S&P/ASX 300 Index (ASX: XKO) coal stock Stanmore Resources Ltd (ASX: SMR) is outperforming today.
Stanmore Resource shares closed yesterday trading for $2.24. In early morning trade on Wednesday, shares are changing hands for $2.27 apiece, up 1.3%.
For some context, the ASX 300 is down 0.4% at this same time.
This follows the release of Stanmore's March quarter update (Q3 FY 2026).
Here's what we know.
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ASX 300 coal stock lifts on production recovery
Stanmore Resources shares are marching higher today despite the ASX 300 coal stock reporting a 33.3% quarter on quarter decline in run of mine (ROM) coal mined to 4.0 million tonnes.
Like many Aussie miners, Stanmore's production was impacted by inclement weather conditions during the first months of the quarter. But investors will have noted that production picked back up in March amid record coal mined at Stanmore's South Walker creek.
Stanmore reported saleable production of 3.2 million tonnes of coal, down 17.9% from Q2 FY 2023.
Total coal sales of 3.0 million tonnes were down 25%. And the ASX 300 coal stock received lower overall prices over the March quarter, pressured by a higher proportion of thermal coal in its sales mix.
Thermal coal, broadly used for power generation, sells for less than coking coal, which is mostly used for steel production.
Turning to the balance sheet, as at 31 March, Stanmore Resources reported consolidated cash of US$166 million, with net debt of US$79 million and total liquidity of US$436 million.
The miner reaffirmed its full-year FY 2026 saleable production guidance to be in the range of 12.8 million tonnes to 13.4 million tonnes of coal. Capital expenditure guidance was also maintained in the range of US$85 million to US$95 million.
What did Stanmore Resources management say?
Commenting on the results helping lift the ASX 300 coal stock today, Stanmore Resources CEO Marcelo Matos said, "The first quarter of 2026 reinforced the resilience of our business, with operations recovering strongly in the latter part of the period to deliver saleable production within the expected annual run rate of guidance."
Matos continued:
This followed the arrival of ex-Tropical Cyclone Koji in early January, which caused widespread disruption across open-cut producers in Queensland. Strong opening inventories helped buffer the impact for Stanmore, supported by a proactive operational response to prioritise coal availability and record volumes at South Walker Creek in March.
As for the impact of the Middle East conflict, Matos noted:
Metallurgical coal prices improved quarter-on-quarter amid the weather-related supply constraints, although gains were moderated by ongoing macroeconomic uncertainty associated with the conflict in the Middle East.
The resulting impact on fuel markets has become increasingly evident in recent weeks, with industry participants managing both supply and price risk.
