Stanmore Resources (SMR) H1 2024 earnings summary

Executive summary

• Saleable coal production reached 6.8Mt in H1 2024, at the upper end of guidance, with strong operational performance across all sites.

• Underlying EBITDA was US$375 million, reflecting resilience despite lower coal prices, and interim dividend of 4.4 US cents per share declared.

• Net cash position improved to US$192 million, supported by strong operating cash flow and proceeds from asset sales.

• Major growth projects advanced, including South Walker Creek expansion and completion of Eagle Downs acquisition.

• Safety performance saw an uptick in serious accident frequency rate, though incidents remained below industry average.

Financial highlights

• Total revenue for H1 2024 was US$1,226 million, down from US$1,493 million year-over-year due to lower average sales prices, partially offset by higher volumes.

• Profit after tax was US$136 million, with basic EPS of 15.1 US cents.

• Operating cash flow was US$208 million, with significant one-off cash flows including US$134 million from the Wards Well asset sale.

• CapEx was US$106 million, with over 75% allocated to major projects.

• Interim dividend payout reflects a 50% total shareholder return over the trailing twelve months.

Outlook and guidance

• Full-year saleable production guidance maintained at 12.8–13.6Mt, with higher Poitrel output offsetting Millennium closure.

• FOB cash cost guidance lowered to US$93–98/t, reflecting higher sales and removal of Mavis Downs/Millennium costs.

• Capital expenditure guidance unchanged at US$165–185 million, weighted to H1 2024.

• Major capital projects are on or ahead of schedule and budget.

• Market outlook remains cautious due to compressed steel margins and elevated Chinese steel exports.