Stanmore Resources (SMR) investor relations material

Executive summary

• Saleable production reached 3.2 million tons, rebounding after cyclone-related disruptions and supported by robust demand and inventory management; South Walker Creek achieved record monthly production.

• Operations were resilient despite ex-tropical cyclone Koji, with March volumes rebounding and safety performance strong, evidenced by a 12-month Serious Accident Frequency Rate of 0.50, well below industry average.

• Metallurgical coal prices remained materially higher year-over-year, though moderated late in the quarter as market participants adopted a cautious stance.

• Closing cash was US$166 million and total liquidity US$436 million after paying an US$80 million dividend.

Financial highlights

• Consolidated cash balance at quarter end was US$166 million, with net debt of US$79 million and total liquidity of US$436 million.

• Saleable production for Q1 2026 was 3.2Mt, steady year-over-year.

• Total coal sales reached 3.0Mt, with a higher proportion of thermal coal affecting price realization; average sales price was US$152/t, up from US$139/t in Q1 2025.

• Net debt increased to US$79 million, mainly due to dividend payment and capital expenditure.

• Strong underlying cash flow limited net debt increase to $46 million, despite an $80 million dividend and $12 million in capex.

Outlook and guidance

• Full-year saleable production and capital expenditure guidance reaffirmed at 12.8–13.4Mt, reflecting confidence in operational recovery.

• FOB cash cost guidance raised to US$98–103/t due to higher diesel prices and FX impacts, with costs expected to be higher in H1 and lower in H2.

• SGO fuel price assumption increased from $80 to $120 per barrel, with sensitivity of ~$0.70 per ton for every $10/barrel change.

• Fuel hedges implemented for the second half to manage cost volatility.

• Ongoing monitoring of fuel supply risks due to Middle East conflict, with supply agreements in place.