Stanmore Resources Lifts Output and Sales in September Quarter

Highlights:

• Production and Sales Growth: Stanmore increased saleable coal production to 3.8 million tonnes and coal sales to 3.9 million tonnes in the September quarter, compared to the previous quarter's figures.
• Strategic Acquisitions: The company completed two significant acquisitions during the quarter, including a 100% stake in the Eagle Downs metallurgical coal project and Isaac South.
• Positive Stock Movement: Despite a 25% decline in share price since January, Stanmore shares rose 1.4% to $2.95 following the Q3 performance boost.

Strong Quarter for Stanmore Resources
Stanmore Resources Limited (ASX: SMR) reported a solid performance in the September 2024 quarter, boosting production and sales at its South Walker Creek and Poitrel coal operations. The company reiterated its full-year guidance, supported by strong third-quarter output across its portfolio.

Coal Production and Sales Rise
In the September quarter, saleable coal production increased to 3.8 million tonnes, up from 3.4 million tonnes in the June quarter. Similarly, coal sales rose to 3.9 million tonnes, compared to 3.5 million tonnes previously. At the time of writing, Stanmore Resources closed the quarter with cash reserves of US$322 million (AUD $483.9 million), a testament to its stable financial performance.

Market Context and Acquisition Updates
Despite a decline in prime hard coking coal prices during the quarter—closing at around US$205 per tonne—Stanmore remained on track. The company credited its success to breaking several production records and continued strong performance across its operations. During the quarter, Stanmore also finalized two major acquisitions: a 100% stake in the Eagle Downs metallurgical coal project from China’s Baowu and Isaac South from Anglo American and Exxaro.

CEO's Statement
Stanmore's CEO Marcelo Matos expressed confidence in the company's trajectory, stating, "We ended the quarter with healthy stockpiles across our portfolio, which should support strong sales in Q4 2024."

Stock Performance
At the time of writing, Stanmore Resources' shares were up 1.4%, trading at $2.95, following the positive Q3 update. The stock, however, had seen a decline of over 25% since January.

Stanmore's strategic acquisitions and solid quarter performance position the company for continued growth through the remainder of the year.

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