Stanmore Resources (SMR) H1 2024 earnings summary

Executive summary

• Saleable coal production reached 6.8Mt in H1 2024, at the upper end of guidance, with strong operational performance across all sites.

• Underlying EBITDA was $375m, reflecting resilience despite lower coal prices and compressed margins; interim dividend of $0.044 per share ($39.7m) declared.

• Net profit after tax was $136m, a 60% decrease year-over-year, mainly from reduced coal prices.

• Net cash position improved to $192m, supported by strong operating cash flow and proceeds from asset sales.

• Major growth projects advanced, including South Walker Creek expansion and Eagle Downs acquisition.

Financial highlights

• Revenue for H1 2024 was $1,226m, down 18% year-over-year due to lower coal prices despite higher sales volumes.

• Underlying EBITDA margin was 28%, down from 44% in H1 2023, as average sales price fell by 30% year-over-year.

• Basic EPS was 15.1 cents, down from 37.8 cents in H1 2023.

• CapEx was $106m, with over 75% allocated to major projects, especially at South Walker Creek.

• One-off items included a $96m gain from the Wards Well sale and $60m in impairment/closure costs for Mavis Downs.

Outlook and guidance

• Full-year saleable production guidance maintained at 12.8–13.6Mt, with Poitrel guidance increased and South Walker Creek adjusted.

• FOB cash cost guidance lowered to $91–98/t, reflecting higher sales and removal of Mavis Downs costs.

• Capital expenditure guidance unchanged at $165–185m, with major project spend weighted to H1 2024.

• Market outlook remains cautious due to compressed steel margins and elevated Chinese steel exports, but medium-term supply risks and structural deficit forecast.