The Stanmore Resources Ltd (ASX: SMR) share price is in the spotlight after the company announced a $105 million deal to acquire 100% of the Moranbah South coal tenements, boosting its resource base with 724 million tonnes of measured and indicated coal.
Image source: Getty Images
What did Stanmore Resources report?
- Stanmore agreed to acquire all of Moranbah South from Exxaro for US$105 million.
- The Moranbah South tenements contain 724 million tonnes of measured and indicated coal resources.
- The deal is conditional on Exxaro acquiring Anglo American's 50% joint venture stake, giving Exxaro full ownership ahead of sale to Stanmore.
- The acquisition removes up to US$60 million in deferred and contingent payments for Stanmore's Isaac Downs Extension project.
- Stanmore will fund the acquisition from existing cash and liquidity, so no shareholder approval is required.
What else do investors need to know?
The Moranbah South tenements are strategically located next to Stanmore's existing Eagle Downs and Isaac Plains Complex mines in Queensland's Bowen Basin. The resources are considered to be high-quality, premium hard coking coal and may benefit from shared infrastructure if Eagle Downs is developed.
This transaction is expected to add significant value across Stanmore's portfolio by increasing resource scale and potentially lowering development costs. The deal also cancels significant future payment obligations tied to earlier agreements on the Isaac Downs Extension, making the economics more attractive.
Completion is expected before the end of 2026, subject to Exxaro acquiring full ownership and meeting regulatory approvals including the Foreign Investment Review Board and ACCC. An independent resource report is planned after the deal closes.
What did Stanmore Resources management say?
Chief Executive Officer & Executive Director Marcelo Matos said:
The acquisition of the Moranbah South tenements will represent a significant milestone for Stanmore's development portfolio, increasing our resource base and strengthening the platform to deliver on our future growth aspirations. The tenements are strategically complementary to Stanmore's neighbouring projects, particularly Eagle Downs and the Isaac Downs Extension.
What's next for Stanmore Resources?
Stanmore has signalled its intent to commission an independent report on the newly acquired resources, aiming to update shareholders and the market once new technical and feasibility studies are complete. If the acquisition closes as planned, Moranbah South could provide long-term synergies to future mining operations and development options.
The company remains focused on strategic growth from its expanded portfolio and delivering increased value for investors as integration and further exploration proceeds.
Stanmore Resources share price snapshot
Over the past 12 months, Stanmore Resources shares have risen 64%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 3% over the same period.
