Stanmore Resources (SMR) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw severe rainfall in the Bowen Basin, causing operational and logistics challenges, but saleable coal production reached 3.3 million tons, above market consensus and maintained quarter-on-quarter due to strong inventories and resilience.

• Full-year saleable production guidance remains unchanged, supported by recovery plans and asset resilience, with Poitrel expected to offset lower Isaac Plains output.

• Safety performance improved, with no serious accidents for three consecutive quarters and a serious accident frequency rate of 0.15, well below industry average.

• Maiden JORC compliant reserve statement announced for Isaac Downs extension, confirming 52 million tons ROM and 34 million tons marketable reserves.

Financial highlights

• Closing cash at March 31 was $169 million (AUD 260 million), with total liquidity near $400 million and US$220 million undrawn working capital.

• Net debt increased to $146 million from $26 million at end-2024, mainly due to a $60 million dividend and $17 million in capital expenditure.

• Average sales price dropped to US$139/t in Q1 2025 from US$151/t in Q4 2024 and US$187/t in Q1 2024.

• Working capital build contributed to higher net debt, but cash balance improved to $224 million (AUD 350 million) by mid-April as receivables were collected.

Outlook and guidance

• Full-year saleable production guidance reaffirmed at 13.8–14.4Mt, with H1 2025 expected to be lower than H2 due to Q1 weather impacts and recovery plans.

• FOB cash cost guidance reduced to $85–$90/ton for the year, reflecting lower input costs and FX benefits.

• Capital expenditure guidance cut by over 20% to $80–$90 million, mainly through deferrals of non-essential projects.