The Stanmore Coal Limited (ASX: SMR) share price is jumping significantly today after the company released its Chairman's AGM Address to Shareholders.
The Stanmore share price is up 5.2% to 70 cents per share.
Stanmore's focus is the exploration, development, production and sale of metallurgical and thermal coal in Queensland, Australia. Let's see what's driving its share price rebound today.
Stanmore Chair's AGM address
Companies are moving away from thermal coal and fossil fuels in record numbers towards renewable energy sources and China slapped a ban on Australian coal exports several months ago, which is partly to blame for why Stanmore has been hit hard by depressed coal prices.
The company's revenue from operations for the six month period ending 31 December 2020 totalled $136.3 million. This resulted in a gross loss of $6.6 million, considerably lower than the company's $97.0 million profit recorded in FY20.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) reduced to a $13.4 million loss, against the FY20 result of a positive $87.5 million.
Stanmore Chair Dwi Suseno said the company were hoping to diversify into the renewable energy resources market and change the company's name accordingly.
The directors are recommending a change of name for the Company to Stanmore Resources. The Board believes that the name of the Company should be reflective of our aim to continue developing and strengthening our core metallurgical coal business, but also exploring other resource diversification opportunities, including but not limited to the renewable energy space.
In that vein a company called Stanmore Green has been created. The vision for this company is to leverage our assets and execution capabilities to explore and pursue diversification opportunities in the renewable energy space offering synergistic and value add to our existing and future operations.
Stanmore share price snapshot
Today's gains are rare respite for Stanmore investors. The Stanmore share price has been falling dramatically over the last 12 months, down 30% and 53% against the broader resources sector.
