Stanmore Resources (SMR) Q2 2024 earnings summary

Executive summary

• Achieved robust operating results for the June quarter, with 6.8 million tons H1 saleable production and 4.9Mt ROM coal mined in 2Q 2024, aligning with the upper end of full-year guidance on an annualized basis.

• Maintained confidence in meeting group-level guidance despite ceasing operations at Mavis Downs/Millennium, as core operations are expected to offset the shortfall.

• Announced binding agreement to acquire the remaining 50% in Eagle Downs JV and 100% of Eagle Downs South Tenements, enhancing infrastructure position in the Bowen Basin.

• Completed sale of southern Wards Well for $136 million cash.

• Maintained healthy product and ROM stockpiles, supporting future sales performance.

Financial highlights

• Net cash improved by $106 million, including $136 million from Wards Well proceeds and a $170 million tax payment.

• Ended the quarter with $192 million net cash, up from $86 million in March, and $404 million cash on hand as of June 30.

• Paid $15 million scheduled debt amortisation, reducing acquisition facility principal to $210 million.

• Extended $70 million loan facility with GEAR to June 2026; facility remains undrawn.

• Capital expenditure increased in H1 due to major project ramp-up; full-year CapEx expected to remain within guidance.

Outlook and guidance

• Full-year production guidance remains unchanged, with strong output from South Walker Creek and Poitrel expected to offset lower volumes from Isaac Plains and Millennium closures.

• Guidance to be reaffirmed with the upcoming half-year financial results.