Stanmore Resources (SMR) H2 2024 earnings summary

Executive summary

• Achieved record saleable production of 13.8 million tonnes in 2024, exceeding guidance and prior year output, driven by strong operational performance and completion of major capital projects.

• Underlying EBITDA reached US$700 million, down from US$1,100 million in 2023, reflecting lower coal prices despite higher volumes and operational improvements.

• Net profit after tax was US$192 million, with EPS of 21.2 US cents, compared to US$472 million and 52.4 US cents in 2023.

• Declared total dividends of US 11.1 cents per share for 2024, totaling US$100 million, with a final dividend of US 6.7 cents per share.

• Completed strategic acquisitions (Eagle Downs, Isaac Downs Extension), divested part of Ward's Well, and maintained strong safety performance.

Financial highlights

• Revenue declined to US$2.4 billion from US$2.8 billion year-over-year, driven by a drop in average realised coal price to US$168/t from US$214/t.

• Underlying EBITDA margin was 29%, with operating cash flow of US$408 million.

• Net profit after tax was US$192 million, with EPS at 21.2 US cents.

• Net debt at year-end was US$26 million, with total liquidity over US$500 million.

• Dividends paid totaled US$100 million, with payout ratio over 50%.

Outlook and guidance

• 2025 saleable production guidance is 13.8–14.4 million tonnes, with South Walker Creek ramping up to 7.0 Mtpa steady state.

• FOB cash cost guidance for 2025 is US$89–94/t, reflecting cost escalation and expansion fleet costs.

• Capital expenditure guidance for 2025 is US$105–115 million, lower than 2024 as major projects conclude.

• Production in 2025 expected to be weighted to the second half due to wet weather in Q1.

• Ongoing studies and approvals for Eagle Downs and Isaac Downs Extension projects.