Stanmore Resources (SMR) H2 2025 earnings summary

Executive summary

• Achieved record saleable production of 14.0 million tons in 2025, up 25% from pre-acquisition levels, despite significant weather disruptions and challenging market conditions.

• Maintained strong safety performance with a SAFR of 0.33, well below the industry average of 0.731.

• Delivered resilient financial performance and robust free cash flow, supported by operational efficiency and cost control.

• Declared a fully franked final dividend of 8.9 US cents per share, with cumulative dividends reaching 34.2 US cents per share since mid-2022.

• Net debt closed at US$33 million, supporting a strong balance sheet and liquidity position.

Financial highlights

• Total revenue was US$1.9 billion, down year-over-year due to a 21% drop in average realised sale prices.

• Underlying EBITDA for 2025 was US$385 million, significantly lower than US$700 million in 2024, mainly due to lower coal prices.

• Operating cash flow totaled US$381 million, with positive all-in cash generation after lease and debt servicing.

• Dividend payout increased in 2025, with total shareholder returns of ~180% since March 2022.

• Liquidity position approached US$500 million at year-end, with gearing below 2%.

Outlook and guidance

• 2026 saleable production guidance: 12.8–13.4 million tons, reflecting normalization at Poitrel and reduced output at Isaac Plains.

• FOB cash cost guidance for 2026: US$93–97/t, up from US$88/t in 2025, due to lower volumes and cost escalation.

• Capital expenditure for 2026 is expected to be US$85–95 million, including deferred and improvement projects.

• Strategic focus on margin maximization and value preservation as key mines approach end-of-life.

• Operational improvements and cost efficiencies are expected to offset lower sales volumes.