S&P/ASX 300 Index (ASX: XKO) energy stock Stanmore Resources Ltd (ASX: SMR) has been on a tear since hitting a three-year closing low of $1.60 a share on 9 April.
In morning trade today, shares in the coal miner are changing hands for $2.30 apiece, down 0.8%.
That sees the Stanmore share price up 43.8% since plumbing that 9 April low.
Longer-term, shares remain down 29% over 12 months. Though those losses will have been somewhat mitigated by the 17.1 cents per share in fully franked dividends the ASX 300 energy stock paid out over the full year.
At the current share price, this sees Stanmore Resources trading on a fully franked trailing dividend yield of 7.4%.
Looking to the year ahead, Seneca Financial Solutions' Arthur Garipoli sees the potential for solid ongoing dividend payouts and further share price growth (courtesy of The Bull).
Here's why.
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Should you buy the ASX 300 energy stock today?
While 9 April would certainly have been an opportune time to snap up Stanmore Resources shares, Garipoli reiterated his buy recommendation on the ASX 300 energy stock this week.
"This metallurgical coal company recently reported strong production in the 2025 June quarter leading into a solid start to the second half of 2025," Garipoli noted.
As for that passive income potential, he said, "Cost savings are projected to flow through to the bottom line on higher coal tonnages, leading to an uplift in cash flow and potential for a solid dividend."
Garipoli concluded, "SMR is one of the lowest cost producers listed on the ASX. This stock suits investors looking for a turnaround play post a lengthy weak share price that is showing signs of a recovery."
What's the latest from Stanmore Resources?
The ASX 300 energy stock reported its second quarter (Q2 2025) results on 28 July.
The coal miner reported run of mine (ROM) coal production of 4.9 million tonnes for the three months. That was up 15% from the prior quarter amid improving weather conditions and record production from its South Walker Creek mine.
Saleable production came in at 3.2 million tonnes for the quarter.
Stanmore also achieved positive operating cash flows, reporting consolidated cash of US$181 million and net debt of US$99 million as at 30 June. That compares favourably to consolidated cash of US$169 million and net debt of US$146 million the ASX 300 energy stock held as at 31 March.
Commenting on the quarterly results on the day, Stanmore Resources CEO Marcelo Matos said, "We are proud to have recovered strongly from the first quarter, increasing our run-of-mine production by 15% with saleable production remaining stable."
