AUS
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UK
CA
USA
IND
Highlights
- Stanmore Resources reported an 11.06% YoY decline in total income for H1FY24.
- Underlying EBITDA fell 42.31% YoY to USD 375 million in H1FY24, while NPAT plunged 60% to USD 136 million.
- A USD 96 million net gain from the Wards Well asset sale helped offset a USD 60 million impairment and closure cost related to Mavis Downs Underground.
Stanmore Resources Ltd (ASX:SMR), an Australia-based metallurgical coal producer, reported a decline in its financial performance for the first half of the fiscal year 2024 (H1FY24). The company’s total income fell 11.06% YoY to USD 1,327 million, compared to USD 1,492 million in H1FY23. This decline was primarily due to a 30% year-on-year drop in average sales prices, despite higher coal sales volumes.
Underlying EBITDA fell by 42.31% YoY to USD 375 million in 1HFY24, while net profit after tax (NPAT) dropped by 60% YoY to USD 136 million. The weaker financial performance reflects the challenging market conditions, particularly the lower global coal prices.
Asset Sale and Cost Adjustments
Despite the overall decline in earnings, Stanmore Resources benefited from a USD 96 million net gain on the sale of the southern portion of Wards Well. However, this gain was partially offset by USD 60 million in impairment and closure costs related to the Mavis Downs Underground operations.
Revised FY24 Guidance and Outlook
Stanmore Resources has revised its FOB cash cost guidance to USD 93–98 per tonne, reflecting an improvement from the previous guidance of USD 99–104 per tonne. Additionally, the company has maintained its capital expenditure forecast at USD 165–185 million for the full year.
Looking ahead, SMR plans to release its FY25 guidance on 24 February 2025.
Operational Performance and Business Updates
In the fourth quarter of FY24, Stanmore Resources achieved healthy operational results, with 4.1Mt of Run of Mine (ROM) coal mined, 3.3Mt of saleable production, and 3.4Mt in total coal sales. The company exceeded its full-year production guidance, reaching 13.8Mt, above the upper end of its previously estimated range.
Future Growth Initiatives
Stanmore Resources signed an agreement with Idemitsu Kosan Co., Ltd and Terviva, Inc. for a trial Pongamia plantation near South Walker Creek. Pongamia is being explored as a feedstock for renewable fuels, aligning with the company’s decarbonisation strategy. The first planting is set to occur in Q1FY25.
Top 10 shareholders of SMR
The top 10 shareholders of SMR have around 80.13% shareholding in the company. Golden Energy and Resources Ltd has the highest stake in the firm with 59.01% holding, followed by Regal Partners Limited with 7.57% holding.
Share performance of SMR
SMR shares closed 1.94% lower at AUD 2.53 per share on 18 February 2025. In a month, SMR’s share price has dropped by nearly 15.38% and in the past 12 months, it has decreased by approximately 28.12%.
52-week high of SMR is AUD 4.02, recorded on 5 July 2024 and 52-week low is AUD 2.54, recorded on 17 February 2025.
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, and currency, is 18 February 2025. The reference data in this report has been partly sourced from EODHD/Others.
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