Stanmore Resources (SMR) H2 2024 earnings summary

Executive summary

• Achieved record saleable production of 13.8 million tonnes in 2024, exceeding guidance and prior year output, driven by operational excellence and major capital projects.

• Underlying EBITDA reached $700.3 million, down 36% year-over-year due to lower coal prices, despite higher volumes and operational improvements.

• Net profit after tax was $192 million, with EPS of 21.2 US cents, both down from 2023.

• Total dividends declared for 2024 were US 11.1 cents per share, with a final dividend of US 6.7 cents per share.

• Major capital projects and acquisitions, including Eagle Downs and Isaac Downs Extension, were completed ahead of schedule and under budget.

Financial highlights

• Revenue declined to $2,395.5 million from $2,803.6 million year-over-year, driven by a drop in average realised coal price to $167.94/t from $214.0/t.

• Underlying EBITDA of $700.3 million (AUD 1.1 billion), with EBITDA margin at 29%, down from 39% in 2023.

• Net profit after tax was $192 million, EPS at 21.2 cents, payout ratio over 50%.

• Operating cash flow was $408 million, down from $737 million in 2023; cash and cash equivalents at year-end were $288.9 million.

• Finished 2024 with net debt of $26 million and total liquidity over $500 million.

Outlook and guidance

• 2025 is expected to be a transition year with sustaining CapEx guidance of $105–115 million, significantly lower than 2024.

• Saleable production guidance for 2025 is set at 13.8–14.4 million tonnes, reflecting ramp-up at South Walker Creek and higher Poitrel output.

• FOB cash cost guidance for 2025 is $89–94/t, up from $89/t in 2024, due to cost escalation and expansion fleet costs.

• Capital expenditure expected to return to a steady-state run-rate in 2025, with major projects completed.

• Liquidity remains strong with over $500 million available at year-end.