The Stanmore Resources Ltd (ASX: SMR) share price is in focus today after the company reported record quarterly run-of-mine (ROM) and saleable coal production at its South Walker Creek operation, alongside an improvement in net debt over the September quarter.
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What did Stanmore Resources report?
- Group ROM coal production rose to 5.3 million tonnes (Mt), up from 4.9Mt in the June quarter
- Saleable coal production increased by 14% to 3.6Mt
- Record quarterly ROM and saleable output at South Walker Creek
- Net debt reduced from US$99 million at 30 June to US$90 million at 30 September
- Total liquidity stood at US$420 million at quarter end, with all working capital facilities undrawn
- FY25 saleable production guidance range revised to 13.8–14.2Mt, narrowing the upper end to reflect Isaac Plains Complex production
What else do investors need to know?
Stanmore's safety record continues to impress, with a rolling twelve-month serious accident frequency rate of zero. The company noted this strong safety performance is below the industry average, underlining its commitment to workforce wellbeing.
Poitrel and South Walker Creek delivered higher ROM production, offsetting weather-affected output at the Isaac Plains Complex. Year-to-date saleable production at Poitrel is now tracking 8% ahead of last year, supporting a higher full-year guidance range for that site.
During the quarter, Stanmore invested $5.4 million in exploration across multiple projects, including key groundwater and seismic works. The Isaac Downs Extension and Eagle Downs projects continue to progress through their approval and study stages.
What did Stanmore Resources management say?
Commenting on the result, Marcelo Matos, Chief Executive Officer & Executive Director said:
Operations have continued to safely deliver on the full-year recovery plan, with both ROM production and saleable production increasing from the second quarter… For Stanmore, however, we are proud to have continually demonstrated our financial resilience during this challenging period in the commodity price cycle, with cash improving over the quarter and a corresponding reduction in net debt.
What's next for Stanmore Resources?
Stanmore is looking to a stronger fourth quarter, expecting increased coal mining, washing, and shipments thanks to a lower prime strip ratio and healthy inventories. Full-year saleable production guidance has been slightly narrowed but remains achievable, provided weather conditions remain favourable.
The company is continuing to advance key development projects and maintains its capital expenditure guidance. With total liquidity of US$420 million and no drawn working capital lines, Stanmore says it's well prepared for the ongoing softness in metallurgical coal markets.
Stanmore Resources share price snapshot
Stanmore Resources shares have fallen 23% in the past year, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen around 9% over the same period.
