Stanmore Resources (SMR) investor relations material

Executive summary

• Q3 ROM mined was 5.3Mt and saleable production was 3.4Mt; South Walker Creek set quarterly records for both, with no serious accidents recorded.

• Strong operations and improved coal prices reduced net debt by US$53m; the Board declared a fully franked interim dividend of 2.2 US cents per share, ~US$20m.

Financial highlights

• Q3 average sales price was US$163/t, up 6% QoQ; YTD average was US$156/t versus US$132/t in the prior-year period.

• Quarter-end cash was US$231m, net debt US$19m and total liquidity US$501m, including US$270m of available debt capacity.

• Q3 cash outflows included US$22m of capital expenditure and a US$5m initial Moranbah South payment; a US$26m Eagle Downs stamp duty refund partly offset them.

• Q3 coal sales totaled 3.4Mt; YTD sales were 9.8Mt versus 10.1Mt a year earlier.

Outlook and guidance

• FY2026 saleable production guidance was reaffirmed, with output tracking toward the top end; 1.7Mt of closing ROM stocks supported the Q4 plan.

• No changes to FOB cash cost or capital expenditure guidance; diesel prices and a stronger Australian dollar are creating upward pressure.

• YTD SGO index diesel averaged ~US$150/bbl versus US$120/bbl assumed in March revised guidance; operational improvements, hedging and higher production are partial offsets.

• Q4 capital expenditure was expected to catch up within guidance, potentially toward the mid-to-top end; G-pit de-mudding progressed ahead of schedule.

• Steady Q4 operations were expected, with weather the principal potential disruption; management expected production to finish toward the top end of guidance.