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Highlights
- Stanmore’s net profit drops 54.7% in FY2024
- Coal prices fall to $167.94 per tonne
- Record production achieved across core operations
Stanmore Resources (ASX:SMR) has reported a sharp decline in its full-year net profit for 2024, impacted by a significant slump in coal prices. Despite achieving record coal production across its core operations, the weaker pricing environment weighed heavily on overall earnings.
The company’s net profit slid to $350.8 million, a 54.7 per cent drop compared to the previous financial year. This decline was primarily due to a 14.6 per cent fall in revenue from coal sales, which was directly tied to lower realised coal prices. The average realised price in 2024 stood at $167.94 per tonne, a substantial decrease from $214 per tonne in 2023.
While pricing challenges were evident, operational performance remained strong. Stanmore reached a new milestone in run-of-mine consolidated coal production, which increased by 5 per cent year-on-year to 194 million tonnes. This achievement reflects efficient output and strong productivity across the company's key mining assets.
Stanmore’s management has indicated a long-term view, focusing on sustaining and potentially expanding its production capacity. According to chief executive Marcelo Matos, the company is evaluating a pipeline of organic growth opportunities to support future performance. These investments are expected to enhance resilience and position the company favourably when market conditions improve.
The coal sector globally has experienced volatility, with thermal and metallurgical coal prices retreating from the highs seen in recent years. This pricing trend has affected many producers, even as demand remains relatively stable in some regions. Companies operating in this space are increasingly focused on maintaining cost discipline and identifying growth options that can provide a buffer during down cycles.
In this context, Stanmore’s production record and forward-looking strategy suggest a commitment to operational strength and scalability. While the financial year posed challenges due to market-driven factors, the underlying business performance points to a disciplined approach to navigating shifting industry dynamics.
With investments in place to bolster future output and productivity, Stanmore Resources (SMR) appears focused on long-term resilience as it adapts to a softer pricing landscape.
