 2024 the Group has available liquidity
of $556m, comprising cash on hand of $405m and a US$100m undrawn revolving credit facility. Subsequent to the end of
the financial year, the Group has sourced working capital facilities of A$87.5m which further strengthens this liquidity
position.
On 21 August 2024 the Group entered into binding agreements with Nippon Steel Corporation and JFE Steel Corporation
for the sale to those parties of a joint venture interest in the Blackwater coal mine of 20% and 10% respectively for an
aggregate cash consideration of US$1.08 billion. The transactions are expected to complete by the first quarter of calendar
year 2025, subject to customary competition and regulatory approvals. This strengthens Whitehaven’s balance sheet,
improves liquidity and enhances capital allocation opportunities, in line with Whitehaven’s capital allocation framework.
Whitehaven has maintained franked dividends within the targeted payout ratio range of 20-50% of NPAT (22% payout of
FY24 underlying NPAT). Franked dividends paid during the year of $392m included payment of the FY23 fully franked final
dividend ($336m) together with the FY24 fully franked interim dividend ($56m). A fully franked final dividend of 13 cents
for FY24 was declared, to be paid in September 2024.
Whitehaven Coal Annual Report 2024 | Page 21
Directors’ Report
For the year ended 30 June 2024
Review of operations
Safety
Whitehaven delivered a strong safety performance with
a TRIFR of 3.3 for NSW employees & contractors for
FY24 (2023: 4.7) and June quarter TRIFR from QLD of
6.6. Safety results to be consolidated from FY25.
Whitehaven places the highest priority on managing
the health, safety and wellbeing of its people.
Management is committed to delivering continuous
improvement in safety outcomes across all operations.
Production, sales and coal stocks
Managed (100%) basis
Equity basis
Tonnes (‘000)
FY24
FY23
FY24
FY23
ROM coal production
24,460
18,190
20,537
14,620
Saleable coal production
20,714
15,740
17,478
12,769
Sales of produced coal
19,522
15,990
16,417
13,005
Total coal sales
19,975
16,625
16,870
13,640
Coal stocks at year end
2,675
1,534
2,486
1,323
Whitehaven delivered strong ROM coal production of 24.5Mt (FY23: 18.2Mt), reflecting improved ROM coal production
from the NSW operations in FY24 together with the first quarter of ROM coal production from the QLD operations.
QLD Operations
Daunia and Blackwater (Ownership: Whitehaven 100%)
Tonnes (‘000)
FY24
FY23
Movement
ROM coal production
4,805
-
-
Saleable coal production
3,986
-
-
Sales of produced coal
3,206
-
-
Coal stocks at year end
1,564
-
-
The QLD operations delivered 4.8Mt of ROM coal production following a safe and smooth transition of ownership after
completion of the acquisition on 2 April 2024.
QLD saleable coal production of 4.0Mt and sales of 3.2Mt were delivered in the June quarter. Sales were impacted by rail
logistics delays in April and May at Daunia as the rail provider took longer than expected to transfer assigned rail paths
from BMA to Whitehaven. Railing services returned to adequate levels towards the end of FY24 through the use of surge
capacity from additional service providers.
Coal stocks at 30 June 2024 of 1.6Mt position the QLD operations for a strong start to FY25.
Daunia
Daunia delivered ROM coal production of 1.3Mt, reflecting a smooth transition to Whitehaven’s ownership and good
mining conditions. June quarter saleable coal production and coal sales were 1.0Mt and 0.9Mt respectively. The delays in
Whitehaven Coal Annual Report 2024 | Page 22
Directors’ Report
For the year ended 30 June 2024
assigning adequate rail paths resulted in deferred sales and constrained production as product stockpiles reached
capacity. Daunia held coal stocks of 0.3Mt at 30 June 2024.
Blackwater
Blackwater delivered ROM coal production of 3.6Mt, saleable coal production of 3.0Mt and coal sales of 2.3Mt in the June
quarter, reflecting a seamless transition of ownership to Whitehaven and favourable mining conditions, with the mine
achieving several production-related records during the period. Closing coal stocks of 1.2Mt included a build in stockpiles
to cover planned CHPP maintenance early in FY25.
NSW Operations
Maules Creek (Ownership: Whitehaven 75%); Narrabri (Ownership: Whitehaven 77.5%); Tarrawonga and Werris Creek (Ownership:
Whitehaven 100%)
Tonnes (‘000)
FY24
FY23
Movement
ROM coal production
19,655
18,190
8%
Saleable coal production
16,728
15,740
6%
Sales of produced coal
16,316
15,990
2%
Coal stocks at year end
1,111
1,534
(28%)
Note: Tonnages in the above table are presented on a managed basis.
The NSW open cut mines delivered solid production, which offset lower than expected volumes from Narrabri to deliver
ROM coal production from NSW operations of 19.7Mt in FY24 (FY23: 18.2Mt).
Maules Creek
Maules Creek delivered ROM coal production of 11.4Mt in FY24 (FY23: 9.6Mt) reflecting more consistent production
throughout the year underpinned by operational improvements. Cessation of autonomous haulage during FY24
contributed to increased productivity and completion of mining in the south-west area of the mine released in-pit
dumping capacity. Saleable coal production and coal sales of 8.8Mt were delivered during the year (FY23: 7.3Mt) as a
result of the improved production. Maules Creek held coal stocks of 0.3Mt at 30 June 2024.
Narrabri
Narrabri’s ROM coal production of 4.8Mt for FY24 (FY23: 5.3Mt) reflected equipment reliability and geological challenges
experienced throughout the year, though productivity improved towards the end of the year following engineering
upgrades to the longwall to improve reliability. Saleable coal production and coal sales of 4.6Mt and 4.2Mt respectively
were delivered in FY24 (FY23: 5.1Mt and 5.3Mt respectively) consistent with the lower ROM coal volumes. Coal stocks of
0.4Mt were held at 30 June 2024 reflecting a build in stockpiles towards the end of FY24.
Gunnedah Open Cuts
The Gunnedah open cut mines consist of Tarrawonga, Werris Creek and Vickery. The combined production of the mines
delivered FY24 ROM coal production of 3.5Mt (FY23: 3.4Mt) reflecting solid production at Tarrawonga, the winding down
of Werris Creek and first coal from early mining at Vickery. Saleable coal production and coal sales of 3.3Mt were
consistent with the prior year and in line with ROM coal production.
Mining at Werris Creek concluded in April 2024 and the mine has now transitioned into rehabilitation.
Development projects
Whitehaven’s development projects include the Vickery project, Winchester South project and the Narrabri Stage 3
Extension project. All of Whitehaven’s development projects are subject to the Group’s strict capital allocation
framework, and the timing of development plans and capital expenditure will reflect competing opportunities for capital,
with decisions around major capital expenditure currently postponed while integration of the Queensland assets occurs
and the first two years of deferred payments to BMA are made.
Vickery
Early mining at Vickery commenced in FY24 with $128m invested in construction and capitalised mining activities to
deliver first coal towards the end of FY24. Feasibility works are ongoing for the full scale project.
Whitehaven Coal Annual Report 2024 | Page 23
Directors’ Report
For the year ended 30 June 2024
Winchester South
The proposed Winchester South metallurgical coal mine is located in QLD, adjacent to the recently acquired Daunia mine.
At full capacity the mine is targeting an average ROM coal production of 15Mtpa to supply the international market for
~30 years.
The Queensland Department of Environment, Science and Innovation (DESI) has approved the Winchester South Coal
Mine Draft Environmental Authority, and the Commonwealth EPBC approval process is progressing. Objections have
been received against the Winchester South Draft Environmental Approval and Mining Lease Applications and referred to
Queensland Land Court. Land Court review is scheduled for July 2025.
The project team is continuing to work on feasibility studies, including synergies with Daunia.
Narrabri Stage 3 Extension
The Narrabri Underground Mine Stage 3 Extension Project which extends the approved life of the mine from 2031 to
2044 has received State Significant Development Consent.
Federal EPBC approval and secondary approvals are yet to be received, which are required prior to project
commencement.
Infrastructure
Rail track capacity
Whitehaven contracts its below-rail capacity for QLD operations from Aurizon Network, who own and operate the
Central Queensland Coal Network (CQCN), while below-rail capacity for NSW operations is contracted from the
Australian Rail Track Corporation (ARTC), a federal government entity managing the Hunter Valley coal network.
Whitehaven has sufficient below-rail capacity for all QLD and NSW operations.
Rail haulage capacity
The QLD operations have capacity within Whitehaven’s long-term rail haulage contracts with Aurizon Operations, the
largest rail haulage provider in the CQCN. After some delays during April and May in transferring paths from BMA to
Whitehaven following the acquisition, railing services returned to adequate levels towards the end of FY24 through the
use of surge capacity from additional service providers. To ensure a robust transport solution this surge capacity will
continue on an as needed basis.
The NSW operations have capacity with two long-term rail haulage contracts for all current mine production plans.
Whitehaven has been working to ensure rail operators continue to focus on efficiency and productivity gains through cycle
time improvements. No significant events on the rail network impacted the NSW operations during FY24.
Port capacity
Whitehaven holds contracts to allow coal produced from its newly acquired Daunia and Blackwater operations to be
exported through the Dalrymple Bay Coal Terminal and the Gladstone Port respectively. Both terminals are low cost port
providers.
Whitehaven exports coal from its NSW operations through the Port of Newcastle using the two export terminal
providers, PWCS and NCIG. Weather events impacted ship loading and movements at different periods during FY24, but
the supply chain system was able to recover quickly.
Regulatory
Domestic Coal Reservation Scheme
The NSW Domestic Coal Reservation Scheme commenced on 1 April 2023 and concluded on 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 supplied a total of 0.65Mt to domestic power stations through the scheme, including 0.35Mt in FY24.
Coal royalties
The QLD operations will pay royalties under the QLD Government’s coal royalty scheme, whereby royalties are calculated
at a percentage of the sales price per tonne of coal according to the QLD Government royalty brackets. This percentage
is applied to the value of coal (coal sales revenue minus allowable deductions) to determine royalties payable in a period.
During FY24, the NSW Government increased its coal royalty with effect from 1 July 2024. The new royalty rate for open
cut mining in NSW will be 10.8% (up from 8.2%), while the rate for underground mining will be 9.8% (up from 7.2%).
Safeguard Mechanism
The Federal Government’s reformed Safeguard Mechanism, which covers Scope 1 emissions from Whitehaven’s Daunia,
Blackwater, Narrabri and Maules Creek mines commenced on 1 July 2023. The financial impact of the scheme on
Whitehaven will be a function of the existence 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
Whitehaven Coal Annual Report 2024 | Page 24
Directors’ Report
For the year ended 30 June 2024
profiles of the mines. Whitehaven continues to assess site-based abatement opportunities, and undertake investigative
projects to evaluate the technical and financial viability of fugitive emissions abatement options.
Sustainability Reporting
The Australian Government released draft legislation for the implementation of mandatory climate-related financial
disclosures for large businesses and other entities in January 2024. Under the proposed new regime, Whitehaven will be
required to make climate-related financial disclosures in accordance with sustainability standards proposed by the
Australian Accounting Standards Board (AASB) from FY25. These disclosures will form part of the sustainability report
contained in the annual report.
Whitehaven has been undertaking detailed work to ensure the Group is well positioned to comply with the proposed
reporting requirements. Whitehaven’s existing climate reporting, which has regard to the recommendations of the
Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD), provides a strong foundation.
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:
− On 21 August 2024, the Directors resolved to pay a fully franked final dividend of 13 cents per share ($104m) to be
paid on 17 September 2024.
− On 21 August 2024 the Group entered into binding agreements with Nippon Steel Corporation and JFE Steel
Corporation for the sale to those parties of a joint venture interest in the Blackwater coal mine of 20% and 10%
respectively for an aggregate cash consideration of US$1.08 billion. The transactions are expected to complete by the
first quarter of calendar year 2025, subject to customary competition and regulatory approvals.
− On 30 July 2024 and 1 August 2024, the Group entered into additional working capital facility agreements totalling
A$87.5m.
Whitehaven Coal Annual Report 2024 | Page 25
Directors’ Report
For the year ended 30 June 2024
Outlook
Metallurgical and Thermal Coal Outlook
The forecast structural shortfall in global metallurgical coal production, particularly due to long-term production
constraints of HCC from Australian producers, combined with increased seaborne demand from India, is anticipated to
drive higher metallurgical coal prices over the near and long term. While the relativities for PCI and SSCC to PLV HCC are
below historical averages, LV PCI indices are improving in the near term relative to PLV HCC and overall favourable
absolute prices are being realised.
Whitehaven’s metallurgical coal portfolio will benefit from the supply constraints expected in both the near and longer
term.
Demand for high CV thermal coal remains robust in Whitehaven’s mature and emerging markets in Asia to fuel HELE
(high-efficiency, low-emissions) power generation. The structural supply shortfall in seaborne high CV thermal coal
continues to grow as a result of underinvestment in new supply and depletion of existing supply which is supportive of
medium and long-term high CV thermal prices.
Whitehaven Coal Annual Report 2024 | Page 26
Directors’ Report
For the year ended 30 June 2024
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.
Whitehaven now has a more balanced exposure to metallurgical and thermal coal markets, which dampens the volatility
of coal price risk on the Company.
Foreign currency risk
As Whitehaven’s sales are predominantly 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.
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.
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 operates a number of tailings storage facilities to contain tailings produced from the Company’s mining
operations. A failure of any of these facilities could significantly impact the surrounding communities and environment.
Whitehaven Coal Annual Report 2024 | Page 27
Directors’ Report
For the year ended 30 June 2024
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.
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.
There is a risk that transportation of Whitehaven’s coal could be impacted by disruptions involving rail and/or port
infrastructure.
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 many 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:
Whitehaven Coal Annual Report 2024 | Page 28
Directors’ Report
For the year ended 30 June 2024
− 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
− 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 2024 Sustainability
Report, to be released later this year.
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.
Approvals risk
The process for obtaining government and regulatory approvals for coal mining projects is subject to ever increasing
difficulty and legal challenges, which has resulted in additional delay, costs and heightened risks of negative approval
process outcomes.
Climate change risk
The transition and 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 policy and
regulatory change, advances in energy generation or steelmaking technologies resulting in changes in coal demand, and
changes in the severity of extreme weather events and weather patterns.
Whitehaven actively monitors domestic policy and regulatory changes and global market customer country policies and
trends, and investigates and invests in site-based decarbonisation opportunities where feasible.
Further details in relation to climate change risks and our mitigation strategies will be provided in Whitehaven’s 2024
Sustainability Report.
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, training 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.
Whitehaven Coal Annual Report 2024 | Page 29
Directors’ Report
For the year ended 30 June 2024
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 2024. It
is set out on page 30.
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:
Consolidated
2024
Consolidated
2023
In AUD
$’000
$’000
Audit services
Audit and review of statutory financial statements of the parent covering the Group
1,444
626
Audit of joint operations
372
358
Total audit services
1,816
984
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
74
52
Debt capital markets assurance services
-
7
Total other assurance services1
74
59
Other services
Due diligence services2
508
688
Sustainability assurance services
175
37
Taxation services
4
-
Total other services1
687
725
Total auditor’s remuneration
2,577
1,768
Total non-audit services1
761
784
Non-audit services as a % of total auditor’s remuneration
30%
44%
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) include the provision of non-audit services in
relation to transactional activities, being the acquisition of Daunia and Blackwater and the sale of a joint venture interest in Blackwater mine,
that took place during the current and prior years, which are considered to be outside the ordinary course of business.
Whitehaven Coal Annual Report 2024 | Page 30
Auditor’s independence declaration
Whitehaven Coal Annual Report 2024 | Page 31
Introductory Letter
The Remuneration Committee is pleased to present
Whitehaven Coal Limited’s Remuneration Report for the
financial year ended 30 June 2024 (FY24).
Whitehaven’s executive remuneration framework is
designed to align with shareholder interests and further
the Group’s strategy. It incentivises senior executives to
optimise financial outcomes, 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 FY24
This year, Whitehaven Coal completed the
transformative acquisition of the Daunia and Blackwater
metallurgical coal mines in Queensland’s Bowen Basin.
This acquisition doubled the size of our business and
represents a long-term commitment to local Queensland
communities.
This strategic move enhances our operational
diversification and positions us to meet global steel
demand, especially in high-growth markets like India and
Southeast Asia. With increased ROM coal production
and revenue mix of 69% metallurgical coal, we
anticipate significant growth as well as synergies with
our Winchester South project.
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 these efforts, our Total
Recordable Injury Frequency Rate (TRIFR) has
improved from 4.74 in FY23 to 3.33 in FY241, and
continues to track favourably to comparable industry
peers. As a result of our continued focus and
investment, we have also seen a sustained improvement
in our environmental performance with zero incidents2
occurring during the performance year.
Whitehaven delivered a total shareholder return (TSR)
of 23% for FY24 placing it 30th in the ASX 100 Group of
Companies. Following a significant $1.6 billion of capital
returned to shareholders in FY23 through dividends and
share buy-backs, the buy-back was paused in FY24 as
surplus cash was used to help fund the acquisition.
Dividends continued in FY24, with a total of $0.4 billion
returned to shareholders through fully franked
dividends.
Overall, the Board is pleased with the performance of
the business in FY24 and recognises the significant
value created for shareholders as a result of strategic
acquisitions, advancement of long-term projects
1 TRIFR for employees and contractors excluding the acquired
Queensland mines, which reported a TRFIR of 6.6 in Q4 FY24.
Results will be consolidated from FY25.
(including the opening of the Vickery mine after a 10-
year process), management’s focus on driving
production while minimising relative costs, and
executing marketing and sales strategies to maximise
profitability.
Remuneration outcomes for FY24
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.
Single Incentive Plan (SIP) outcomes
As outlined in section 4.2 of this report, the Board has
assessed performance of both the Group (weighted at
80%) and each individual KMP (weighted at 20%) to
determine SIP outcomes.
For the Group component, the Board assessed that
management achieved 76.6% of the maximum
scorecard outcome (114.9% of the target scorecard
outcome), reflecting strong performance against health,
safety, and environment (HSE) targets and EBITDA
targets, and a solid ROM coal production outcome.
Higher than threshold FOB unit cost outcomes were
delivered in FY24 resulting in zero scorecard outcome
for the cost KPI.
Key scorecard achievements, which excluded the effect
of significant items largely relating to mergers and
acquisitions (M&A), included:
− EBITDA of $1,127m (excludes significant items3 and
the QLD operations EBITDA);
− 30% improvement in TRIFR, reducing from 4.74 in
FY23 to 3.33 in FY241; and
− Zero environmental enforcement actions2 during the
year.
In combination with strong individual performance,
overall FY24 SIP outcomes for the CEO and Executive
KMP were 81.3% of maximum.
Legacy Long-Term Incentive (LTI) vesting outcomes
Long-term performance has been exceptional, resulting
in strong vesting outcomes for the LTI tranches that
were tested this year (see the table in section 4.3 for
details).
Highlights included:
− a 555% TSR for the period 1 July 2020 to 30 June
2024, and 412% TSR for the period 1 July 2021 to 30
June 2024, positioning Whitehaven as the top TSR
2 As measured by events resulting in environmental enforcement
actions, including penalty notices, enforceable undertakings,
suspensions, prevention notices and prosecutions.
3 Includes $559m of acquisition-related transaction and transition
expenses and $42m of other significant non-recurring items. Refer
to note 2.2 (b) of the financial report for more information.
2024 Remuneration Report
(Audited)
Whitehaven Coal Annual Report 2024 | Page 32
Directors’ Report Remuneration Report
For the year ended 30 June 2024
performer in the ASX 100 over both periods, resulting
in 100% vesting under the TSR tranches;
− cost hurdle achievement at the 12th percentile of
peers as measured by Wood Mackenzie such that our
costs are among the lowest in the industry, resulting
in 100% vesting under the cost tranches; and
− vesting for the LTI tranche assessed against the
Long-Term Growth Projects Measure was at 95%.
Overall performance was very strong, with the
Vickery extension project’s progression to production
being a highlight, although a review and re-work of
initial engineering plans, which were required for the
Vickery project in FY21, resulted in an overall lowering
of the vesting outcome by five percentage points.
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.
We thank the Executive Leadership and their teams for
their continued commitment and contribution to
Whitehaven.
Remuneration framework review in FY24
The Whitehaven Board spent a great deal of time
designing what we believe is a remuneration structure
best suited to reflect the interests of the company, its
shareholders and management.
Our remuneration arrangements must attract, motivate,
and retain top talent. This is challenging in the coal
industry, as potential candidates, especially for senior
roles, often prefer other sectors.
While the Board continues to believe that our SIP (which
replaced the Short-Term Incentive (STI) and LTI Plans
from FY23) remains the most appropriate mechanism to
reward performance and balance the interests of our
various stakeholders, the Remuneration Committee and
Board took very seriously the “first strike” received
against Whitehaven’s FY23 Remuneration Report.
The Board undertook comprehensive engagement with
shareholders and proxy advisors in FY24 to understand
the concerns. Appropriate enhancements to the SIP and
disclosures have been developed to address the
feedback received without undermining the integrity of
our remuneration framework.
The most widely voiced concerns focused on the
exercise of upward discretion in FY23, providing
increased disclosure of the link between the Long-Term
Growth Projects Measure and financial performance /
delivery of returns to shareholders, and our above
market positioning in respect of total fixed remuneration
(TFR).
Key outcomes of the review include the following:
− Enhanced consultation when considering future
Board discretion in reward decisions. No upward
discretion was exercised in FY24 in respect of SIP
and LTI outcomes;
− Further detail on the above market TFR positioning
required for senior roles within our sector;
− A review of the feasibility of extending the
measurement period on the long-term cost measure
under the SIP;
− Greater transparency around threshold levels of
performance required for vesting under the long-term
cost measure under the SIP; and
− Enhanced disclosure in respect of the Long-Term
Growth Projects Measure under the SIP, including
details of how Internal Rate of Return (IRR)
thresholds are incorporated into its assessment.
While there was continued discussion regarding TSR
measures within the SIP framework, there was a general
view that given the strong existing TSR alignment via
significant shareholdings and the heavy weighting
towards equity-based awards under the SIP, the use of
relative TSR as a formal measure was not widely
supported, especially in light of the issues in identifying
a suitable correlated peer group. Whitehaven’s existing
formal remuneration measures were viewed to be more
reflective of management’s contribution to shareholder
value creation, but we understand that improved
disclosure and ongoing alignment with shareholder
outcomes are key to building greater comfort with our
framework.
We look forward to continued engagement as FY25
progresses.
Additional details on the outcomes of the review are
provided in section 1.1.
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 decided
to maintain the existing fee pool and fee levels
(excluding superannuation) for the Non-Executive
Directors. As a result, the only year-on-year change to
the Non-Executive Directors’ remuneration for FY24
was the mandatory uplift to superannuation guarantee
contributions.
We look forward to continuing the conversations with
our stakeholders and welcome your feedback on our
remuneration framework and associated disclosures to
ensure they meet the standards and expectations you
have of our unique organisation.
Whitehaven Coal Annual Report 2024 | Page 33
1.
Introduction
1.1.
Response to feedback provided on the FY23 Remuneration Report
1.2.
Key Management Personnel for FY24
1.3.
Changes to our Executive KMP team
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.
FY24 Remuneration structure
3.1.
Mix and timing of Executive KMP remuneration in FY24
3.2. Fixed remuneration
3.3. FY24 SIP award structure
3.4. Policies and conditions of rights awarded under equity plans
3.5. Benchmarking total remuneration
4.
FY24 Remuneration outcomes
4.1. Summary of Company performance
4.2. FY24 Executive KMP SIP outcomes
4.3. FY24 Executive KMP performance rights vesting outcomes
4.4. Performance Rights awards granted in FY24
4.5. Summary of Executive KMP total realised remuneration outcomes
4.6. Change to the Remuneration Framework from FY25
5.
Executive KMP employment contracts
6.
Non-Executive Director remuneration
6.1. FY24 Board and Committee Fees
6.2. Minimum Shareholding Requirements policy
6.3. FY24 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
Table of Remuneration
Report contents
Whitehaven Coal Annual Report 2024 | Page 34
Directors’ Report Remuneration Report
For the year ended 30 June 2024
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. Response to feedback provided on the FY23 Remuneration Report
At the 2023 AGM, 40.61% of votes cast by voting shareholders were against the FY23 Remuneration Report. This
outcome, along with high levels of interest regarding the acquisition of the Daunia and Blackwater mines, has resulted in
significant engagement with Whitehaven’s shareholders, proxy advisors, and stakeholders, including multiple one-on-one
meetings and group sessions.
During the 12 months to the end of July 2024, we held 345 investor meetings and events with shareholders and other
stakeholders. Including additional meetings in July and August 2024, 35 meetings were held by members of the Board
with shareholders and proxy advisors in relation to remuneration and governance matters.
Key investor focus areas in FY24 were the acquisition of the Daunia and Blackwater mines, coal market dynamics, and
capital allocation decisions. With regards to remuneration, feedback was provided on a number of areas and these are
summarised below. This feedback has been valuable and has been incorporated into the review of our remuneration
arrangements as well as the disclosure of outcomes.
Feedback area
Response
FY23 outcomes
1. Use of Board
discretion for FY23 SIP
measures
The Board does not take discretion lightly. It is considered in unusual circumstances where factors
outside of the control of management (which couldn’t reasonably have been foreseen or mitigated)
have a clear impact on results, or if outcomes are misaligned with the experience of our
shareholders or other stakeholders. It can have an upward or a downward impact.
Discretion in FY23 adjusted for highly unusual events outside management’s control, such as
significant weather and flooding impacts that cut off mine access roads, sharply escalated diesel
costs, and labour shortages arising from Covid-19. This approach was consistent with industry peers
and was subject to detailed quantitative analysis. Results were tempered back below these
quantitative adjustments to reflect a threshold outcome for ROM coal Production and FOB Costs,
which the Board viewed to be conservative. From an alignment perspective, the total scorecard
outcome of 70% of maximum for the CEO was considered fair given strong shareholder returns and
record financial results in FY23.
While shareholder alignment was carefully considered in FY23, in the future, the Board will ensure
that the perspectives and interests of various stakeholders are more fully considered in the exercise
of Board discretion. No upward discretion was exercised in respect of FY24 SIP and LTI outcomes.
Fixed remuneration
2. Quantum of fixed
remuneration increase
The Board recognises the challenges in competing for talent as a coal company. To secure the
needed capability for superior results, we made a decision to target the 75th percentile for TFR
relative to a broader group of mining and resource-focused businesses in FY23, with a larger fixed
remuneration uplift occurring in that year. This positioning is further refined based on availability of
talent for certain roles, internal relativities, scope, experience, tenure in role, cost to replace, and
individual performance and retention considerations.
Adopting a premium to the 50th percentile is considered appropriate, given its impact on enabling
strategic execution and delivering long-term value to shareholders. At Whitehaven we have a very
experienced senior team, with long-serving employees who have driven tremendous value for the
Group during their tenure. They are not easy (or inexpensive) to replace in our industry.
FY24 increases were at market rates (4%) and well below broader workforce increases.
SIP performance measures & disclosure
3. No formal TSR
measure applying to
performance rights
The Board and management of Whitehaven place significant importance on the delivery of
attractive Total Shareholder Returns (TSR). Our remuneration framework is closely aligned to
creating strong returns for shareholders over the long-term, and we note our strong TSR
performance in both the 3-year and 4-year periods to the end of FY24 of 412% and 555%,
respectively.
TSR alignment is strongly embedded in Whitehaven’s remuneration framework, with Whitehaven’s
senior executives owning a significant number of Whitehaven shares, as supported by our Minimum
Shareholding Requirements policy. The Single Incentive Plan (SIP) includes 70% paid as equity, with
deferred vesting and further performance hurdles incorporated in the structure. These features help
to enhance already-existing alignment to absolute TSR, so the Board has determined that formal
absolute TSR hurdles are not currently required within the SIP framework.
With regard to relative TSR, the Board remains of the view that it is suboptimal as a formal
incentive-plan measure within the SIP for various reasons. Whitehaven is a price-taker in a cyclical
industry, our share price has been heavily ESG-influenced, and most importantly, we have a sparse
Whitehaven Coal Annual Report 2024 | Page 35
Directors’ Report Remuneration Report
For the year ended 30 June 2024
Feedback area
Response
number of direct peers or peers with reasonably correlated share price returns off which to
meaningfully measure relative TSR. Therefore, relative TSR outcomes may not be a reliable measure
of management’s outperformance. Additionally, even when relative-TSR outperformance is strong, it
does not guarantee shareholder alignment. The Board notes that only half of coal peers have formal
TSR metrics, which aligns with its assessment that this is a challenge for our industry.
Whitehaven’s Board will continue to revisit formal TSR measures, but has determined that other SIP
metrics are currently more appropriate to drive advancement of our strategy and shareholder value
creation. These include incentivising key value drivers of TSR that are controllable by
management: market-competitive cost performance, the effective delivery of long-term growth
projects, and the optimisation of financial and operational performance while operating in a safe and
environmentally sustainable way.
As the SIP was only introduced in FY23, a positive absolute TSR gateway and relative TSR hurdles
applied to various FY21 and FY22 LTI Awards vesting in FY24 and FY25.
Importantly, the Board will continue to consider shareholder experience when determining suitability
of remuneration outcomes.
4. Disclosure of Long-
Term Growth Projects
Measure and its
adoption as a
performance rights
measure
Greenfield and brownfield project delivery is a priority for Whitehaven, essential for long-term value
in a supply-constrained environment, significantly contributing to Whitehaven's competitive
advantage, and requiring prioritisation of actions that enable a 10–15 year time horizon.
The Long-Term Growth Projects measure is not discretionary. Assessments are based on a
structured scorecard based on the achievement of specific operational milestones that are objective,
quantifiable, and critical to the successful implementation of Whitehaven’s most significant long-
term projects, with timeframes that outlive the average executive tenure.
Disclosures provided in this year’s Remuneration Report provide greatly enhanced transparency on
how this measure is evaluated, including the assessment of IRR thresholds, and the link to long-
term shareholder value (see section 3.2).
5. Long-term cost metric Disclosure of the threshold for vesting has been included in section 4.3 of this year’s Remuneration
Report, reflecting the feedback received.
The measurement period of the one-year relative cost measure was also reviewed and has been
retained. The current approach maximises the effect of the awards as a long-term performance
counterbalance to the up-front SIP measures, is consistent with industry-wide reliance on an
independently assessed calendar year comparable measurement period for similar long-term
incentive plans, and it ultimately results in costs being assessed over multiple years once multiple
tranches are on foot.
6. Weighting on financial
measures under the
annual scorecard
The Board determines appropriate SIP performance measures around what is within management’s
control. Given the nature of the business, management has no control over the price of coal,
however, does have control over cost (production efficiency), quantity (production) and coal
quality, which ties directly into the profitability of the business.
As such, the Board believes that the SIP annual scorecard strikes an appropriate balance between
financial and non-financial measures when the framework is viewed as a whole.
60% of the FY24 SIP annual scorecard assessment is based on a range of financial measures
(including EBITDA at 25%, FOB cost per tonne at 15% and production at 20% - which is akin to
revenue in a resources company, without the non-controllable price component). This has been
deemed to be appropriately balanced against the 40% of the scorecard represented by health,
safety and environmental measures. The Board reviews weightings at the beginning of each financial
year when setting the scorecard, with weighting changes to be assessed yearly as strategy and
resulting initiatives evolve.
Other
7. Dividend equivalent
payments
In line with market practice amongst other ASX100 SIPs and to strengthen the alignment between
shareholders and executives, participants in the SIP receive a dividend equivalent payment (DEP) in
respect of the deferred rights and performance rights. All other SIPs operated within the ASX100
accrue dividend equivalents during their vesting periods.
This dividend equivalent is not made on unvested shares – the DEP is only paid in respect of the
portion of the deferred rights and performance rights that ultimately vest in line with market
practice.
The Board has also calculated the number of rights having regard to the ability to earn dividend
equivalents.
An additional explanation of our DEP approach can be found on page 43.
8. Using acquisitions to
deliver remuneration
outcomes
The Board, not management, makes the ultimate decision to allocate capital to development
projects, acquisition, or to return to shareholders. The Board sets scorecard targets at the beginning
of the year excluding M&A and assesses outcomes at the conclusion of the year on a like-for-like
basis.
Whitehaven Coal Annual Report 2024 | Page 36
Directors’ Report Remuneration Report
For the year ended 30 June 2024
1.2. Key Management Personnel for FY24
This report details the FY24 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 FY24.
Non-Executive
Directors
Role held during FY24
Committee positions held
The Hon. Mark Vaile
AO
Chairman and Non-Executive
Director
Chairman of the Governance & Nomination Committee
Member of the Audit & Risk Management Committee (to 25 October 2023)
Member of the Remuneration Committee
Member of the Health, Safety, Environment & Community Committee (to 15
February 2024)
Nicole Brook
Non-Executive Director
Chairman of the Health, Safety, Environment & Community Committee (from
26 October 2023, Member to 25 October 2023)
Member of the Governance & Nomination Committee (from 26 October 2023)
Wallis Graham
Non-Executive Director
Chairman of the Remuneration Committee
Member of the Audit & Risk Management Committee
Tony Mason
(appointed 25 August
2023)
Non-Executive Director
Member of the Audit & Risk Management Committee (from 26 October 2023)
Member of the Health, Safety, Environment & Community Committee (from 26
October 2023)
Mick McCormack
(appointed 16 February
2024)
Non-Executive Director
Member of the Health, Safety, Environment & Community Committee (from 16
February 2024)
Fiona Robertson AM
Non-Executive Director
Chairman of the Audit & Risk Management Committee
Member of the Remuneration Committee
Member of the Governance & Nomination Committee
Raymond Zage
Non-Executive Director
Member of the Audit & Risk Management Committee
Dr Julie Beeby
(retired 26 October
2023)
Non-Executive Director
Chairman of the Health, Safety, Environment & Community Committee (to 25
October 2023)
Member of the Governance & Nomination Committee (to 25 October 2023)
The following table sets out the Company’s Executive KMP during FY24. All Executive KMPs listed below have held their
respective positions for the full financial year.
Executive KMP
Role held during FY24
Dates
Paul Flynn
Managing Director and CEO
Full year
Kevin Ball
CFO
Full year
Ian Humphris
Chief Operating Officer
(promoted from EGM, Operations in June 2024)
Full year
1.3. Changes to our Executive KMP team
In June 2024, Ian Humphris was promoted from the Executive General Manager – Operations to the Chief Operating
Officer (COO). This promotion followed the acquisition of the Daunia and Blackwater mines on 2 April 2024. In his new
role, Ian oversees Whitehaven’s expanded operations, supported by new regional General Manager roles in New South
Wales and Queensland. This change enhances the Company’s leadership structure to meet the increased scale and
complexity of our business.
Whitehaven Coal Annual Report 2024 | Page 37
Directors’ Report Remuneration Report
For the year ended 30 June 2024
2. Remuneration governance, principles and framework
2.1. Remuneration governance model
This section describes the roles and responsibilities of the Board, Remuneration Committee, management, external
remuneration advisors and shareholders when making remuneration decisions. It also provides an overview of the
principles and policies that underpin the Group’s remuneration framework.
During FY24, the Group engaged KPMG and Mercer as remuneration consultants, noting neither provided any
remuneration recommendations as defined in the Corporations Act 2001 (Cth). KPMG provided market practice
information, analysis and advice including feedback on the FY23 Remuneration Report strike. Mercer provided salary
benchmarking data for Executive KMP roles. The Board also engaged Heidrick and Struggles to provide an analysis of
attracting CEO-level coal industry talent to Whitehaven, which was also used to inform the suitability of current CEO
remuneration.
The Remuneration Committee also engaged Godfrey Remuneration Group Pty Ltd (GRG) as remuneration consultants,
noting GRG did provide remuneration recommendations as defined under the Corporations Act 2001 (Cth). This
remuneration recommendation was for the following engagement: Data, Analysis and Recommendations Regarding Non-
Executive Directors (NED) Remuneration fee of $21,175 (including GST). Total fees charged by GRG for the year were
$29,975 (including GST). No other remuneration recommendations were obtained during FY24.
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.
SHAREHOLDERS
Feedback is received through
shareholder votes on the
Remuneration Report at the
AGM and consultation with
key stakeholders.
Delegation
and oversight
Recommendations
and reporting
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 that
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.
REMUNERATION COMMITTEE
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.
Whitehaven Coal Annual Report 2024 | Page 38
Directors’ Report Remuneration Report
For the year ended 30 June 2024
2.2. Remuneration principles
The following principles underpin the Group’s remuneration framework:
Remuneration principles
Competitive
Equitable
Drives Performance
Aligned
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 Group and its
stakeholders, including
shareholders, employees and the
communities in which we
operate.
2.3. Connecting our principles to our remuneration framework
The Group’s Executive KMP remuneration framework is based on a set of core principles, and comprises both fixed and
at-risk remuneration components delivered under the SIP. The table below summarises the key elements of the
remuneration framework with respect to our core remuneration principles.
Attract and retain
skilled executives
Structures are
equitable
and reinforce
relevant
Company policies
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
Cash Components
Equity-Based Components
COMPOSITION
Includes salary
and superannuation
Following assessment of the annual scorecard:
− 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 vest in three equal parts after 1, 2, and 3 years.
− 34% of SIP is awarded as performance-based rights with a four-year vesting schedule. The
performance rights are essentially ‘‘double tested’’ against both the annual scorecard and
subsequent performance measures.
Ongoing levels of equity holdings are also required per Whitehaven’s Minimum Shareholding
Requirements policy of 100% of TFR for the CEO and 50% of TFR for other Executive KMP.
OPPORTUNITY
Fixed remuneration is targeted
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.
BASIS OF
OUTCOMES
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 Relative Cost measure and the Long-term Growth Projects measure.
These two hurdles are tested independently of one another. Measures are set by the Board and
are underpinned by strategic projects, financial considerations, and IRR hurdles.
GOVERNANCE
Reviewed annually by the
Remuneration Committee
The Board is able to adjust SIP outcomes to ensure alignment with shareholder expectations,
either upward or downward. This includes adjustments to performance against the SIP
scorecard and 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.
TFR
SIP
Whitehaven Coal Annual Report 2024 | Page 39
Directors’ Report Remuneration Report
For the year ended 30 June 2024
3. FY24 Remuneration structure
Whitehaven's remuneration structure aims to address the unique challenges of attracting and retaining talent in the coal
industry, align with shareholder experiences, and support the execution of the Group's evolving strategy. Recognising the
cyclical and volatile nature of the coal industry, the framework considers the significant influence of coal prices on results
and addresses stock valuation and performance challenges due to ESG screening and discounting. The key elements of
the framework are as follows:
− Competitive TFR: For our Executive KMP, we target the 75th percentile for TFR relative to a broader group of mining
and resource-focused businesses. This ensures competitive compensation to secure top talent, addressing the
challenges of attracting and retaining Tier 1 executives.
− Clear Performance Focus via the SIP: The SIP replaces traditional short- and long-term incentive (STI and LTI)
measures in favour of value drivers relevant to Whitehaven’s annual performance as well as sustainable long-term
growth, reflecting our distinct competitive advantages in long-term project progression and relative cost
competitiveness. This approach focuses and empowers our Executive KMP, motivating performance that drives
shareholder outcomes.
− Alignment to Shareholder Interests via Equity: A significant portion of at-risk remuneration is delivered in equity,
deferred over several years, with an extended deferral period to align executive rewards with shareholder experience
through typical market cycles. Additionally, Executive KMP are required to maintain a minimum shareholding, ensuring
decision-making aligns with shareholder interests, as they share in the financial consequences of their decisions.
For our Board members, Base Board fees and Committee fees are aligned with the market median. This ensures
competitive and fair remuneration for our Non-Executive Directors. Minimum shareholding requirements also apply to our
Non-Executive Directors, encouraging shareholder alignment.
Details on the specifics of the remuneration framework are provided in the following sections.
3.1. Mix and timing of Executive KMP remuneration in FY24
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
encourage sustained performance.
The graphs below illustrate the remuneration mix for Executive KMP for FY24 (based on maximum performance for at-
risk components):
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
consistent with other SIPs in the market. The following diagram shows the timing for determining and delivering
Executive KMP remuneration for FY24.
Whitehaven Coal Annual Report 2024 | Page 40
Directors’ Report Remuneration Report
For the year ended 30 June 2024
3.2. Fixed remuneration
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
reviewed annually having regard to market benchmarking, availability of talent for certain roles, internal relativities, scope
of role, experience, tenure in role, cost to replace, and sustained individual performance. While 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
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
comparator groups where appropriate for the individual executive. For FY24, fixed remuneration increases for Executive
KMP were at market rates (4%) and well below broader workforce increases. See section 3.5 for further explanation of our
approach to remuneration benchmarking.
3.3. FY24 SIP award structure
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
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
creation.
Feature
Description
Annual
Performance
Period
Each annual performance period begins and ends with the financial year (i.e. 1 July to 30 June). The FY24
performance year was 1 July 2023 to 30 June 2024.
SIP
Opportunity
CEO: target 185% of TFR and stretch 277.5% of TFR
Other Executive KMP: target 125% of TFR and stretch 187.5% of TFR
Calculation of
SIP award
The value of SIP awards will be calculated as follows.
Whitehaven Coal Annual Report 2024 | Page 41
Directors’ Report Remuneration Report
For the year ended 30 June 2024
Feature
Description
Determination
of SIP awards
Scorecard KPIs and weightings
The scorecard KPIs represent 80% of the overall SIP outcome and are based on quantifiable financial and HSE
measures. Whitehaven has chosen outcome-focused performance conditions that link to our strategy.
The table below summarises the KPIs and the applicable weighting of each performance measure that have
been adopted in FY24:
KPI
Rationale
Weighting
Health, Safety and Environment Measures (40%)
Safety (TRIFR)
− Key indicator of safety performance
− Reflects effectiveness of risk management
framework
20%
Environmental Compliance
(Enforceable Actions)
− Key compliance measure
− Demonstrates commitment to sustainability
20%
Financial Measures (60%)
EBITDA
− Key profit measure for shareholders
− Reflects underlying performance
25%
ROM coal production (managed
basis)
− Key measure of operational efficiency & supply
chain management
− Reflects revenue without the non-controllable
price component and enables customer
satisfaction
− Is critical for optimising profitability in the business
20%
FOB cost per tonne (equity basis)
− Key controllable value driver of profit
− Key operational measure of management’s
performance
15%
The measures and weightings outlined above will be considered by the Board at the beginning of each financial
year. They are set on a like-for-like basis based on budgets (excluding M&A), with weighting changes to be
assessed yearly as strategy and resulting initiatives evolve. For example, the financial weightings could be
increased to address periods that require operational improvements and cost containment, or rebalanced to
reflect timing in the coal price cycle (i.e. higher cost weighting in low price years when managing costs is
increasingly critical). For FY24, the measures were set at the same percentage weightings as FY23.
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. These quantitative and qualitative objectives
reflect both short- and longer-term strategic initiatives, which may include culture, community, emissions
reduction and other sustainability focused initiatives, as well as how executives demonstrate behaviours aligned
to Whitehaven’s STRIVE values. Performance against objectives is assessed annually as part of the Group’s
broader performance review process.
Form of
delivery,
vesting and
exercise
Following the conclusion of each annual performance period, any resulting SIP award (based on the above
assessment) 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 2023. The single VWAP date at the beginning of
the annual performance period creates shareholder alignment over the incentive plan’s full operation.
Measures on
Performance
Rights
Relative Quality Cost Measure (17% of SIP award weighting)
These Rights are subject to the Group 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 and
threshold positions are 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, and is consistent with industry-wide
reliance on a calendar year comparable measurement period for long-term incentive plans. As Whitehaven has
a layered, multi-year cascade of long-term cost rights vesting, this methodology has been deemed to be
appropriate by the Board in creating the desired behaviour around long-term relative cost containment.
Whitehaven Coal Annual Report 2024 | Page 42
Directors’ Report Remuneration Report
For the year ended 30 June 2024
Feature
Description
Long-Term Growth Projects Measure (17% of SIP award weighting)
Whitehaven operates in seaborne markets supplying both high CV thermal coal and metallurgical coal, where
demand for our products is forecast to grow over the coming decades, while supply is forecast to decrease as a
result of mine depletions and the diminishing pipeline of new supply1.
The Long-Term Growth Projects Measure directs Executives towards initiatives that are critical to Whitehaven’s
long-term sustainability, positioning Whitehaven to be able to replace and grow reserves in an increasingly
supply constrained environment. Having a pipeline of development projects sets Whitehaven apart and, when
successful, these projects are among Whitehaven’s most significant sources of competitive advantage and
value creation for shareholders. The increase in value is achieved by bringing tonnes to market through means
other than mergers and acquisitions at attractive rates of return.
The Long-Term Growth Projects Measure complements Whitehaven’s other SIP measures by focusing on
projects with longer timelines. While the other SIP measures evaluate delivery outcomes over the short-term to
medium-term (i.e., 1-4 years), the Long-Term Growth Projects Measure incentivises performance on projects
with timelines often between 5 and 15 years, which can be affected by extended approval timelines, regulatory
changes, legal challenges and activist campaigns. Without this measure, there is a real risk that Executives
might prioritise short-term gains achievable within their expected tenure, depleting the Group’s reserves and
assets, and undermining the foundations necessary for future growth and delivery of shareholder value.
Project Assessment
The Long-Term Growth Projects Measure involves the Board assessing the quality and timeliness of project
milestone deliveries over a 4-year performance period. The Board oversees progress against key milestones
deemed critical to eventual project delivery and the creation of long-term shareholder value. Measures are
quantifiable and commercially sensitive and will be disclosed retrospectively.
Whitehaven currently has four projects within the Long-Term Growth Projects Measure. Each project is
weighted according to its potential for shareholder value creation, as outlined below. Given their importance to
Whitehaven’s strategy and value proposition, the Board is provided with progress updates on each of these
development projects at every Board meeting. Annually, and at the time of potential vesting, each project is
rated on a scale of 0-10, with weightings used to calculate the total outcome for the Long-Term Growth
Projects Measure at the conclusion of the performance period.
− Vickery extension (30%)
− Narrabri Stage 3 (30%)
− Winchester South (20%)
− Maules Creek Continuation Project (20%)
The commercial value of these projects is delivered through:
− Extensions and enhancements to mining operations that will replace reserves depleted by mining or increase
ROM coal production, driving sustained productivity and revenue;
− New initiatives that add to long-term coal reserves, including to replace mines that are closing, enhancing
resource security and supporting operational sustainability; and
− Increasing production rates and our capacity for diverse coal products, enhancing market flexibility, ability to
maintain and/or improve quality through blending, and resilience to changing markets.
Internal Rate of Return (IRR) Performance
As noted in the Introductory Letter, the Board has responded to investor feedback on the evaluation of this
Long-Term Growth Projects Measure. Investors have asked for greater transparency on how the measure aligns
with delivering long-term value for shareholders and goes beyond ordinary activities. As a result, the Board has
provided further details of the financial evaluation of the projects, including the expected IRR to shareholders,
to ensure that the vesting outcomes are aligned to significant shareholder value creation through these
important initiatives.
Whitehaven will only pursue a long-term growth project if it has a minimum expected IRR of 15-25% on a post-
tax basis. The IRR hurdle may vary by project, depending on the project’s risk profile. Each project’s minimum
expected IRR needs to be matched with its risk, considering factors such as group synergy benefits (e.g., the
benefits derived from the proximity of mines such as Winchester South and Daunia).
If a project’s expected IRR falls below the requisite level, management is expected to recommend to the Board
to terminate the project. To avoid conflicts in management’s reporting, the expected IRR evaluation will not
serve as a gateway but will be factored into the Board’s performance evaluation. For example, changes in the
regulatory and government environment may render a project less economical, potentially leading to its
termination, or the Board may prioritise other higher-returning capital allocation decisions despite
management’s effectiveness in driving the projects forward. Conversely, if a project’s expected IRR falls below
thresholds due to management’s underperformance and is subsequently cancelled, it would result in a zero
outcome for that project.
1
Commodity Insights 2023 Global Supply & Demand base case assumption has a 139Mt supply gap for seaborne high CV Thermal Coal forecasts by 2040; and a 74Mt
supply gap for seaborne Metallurgical Coal forecasts by 2040. Commodity Insights’ forecasts capture planned new supply and end of mine closures.
Whitehaven Coal Annual Report 2024 | Page 43
Directors’ Report Remuneration Report
For the year ended 30 June 2024
Feature
Description
Retesting
Any component of the SIP award that does not vest following testing will lapse. There is no retesting of awards
that do not vest.
Board
Discretion
The Board maintains the discretion to adjust the formulaic outcomes outlined above. This can be implemented
in response to unanticipated external factors that are beyond management's control, if the results generate any
unintended consequences, or if shareholder experience does not align with outcomes. For example, in the event
of a major/material safety, environmental or operational incident, within the control of management, the Board
would consider exercising downward discretion on relevant remuneration outcomes. Such decisions will always
take into account the perspectives of various stakeholders including, but not limited to, shareholders,
employees, and communities.
3.4. Policies and conditions of rights awarded under equity plans
Minimum shareholding requirements
The Minimum Shareholding Requirements policy was introduced from July 2022 and is designed to align the interests of
shareholders with those of Whitehaven’s executives. The Minimum Shareholding Requirements policy requires Executive
KMP to hold applicable Whitehaven shares, deferred rights and/or vested performance rights to the value of at least 50%
of their TFR, 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 Minimum Shareholding Requirements 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 Group’s financial statements or other material error which results in vesting; or any other factor that the Board deems
justifiable.
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 in line with
other SIPs in the market. This DEP can be delivered in cash or as additional fully paid ordinary shares in the Company, at
the discretion of the Board. However, as noted above, dividends are only payable in proportion to the number of SIP
rights that ultimately vest to further align executives with the shareholder experience for the duration of the performance
period.
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.
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:
Whitehaven Coal Annual Report 2024 | Page 44
Directors’ Report Remuneration Report
For the year ended 30 June 2024
− 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,
scope of role, experience, tenure in role, cost to replace, and 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 (one 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).
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
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
Group 2 – ASX200 Industrials
This group had a median market
capitalisation of $7.7 billion
(as at the time of benchmarking).
Adbri Ltd
Alumina Ltd
Ampol Ltd
Beach Energy Ltd
BHP Group Ltd
BlueScope Steel Ltd
Boral Ltd
Coronado Global Resources Inc.
Evolution Mining Ltd
Fletcher Building Ltd
Fortescue Metals Group Ltd
IGO Ltd
Iluka Resources Ltd
Incitec Pivot Ltd
Mineral Resources Ltd
New Hope Corporation Ltd
Newcrest Mining Ltd
Northern Star Resources Ltd
Orica Ltd
Orora Ltd
OZ Minerals Ltd
Regis Resources Ltd
Rio Tinto Ltd
Santos Ltd
Sims Ltd
South32 Ltd
Washington H Soul Pattinson and Company Ltd
Woodside Energy Group Ltd
Worley Ltd
Yancoal Australia Ltd
Whitehaven Coal Annual Report 2024 | Page 45
Directors’ Report Remuneration Report
For the year ended 30 June 2024
4. FY24 Remuneration outcomes
4.1. Summary of Company performance
A snapshot of key Company statutory performance for the past five financial years is set out below:
FY24
FY23
FY22
FY21
FY20
Revenue ($m)
3,824
6,065
4,920
1,557
1,722
Underlying EBITDA ($m)
1,3991
3,967
3,060
205
306
Statutory EBITDA ($m)
798
3,964
3,060
205
306
Net profit/(loss) after tax ($m)
355
2,668
1,952
(544)
30
Share price at year end (dollars per share)
$7.65
$6.71
$4.84
$1.94
$1.43
Basic EPS (cents per share)
44.4
307.7
197.6
(54.6)
3.0
Diluted EPS (cents per share)
43.8
302.8
195.1
(54.6)
3.0
Shareholder dividends paid (cents per share)
20
74
48
-
1.5
Share buy-back ($m)
-
949
363
-
-
TRIFR2
3.3
4.7
5.4
5.9
4.1
Saleable production (Mt)
20.7
15.7
17.3
16.9
18.4
1
EBITDA of $1,127m referenced in section 4.2 excludes significant items and the QLD operations.
2 TRIFR is the total number of injuries for employees and contractors resulting in lost time, restricted work duties or medical treatment per
million hours worked. FY24 excludes TRIFR for the acquired Queensland assets.
4.2. FY24 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. They are set with rigour reflecting budgets and guidance, which are underpinned by mine planning, coal prices and
cost environment. In years with high coal prices or new mine openings, targets are set with those tailwinds in mind, and
conversely, in years with mine closures and lower prices, targets may be set lower, yet with a similar rigour to drive
controllable performance outcomes and ensure proper alignment. 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.
When assessing FY24 scorecard performance, the impacts of M&A were excluded from both targets and outcomes,
consistent with Whitehaven’s longstanding approach. As the Daunia and Blackwater sites were acquired after the
majority of the year had been completed, they will be incorporated into FY25 scorecard targets and performance
outcomes. Following the Board's approval of the Queensland assets acquisition, transitional milestones and risk mitigation
initiatives were incorporated into individual performance objectives for Executive Key Management Personnel. These
objectives were specifically designed to focus on post-acquisition integration and risk management, rather than
incentivising the promotion or completion of the transaction itself. For further details on individual objectives, see the
section "Executive KMP individual performance and SIP outcomes".
Scorecard targets and outcomes
The following table summarises results against each KPI.
Generally strong financial outcomes, underpinned by an EBITDA of $1,127m (excludes significant items and the QLD
operations’ EBITDA), and above target health, safety and environment performance led to an overall result of 76.6% of
the maximum scorecard outcome (114.9% of the target scorecard outcome) for FY24.
Whitehaven Coal Annual Report 2024 | Page 46
Directors’ Report Remuneration Report
For the year ended 30 June 2024
FY24 Targets and Results
KPI Unit
Weighting
FY24
Result
Threshold
(50%)
Target
(100%)
Stretch
(150%)
FY24 SIP
Outcome
(% of stretch)
HEALTH, SAFETY AND ENVIRONMENT
TRIFR
20%
3.33 5.38
5.12
4.74
100%
Environmental
Compliance
20%
0 3
2
1
100%
(Enforceable Actions)
Safety remains our first and foremost priority across sites, and following ongoing investment and focus, TRIFR continued to improve,
decreasing from 4.74 to 3.33 in FY23 and FY24 respectively. This outcome continues to track favourably to comparable industry
performance.
Similarly, as a result of continued attention and commitment, environmental performance was strong in FY24 with no environmental
incidents triggering or likely to trigger enforcement actions, leading to a Stretch outcome.
FINANCIALS
EBITDA
25%
$1,127 $700
$900
$1,100
100%
(A$m)
ROM coal production
20%
19.7 18.7
20.0
21.2
58%
(Mt)
FOB Unit Cost
15%
$114 $113
$106
$103
0%
(A$/tonne)
For NSW operations, the FY24 EBITDA of $1,127m, reflects strong, yet lower coal prices throughout most of the financial year, solid
operational performance at the open cut operations, continued geological challenges yet improved results at the Narrabri underground
mine in the second half of FY24, and the planned closure of the Werris Creek Mine during the year. EBITDA targets are set with rigour at
the beginning of each financial year reflecting then current coal prices and budgets to ensure targets are stretching, yet achievable with
strong management performance. The FY24 EBITDA performance, while down from the exceptionally high price environment in FY23,
was still a very strong result in absolute terms, and versus the FY24 budget.
Overall, Whitehaven’s NSW operations delivered an operational performance within ROM coal production guidance, which was up on
FY23. This solid result was supported by an average achieved coal price in the NSW business of $217/t (before applicable royalties).
FY24 ROM coal production of 19.7Mt for NSW operations was up 8.1% on the 18.2Mt delivered in FY23. This result was within the market
guidance range.
The cost scorecard ranges for FY24 were set above corresponding FY23 ranges due to inflationary cost impacts, particularly labour-
related costs, as well as the cost compliance with the Safeguard Mechanism. Group costs were at the high end of the cost guidance of
$103/t-$113/t, reflecting both inflationary cost impacts and lower volumes at Narrabri. While labour availability has significantly
improved, labour costs were markedly higher than FY23. Diesel costs and other inputs such as explosives were also higher. The
additional variable toll charge implemented at NCIG continued in FY24 is also reflected in the higher costs. As a result, the cost measure
did not meet threshold.
$114
3.33
0
$1,127
19.7
Whitehaven Coal Annual Report 2024 | Page 47
Directors’ Report Remuneration Report
For the year ended 30 June 2024
Executive KMP individual performance and SIP outcomes
In determining FY24 SIP outcomes, the Board considered the performance of each KMP against their respective strategic
and operational targets during the financial year. These included additional measures and targets that were introduced
after the Board approved the acquisition of the Queensland assets. There was no incentive to promote or complete the
transaction, but there were key transitional milestones and risk mitigation initiatives which were prioritised and assessed
alongside existing KPIs once the transaction was formalised. The total individual opportunity remained the same.
Recognising the successful delivery against these Individual priorities, the Managing Director & CEO and the other
Executive KMP were assessed as follows by the Board:
Individual Performance: FY24 Summary
Paul Flynn
Managing Director and CEO
− Project Delivery: Ensured safe and on-budget delivery of Vickery early mining, exceeding initial coal
production targets.
− Operational Performance: Improved pit optimisation at Maules Creek, restructured operations at
Narrabri to improve performance, and managed Werris Creek’s transition to closure.
− Industry Advocacy: Led successful industry negotiations on royalties in NSW, improved Safeguard
Mechanism transition arrangements, safety regulations, environmental policies and coal industry
advocacy.
− Integration of New Assets: Successfully led the onboarding of Queensland assets, which doubled
the Group's size and further repositioned the portfolio toward metallurgical coal. Secured favourable
funding and refinancing terms, strengthening the Group's financial position. Achieved 95% employee
retention and seamless operational transition while tightly managing key risks.
− Strategy Execution: Advanced minerals strategy with positive investment outcomes.
Result: 5 out of 5 for individual performance component
Kevin Ball
Chief Financial Officer
− Capital Management: Advanced financial strategies to enhance risk management capabilities across
the expanded business portfolio. Improved stakeholder understanding of the capital allocation
framework.
− Strategy Execution: Refined comprehensive strategy, balancing organic growth with further
diversification into metallurgical coal. Progressed initiatives to address carbon-related challenges
and enhanced risk management capabilities, developing pathways for long-term resilience.
− Integration of New Assets: Structured highly successful funding arrangements opening new debt
markets for the new and existing businesses. Managed completion and settlement processes.
Initiated asset sell-down to optimise balance sheet and accelerate organic initiatives.
− Team Leadership: Strengthened finance, IT, and investor relations teams to meet increased business
scale and complexity, while effectively supporting the Group through an intensive transformation
period.
Result: 5 out of 5 for individual performance component
Ian Humphris
Chief Operating Officer
− Project Delivery: Managed Vickery's first coal delivery in FY24, exceeding initial coal production
targets. Progressed life-of-mine planning at Narrabri and Maules Creek.
− Operational Performance: Improved pit optimisation at Maules Creek, restructured operations at
Narrabri to improve performance, and managed Werris Creek's transition to closure.
− Integration of New Assets: Key leader in the operational onboarding of Queensland assets.
Spearheaded the operational transition and built a cohesive leadership team across Queensland and
New South Wales to drive operational enhancements and optimise the expanded business.
Achieved 95% employee retention and seamless operational transition while tightly managing key
risks
− Safety and Compliance: Supported Safeguard Mechanism emissions initiatives and maintained
excellent safety and environmental performance across NSW open cut operations.
Result: 5 out of 5 for individual performance component
Based on the above performance, this resulted in an overall SIP outcome of 81.3% of maximum opportunity for the
Managing Director & CEO and the other Executive KMP, versus the scorecard outcome of 76.6% of maximum
opportunity. 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
Total
Scorecard
component
(80%
weighting)
Individual
component
(20%
weighting)
Overall
outcome
Percentage of
maximum SIP
forfeited
Executive KMP
($)
($)
($)
($)
Paul Flynn
1,328,970
1,594,764
1,506,166
4,429,900
76.6%
100.0%
81.3%
18.7%
Kevin Ball
418,440
502,128
474,232
1,394,800
76.6%
100.0%
81.3%
18.7%
Ian Humphris
404,160
484,992
458,048
1,347,200
76.6%
100.0%
81.3%
18.7%
Whitehaven Coal Annual Report 2024 | Page 48
Directors’ Report Remuneration Report
For the year ended 30 June 2024
The total SIP opportunity at target and stretch, by Executive KMP, as a percentage of TFR is detailed in section 3.3.
4.3. FY24 Executive KMP performance rights vesting outcomes
The table below sets out the performance rights awards capable of vesting in 2024 and the results of the respective
performance condition testing.
Award type
Performance
period
Tranche
Weighting
Threshold-
Vesting Target
Full-Vesting
Target
Performance
achieved
Vesting
outcome1
2020 (FY21) LTI Awards (32.5% of original award tested at the end of FY24)
TSR Award
1 July 2020 –
30 June 2024
2 of 2
17.5%
50th percentile 75th percentile
or above
100th
Percentile
(TSR of 555%)
100%
Long-Term
Growth Projects
Measure
1 July 2020 –
30 June 2024
1 of 1
15%
>0% on
Scorecard
Assessment,
with Positive
Absolute TSR
Gateway
100% on
Scorecard
assessment,
with Positive
Absolute TSR
Gateway
95%
Scorecard-
based result
and Positive
Absolute TSR
met (actual
TSR of 555%)
95%
2021 (FY22) LTI Awards (67.5% of original award tested at the end of FY24)
TSR Award
1 July 2021 –
30 June 2024
1 of 2
17.5%
50th percentile 75th percentile
or above
100th
Percentile
(TSR of 412%)
100%
Costs Hurdle
Award2
1 Jan 2023 –
31 Dec 2023
1 of 1
50%
25th percentile
+7.5%
25th percentile
or below
12th Percentile
100%
1
The remaining proportion of each award due to vest in FY24 was forfeited.
2 50% of vested 2021 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 2025.
TSR outcomes
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 is standard for our industry, for data is calculated and
presented on this basis by Wood Mackenzie. It is therefore not feasible for Whitehaven to accurately compare financial
year costs (or multi-year costs) to industry data, in this or subsequent years.
Long-Term Growth Projects Measure
15% of the FY21 LTI is tested against the Long-Term Growth Projects Measure. A description of this metric is provided in
section 3.3 above.
In assessing performance against this metric in respect of the FY21 LTI, the Board has provided further details of the
financial evaluation of each project below, including the minimum IRR to shareholders, to ensure that the vesting
outcomes are aligned to significant shareholder value creation through these important initiatives.
That is, the long-term growth projects outlined below1 remain on target to achieve a minimum expected IRR of 15-25% on
a post-tax basis.
Based on the performance outlined below, which takes into account the timeliness and quality of project delivery, a
positive absolute TSR gateway, as well as the achievement of IRR hurdles, the overall vesting outcome in respect of this
measure under the FY21 LTI plan was 95%. This vesting outcome is based on:
− timeliness and quality of project delivery
− performance against budget
− a positive absolute TSR gateway
− achievement of IRR hurdles.
1 Maules Creek Continuation Project utilises the Maules Creek IRR as a baseline but will be assessed for its incremental IRR improvement.
Whitehaven Coal Annual Report 2024 | Page 49
Directors’ Report Remuneration Report
For the year ended 30 June 2024
The review and re-work of initial engineering plans that was required for the Vickery project in FY21, lowered the overall
vesting outcome by five percentage points.
Progress and milestones delivered over the 4-year measurement period are outlined in the following tables.
Long-term Growth Projects progress and milestones:
Vickery extension (30%): mine extension extracting 185Mt ROM and 128Mt of product coal over ~20 years
Project acquired: 2013
Project status: on time and budget
Key achievements:
− Early mining capital project undertaken in FY24 – delivered on time and within
$150m capital budget
− First coal production and sales in FY24 after 10-year process
− Ramping up in FY25 to produce ~1Mt per annum
Key performance
milestones
Approvals
Design & Engineering
Construction & Early
Mining
Production
− State approval received (FY21)
− Federal approval received (FY22)
− Mine lease granted (FY23)
− Board approved early mining (FY23)
− Environmental protection
license (FY24)
− DA for rail corridor approved (FY24)
− 16 key environmental and social mgt
plans approved (FY22-24)
− Initial engineering plans
required review and re-
work to develop more
robust designs (FY21)
− Completed exploration
and drilling, most
geotechnical
investigations, feasibility
study and draft report
(FY24)
− Constructed Early
Mining facilities and
commenced box cut
excavation – delivered
within $150m budget
(FY24)
− First coal to CHPP in
June 2024 (100kt),
delivered in line with
plan
− Ramping up in FY25 to
produce ~1Mtpa
Narrabri Stage 3 (30%): extending the approved life of the mine, which has approved production of 11Mt per annum, from 2031 to 2044
Project commenced: 2021
Project status: Milestones delivered
on time and on budget. Project
currently delayed due to legal
challenges.
Key achievements:
− NSW State approval by Independent Planning Commission (IPC)
− All management plans approved to commence project
− Successfully defended Federal Court and Full Bench of Federal Court challenges
to the EPBC process
Key performance
milestones
Approvals
Design & Engineering
Construction & Early Mining
− EIS submitted (FY21)
− NSW IPC approval received (FY22)
− Progressed Voluntary Planning Agreements with Shire
Councils (FY24)
− All management plans approved for Stage 3
commencement (FY24)
− Purchased key properties for biodiversity offsets;
secured biodiversity credits (FY24)
− Completed 7 of 9 groundwater bore make good actions
and additional groundwater licenses approved (FY24)
− Successfully defended legal challenges to EPBC
process (FY24)
− Commenced design of
methane flaring for
emissions reduction as
required under Stage 3
approval (FY24)
− 95% completion of new
ventilation fans design
(FY24)
− Commenced eastern
intake shaft (FY24)
− 66kv powerline
delivered (FY24)
− Delivered first substation
for new ventilation
complex (FY24)
− Awarded D&C
contracts (FY24)
Whitehaven Coal Annual Report 2024 | Page 50
Directors’ Report Remuneration Report
For the year ended 30 June 2024
Winchester South (20%): new mine producing up to 17Mt per annum with a mine life of >20 years
Project acquired: 2018
Project status: on time and budget
Key achievements:
− The Queensland Department of Environment, Science and Innovation (DESI) approved the
Winchester South Coal Mine Draft Environmental Authority
− Commonwealth EPBC approval process is progressing
Key performance milestones
Approvals
Design & Engineering
− EIS submitted to Queensland Coordinator General (FY21)
− Compensation agreed with landowners (FY22)
− Revised EIS submitted (FY22)
− Final EIS submitted (FY23)
− Queensland Coordinator General Report /Recommendation
(FY24)
− DESI approved Draft EA (FY24)
− Preparation for Land Court objections hearing (FY24)
− Pre-feasibility Study report completed (FY21)
− JORC Resources & Reserves report updated and improved
(FY23)
− Geotech assessment report completed (FY23)
− Bulk sample Pilot Plant program completed (FY23)
− Drilling and geotechnical work done for coal quality,
infrastructure design, etc. (FY24)
− Geological validation and resource modelling undertaken
(FY24)
− Progressed water monitoring studies (FY24)
− Completed associated exploration activities incl cultural
heritage surveys (FY23-FY24)
− Progressed Feasibility Study Report (FY23-FY24)
Maules Creek Continuation Project (20%):
extending approved life of the mine, which currently has approved production of 13Mt per annum, from 2034 to 2045
Project commenced: 2023
Project status: on time and budget
Key achievements:
− Smooth initiation of project with strong engagement and early milestones met
Key performance milestones
Approvals
− FY23
− Commenced exploration drilling (FY23)
− Public discussions with government and Community
Consultative Committee (FY23)
− FY24
− Stakeholder workshops and meetings undertaken
− Scoping Document submitted to Dept of Planning &
Environment
− Government accepted Site Verification Certificate
Assessment Report
− Received Secretary Environmental Assessment
Requirements
− Scheduled EPBC Act Referral
− Finalised mine plan and noise model
− Initiated 11 on-site environmental studies – on track for
completion Q2 FY25
− Commenced Social Impact Assessment
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.
Whitehaven Coal Annual Report 2024 | Page 51
Directors’ Report Remuneration Report
For the year ended 30 June 2024
Executive KMP performance rights awards vesting in FY24
Executive
KMP
Long-Term
Growth
Projects
Measure
2020
TSR Hurdle
(Tranche 2)
2021
TSR Hurdle
(Tranche 1)
2021
Costs
Hurdle1
Performance
Rights value
Vested
Performance
Rights
at face value
of award2
Vested
Performance
Rights
share price
appreciation2
Performance Rights
$
$
$
Paul Flynn
171,000
210,000
167,197
477,704
8,463,683
1,846,936
6,616,747
Kevin Ball
53,200
65,333
52,018
148,622
2,633,177
574,610
2,058,567
Ian Humphris
59,811
73,453
50,000
142,858
2,690,507
581,896
2,108,611
Award Test Date
30 June 2024
30 June 2024
30 June 2024
30 June 2024
VWAP – Face
value
1.53
1.53
1.96
1.96
VWAP - Award
Test Date
8.25
8.25
8.25
8.25
1
50% of these vested awards remain subject to a one-year service condition.
2 As presented in section 4.4.
4.4. Performance Rights awards granted in FY24
A summary of the Performance Rights awards granted in FY24 as a result of FY23 SIP outcomes (i.e. the face value and
the fair value of the Performance Rights granted to each Executive KMP) is set out in the table below:
Executive KMP
Number of
performance rights granted1
Face value of
performance rights grant2
Fair value of performance
rights at grant date3
($)
($)
Paul Flynn
259,2024
1,254,538
2,195,371
Kevin Ball
78,541
380,138
665,221
Ian Humphris
75,863
367,177
642,539
1
Refer to section 3.3 for the terms of the Performance Rights grant.
2 The face value of the Performance Rights of $4.84 was calculated using the volume weighted average price of Whitehaven shares over the
20 trading day period commencing 10 trading days prior to 30 June 2022, being the beginning of the SIP performance period
3 The fair value for awards granted to the Executive KMP is based on the average fair value of $8.46973 per performance right as at 1
December 2023, being the 5-day VWAP as at the grant date, plus the accrued DEP value. The factors and assumptions used in determining
the fair value are set out in note 5.5 to the financial statements.
4 The issue of these securities was done in accordance with the approval of the Company’s shareholders under ASX Listing Rule 10.14 at the
Company’s 2023 Annual General Meeting.
4.5. 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 FY24 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 FY24. 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 the Corporations Act 2001 (Cth). It has been included on a voluntary basis and includes:
− fixed remuneration earned in FY24
− SIP award earned in respect of FY24 performance (including the cash component payable in September 2024 and the
deferred and performance-based components awarded in equity, which may vest and become exercisable in later
years)
− LTI that vested in FY24, including the impact of share price growth between grant and vesting
− any non-monetary benefits provided to Executive KMP in FY24 (including fringe benefits).
Total remuneration increased significantly in 2024, 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 2024 due to high
performance, and a total shareholder return of 555% for the 4-year period 1 July 2020 to 30 June 2024, and 412% for
the 3-year period 1 July 2021 to 30 June 2024. Total shareholder return for both periods was the highest in the ASX
100, resulting in significant upside for participants and shareholders, so the Board believes these outcomes are aligned
to shareholder experience.
Whitehaven Coal Annual Report 2024 | Page 52
Directors’ Report Remuneration Report
For the year ended 30 June 2024
For further details on SIP and LTI outcomes for FY24 refer to sections 4.2 and 4.3 respectively.
FY
TFR1
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
$
$
$
$
$
$
$
$
$
Paul Flynn
2024
1,964,000
1,328,970
3,292,970 1,594,764
1,846,936 25,879
6,760,549
6,616,747
13,377,296
2023
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
Kevin Ball
2024
915,200
418,440
1,333,640
502,128
574,610 33,372
2,443,750
2,058,567
4,502,317
2023
880,000
335,414
1,215,414
402,497
524,595
34,107
2,176,613
1,427,848
3,604,461
Ian Humphris
2024
884,000
404,160
1,288,160
484,992
581,896 89,620
2,444,668
2,108,611
4,553,279
2023
850,000
323,979
1,173,979
388,775
433,478 78,443
2,074,675
1,476,092
3,550,767
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 awards deferred into rights that are subject to further service conditions. The deferred rights for
2024 will be issued at a VWAP of $6.74. It is expected that the deferred rights for 2024 will vest and become exercisable in three equal
tranches following the completion of FY25, FY26, and FY27. Refer to section 3.3 for further details.
4 Performance rights represent LTI awards made in 2020 and 2021 (FY23: 2019 and 2020) 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.
4.6. Change to the Remuneration Framework from FY25
In FY23, Whitehaven transitioned from a traditional STI / LTI framework to the SIP. As part of the transition to the SIP
framework, a vesting gap was created in FY26 whereby no legacy LTI or SIP performance rights are available to be
tested and to vest. Additionally, there is a reduced number of legacy LTI set to vest in FY25. This reflects that the legacy
LTI plan was tested over 3 and 4 years whereas the SIP performance rights have a 5-year life cycle (given they are
allocated based on performance against the SIP annual scorecard and are then subsequently tested against further
performance measures over 4 years). Therefore, the first year of performance rights vesting under the SIP falls in FY27,
leaving a total gap over FY25/26 versus the prior LTI framework of 171% of fixed remuneration for the CEO, and 114% for
Executive KMP.
To strengthen the alignment between Executive KMP and shareholders over the vesting gap period, as well as to support
retention of these key executives, the Board has determined that a one-time transitional award will be granted in FY25
(subject to shareholder approval for the CEO under a separate resolution at the 2024 AGM). It is anticipated that the
grant will occur after the 2024 AGM.
Whitehaven Coal Annual Report 2024 | Page 53
Directors’ Report Remuneration Report
For the year ended 30 June 2024
Importantly, the transitional award will be granted in share appreciation rights (SARs) which mean that value will only be
provided to Executive KMP where Whitehaven’s share price increases. Prior LTI plans offered a yearly LTI opportunity at
120% of fixed remuneration for the CEO, and 80% for other KMP, so the quantum of the awards has also been reduced by
approximately 40% for the CEO and other KMP relative to the previous LTI plan when solely considering FY26 LTI vesting
gap and reduced by approximately 60% when also considering the FY25 gap. The Board therefore believes these grants
are fair to both management and shareholders, appropriately discounted due to their transitional nature, yet essential in
ensuring continued alignment through this important timeframe.
Further detail on the transitional award is outlined below, and will be further detailed in the Notice of Meeting for the 2024
AGM as a standalone resolution that is in addition to the Remuneration Report resolution, the SIP equity grant to the
CEO, Director re-elections, and other resolutions.
Feature
Description
Instrument
SARs.
Each SAR entitles the holder to receive shares equal in value to the amount by which Whitehaven’s underlying
share price has increased from the exercise price being set to the date of exercise.
The SARs will vest at the release of Whitehaven’s FY26 financial results.
Opportunity
CEO: 70% of TFR
Other Executive KMP: 50% of TFR
Allocation
methodology
The SARs will be allocated by dividing the dollar value of each Executive KMP’s opportunity by the value of the
SAR.
The value of the SAR will be calculated using a Black Scholes option valuation methodology based on the
SAR’s exercise price.
Exercise price
The exercise price on the SARs will be calculated based on Whitehaven’s 10-day VWAP following the release
of its FY24 financial results.
Vesting period
1 July 2024 to the release of Whitehaven’s FY26 financial results.
SARs will expire seven years after the grant date.
Hurdle
Vesting is subject to continued service
Dividends and
voting rights
The SARs do not carry any entitlement to dividends or voting rights.
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 Group 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 was $1,964,000. 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 FY25 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
Whitehaven Coal Annual Report 2024 | Page 54
Directors’ Report Remuneration Report
For the year ended 30 June 2024
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
3 months by employee
6 months by the Company
Ian Humphris
Chief Operating Officer
Appointed 6 April 2020
6 months by employee or the Company
6. Non-Executive Director remuneration
This section explains the fees paid to Non-Executive Directors during 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, with input from independent consultants, 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 FY25.
6.1. 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.
The table below sets out Board and Committee fees for FY23 and FY24. 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%. When comparing
the policy fee levels from FY23 to FY24, there was no change to fees when excluding superannuation.
FY23
FY24
Chairman1
Member
Chairman1
Member
Board
$475,292
$198,900
$477,399
$199,800
Audit & Risk Management Committee
$44,400
$22,200
$44,400
$22,200
Governance & Nominations Committee
No fee
No fee
No fee
No fee
Health, Safety, Environment & Community Committee
$44,400
$22,200
$44,400
$22,200
Remuneration Committee
$44,400
$22,200
$44,400
$22,200
1
The Chairman of the Board does not receive committee member fees in addition to his Board fees.
6.2. Minimum Shareholding Requirements policy
The Minimum Shareholding Requirements 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 minimum shareholding requirements. See Table Section 7.3 for details.
Whitehaven Coal Annual Report 2024 | Page 55
Directors’ Report Remuneration Report
For the year ended 30 June 2024
6.3. FY24 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
Non-Executive Directors
Mark Vaile (Chairman)
2024
450,000
-
-
27,399
477,399
2023
450,000
-
-
25,292
475,292
Nicole Brook
2024
213,636
-
-
23,500
237,136
2023
131,818
-
-
13,841
145,659
Wallis Graham
2024
240,000
-
-
26,400
266,400
2023
86,429
-
-
9,075
95,504
Tony Mason2
2024
180,844
-
-
19,893
200,737
2023
-
-
-
-
-
Mick McCormack3
2024
74,603
-
-
8,206
82,809
2023
-
-
-
-
-
Fiona Robertson
2024
240,000
-
-
26,400
266,400
2023
240,469
-
-
25,249
265,718
Raymond Zage
2024
203,500
-
-
-
203,500
2023
193,651
-
-
-
193,651
Former Non-Executive Directors
Dr Julie Beeby4
2024
70,000
1,802
-
7,700
79,502
2023
233,651
-
-
24,533
258,184
John Conde5
2024
-
-
-
-
-
2023
105,000
6,887
-
9,079
120,966
Lindsay Ward6
2024
-
-
-
-
-
2023
102,698
-
-
10,783
113,481
Total
2024
1,597,980
1,802
-
131,292
1,731,074
2023
1,543,716
6,887
-
117,852
1,668,455
1
No termination benefits or share-based payments are paid or are payable to Non-Executive Directors.
2 Mr Mason commenced on 25 August 2023.
3 Mr McCormack commenced on 16 February 2024.
4 Dr Beeby retired on 26 October 2023.
5 Mr Conde retired on 26 October 2022. He did not receive any remuneration in FY24.
6 Mr Ward retired on 31 December 2022. He did not receive any remuneration in FY24.
Whitehaven Coal Annual Report 2024 | Page 56
Directors’ Report Remuneration Report
For the year ended 30 June 2024
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:
(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 corresponding to 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.
Short-term benefits, $
Post-employment benefits, $ Share-based payments, $
Year
Salary &
fees
Non-
monetary
benefits
Cash
incentives
Superannuation
benefits
Termination
benefits
Deferred
Rights
Performance
Rights
Total
remuneration
Performance
related
(A)
(B)
(B)
(C)
%
Executive Directors
Paul Flynn
2024
1,936,500
25,879
1,328,970
27,500
-
1,801,402
1,759,887
6,880,138
71%
2023
1,860,500
27,412
1,106,944
27,500
-
1,157,795
1,738,820
5,918,971
68%
Other Executive KMP
Kevin Ball
2024
887,801
33,372
418,440
27,399
-
558,970
545,173
2,471,155
62%
2023
854,708
34,107
335,414
25,292
-
362,014
537,877
2,149,412
57%
Ian Humphris
2024
856,500
89,620
404,160
27,500
-
539,703
537,817
2,455,300
60%
2023
822,500
78,443
323,979
27,500
-
347,776
486,669
2,086,867
56%
Total
2024
3,680,801
148,871
2,151,570
82,399
- 2,900,075
2,842,877
11,806,593
2023
3,537,708
139,962
1,766,337
80,292
-
1,867,585
2,763,366
10,155,250
Whitehaven Coal Annual Report 2024 | Page 57
Directors’ Report Remuneration Report
For the year ended 30 June 2024
7.2. Movement in rights held by Executive KMP
The movement for the reporting period by number and value of equity instruments in the Company held by each
Executive KMP is detailed below:
Instrument
Balance as
at 1 July
2023
(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
2024
(number)
Vested and
exercise-
able at
30 June
2024
(A)
(B)
(C)
(D)
(E)
(F)
(G)
(H)
(I)
Paul Flynn
Performance
Rights
2,633,318
259,202
2,195,371
1,025,901
-
-
-
-
(9,000)
2020
2,883,520 2,074,958
Deferred
Rights
540,894
274,449 2,324,509
226,697
-
-
-
-
-
815,343
444,169
Kevin Ball
Performance
Rights
746,956
78,541
665,221
319,173
-
-
-
-
(2,799)
2020
822,698
573,241
Deferred
Rights
105,649
83,161
704,351
74,053
-
-
-
-
-
188,810
74,053
Ian Humphris
Performance
Rights
705,445
75,863
642,539
326,122 (178,386)
272,931
20,621
(20,621)
(3,147)
2020
599,775
359,626
Deferred
Rights
102,488
80,326
680,340
72,116
(72,116)
228,819
7,648
(7,648)
-
110,698
-
(A) The number of rights granted during FY24 includes the deferred rights and performance rights components of the FY23 SIP 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, being the beginning of the SIP performance period. The granting of rights occurred on 1 December 2023, after the FY23 AGM.
(B) The value of performance rights and deferred rights granted in the year has been calculated using the volume weighted average price of the
Company’s shares for the 5-day trading period ending 1 December 2023, plus the accrued dividend equivalent payment at that time of grant.
This yields a fair value of $8.46973 per share.
Unvested performance rights and deferred rights have a minimum value of zero if they do not meet the relevant performance or service
conditions.
The maximum value of unvested performance rights and deferred rights 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 Tranche 2 of the FY21 STI deferred rights, all of Tranche 1 of the FY22 STI deferred rights, all of the 2021 LTI Costs Target Hurdle Rights,
all of the 2021 LTI TSR Hurdle Tranche 1 Rights, and 95% of the 2020 LTI Long-Term Growth Projects Measure Rights vested during the
period.
(D) 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 relevant rights were granted.
(E) 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.
(F) 5% of the 2020 LTI Long-Term Growth Projects Measure Rights lapsed due to the performance condition not being fully satisfied.
(G) The year in which the lapsed performance rights, options or deferred rights were granted.
(H) The year-end balance reflects the sum of the following entries: ‘Balance as at 1 July 2023 (number)’, ‘Granted (number)’, ‘Exercised (number)’,
‘DEP Grants @ Exercise (number)’, ‘DEP Exercised (number)’, and ‘Lapsed (number)’.
(I) 50% of the '2021 Costs Hurdle' LTI vesting in FY24 remains subject to a one-year service condition. See the table 'Executive KMP
Performance Rights awards vesting in FY24' (section 4.3) for details of the vested values.
Whitehaven Coal Annual Report 2024 | Page 58
Directors’ Report Remuneration Report
For the year ended 30 June 2024
7.3. Movement in ordinary shares held by KMP
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:
Number of shares
Held at
1 July 2023
Received on exercise
of rights
Other net
change1
Held at
30 June 2024
Non-Executive Directors
Mark Vaile
1,312,167
-
9,810
1,321,977
Nicole Brook
-
-
15,602
15,602
Wallis Graham
12,000
-
5,000
17,000
Tony Mason2
-
-
18,000
18,000
Mick McCormack3
-
-
30,000
30,000
Fiona Robertson
75,395
-
-
75,395
Raymond Zage
11,065,134
-
-
11,065,134
Executive KMP
Paul Flynn
1,070,451
-
14,582
1,085,033
Kevin Ball
120,000
-
-
120,000
Ian Humphris
-
278,771
(278,771)
-
1
Includes shares sold and purchased during FY24.
2 Mr Mason commenced on 25 August 2023.
3 Mr McCormack commenced on 16 February 2024.
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
22 August 2024
Whitehaven Coal Annual Report 2024 | Page 59
Financial Report
For the year ended 30 June 2023
Whitehaven Coal Annual Report 2024 | Page 60
Consolidated statement of comprehensive income
61
Consolidated statement of financial position
62
Consolidated statement of changes in equity
63
Consolidated statement of cash flows
64
Notes to the consolidated financial statements
65
Consolidated Entity Disclosure Statement
109
Directors’ declaration
111
Independent Auditor’s report
112
ASX additional information
118
1.
About this report
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
3.
Working capital and cash flows
3.1.
Trade and other receivables
3.2. Inventories
3.3. Trade and other payables
3.4. Reconciliation of cash flows from operating
activities
4.
Resource assets and liabilities
4.1. Property, plant and equipment
4.2. Exploration and evaluation
4.3. Intangible assets
4.4. Provisions
5.
Capital structure and financing
5.1.
Interest-bearing liabilities
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.
Business combination
6.2. Group’s subsidiaries
6.3. Interest in joint operations
6.4. Parent entity information
6.5. Deed of cross guarantee
6.5. Related parties
7.
Other notes
7.1.
Employee benefits
7.2. Auditor’s Remuneration
7.3. Commitments
7.4. Contingencies
7.5. Subsequent events
Table of contents
Whitehaven Coal Annual Report 2024 | Page 61
2024
20231
Note
$m
$m
Revenue
2.1
3,824
6,065
Other income
6
8
Operating expenses
(1,460)
(922)
Coal purchases
(104)
(318)
Selling and distribution expenses
(502)
(370)
Royalties
(346)
(438)
Depreciation and amortisation
(319)
(226)
Administrative expenses
(51)
(47)
Share-based payments expense
(12)
(11)
Transaction and transition expenses
2.2(b)
(559)
(4)
Net foreign exchange gain
2
0
Profit before net finance income
479
3,737
Finance income
85
82
Finance expense
(55)
(18)
Net finance income
5.2
30
64
Profit before tax
509
3,801
Income tax expense
2.3(a)
(154)
(1,133)
Net profit for the year
355
2,668
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Net movement in cash flow hedges
6
2
Income tax effect
2.3(b)
(2)
(1)
Total items that may be reclassified subsequently to profit or loss, net of tax
4
1
Items that will not be reclassified subsequently to profit or loss
Net gain/(loss) on equity instruments designated at fair value through
other comprehensive income
28
(5)
Income tax effect
2.3(b)
(8)
2
Total items that will not be reclassified subsequently to profit or loss, net of tax
20
(3)
Total comprehensive income for the year, net of tax
379
2,666
Earnings per share
Basic earnings per share (cents per share)
2.4
44.4
307.7
Diluted earnings per share (cents per share)
2.4
43.8
302.8
1
The year ended 30 June 2023 has been restated to better reflect the classification of administrative expenses and transition, transaction
expenses. ‘Administrative expenses’ as previously reported was $61m. This has been reduced by $14m to align with the classification and
presentation for the year ended 30 June 2024. Correspondingly, ‘Operating expenses’ and ‘Transaction and transition costs’ have both
increased by $10m and $4m respectively. Additionally, the unrealised foreign exchange gain on US$ cash held has been reallocated from ‘Net
foreign exchange gain (previously reported as $22m) to ‘Finance expenses’ (previously reported as $40m), also to align with the
classifications in the year ended 30 June 2024.
The consolidated statement of comprehensive income is to be read in conjunction with the notes to the consolidated
financial statements.
Consolidated statement
of comprehensive income
For the year ended 30 June 2024
Whitehaven Coal Annual Report 2024 | Page 62
2024
2023
Note
$m
$m
Assets
Cash and cash equivalents
405
2,776
Trade and other receivables
3.1
558
324
Inventories
3.2
495
134
Income tax receivable
2.3(c)
75
-
Total current assets
1,533
3,234
Trade and other receivables
3.1
7
6
Investments
5.3(d)
70
18
Property, plant and equipment
4.1
10,740
3,802
Exploration and evaluation assets
4.2
473
439
Intangible assets
4.3
29
12
Total non-current assets
11,319
4,277
Total assets
12,852
7,511
Liabilities
Trade and other payables
3.3
1,065
287
Deferred and contingent consideration
3.3
761
22
Interest-bearing liabilities
5.1
147
72
Employee benefits
7.1
121
39
Income tax payable
2.3(c)
-
871
Provisions
4.4
54
15
Derivatives
5.3(d)
-
5
Total current liabilities
2,148
1,311
Non-current liabilities
Other payables
3.3
119
-
Deferred and contingent consideration
3.3
1,757
30
Interest-bearing liabilities
5.1
1,744
117
Deferred tax liability
2.3(c)
616
542
Provisions
4.4
1,197
250
Total non-current liabilities
5,433
939
Total liabilities
7,581
2,250
Net assets
5,271
5,261
Equity
Issued capital
5.4(a)
1,687
1,660
Share-based payments reserve
5.4(b)
35
20
Other reserves
5.4(b)
16
(8)
Retained earnings
3,533
3,589
Total equity
5,271
5,261
The consolidated statement of financial position is to be read in conjunction with the notes to the consolidated
financial statements.
Consolidated statement
of financial position
As at 30 June 2024
Whitehaven Coal Annual Report 2024 | Page 63
Issued
capital
Share-based
payments
reserve
Other
reserves
Retained
earnings
Total equity
$m
$m
$m
$m
$m
Note
5.4(b)
5.4(b)
Balance at 1 July 2022
2,643
15
(6)
1,560
4,212
Net profit for the year
-
-
-
2,668
2,668
Other comprehensive loss
-
-
(2)
-
(2)
Total comprehensive income for the year
-
-
(2)
2,668
2,666
Transactions with owners in their capacity as owners
Share buy-back
5.4(a)
(949)
-
-
-
(949)
Dividends paid
-
-
-
(639)
(639)
Share-based payments
5.5(a)
-
11
-
-
11
Transfer on exercise of share-based payments
6
(5)
-
(1)
-
Settlement of share-based payments
-
(0)
-
(0)
(0)
Transfer on lapse of share-based payments
-
(1)
-
1
-
Purchase of shares through employee share plan
5.4(a)
(40)
-
-
-
(40)
Balance at 30 June 2023
1,660
20
(8)
3,589
5,261
Balance at 1 July 2023
1,660
20
(8)
3,589
5,261
Net profit for the year
-
-
-
355
355
Other comprehensive income
-
-
24
-
24
Total comprehensive income for the year
-
-
24
355
379
Transactions with owners in their capacity as owners
Dividends paid
-
-
-
(393)
(393)
Share-based payments
5.5(a)
-
12
-
-
12
Acquisition-related share-based payments
5.5(a)
-
3
-
-
3
Transfer on exercise of share-based payments
27
(7)
-
(20)
-
Deferred tax on share-based payments
7
2
9
Balance at 30 June 2024
1,687
35
16
3,533
5,271
The consolidated statement of changes in equity is to be read in conjunction with the notes to the consolidated
financial statements.
Consolidated statement
of changes in equity
For the year ended 30 June 2024
Whitehaven Coal Annual Report 2024 | Page 64
2024
2023
Note
$m
$m
Cash flows from operating activities
Cash receipts from customers
3,648
6,403
Cash paid to suppliers and employees
(2,341)
(2,213)
Cash generated from operations1
1,307
4,190
Interest paid
(53)
(29)
Interest received
90
78
Income taxes paid2
(1,017)
(677)
Net cash from operating activities
3.4
327
3,562
Cash flows from investing activities
Purchase of property, plant and equipment
(420)
(181)
Expenditure on projects
(34)
(62)
Acquisition of Daunia and Blackwater mines
6.1
(3,308)
-
Acquisition of interest in Narrabri
(19)
(29)
Other investing activities
(25)
(22)
Purchase of haulage equipment from BIS Industries Ltd
-
(15)
Proceeds from sale of property, plant and equipment
1
2
Net cash used in investing activities
(3,805)
(307)
Cash flows from financing activities
Proceeds from credit facility
1,686
-
Payment of dividends
(392)
(639)
Share buy-back3
(6)
(947)
Repayment of lease principal
(85)
(82)
Payment of finance facility upfront costs
(75)
(0)
Repayment of secured loans – ECA facility
(9)
(9)
Purchase of shares
-
(40)
Net cash from/(used in) financing activities
1,119
(1,717)
Net change in cash and cash equivalents
(2,359)
1,538
Effects of exchange rate changes on cash and cash equivalents1
(12)
23
Cash and cash equivalents at 1 July
2,776
1,215
Cash and cash equivalents at 30 June
405
2,776
1
The year ended 30 June 2023 has been restated to remove the effect of exchange rate changes on cash and cash equivalents from cash
generated from operations.
2 Included within income taxes paid during the year is $884m paid in relation to the FY23 income tax year.
3 Includes a share trade entered into on 30 June 2023 for $6m that was settled and paid on 4 July 2023. There were no share buy-backs
entered into for the year ended 30 June 2024.
The consolidated statement of cash flows is to be read in conjunction with the notes to the consolidated
financial statements.
Consolidated statement
of cash flows
For the year ended 30 June 2024
Whitehaven Coal Annual Report 2024 | Page 65
1. About this report
1.1. Reporting entity
Whitehaven Coal Limited (‘the Company’) is a for-profit entity, and the principal activity of Whitehaven and its controlled
entities (referred to as ‘Whitehaven’ or ‘the Group’) is the development and operation of coal mines in Queensland and
New South Wales. The consolidated general purpose financial report of the Group for the year ended 30 June 2024 was
authorised for issue in accordance with a resolution of the Directors on 21 August 2024. 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 on the going concern basis of accounting;
− 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) and International Financial Reporting Standards (IFRS) issued by the International Accounting
Standards Board (IASB) and interpretations of the International Financial Reporting Interpretations Committee
(IFRIC);
− 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);
− is presented in Australian dollars, with values rounded to the nearest million dollars unless otherwise stated, in
accordance with the ASIC ASIC Corporations Instrument 2016/191 dated 24 March 2016;
− presents reclassified comparative information where required for alignment and consistency with current year
presentation; and
− has applied the Group accounting policies consistently to all period stated.
The Directors have a reasonable expectation that the Group will be able to pay its debts as and when they fall due for at
least the next 12 months.
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
6.1
Property, plant and equipment
Exploration and evaluation
Provisions
Business combinations
page 82
page 83
page 85
page 101
6.3
Interest in joint operations
page 103
1.4. Summary of other material accounting policy information
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 2024 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 6.2.
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
Notes to the consolidated
financial statements
For the year ended 30 June 2024
Whitehaven Coal Annual Report 2024 | Page 66
Notes to the consolidated financial statements
For the year ended 30 June 2024
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.
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 materially 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 2024 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.
This amendment is effective for annual periods beginning on or after 1 January 2024. It is not expected to have a
material impact on the Group’s consolidated financial statements.
Whitehaven Coal Annual Report 2024 | Page 67
Notes to the consolidated financial statements
For the year ended 30 June 2024
AASB 18: Presentation and Disclosure in Financial Statements
In June 2024, the AASB issued AASB 18 Presentation and Disclosure in Financial Statements to improve how entities
communicate in their financial statements, specifically introducing new categories and subtotals in the statement of
profit or loss, disclosure of management-defined performance measures and new requirements for the location,
aggregation and disaggregation of financial information.
The standard replaces AASB 101 Presentation of Financial Statements and is effective from annual reporting periods
beginning on or after 1 January 2027.
The Group is currently in the process of assessing the impact of the new standard.
2. Group performance
2.1. Segment results
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.
Following the acquisition of the Daunia and Blackwater mines, effective 2nd April 2024, the Group has reviewed its
reportable segments and have aligned the operations according to their location and management structure.
The Group’s reportable operating segments are:
-
NSW Operations
-
QLD Operations
Unallocated represents coal trading and administrative and other functions that are not specifically related to the other
reportable operating segments.
The Group’s 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:
NSW
Operations
QLD
Operations
Unallocated
Total
Year ended 30 June 2024
$m
$m
$m
$m
Revenue
Sales to external customers
2,850
869
105
3,824
Revenue by product type:
Metallurgical coal
291
867
-
1,158
Thermal coal
2,559
2
105
2,666
Total revenue from contracts with customers
2,850
869
105
3,824
Result
Underlying EBITDA1
1,158
272
(31)
1,399
Depreciation and amortisation
(246)
(73)
-
(319)
Underlying net finance (expense)/income
50
(72)
-
(22)
Underlying net profit before tax
962
127
(31)
1,058
Underlying income tax expense
(318)
Underlying earnings
740
Total adjustments to net profit (Note 2.2(a))
(385)
Net profit after tax
355
Capital expenditure
346
99
9
454
1
Underlying EBITDA is a non-IFRS measure. Refer to note 2.2 (a) for a reconciliation between underlying EBITDA and statutory profit.
Whitehaven Coal Annual Report 2024 | Page 68
Notes to the consolidated financial statements
For the year ended 30 June 2024
NSW
Operations
QLD
Operations
Unallocated
Total
Year ended 30 June 20231
$m
$m
$m
$m
Revenue
Sales to external customers
5,705
-
360
6,065
Revenue by product type:
Metallurgical coal
339
-
-
339
Thermal coal
5,366
-
360
5,726
Total revenue from contracts with customers
5,705
-
360
6,065
Result
Underlying EBITDA2
3,988
-
(21)
3,967
Depreciation and amortisation
(226)
-
-
(226)
Underlying net finance income
42
-
-
42
Underlying net profit before tax
3,804
-
(21)
3,783
Underlying income tax expense
(1,128)
Underlying earnings
2,655
Total adjustments to net profit (note 2.2 (a))
13
Net profit after tax
2,668
Capital expenditure
210
21
12
243
1
The segment result for the year ended 30 June 2023 has been restated to align to the year ended 30 June 2024 segment classification
following the acquisition of the Daunia and Blackwater mines.
2 Underlying EBITDA is a non-IFRS measure.
Other segment information
Revenue from external customers is attributed to geographic location based on final shipping destination.
Revenue by
geographic location
2024
2023
$m
$m
Japan
1,894
4,015
Taiwan
532
754
Malaysia
364
417
Korea
279
476
India
235
-
Europe
204
109
Vietnam
56
36
Indonesia
50
59
New Caledonia
42
104
Other
90
41
Domestic
78
54
Total revenue
3,824
6,065
Whitehaven Coal Annual Report 2024 | Page 69
Notes to the consolidated financial statements
For the year ended 30 June 2024
Major customers
The Group has three major customers, who account for 34.0% (2023: 42.5%) 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.
2.2. Underlying results
a)
Underlying results reconciliation
The table below sets out the reconciliation between the Group’s underlying results and the statutory results disclosed in
the consolidated statement of comprehensive income.
2024
2023
$m
$m
Underlying EBITDA1
1,399
3,967
Significant items2
(601)
(4)
EBITDA
798
3,963
Depreciation and amortisation
(319)
(226)
Underlying net finance (expense)/income
(22)
42
Foreign exchange rate variations on net debt/cash
43
22
Foreign exchange rate variations on deferred and contingent consideration
51
-
Discount unwind on deferred and contingent consideration
(42)
-
Net finance income
30
64
Underlying income tax expense
(318)
(1,128)
Tax effect of significant items
180
1
Tax effect of other adjustments to underlying finance expense
(16)
(6)
Income tax expense
(154)
(1,133)
Underlying earnings
740
2,655
Total adjustments to profit3
(385)
13
Net profit after tax
355
2,668
1
Underlying EBITDA and EBITDA is a non-IFRS measure.
2 Refer to note 2.2 (b) for detail on significant items.
3 Reflects the after tax effect of all reconciling items between underlying results and statutory results, as detailed above.
Whitehaven Coal Annual Report 2024 | Page 70
Notes to the consolidated financial statements
For the year ended 30 June 2024
b)
Significant items
Significant items are those items not separately identified in note 2.2(a) underlying results reconciliation, whose nature
and amount are considered material in the Group’s consolidated financial statements and are non-recurring in nature.
2024
2023
$m
$m
Transaction costs
(434)
(4)
Transition costs
(125)
-
Inventory fair value uplift
(31)
-
Werris Creek closure costs
(11)
-
Total significant items
(601)
(4)
Transaction costs: fees and expenses incurred in the relation to the acquisition of 100% interest in Daunia and Blackwater
coal mines from BMA, such as stamp duty, legal fees, funding and due diligence activities.
Transition costs: fees and costs incurred to enable Whitehaven to take ownership and operate the mining operations
once completion occurred on 2 April 2024, such as IT systems and other business readiness activities.
Inventory fair value uplift: coal inventories acquired from Daunia and Blackwater (refer to note 6.1) were valued at fair
value as required under AASB 3 Business Combinations. This increased value has been removed from operating costs in
the underlying result as these inventories were sold.
Werris Creek closure costs: operations at Werris Creek ceased in April 2024 with the last coal shipped in June 2024. In
conjunction with the closure, there were a number of non-recurring costs incurred.
Whitehaven Coal Annual Report 2024 | Page 71
Notes to the consolidated financial statements
For the year ended 30 June 2024
2.3. Taxes
a)
Income tax expense
2024
2023
$m
$m
Current tax expense
Current period
(76)
(1,040)
Adjustments for prior periods
4
(0)
Deferred tax expense
Origination and reversal of temporary differences
(82)
(93)
Adjustments for prior periods
0
-
Income tax expense reported in the consolidated statement of comprehensive income
(154)
(1,133)
Reconciliation between tax expense and profit before tax
Profit before tax
509
3,801
Income tax expense using the Company’s domestic tax rate of 30% (2023: 30%)
(153)
(1,140)
Non-deductible expenses:
Share-based payments
(4)
(4)
Other non-deductible expenses
(2)
(1)
On-market share purchases by employee share scheme trust reimbursed by the Group
-
12
Over/(under) provided in prior periods
5
(0)
Total income tax expense
(154)
(1,133)
b)
Income tax recognised directly in other comprehensive income
2024
2023
$m
$m
Deferred income tax related to items charged directly to equity
Net movement in cash flow hedges
(2)
(1)
Net (gain)/loss on equity instruments designated at fair value through other comprehensive income
(8)
2
Deferred tax on share-based payments
9
-
Net income tax (expense)/benefit recorded in equity
(1)
1
Whitehaven Coal Annual Report 2024 | Page 72
Notes to the consolidated financial statements
For the year ended 30 June 2024
c)
Recognised tax assets and liabilities
2024
2024
2023
2023
Current income
tax receivable/
(payable)
Deferred
income tax
Current income
tax payable
Deferred
income tax
$m
$m
$m
$m
Opening balance
(871)
(542)
(552)
(405)
Charged to income – corporate tax
(76)
(82)
(1,040)
(92)
Charged to equity
(1)
-
1
Recognition/(utilisation) of deferred tax asset on current
year losses
1
(1)
28
(28)
Recognition of tax losses acquired in business combination
(note 6.1)
-
11
-
-
Adjustment for prior periods
4
(1)
17
(18)
Payments
1,017
-
676
-
Closing balance
75
(616)
(871)
(542)
Deferred income tax assets and liabilities are attributable to the following:
Deferred Tax Assets
Deferred Tax Liabilities
2024
2023
2024
2023
$m
$m
$m
$m
Property, plant and equipment
-
-
(890)
(485)
Exploration and evaluation
-
-
(111)
(115)
Receivables
-
-
(11)
(13)
Inventory
-
-
(2)
(2)
Investments
-
2
(6)
-
Right-of-use assets and lease liabilities (net)
-
-
(36)
(11)
Deferred stripping
-
-
(12)
(9)
Deferred foreign exchange gain
-
-
(3)
(3)
Provisions
405
89
-
-
Tax losses
10
-
-
-
Other items
40
5
-
-
Deferred tax assets/(liabilities)
455
96
(1,071)
(638)
Set-off of deferred tax assets
(455)
(96)
455
96
Net deferred tax liabilities
-
-
(616)
(542)
Whitehaven Coal Annual Report 2024 | Page 73
Notes to the consolidated financial statements
For the year ended 30 June 2024
d)
Unrecognised deferred tax assets
There were no unrecognised income tax losses at 30 June 2024 (2023: Nil).
Recognition and measurement
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.
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.
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.
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.
Whitehaven Coal Annual Report 2024 | Page 74
Notes to the consolidated financial statements
For the year ended 30 June 2024
2.4. 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:
2024
2023
Profit attributable to ordinary shareholders
Net profit attributable to ordinary shareholders ($m)
355
2,668
Weighted average number of ordinary shares
Issued ordinary shares at 1 July (‘000s)
802,581
922,252
Effect of shares acquired/transferred during the year (‘000s)1
(4,379)
(55,049)
Weighted average number of ordinary shares at 30 June (‘000s)
798,202
867,203
Basic earnings per share attributable to ordinary shareholders (cents)
44.4
307.7
1
Reflects the movements of shares during the year including in the balance of shares held by the Group 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:
2024
2023
Profit attributable to ordinary shareholders (diluted)
Net profit attributable to ordinary shareholders (diluted) ($m)
355
2,668
Weighted average number of ordinary shares (diluted)
Weighted average number of ordinary shares (basic) (‘000s)
798,202
867,203
Effect of performance rights on issue (‘000s)
11,400
13,982
Weighted average number of ordinary shares (diluted) (‘000s)
809,602
881,185
Diluted earnings per share attributable to ordinary shareholders (cents)
43.8
302.8
Not included within the basic and diluted earnings per share calculation are the 34,020,000 Milestone Shares which are
currently restricted from receiving dividend payments.
Whitehaven Coal Annual Report 2024 | Page 75
Notes to the consolidated financial statements
For the year ended 30 June 2024
3. Working capital and cash flows
3.1. Trade and other receivables
2024
2023
$m
$m
Current
Trade receivables
399
223
Other receivables and prepayments
135
79
Receivables due from other investors in joint operations
24
22
558
324
Non-current
Other receivables and prepayments
7
6
Recognition and measurement
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.
3.2. Inventories
2024
2023
$m
$m
Coal stocks1
324
95
Consumables and stores
171
39
495
134
1
Coal stocks include ROM and product coal.
Recognition and measurement
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.
Whitehaven Coal Annual Report 2024 | Page 76
Notes to the consolidated financial statements
For the year ended 30 June 2024
3.3. Trade and other payables
2024
2023
$m
$m
Current
Trade payables
224
67
Other payables and accruals
841
220
1,065
287
Deferred and contingent consideration
761
22
1,826
309
Non-current
Other payables and accruals
119
-
Deferred and contingent consideration
1,757
30
1,876
30
Included within other payables and accruals is the stamp duty payable on the acquisition of Daunia and Blackwater
mines, and a port capacity swap arrangement payable. Amounts due after 30 June 2025 have been classified as non-
current.
Included within current and non-current deferred and contingent consideration is the deferred consideration payable on
the acquisition of Daunia and Blackwater mines, deferred consideration payable for the acquisition of EDF Trading
Australia Pty Limited and the deferred consideration on the acquisition of the 1% private royalty over the Narrabri Coal
mine from Anglo Pacific Group plc (APG).
The deferred and contingent consideration on the acquisition of Daunia and Blackwater is payable over three years and is
measured at fair value. Refer to note 6.1 for more information.
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.
Whitehaven Coal Annual Report 2024 | Page 77
Notes to the consolidated financial statements
For the year ended 30 June 2024
3.4. Reconciliation of cash flows from operating activities
2024
20231
Note
$m
$m
Profit for the period
355
2,668
Adjustments for:
Depreciation and amortisation
319
226
Non-cash finance expenses
100
6
Development costs deferred (net of amortisation)
4.1
(53)
(76)
Deferred stripping costs (net of amortisation)
4.1
47
(8)
Accrual for stamp duty on acquisition of Daunia and Blackwater
361
-
Rehabilitation expenditure
(25)
(13)
Net foreign exchange gains unrealised
(64)
(13)
Share-based payments expense
5.5(a)
15
11
Inventory fair value uplift at acquisition
31
-
Other
6
(1)
Working capital and tax movements:
Change in trade and other receivables
(177)
340
Change in inventories
(111)
17
Change in trade and other payables
363
(55)
Change in provisions and employee benefits
22
4
Change in tax payable
(936)
319
Change in deferred taxes
74
137
Cash flows from operating activities
327
3,562
1
Year ended 30 June 2023 has been restated to remove the effect of exchange rate changes on cash and cash equivalents from cash
generated from operations.
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.
Whitehaven Coal Annual Report 2024 | Page 78
Notes to the consolidated financial statements
For the year ended 30 June 2024
4. Resource assets and liabilities
4.1. Property, plant and equipment
Year ended
30 June 2024
Freehold
land
Plant and
equipment
Leased
plant and
equipment
Mining
property and
development
Subtotal
Deferred
development
Deferred
stripping
Subtotal
Total
$m
$m
$m
$m
$m
$m
$m
$m
$m
Cost
Balance at
1 July 2023
182
1,278
617
3,612
5,689
435
3,861
4,296
9,985
Additions
-
235
78
153
466
108
849
957
1,423
Acquisition of
business (note 6.1)
117
1,658
152
4,838
6,765
-
59
59
6,824
Disposals
-
(20)
(26)
-
(46)
-
-
-
(46)
Balance at
30 June 2024
299
3,151
821
8,603
12,874
543
4,769
5,312
18,186
Accumulated depreciation and impairment
Balance at
1 July 2023
(5)
(572)
(414)
(1,136)
(2,127)
(224)
(3,832)
(4,056)
(6,183)
Depreciation
charge for the year
-
(133)
(100)
(124)
(357)
(55)
(896)
(951)
(1,308)
Disposals
-
20
25
-
45
-
-
-
45
Balance at
30 June 2024
(5)
(685)
(489)
(1,260)
(2,439)
(279)
(4,728)
(5,007)
(7,446)
Carrying amount
at 30 June 2024
294
2,466
332
7,343
10,435
264
41
305
10,740
Whitehaven Coal Annual Report 2024 | Page 79
Notes to the consolidated financial statements
For the year ended 30 June 2024
Year ended
30 June 2023
Freehold
land
Plant and
equipment
Leased
plant and
equipment
Mining
property and
development
Subtotal
Deferred
development
Deferred
stripping
Subtotal
Total
$m
$m
$m
$m
$m
$m
$m
$m
$m
Cost
Balance at
1 July 2022
182
1,136
622
3,288
5,228
664
3,336
4,000
9,228
Additions
-
117
72
53
242
117
526
643
885
Disposals
-
(24)
(28)
0
(52)
(347)
-
(347)
(399)
Transfers
-
49
(49)
-
-
-
-
-
-
Transfer from
Exploration &
Evaluation Asset
-
-
-
271
271
-
-
-
271
Balance at
30 June 2023
182
1,278
617
3,612
5,689
434
3,862
4,296
9,985
Accumulated depreciation and impairment
Balance at
1 July 2022
(5)
(501)
(385)
(1,067)
(1,958)
(529)
(3,314)
(3,843)
(5,801)
Depreciation
charge for the year
-
(66)
(85)
(69)
(220)
(41)
(518)
(559)
(779)
Transfers
-
(28)
28
-
-
-
-
-
-
Disposals
-
22
28
0
50
347
-
347
397
Balance at
30 June 2023
(5)
(573)
(414)
(1,136)
(2,128)
(223)
(3,832)
(4,055)
(6,183)
Carrying amount
at 30 June 2023
177
705
203
2,476
3,561
211
30
241
3,802
Impairment
Based on the impairment analysis performed, no impairment loss or reversal of previous impairments were recognised for
FY24 (FY23: $nil).
Refer to significant accounting judgements, estimates and assumptions for further details in relation to the recoverable
amount of assets.
Whitehaven Coal Annual Report 2024 | Page 80
Notes to the consolidated financial statements
For the year ended 30 June 2024
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 Group has chosen not to recognise right-of-use assets and lease liabilities for short-term, low-value or variable leases.
Total cash outflows for short-term, low-value or variable leases of $68m in the year ended 30 June 2024 (2023: $65m)
were reported as expenses in the Group’s consolidated statement of comprehensive income.
A maturity analysis of lease liabilities is shown in note 5.3 (c).
Recognition and measurement
Property, plant and equipment
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.
Mining property and development
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.
− 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.
Whitehaven Coal Annual Report 2024 | Page 81
Notes to the consolidated financial statements
For the year ended 30 June 2024
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.
Whitehaven Coal Annual Report 2024 | Page 82
Notes to the consolidated financial statements
For the year ended 30 June 2024
Significant accounting judgements, estimates and assumptions
Recoverable amount of assets
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 CGUs.
The recoverable amount of the CGUs 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 CGUs are sensitive to the
below key assumptions:
Coal prices
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
Group receives for the sale of its products in the global
energy and steel manufacturing complexes.
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.
Whitehaven Coal Annual Report 2024 | Page 83
Notes to the consolidated financial statements
For the year ended 30 June 2024
4.2. Exploration and evaluation
Exploration and evaluation assets
$m
Balance at 1 July 2023
439
Exploration and evaluation expenditure
34
Balance at 30 June 2024
473
Balance at 1 July 2022
648
Transfer to property, plant and equipment1
(271)
Exploration and evaluation expenditure
62
Balance at 30 June 2023
439
1
During the year ended 30 June 2023, the exploration and evaluation assets relating to the Vickery Project of $271m were tested for
impairment and then reclassified to mining, property and development assets (refer note 4.1).
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.
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 Group 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)
Sufficient data exists to determine technical
feasibility and commercial viability.
ii)
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.
Whitehaven Coal Annual Report 2024 | Page 84
Notes to the consolidated financial statements
For the year ended 30 June 2024
4.3. Intangible assets
Water access
rights
Total
$m
$m
Balance at 1 July 2023
12
12
Acquisition of business (note 6.1)
17
17
Balance at 30 June 2024
29
29
Balance at 1 July 2022
12
12
Balance at 30 June 2023
12
12
Recognition and measurement
Water access rights
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
$m
Balance at 1 July 2023
265
Payments made on rehabilitation and biodiversity activities
(25)
Change in cost estimates
12
Unwinding of discount
21
Acquisition of business (note 6.1)
978
Balance at 30 June 2024
1,251
2024
2023
$m
$m
Current
54
15
Non-current
1,197
250
Balance at 30 June
1,251
265
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.
Whitehaven Coal Annual Report 2024 | Page 85
Notes to the consolidated financial statements
For the year ended 30 June 2024
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.
Whitehaven Coal Annual Report 2024 | Page 86
Notes to the consolidated financial statements
For the year ended 30 June 2024
5. Capital structure and financing
5.1. Interest-bearing liabilities
2024
2023
$m
$m
Current liabilities
Lease liabilities1
139
63
Secured loans – ECA facility
9
10
Capitalised borrowing costs
(1)
(1)
147
72
Non-current liabilities
Lease liabilities1
124
90
Secured loans – ECA facility
20
29
Credit facility
1,661
-
Capitalised borrowing costs
(61)
(2)
1,744
117
1,891
189
Financing facilities
2,104
192
Facilities utilised at reporting date
1,953
192
Facilities not utilised at reporting date
151
-
1
Lease liabilities includes $152m acquired in a business combination (note 6.1).
Financing activities during the financial year
On 18 December 2023, Whitehaven announced that terms have been agreed with a range of senior financiers to provide a
5-year credit facility of US$1,100m to fund the acquisition of Daunia and Blackwater. In March 2024 the facility was fully
drawn for settlement on completion of the acquisition.
Whitehaven has also secured a US$100m revolver facility, which remains undrawn as at 30 June 2024.
The Group repaid $9m of the ECA facility during the year (30 June 2023: $9m) and $nil was drawn down (30 June 2023:
$nil). The ECA facility is secured over the assets to which it relates.
Included within current and non-current lease liabilities are right-of-use leases recognised in accordance with AASB 16
Leases of $87m and $121m respectively (30 June 2023: $27m and $38m respectively). 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 2024 and
30 June 2023.
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.
Whitehaven Coal Annual Report 2024 | Page 87
Notes to the consolidated financial statements
For the year ended 30 June 2024
5.2. Finance income and expense
2024
2023
$m
$m
Recognised in the statement of comprehensive income
Interest income
85
82
Finance income
85
82
Interest on borrowings
(55)
(2)
Interest on lease liabilities
(7)
(7)
Other financing costs
(11)
(18)
Interest and financing costs
(73)
(27)
Net interest income
12
55
Unwinding of discounts on provisions
(21)
(9)
Unwinding of discounts on payables
(46)
-
Amortisation of finance facility upfront costs
(9)
(4)
Foreign exchange rate variations on net debt/cash
43
22
Foreign exchange rate variations on deferred and contingent consideration
51
-
Other finance income
18
9
Net finance income
30
64
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,
losses on hedging instruments that are recognised in profit or loss, and exchange rate variations on foreign currency
denominated net debt/cash and deferred consideration payable. 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.
Whitehaven Coal Annual Report 2024 | Page 88
Notes to the consolidated financial statements
For the year ended 30 June 2024
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 net 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.
2024
2023
$m
$m
Interest-bearing liabilities
1,891
189
Less cash and cash equivalents
(405)
(2,776)
Net debt/(cash)
1,486
(2,587)
Equity
5,266
5,261
Equity and net debt
6,752
n/a
Gearing ratio1
22%
n/a
1
Calculated including right-of-use lease liabilities recognised in accordance with AASB16 Leases of $208m.
Whitehaven Coal Annual Report 2024 | Page 89
Notes to the consolidated financial statements
For the year ended 30 June 2024
c)
Risk exposures and responses
Market risk - foreign currency risk
The Group is exposed to currency risk on monetary assets and liabilities, 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.
During the current year ended 30 June 2024, a net foreign exchange gain of $84m was recognised (30 June 2023: net
foreign exchange gain of $22m).
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 2024 was $nil (30 June 2023: $6m liability),
comprising assets and liabilities that were recognised as derivatives.
At 30 June 2024, the Group had the following financial instruments that were not designated in cash flow hedges that
were exposed to foreign currency risk:
2024
2023
$m
USD
$m
USD
Cash and cash equivalents
223
675
Trade and other receivables
270
130
Trade and other payables
(26)
(26)
Deferred and contingent consideration payable
(1,668)
-
Interest-bearing liabilities
(1,100)
-
Net statement of financial position exposure
(2,301)
779
The following exchange rates applied during the year:
Average rate
Reporting date spot rate
Fixed-rate instruments
2024
2023
2024
2023
USD
0.6556
0.6734
0.6624
0.6630
Sensitivity analysis
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.
Equity
Profit or (loss)
$m
$m
30 June 2024
AUD:USD strengthening by 10%
-
316
AUD:USD weakening by 10%
-
(386)
30 June 2023
AUD:USD strengthening by 10%
26
(107)
AUD:USD weakening by 10%
(28)
131
Whitehaven Coal Annual Report 2024 | Page 90
Notes to the consolidated financial statements
For the year ended 30 June 2024
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:
Carrying amount
2024
2023
$m
$m
Fixed rate instruments
Lease liabilities
(263)
(153)
(263)
(153)
Variable rate instruments
Financial assets
405
2,776
Financial liabilities
(1,630)
(39)
1,225
2,737
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.
Equity
Profit or (loss)
$m
$m
30 June 2024
100bp increase
-
12
100bp decrease
-
(12)
30 June 2023
100bp increase
-
27
100bp decrease
-
(27)
Market risk - commodity price risk
The Group’s major commodity price exposure is to the price of coal. The Group has generally 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.
Whitehaven Coal Annual Report 2024 | Page 91
Notes to the consolidated financial statements
For the year ended 30 June 2024
Exposure to credit risk
The Group’s maximum exposure to credit risk at the reporting date was:
Carrying amount
2024
2023
Note
$m
$m
Cash and cash equivalents
405
2,776
Trade and other receivables
3.1
399
223
Investments
5.3(e)
70
18
874
3,017
The Group’s maximum exposure to credit risk for trade receivables at the reporting date by geographic region was:
Asia
350
189
Australia
20
34
Europe
29
0
399
223
Trade receivables
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 34.0% of the Group’s revenue is attributable to sales
transactions with three customers (2023: 42.5% 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 2024 (2023: $nil).
The aging of the Group’s trade receivables at the reporting date was:
Gross
Gross
2024
2023
$m
$m
Not past due
390
222
Past due 0-30 days
9
1
Past due 31-120 days
0
0
Past due 121 days to one year
-
-
More than one year
-
-
399
223
Guarantees
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 Group recently completed its
refinancing of guarantees. Details of outstanding guarantees are provided in note 7.4.
Whitehaven Coal Annual Report 2024 | Page 92
Notes to the consolidated financial statements
For the year ended 30 June 2024
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:
30 June 2024
Carrying
amount
Contractual
cash flows
6 months
or less
6-12
months
1-2 years
2-5 years
More than
5 years
$m
$m
$m
$m
$m
$m
$m
Financial liabilities
Lease liabilities
263
292
75
72
48
61
36
Secured loans
29
30
5
4
8
13
-
Trade and other payables
1,184
1,203
1,047
18
18
54
66
Deferred and contingent
consideration payable
2,518
2,794
16
762
1,178
838
-
Credit Facility
1,601
1,661
-
-
-
1,661
-
5,595
5,980
1,143
856
1,252
2,627
102
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
$m
$m
$m
$m
$m
$m
$m
Financial liabilities
Lease liabilities
153
177
37
31
60
15
34
Secured loans
39
44
6
6
10
22
-
Trade and other payables
287
287
287
-
-
-
-
Deferred consideration
52
52
16
6
20
10
Forward exchange contracts:
Outflow
336
336
320
-
16
-
-
Inflow
(331)
(331)
(315)
-
(16)
-
-
536
565
351
43
90
47
34
Whitehaven Coal Annual Report 2024 | Page 93
Notes to the consolidated financial statements
For the year ended 30 June 2024
d)
Net fair values
The following table provides the fair value measurement hierarchy of the Group’s financial assets and financial liabilities as
at 30 June 2024 and 30 June 2023:
− 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:
2024
Level 1
Level 2
Level 3
$m
$m
$m
$m
Assets measured at fair value
Equity investments
70
59
-
11
2023
Level 1
Level 2
Level 3
$m
$m
$m
$m
Assets measured at fair value
Equity investments
18
6
-
12
Forward exchange contracts - receivable
0
-
0
-
18
6
0
12
Liabilities measured at fair value
Forward exchange contracts - payable
(6)
-
(6)
-
(6)
-
(6)
-
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.
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.
Whitehaven Coal Annual Report 2024 | Page 94
Notes to the consolidated financial statements
For the year ended 30 June 2024
e)
Financial assets and liabilities by categories
2024
2023
Amortised
cost
Other
Amortised
cost
Other
Note
$m
$m
$m
$m
Financial assets
Cash and cash equivalents
405
-
2,776
-
Trade and other receivables
3.1
565
-
330
-
Investments
5.3(d)
-
70
-
18
Total financial assets
970
70
3,106
18
2024
2023
Amortised
cost¹
Other
Amortised
cost¹
Other
Note
$m
$m
$m
$m
Financial liabilities
Trade and other payables
3.3
1,184
-
287
-
Deferred and contingent consideration
3.3
2,518
-
52
-
Interest-bearing liabilities
5.1
1,891
-
189
-
Other financial liabilities2
5.3(d)
-
-
-
6
Total financial liabilities
5,593
-
528
6
1
Loans at amortised cost are non-derivatives with fixed or determinable payments and are not quoted on an active market. Loans, payables
and deferred consideration are valued at amortised cost.
2 Relates to derivatives in designated hedges.
f)
Changes in liabilities arising from financing activities
2024
2023
$m
$m
As at 1 July
192
251
Outflows from secured loans
(9)
(9)
Outflows from lease liabilities
(85)
(82)
Inflows from credit facility
1,686
-
Foreign exchange rate variations on translation of credit facility
(25)
-
Lease liabilities acquired in business combination (note 6.1)
152
-
Increase in lease liabilities
42
32
As at 30 June
1,953
192
Consisting of:
Current interest-bearing liabilities1
148
73
Non-current interest-bearing liabilities2
1,805
119
1
Current interest-bearing liabilities does not include capitalised borrowing costs of $1m (2023: $1m).
2 Non-current interest-bearing liabilities does not include capitalised borrowing costs of $61m (2023: $2m).
The Group classifies interest paid as cash flows from operating activities.
Whitehaven Coal Annual Report 2024 | Page 95
Notes to the consolidated financial statements
For the year ended 30 June 2024
Recognition and measurement
Financial assets
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.
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, deferred consideration, interest-bearing
liabilities and derivative financial instruments.
Derivatives and hedge accounting:
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.
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.
Whitehaven Coal Annual Report 2024 | Page 96
Notes to the consolidated financial statements
For the year ended 30 June 2024
5.4. Share capital and reserves
a)
Share capital
2024
2023
Fully paid ordinary share capital
Number of shares
$m
Number of shares
$m
Ordinary share capital at the beginning of the period
836,600,784
1,660
956,271,652
2,643
Share buy-back
-
-
(119,670,868)
(949)
Transfer of shares by share plan
-
27
-
6
Shares purchased by share plan
-
-
-
(40)
Ordinary share capital at the end of the period
836,600,784
1,687
836,600,784
1,660
At 30 June 2024, a trust on behalf of the Group held 2,236,201 ordinary fully paid shares in the Company (30 June 2023: 6,610,252). During the
year, 4,374,051 of these shares were transferred to performance rights plan recipients. 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.
Whitehaven Coal Annual Report 2024 | Page 97
Notes to the consolidated financial statements
For the year ended 30 June 2024
b)
Nature and purpose of reserves
Share-based payment reserve
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.
Other reserves
2024
2023
Other reserves
$m
$m
Hedge reserve, net of tax
-
(4)
Revaluation reserve, net of tax
16
(4)
Total
16
(8)
Hedge reserve
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.
Revaluation reserve
The revaluation reserve comprises the revaluation of listed equity investments to market value as at period end.
c)
Dividends
Dividends of $393m were paid to shareholders during the year ended 30 June 2024 (2023: $640m).
On 21 August 2024, the Directors resolved to pay a fully franked final dividend of 13 cents per share ($104m) to be paid
on 17 September 2024.
Dividend franking account
As at 30 June 2024, $1,225m franking credits were available to shareholders of Whitehaven Coal Limited (30 June 2023:
$402m).
Whitehaven Coal Annual Report 2024 | Page 98
Notes to the consolidated financial statements
For the year ended 30 June 2024
5.5. Share-based payments
a)
Recognised share-based payment expenses
2024
2023
Employee expenses
$m
$m
Performance rights – senior employees
15
11
Recognition and measurement:
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
During the year, the Company issued performance rights to the CEO and senior employees under the Group’s single
incentive plan (SIP). The terms and conditions of the grant are as follows:
Performance rights
2024
2023
Number of
instruments
Vesting date
Number of
instruments
Vesting date
Single incentive plan
907,777
31 August 2027
-
-
The performance rights issued under the SIP are subject to a performance measure linked to a Costs Hurdle and a Long-
Term Growth Projects (LTGP) metric. The Costs Hurdle performance measure relates to the Group achieving a cost per
tonne target referenced to the industry first quartile. The LTGP performance measure drives a focus on the efficient
delivery of long-term projects that directly impact shareholder value. Detailed disclosures of performance rights
outcomes against the target are provided in the Remuneration Report.
The table below details the outcomes of MTI awards that were tested in FY24 (or for which the test period concluded on
30 June 2024) and the results of the relevant test:
Outcomes
MTI Year
Test Type
Performance
Vested
Lapsed
2021
Relative TSR
100th percentile
100%
0%
2021
Costs Target Hurdle
12th percentile
100%
0%
Whitehaven Coal Annual Report 2024 | Page 99
Notes to the consolidated financial statements
For the year ended 30 June 2024
c)
Movement in performance rights
The following table illustrates the number and weighted average exercise prices of, and movements in, options and
performance rights during the year:
Weighted
average
exercise price
Number
of rights
Weighted
average
exercise price
Number of
options/rights
2024
2024
2023
2023
Outstanding at beginning of period
$0.00
13,981,934
$0.00
16,117,001
Exercised during the period
$0.00
(3,686,395)
$0.00
(1,545,148)
Granted during the period
$0.00
2,153,7131
$0.00
871,0432
Forfeited during the period
$0.00
(153,816)
$0.00
(1,132,805)
Lapsed during the period
$0.00
-
$0.00
(328,157)
Outstanding at 30 June
$0.00
12,295,436
$0.00
13,981,934
Exercisable at 30 June
$0.00
2,153,883
$0.00
630,639
1
Includes performance rights granted during the year under the Single Incentive Plan schemes.
The outstanding balance as at 30 June 2024 is represented by:
Performance rights over ordinary
shares
Number
Exercise price
Dates exercisable between
Performance rights
612,920
$nil
30 June 2024 - 28 October 2029
Performance rights
3,264,350
$nil
30 June 2024 - 31 October 2030
Performance rights
4,247,768
$nil
30 June 2024 - 31 October 2031
Performance rights
468,007
$nil
30 June 2024 - 31 October 2032
Performance rights
2,036,673
$nil
30 June 2025 – 31 October 2031
Performance rights
459,505
$nil
30 June 2025 – 1 December 2033
Performance rights
312,492
$nil
30 June 2026 – 1 December 2033
Performance rights
893,721
$nil
30 June 2027 – 1 December 2033
Outstanding at 30 June 2024
12,295,436
The weighted average remaining contractual life of performance rights outstanding at 30 June 2024 is 6.9 years (2023:
7.7 years).
All share-based payments for existing employees are equity settled.
Whitehaven Coal Annual Report 2024 | Page 100
Notes to the consolidated financial statements
For the year ended 30 June 2024
6. Group structure
6.1. Business combination
Acquisition of Daunia and Blackwater
On 18 October 2023, Whitehaven announced the execution of definitive sales agreements with BHP Group and Mitsubishi
Development Pty Ltd (together BHP Mitsubishi Alliance (“BMA”)) to acquire 100% of both Daunia and Blackwater coal
mines and all shares in South Blackwater Coal Pty Ltd. The acquisition completed on 2 April 2024.
Details of the purchase consideration, the net assets acquired and the impact of the acquisition on the Group are as
follows:
a)
Purchase consideration
2024
$m
Purchase consideration
Cash paid1
3,304
Completion adjustment receivable2
(49)
Deferred consideration
1,533
Contingent consideration
961
Total purchase consideration
5,749
1
Includes US$100m deposit paid on 18 October 2023, subsequently remeasured to fair value on completion at 2 April 2024 resulting in a
foreign exchange loss of $4m.
2 Completion adjustment remains as a receivable from BMA as at 30 June 2024.
Deferred consideration
Deferred consideration of US$1,100m is payable over three years and is not contingent.
Contingent consideration
Whitehaven has agreed to pay additional consideration in the form of a 35% revenue share, capped at a total of US$900m
over three years. The revenue share is subject to average realised prices achieved by the Daunia and Blackwater mines
exceeding respective thresholds of US$159/t in the 12-month period from 2 April 2024, US$134/t in the 12-month period
from 2 April 2025 and US$134/t in the 12-month period 2 April 2026. Annual payments are capped at maximum of US$350m.
The provisional fair value of the contingent consideration of $961m was estimated by calculating the present value of the
future expected cash flows.
b)
Identifiable assets acquired and liabilities assumed
The provisional fair values of the identifiable assets and liabilities acquired as of the date of acquisition were:
2024
$m
Assets
Cash and cash equivalents
0
Trade and other receivables
4
Inventories
244
Property, plant and equipment
6,824
Intangible assets
17
Deferred tax asset1
11
Total assets
7,100
Liabilities
Trade and other payables
(161)
Lease liabilities
(152)
Employee benefits
(60)
Provisions
(978)
Whitehaven Coal Annual Report 2024 | Page 101
Notes to the consolidated financial statements
For the year ended 30 June 2024
2024
$m
Total liabilities
(1,351)
Identifiable net assets acquired
5,749
Total consideration
5,749
Cash and cash equivalents acquired
0
Net cash consideration
5,749
1
Deferred tax asset of $11m recognised from the tax losses transferred from South Blackwater Coal Pty Ltd. This is disclosed within the
deferred tax liabilities of the Group in the statement of financial position as at 30 June 2024.
c)
Impact of the acquisition on the results of the Group
From the 2 April 2024, Daunia and Blackwater mines contributed $872m of revenue and $150m of profit before tax for
the Group, as disclosed in the statement of comprehensive income for the year ended 30 June 2024.
In addition to the above, transaction and transition costs totalling $559m have been incurred in relation to the acquisition
during the year ended 30 June 2024 (2023: $4m). Refer to note 2.2 (b) for more information.
Recognition and measurement
The assets and liabilities acquired under AASB 3 Business Combinations are initially accounted for on a provisional
basis. Whitehaven retrospectively adjusts the provisional amounts recognised and also recognises additional assets or
liabilities during the measurement period, based on new information obtained about the facts and circumstances that
existed at the acquisition-date. The measurement period ends on either the earlier of
(i) 12 months from the date of the acquisition, or
(ii) when the acquirer receives all the information possible to determine fair value.
Significant accounting judgements, estimates and assumptions
AASB 3 Business Combinations requires the recognition of all purchase consideration at fair value. This includes
consideration where payment to the seller and the total value is contingent on prevailing coal prices exceeding
certain targets over three years, up to a maximum of US$900m. As at 30 June 2024, Whitehaven have recognised a
payable for the contingent consideration of $960m, based on management forecasts and the expected discounted
cash flows.
Whitehaven Coal Annual Report 2024 | Page 102
Notes to the consolidated financial statements
For the year ended 30 June 2024
6.2. 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
Ownership interest
2024
2023
2024
2023
Parent entity
Whitehaven Coal Limited
Subsidiaries
Whitehaven Coal Mining Limited1
100%
100%
Namoi Mining Pty Ltd1
100%
100%
A.C.N. 664 400 382 Pty Ltd3
100%
100%
Narrabri Coal Australia Pty Ltd2
100%
100%
Aston Resources Limited1
100%
100%
Narrabri Coal Operations Pty Ltd1
100%
100%
Aston Coal 2 Pty Ltd1
100%
100%
Narrabri Coal Pty Ltd1
100%
100%
Aston Coal 3 Pty Ltd1
100%
100%
Narrabri Coal Sales Pty Ltd1
100%
100%
Australian MetCoal Financing Pty Ltd⁴
100%
-
Oaklands Land Pty Ltd1
100%
100%
Australian Resource Financing Pty Ltd3
100%
100%
South Blackwater Coal Pty Ltd⁵
100%
-
Betalpha Pty Ltd1
100%
100%
Tarrawonga Coal Pty Ltd1
100%
100%
Blackwater Operations Pty Ltd⁴
100%
-
Tarrawonga Coal Sales Pty Ltd2
100%
100%
Blackwater Marketing Pty Ltd⁴
100%
-
Vickery Coal Operations Pty Ltd3
100%
100%
Boardwalk Coal Management Pty Ltd1
100%
100%
Vickery Coal Pty Ltd2
100%
100%
Boardwalk Coal Marketing Pty Ltd1
100%
100%
Vickery South Marketing Pty Ltd1
100%
100%
Boardwalk Dingo Pty Ltd1
100%
100%
Vickery South Operations Pty Ltd1
100%
100%
Boardwalk Ferndale Pty Ltd1
100%
100%
Vickery South Pty Ltd1
100%
100%
Boardwalk Monto Pty Ltd1
100%
100%
WC Contract Hauling Pty Ltd1
100%
100%
Boardwalk Resources Limited1
100%
100%
Werris Creek Coal Pty Ltd1
100%
100%
Boardwalk Sienna Pty Ltd1
100%
100%
Werris Creek Coal Sales Pty Ltd1
100%
100%
Coalworks Limited1
100%
100%
Whitehaven Blackjack Pty Ltd1
100%
100%
Coalworks (Oaklands North) Pty Ltd1
100%
100%
Whitehaven Blackwater Pty Ltd⁴
100%
-
Coalworks (Vickery South) Pty Ltd1
100%
100%
Whitehaven Coal Holdings Pty Ltd1
100%
100%
Coalworks Vickery South Operations Pty Ltd1
100%
100%
Whitehaven Coal Infrastructure Pty Ltd1
100%
100%
Creek Resources Pty Ltd1
100%
100%
Whitehaven Daunia Pty Ltd⁴
100%
-
CWK Nominees Pty Ltd1
100%
100%
Whitehaven Employee Share Plan Pty Ltd1
100%
100%
Daunia Marketing Pty Ltd⁴
100%
-
Whitehaven Energy Pty Ltd⁴
100%
-
Daunia Operations Pty Ltd⁴
100%
-
Whitehaven MetCoal Holdings Pty Ltd3
100%
100%
Gunnedah Basin Haulage Pty Ltd3
100%
100%
Whitehaven Project Pty Ltd1
100%
100%
Ferndale Coal Pty Ltd
92.5%
92.5%
Whitehaven WS Pty Ltd2
100%
100%
Loyal Coal Pty Ltd
92.5%
92.5%
Winchester South Coal Operations Pty Ltd2
100%
100%
Maules Creek Coal Pty Ltd1
100%
100%
Yarrawa Coal Pty Ltd1
100%
100%
Namoi Agriculture & Mining Pty Ltd
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 6.5 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 6.5 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 6.5 for further information.
4 These subsidiaries entered into a Class Instrument 2016/785 dated 28 March 2024 and related deed of cross guarantee with Whitehaven
Coal Limited. Refer to note 6.5 for further information.
5 These subsidiaries entered into a Class Instrument 2016/785 dated 24 June 2024 and related deed of cross guarantee with Whitehaven Coal
Limited. Refer to note 6.5 for further information.
Whitehaven Coal Annual Report 2024 | Page 103
Notes to the consolidated financial statements
For the year ended 30 June 2024
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.
6.3. 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:
Ownership interest and voting rights
Country of incorporation
2024
2023
Narrabri Coal Joint Venture1
77.5%
77.5%
Maules Creek Joint Venture1
75%
75%
Dingo Joint Venture1
70%
70%
Ferndale Joint Venture1
92.5%
92.5%
Boggabri-Maules Creek Rail Spur Joint Venture1
39%
39%
Maules Creek Marketing Pty Ltd2
Australia
75%
75%
Boggabri-Maules Creek Rail Pty Ltd2
Australia
39%
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.
Whitehaven Coal Annual Report 2024 | Page 104
Notes to the consolidated financial statements
For the year ended 30 June 2024
6.4. Parent entity information
Company
2024
2023
Information relating to Whitehaven Coal Limited
$m
$m
Current assets
613
1,909
Total assets
3,000
3,420
Issued capital
1,831
1,831
Retained earnings
1,141
1,569
Share-based payments reserve
28
20
Total shareholders’ equity
3,000
3,420
(Loss)/profit of the parent entity
(14)
2,083
Total comprehensive (loss)/income of the parent entity
(14)
2,083
6.5. Deed of cross guarantee
Pursuant to ASIC Corporations Instrument 2016/785 dated 28 September 2016, the wholly owned subsidiaries listed in note
6.2 (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, 28 March 2024 and 24 June 2024.
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.
Closed Group
2024
2023
Statement of comprehensive income
$m
$m
Profit before tax
509
3,801
Income tax expense
(154)
(1,133)
Net profit for the year
355
2,668
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Net movement on cash flow hedges
6
2
Income tax effect
(2)
(1)
Total items that may be reclassified subsequently to profit or loss, net of tax
4
1
Items that will not be reclassified subsequently to profit or loss
Net loss on equity instruments designated at fair value through
other comprehensive income
28
(5)
Income tax effect
(8)
2
Total items that will not be reclassified subsequently to profit or loss, net of tax
20
(3)
Total comprehensive income for the year, net of tax
379
2,666
Whitehaven Coal Annual Report 2024 | Page 105
Notes to the consolidated financial statements
For the year ended 30 June 2024
Closed Group
2024
2023
Statement of financial position
$m
$m
Assets
Cash and cash equivalents
405
2,776
Trade and other receivables
560
326
Inventories
495
134
Current tax receivable
75
0
Total current assets
1,535
3,236
Non-current assets
Trade and other receivables
7
5
Investments
70
18
Property, plant and equipment
10,740
3,802
Exploration and evaluation assets
473
439
Intangible assets
29
12
Total non-current assets
11,319
4,276
Total assets
12,854
7,512
Liabilities
Trade and other payables
1,065
287
Deferred and contingent consideration
761
22
Interest-bearing liabilities
147
72
Employee benefits
121
39
Income tax payable
-
871
Provisions
54
15
Derivatives
-
5
Total current liabilities
2,148
1,311
Non-current liabilities
Other payables
119
-
Deferred and contingent consideration
1,757
30
Interest-bearing liabilities
1,744
117
Deferred tax liabilities
616
542
Provisions
1,197
250
Total non-current liabilities
5,433
939
Total liabilities
7,581
2,250
Net assets
5,273
5,262
Equity
Issued capital
1,685
1,658
Share-based payments reserve
35
20
Other reserves
16
(8)
Retained earnings
3,537
3,592
Total Equity
5,273
5,262
Whitehaven Coal Annual Report 2024 | Page 106
Notes to the consolidated financial statements
For the year ended 30 June 2024
6.6. Related parties
2024
2023
Compensation to Executive KMP and Non-Executive Directors of the Group
$’000
$’000
Short-term employee benefits
7,581
6,995
Contributions to superannuation plans
214
198
Share-based compensation payments
5,742
4,631
Total compensation
13,537
11,824
7. Other notes
7.1. Employee benefits
2024
2023
Consolidated statement of comprehensive income
$m
$m
Wages and salaries
389
235
Contributions to superannuation plans
30
17
Other associated personnel expenses
16
10
Increase in liability for annual leave
51
3
Increase in liability for long service leave
1
1
Share-based compensation payments
15
11
502
277
Consolidated statement of financial position
Salaries and wages accrued
39
9
Liability for long service leave
3
2
Liability for annual leave
79
28
121
39
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.
Whitehaven Coal Annual Report 2024 | Page 107
Notes to the consolidated financial statements
For the year ended 30 June 2024
7.2. Auditor’s Remuneration
2024
2023
Auditors of the Company - Ernst & Young (Australia)
$’000
$’000
Fees to the auditor for
Audit and review of statutory financial statements of the parent covering the Group
1,444
626
Audit of joint operations
372
358
Total audit services
1,816
984
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
74
52
Debt capital markets assurance services
-
7
Total other assurance services1
74
59
Other services
Due diligence services2
508
688
Sustainability assurance services
175
37
Taxation services
4
-
Total other services1
687
725
Total auditor’s remuneration
2,577
1,768
Total non-audit services1
761
784
Non-audit services as a % of total auditor’s remuneration
30%
44%
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) include the provision of non-audit services in relation
to transactional activities, being the acquisition of Daunia and Blackwater and the sale of a joint venture interest in Blackwater mine, that took
place during the current and prior years, which are considered to be outside the ordinary course of business.
7.3. Commitments
a)
Capital expenditure commitments
2024
2023
$m
$m
Contracted for but not provided for and payable:
Within one year1
166
44
1
There were no commitments for capital expenditure beyond one year.
Whitehaven Coal Annual Report 2024 | Page 108
Notes to the consolidated financial statements
For the year ended 30 June 2024
7.4. Contingencies
a)
Guarantees
The Group provided bank and surety guarantees to:
2024
2023
$m
$m
i)
government departments as a condition of continuation of mining and exploration licences
299
239
ii)
rail capacity providers
28
24
iii)
port capacity providers
159
159
iv)
electricity network access supplier
19
20
v)
other
12
5
517
447
b)
Contingent consideration
A contingent consideration payable of $960m was recognised in the statement of financial position as at 30 June 2024 for
the additional consideration Whitehaven has agreed to pay for the acquisition of Daunia and Blackwater, subject to the
average realised coal prices achieved over the next three years. Refer to note 6.1 for more information.
c)
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. A three week
trial will commence at the beginning of September 2024.
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.
7.5. Subsequent events
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:
− On 21 August 2024, the Directors resolved to pay a fully franked final dividend of 13 cents per share ($104m) to be paid
on 17 September 2024.
− On 21 August 2024 the Group entered into binding agreements with Nippon Steel Corporation and JFE Steel
Corporation for the sale to those parties of a joint venture interest in the Blackwater coal mine of 20% and 10%
respectively for an aggregate cash consideration of US$1.08 billion. The transactions are expected to complete by the
first quarter of calendar year 2025, subject to customary competition and regulatory approvals.
− On 30 July 2024 and 1 August 2024, the Group entered into additional working capital facility agreements totalling
A$87.5m.
Whitehaven Coal Annual Report 2024 | Page 109
Name of entity
Type of entity
Trustee, partner, or
participant in joint
venture
% of
ownership
Country of
incorporation
Tax
Residency
Whitehaven Coal Limited
Body corporate
n/a
n/a
Australia
Australian
Whitehaven Coal Mining Limited
Body corporate
n/a
100%
Australia
Australian
A.C.N. 664 400 382 Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Aston Resources Limited
Body corporate
n/a
100%
Australia
Australian
Aston Coal 2 Pty Ltd
Body corporate
n/a1
100%
Australia
Australian
Aston Coal 3 Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Australian MetCoal Financing Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Australian Resource Financing Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Betalpha Pty Ltd
Body corporate
Trustee
100%
Australia
Australian
Betalpha Unit Trust
Trust
n/a
n/a
Australia
Australian
Blackwater Operations Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Blackwater Marketing Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Boardwalk Coal Management Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Boardwalk Coal Marketing Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Boardwalk Dingo Pty Ltd
Body corporate
n/a1
100%
Australia
Australian
Boardwalk Ferndale Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Boardwalk Monto Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Boardwalk Resources Limited
Body corporate
n/a
100%
Australia
Australian
Boardwalk Sienna Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Boggabri-Maules Creek Rail Pty Ltd
Body corporate
n/a
39%
Australia
Australian
Coalworks Limited
Body corporate
n/a
100%
Australia
Australian
Coalworks (Oaklands North) Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Coalworks (Vickery South) Pty Ltd
Body corporate
Trustee
100%
Australia
Australian
Coalworks Vickery South Operations Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Creek Resources Pty Ltd
Body corporate
n/a
100%
Australia
Australian
CWK Nominees Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Daunia Marketing Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Daunia Operations Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Gunnedah Basin Haulage Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Ferndale Coal Pty Ltd
Body corporate
n/a
92.5%
Australia
Australian
LJV Unit Trust
Trust
n/a
n/a
Australia
Australian
Loyal Coal Pty Ltd
Body corporate
n/a1, Trustee
92.5%
Australia
Australian
Maules Creek Coal Pty Ltd
Body corporate
n/a1
100%
Australia
Australian
Maules Creek Marketing Pty Ltd
Body corporate
n/a
75%
Australia
Australian
Namoi Agriculture & Mining Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Namoi Mining Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Narrabri Coal Australia Pty Ltd
Body corporate
n/a1
100%
Australia
Australian
Narrabri Coal Operations Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Narrabri Coal Pty Ltd
Body corporate
n/a1
100%
Australia
Australian
Narrabri Coal Sales Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Oaklands Land Pty Ltd
Body corporate
Trustee
100%
Australia
Australian
South Blackwater Coal Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Tarrawonga Coal Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Tarrawonga Coal Sales Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Vickery Coal Operations Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Vickery Coal Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Consolidated Entity Disclosure Statement
As at 30 June 2024
Whitehaven Coal Annual Report 2024 | Page 110
Consolidated Entity Disclosure Statement
As at 30 June 2024
Vickery South Marketing Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Vickery South Operations Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Vickery South Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Vickery South Unit Trust
Trust
n/a
n/a
Australia
Australian
WC Contract Hauling Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Werris Creek Coal Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Werris Creek Coal Sales Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Whitehaven Blackjack Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Whitehaven Blackwater Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Whitehaven Coal Holdings Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Whitehaven Coal Infrastructure Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Whitehaven Coal Limited Equity Incentive
Plan Trust
Trust
n/a
n/a
Australia
Australian
Whitehaven Daunia Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Whitehaven Employee Share Plan Pty Ltd
Body corporate
Trustee
100%
Australia
Australian
Whitehaven Energy Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Whitehaven MetCoal Holdings Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Whitehaven Project Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Whitehaven WS Pty Ltd
Body corporate
n/a
100%
Australia
Australian
Winchester South Coal Operations Pty Ltd
Body corporate
n/a
100%
Australia
Australian
The Yarrawa Coal Unit Trust
Trust
n/a
n/a
Australia
Australian
Yarrawa Coal Pty Ltd
Body corporate
Trustee
100%
Australia
Australian
Yarrawa Unit Trust
Trust
n/a
n/a
Australia
Australian
1
These entities are participants in joint ventures with third parties not included within the consolidated entity.
Whitehaven Coal Annual Report 2024 | Page 111
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 2024 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, and
(iii) The consolidated entity disclosure statement is true and correct
(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 2024
(e)
As at the date of this declaration, there are reasonable grounds to believe that the members of the Closed Group
identified in note 6.5 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
22 August 2024
Directors’ declaration
For the year ended 30 June 2024
Whitehaven Coal Annual Report 2024 | Page 112
Independent Auditor’s report
For the year ended 30 June 2024
Whitehaven Coal Annual Report 2024 | Page 113
Independent Auditor’s report
For the year ended 30 June 2024
Whitehaven Coal Annual Report 2024 | Page 114
Independent Auditor’s report
For the year ended 30 June 2024
Whitehaven Coal Annual Report 2024 | Page 115
Independent Auditor’s report
For the year ended 30 June 2024
Whitehaven Coal Annual Report 2024 | Page 116
Independent Auditor’s report
For the year ended 30 June 2024
Whitehaven Coal Annual Report 2024 | Page 117
Independent Auditor’s report
For the year ended 30 June 2024
Whitehaven Coal Annual Report 2024 | Page 118
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
Percentage of
capital held
Number of ordinary
shares held
Date of substantial
shareholder notice
The Vanguard Group, Inc. and its controlled entities
5.02%
42,018,870
1 August 2024
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
Number of equity security holders
% of Units
1 - 1,000
13,193
0.68
1,001 - 5,000
11,971
3.76
5,001 - 10,000
3,544
3.21
10,001 - 100,000
3,260
10.13
100,001 and over
218
82.22
32,186
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 917.
ASX additional information
Whitehaven Coal Annual Report 2024 | Page 119
Securities exchange
The Company is listed on the Australian Securities Exchange.
Other information
Whitehaven Coal Limited, incorporated and domiciled in Australia, is a publicly listed company limited by shares.
Twenty largest shareholders (legal ownership)
Name
Number of
ordinary shares
held
Percentage of
capital held
HSBC CUSTODY NOMINEES (AUSTRALIA) LTD
204,606,936
24.46
CITICORP NOMINEES PTY LTD
120,749,012
14.43
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
116,083,222
13.88
BNP PARIBAS NOMS PTY LTD
38,514,717
4.60
BNP PARIBAS NOMINEES PTY LTD
31,403,230
3.75
AET SFS PTY LTD
26,678,979
3.19
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
21,282,708
2.54
NATIONAL NOMINEES LIMITED
12,433,408
1.49
MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED
9,435,046
1.13
BNP PARIBAS NOMINEES PTY LTD
7,757,070
0.93
BNP PARIBAS NOMS PTY LTD
5,302,895
0.63
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED – A/C 2
5,249,748
0.63
BNP PARIBAS NOMINEES PTY LTD
4,930,766
0.59
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED GSCO ECA
4,409,572
0.53
UBS NOMINEES PTY LTD
3,930,738
0.47
CITICORP NOMINEES PTY LIMITED
3,393,358
0.41
INVIA CUSTODIAN PTY LIMITED
3,100,889
0.37
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA
2,889,801
0.35
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
2,877,932
0.34
MR CHRISTOPHER ANDREW ANDERSON + MRS VIRGINIA IVY ANDERSON
2,675,539
0.32
627,705,566
75.03
This information is current as at 19 August 2024.
Whitehaven Coal Annual Report 2024 | Page 120
Whitehaven Coal Limited – Coal Resources – August 2024
Tenement
Measured
Resource
(A)
Indicated
Resource
(B)
Measured +
Indicated
(A + B)
Inferred
Resource
(C)
Total
Resource
(A+B+C)
Competent
Person
Report
Date
Blackwater Mine -
Open Cut
MDL155 MDL189
ML1759 ML1760
ML1761 ML1762 ML1767
ML1771 ML1772 ML1773
ML1792 ML1800
ML1812 ML1829
ML1860 ML1862
ML1907 ML70091
ML70103 ML70104
ML70139 ML70167
ML70329 ML700069
ML700070 ML700071
296
528
824
779
1603
1
Jul-24
Blackwater Mine -
Underground
–
–
–
222
222
1
Jul-24
Daunia Mine
ML1781 ML70115
ML70116
82
18
100
9
109
2
Jul-24
Maules Creek
Opencut*
CL375 AUTH346
ML1701 ML1719
348
174
522
20
542
3
Apr-24
Narrabri North
Underground**
ML1609
112
130
242
–
242
4
Apr-24
Narrabri South
Underground**
EL6243 ML1839
144
171
315
8
323
4
Apr-24
Tarrawonga
Opencut
EL5967 ML1579
ML1685 ML1693
27
18
45
13
58
5
Apr-24
Tarrawonga
Underground
10
15
25
14
39
5
Apr-14
Werris Creek
Opencut
ML1563 ML1672
0.3
–
0.3
–
0.3
5
Jul-24
Vickery
Opencut
CL316 ML1838 ML1464
ML1471 ML1718
238
69
306
194
500
2
Apr-24
Vickery
Underground
EL4699 EL5831
EL7407 EL8224
–
–
–
235
235
2
Apr-24
Winchester
South Opencut
MDL 183
416
341
757
83
840
6
Jul-24
Winchester South
Underground
–
255
255
6
Jul-24
Rocglen
Opencut
ML1620
2
3
6
0.2
6
5
Mar-19
Rocglen
Underground
–
3
3
1
4
5
Mar-19
Gunnedah
Opencut
ML1624 EL5183
CCL701
7
47
54
89
143
5
Jun-14
Gunnedah
Underground
2
138
140
24
164
5
Jun-14
Bonshaw
Opencut
EL6450 EL6587
–
4
4
7
11
5
Jun-14
Ferndale
Opencut
EL7430
103
135
238
134
372
5
Jan-13
Ferndale
Underground
–
–
–
73
73
5
Jan-13
Oaklands
North Opencut
EL6861
110
260
370
580
950
5
Jun-14
Pearl Creek
Opencut***
EPC862
–
15
15
33
48
5
Aug-20
Total Coal Resources
1898
2069
3966
2774
6740
1. Maurice Passmore, 2. Scott Cutler, 3. Darryl Stevenson, 4. Jorham Contreras, 5. Benjamin Thompson, 6. Kane Maxwell
* Maules Creek Joint Venture - Whitehaven owns 75% share.
** Narrabri Joint Venture - Whitehaven owns 77.5% share.
*** Dingo Joint Venture - Whitehaven owns 70% share.
# The Coal Resources for active mining areas are current to the pit surface as at the report date.
Note: Figures reported are rounded which may result in small tabulation errors.
Resources and Reserves
Whitehaven Coal Annual Report 2024 | Page 121
Whitehaven Coal Limited – Coal Reserves – August 2024
Tenement
Recoverable Reserves
Marketable Reserves
Competent
Person
Report
Date
Proved
Probable
Total
Proved
Probable
Total
Blackwater Mine
MDL155
MDL189 ML1759
ML1760 ML1761
ML1762 ML1767
ML1771 ML1772
ML1773 ML1792
ML1800 ML1812
ML1829 ML1860
ML1862 ML1907
ML70091
ML70103
ML70104
ML70139
ML70167
ML70329
ML700069
ML700070
ML700071
84
116
200
74
101
176
1
Jul-24
Daunia Mine
ML1781 ML70115
ML70116
63
13
76
52
11
63
2
Jul-24
Maules Creek
Opencut*
CL375
AUTH346
269
130
399
214
99
313
3
Apr-24
Narrabri North
Underground**
ML1609
53
4
57
51
3
54
4
Apr-24
Narrabri South
Underground**
EL6243
92
5
97
88
5
93
4
Apr-24
Tarrawonga
Opencut
EL5967 ML1579
ML1685 ML1693
13
10
23
10
8
18
5
Apr-24
Vickery
Opencut
CL316 ML1838
176
4
180
123
2
125
6
Apr-24
Werris Creek
Opencut
ML1563 ML1672
–
–
–
–
–
–
6
Jul-24
Winchester
South
MDL 183
270
110
380
160
55
215
7
Apr-22
Total Coal Reserves
1019
392
1411
772
284
1057
1. Nina Wilson, 2. Iman Ferdowsi, 3. Richar Guerra, 4. James Smith, 5. Christopher Grant-Saunders, 6. Luke Taylor, 7. Doug Sillar
* Maules Creek Joint Venture - Whitehaven owns 75% share. Recoverable Reserves for Maules Creek Open cut include approximately 30Mt of coal located in an
area identified in the mine’s project approvals as a vegetated buffer corridor between the mine and the neighbouring Boggabri mine. These project approvals
require a suitable alternate corridor to be approved prior to mining of the coal in this corridor. The company is progressing work on potential alternatives to this
corridor in conjunction with the owners of the Boggabri mine.
** Narrabri Joint Venture - Whitehaven owns 77.5% share.
# The Coal Reserves for active mining areas are current as at report date.
## Coal Reserves are quoted as a subset of Coal Resources.
### Marketable Reserves are based on geological modelling of the anticipated yield from Recoverable Reserves.
Note: Figures reported are rounded which may result in small tabulation errors.
Whitehaven Coal Annual Report 2024 | Page 122
Glossary
A$/t
Australian dollars per tonne
KMP
Key Management Personnel
AGM
Annual General Meeting
KPI
Key Performance Indicator
ARTC
Australian Rail Track Corporation
kt
Thousand tonnes
ASEAN
Association of Southeast Asian Nations
LTI
Long-Term Incentive
ASX
Australian Securities Exchange
m
Million
ATO
Australian Taxation Office
Mt
Million tonnes
BMA
BHP Billiton Mitsubishi Alliance
MTI
Medium-Term Incentive
CHPP
Coal Handling Preparation Plant
Mtpa
Million tonnes per annum
CV
Calorific value
NCIG
Newcastle Coal Infrastructure Group
DEP
Dividend equivalent payment
NPAT
Net profit after tax
EBITDA
Earnings Before Interest, Taxation,
Depreciation and Amortisation
NSW
New South Wales
ECA
Export Credit Agency
OEM
Original Equipment Manufacturer
EGM
Executive General Manager
QLD
Queensland
EIS
Environmental Impact Statement
PCI
Pulverised Coal Injection
EPBC
Environment Protection and Biodiversity
Conservation
PLV
Premium low-volatile
ESG
Environmental, social, and governance
PWCS
Port Waratah Coal Services
FOB
Free-on-Board
FVLCD
Fair Value Less Costs of Disposal
ROM
Run-of-Mine
FY23
Financial Year ending 30 June 2023
SIP
Single Incentive Plan
FY24
Financial Year ending 30 June 2024
SSCC
Semi-soft coking coal
FY25
Financial Year ending 30 June 2025
STI
Short-Term Incentive
gC NEWC
globalCOAL Newcastle Coal Futures
Pricing
t
Tonne
HCC
Hard coking coal
TFR
Total Fixed Remuneration
HSE
Health Safety Environment
TRIFR
Total Recordable Injury Frequency
Rate
HELE
High Energy Low Emissions
TSR
Total Shareholder Return
JORC
Joint Ore Resources Committee
VWAP
Volume weighted average price
kcal/kg
Kilo calories per kilogram
Whitehaven Coal Annual Report 2024 | Page 123
Year ended 30 June
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Key data
Managed ROM production (Kt)
24,460
18,190 20,003
20,555
20,688
23,222
22,924
23,137
20,504
15,815
Average achieved price (A$/t) before
applicable royalties2
$228
$445
$325
$95
$104
$145
$130
$112
$75
$80
Average realised price (A$/t) after
applicable royalties
$204
$406
$300
$88
$96
$133
$121
$104
$69
$74
Cost per tonne
$120
$103
$84
$74
$75
$67
$58
$58
$56
$61
Thermal coal sales (% of total)
69%
94%
82%
85%
83%
81%
83%
79%
85%
82%
Met coal sales (% of total)
31%
6%
18%
15%
17%
19%
17%
21%
15%
18%
Dividends per share
Interim dividend
$0.07
$0.32
$0.08
-
$0.015
$0.15
$0.13
-
-
-
Final dividend
$0.13
$0.42
$0.40
-
-
$0.13
$0.14
-
-
-
Special dividend
-
-
-
-
-
$0.22
$0.13
-
-
-
Dividend payout ratio (% of underlying
NPAT)
22%
23%
23%
-
49%
88%
76%
-
-
-
Payout ratio of total capital returns (%
of underlying NPAT)
22%
50%
53%
-
49%
88%
76%
-
-
-
Earnings per share (basic)
$0.444
$3.077
$1.976 ($0.546)
$0.03
$0.535
$0.531
$0.412
$0.021 ($0.333)
Net tangible assets per share
$6.27
$6.27
$4.39
$2.61
$3.14
$3.41
$3.37
$3.19
$2.80
$2.77
Ordinary shares on issue (millions)3
836.6
836.6
956.3
1,032.6
1,026.0
1,026.0
1,026.0
1,026.0
1,026.0
1,026.0
1
Right-of use leases recognised in accordance with AASB16 Leases have been excluded.
2 Excludes domestic coal reservation sales.
3 Within the ordinary shares on issue are 34.02 million WHC shares that are restricted milestone shares. These shares were issued as part of
the acquisition of Boardwalk Resources Pty Ltd in 2012. The milestone shares are subject to contractual restrictions on voting and transfer,
and currently are not entitled to receive distributions (Restrictions).
Year ended 30 June
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
$m
$m
$m
$m
$m
$m
$m
$m
$m
$m
Profit or Loss
Revenue
3,824
6,065
4,920
1,557
1,722
2,488
2,257
1,773
1,164
763
Underlying EBITDA
1,399
3,967
3,060
205
306
1,042
1,012
714
224
130
Significant items before tax and financing
(601)
(4)
-
-
-
(41)
(10)
(55)
-
(447)
EBITDA
798
3,963
3,060
205
306
1,001
1,002
659
224
(317)
Depreciation & Amortisation
(319)
(226)
(239)
(261)
(225)
(212)
(203)
(134)
(130)
(98)
Net finance income/(expense)
30
64
(55)
(62)
(39)
(41)
(40)
(50)
(66)
(68)
Income tax (expense)/benefit
(154)
(1,133)
(814)
224
(12)
(208)
(234)
(70)
(7)
141
Underlying NPAT
740
2,655
1,952
(87)
30
565
525
367
21
(11)
Significant items (after tax)
(385)
13
-
(457)
-
(37)
-
38
-
(332)
NPAT
355
2,668
1,952
(544)
30
528
525
405
21
(343)
Balance sheet and capital management
Cash generated from operations
1,307
4,190
2,582
170
190
964
926
655
269
212
Net assets
5,271
5,261
4,212
2,706
3,250
3,522
3,483
3,292
2,889
2,865
Net (debt)/cash¹
(1,278)
2,652
1,038
(809)
(788)
(162)
(270)
(311)
(859)
(936)
Gearing
20%
n/a
n/a
23%
20%
4%
7%
9%
23%
25%
Dividends paid
392
639
80
-
312
465
188
-
-
-
Share buy-back / capital return
6
949
363
-
-
-
139
-
-
-
Cumulative returns since Maules Creek
declared commercial
3,533
3,134
1,547
1,104
1,104
792
327
-
-
Financial History
Whitehaven Coal Annual Report 2024 | Page 124
Directors
The Hon. Mark Vaile AO
Chairman
Nicole Brook
Non-Executive Director
Paul Flynn
Managing Director and CEO
Wallis Graham
Non-Executive Director
Tony Mason
Non-Executive Director
Mick McCormack
Non-Executive Director
Fiona Robertson AM
Non-Executive Director
Raymond Zage
Non-Executive Director
Company Secretary
Timothy Burt
Registered and Principal
Administrative Office
Level 28, 259 George Street
Sydney NSW 2000
P +61 2 8222 1100
F +61 2 8222 1101
Australian Business Number
ABN 68 124 425 396
Stock Exchange Listing
Australian Securities
Exchange Limited
ASX Code: WHC
Auditor
Ernst & Young
Ernst & Young Centre
Level 34, 200 George Street
Sydney NSW 2000
P +61 2 9248 5555
F +61 2 9248 5959
Share Registry
Computershare Investor
Services Pty Limited
GPO Box 2975 Melbourne
Victoria 3001 Australia
P 1300 855 080
(or +61 3 9415 4000)
Country of Incorporation
Australia
Web address
www.whitehavencoal.com.au
Corporate directory
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environmental management system.
Whitehaven Coal
Level 28, 259 George Street
Sydney NSW 2000
P +61 2 8222 1100
ASX Code: WHC
whitehavencoal.com.au