Stanmore Resources (SMR) Q3 2024 earnings summary

Executive summary

• Achieved third quarter saleable production of 3.8 million tons, bringing year-to-date to 10.6 million tons, with healthy inventories across all sites to buffer against wet weather risks.

• Ended the quarter with US$322 million cash and net debt of US$28 million, reflecting robust liquidity despite major one-off outflows.

• Completed US$450 million debt refinancing, acquired 100% of Eagle Downs, and announced agreement for potential mining in Wotonga South JV, marking a key step for brownfield expansion at Isaac Complex.

• No serious accidents reported; safety metrics remain better than industry average.

Financial highlights

• $350 million term loan facility drawn, used to retire previous acquisition debt and reduce interest margins.

• Interim dividend of $40 million (4.4 US cps) paid in September.

• Total non-operational cash outflows for the quarter were approximately $280 million, including M&A and capital spend.

• Saleable coal production rose to 3.8Mt in 3Q 2024 from 3.4Mt in 2Q 2024 and 3.8Mt in 3Q 2023.

• Net debt at quarter-end was US$28 million after refinancing and one-off payments.

Outlook and guidance

• No change to full-year production guidance; all assets are on track to meet targets.

• Fourth quarter expected to be softer due to a planned 14-day shutdown at South Walker Creek and potential wet weather risks.

• Healthy stockpiles and operational momentum expected to support 4Q 2024 sales.