Stanmore Resources (SMR) Q4 2025 earnings summary

Executive summary

• Achieved record quarterly and full-year production and sales, with saleable production of 14 million tons and total sales of 14.1 million tons, despite adverse weather in H1.

• Delivered 20.5 million tons of raw coal mined for the year, exceeding original plans and ending with over 1.5 million tons in raw coal inventories.

• Maintained robust safety performance, with a 12-month serious accident frequency rate of 0.33, well below industry benchmarks, and recordable injuries decreased by 57% compared to 2024.

• Ended the year with strong cash generation, reducing net debt to $33 million and total liquidity near $482 million.

Financial highlights

• Net debt reduced by almost $60 million in Q4, ending the year at $33 million, down from $90 million in the prior quarter.

• Total cash at year-end was $212 million after a $35 million debt repayment.

• Full-year net debt increased by only $7 million year-on-year, after $60 million in dividends, $85 million in capex, and $24 million in stamp duty.

• Total liquidity at year-end was $482 million, including undrawn $200 million revolving credit facilities.

• Average sales price for the year was $133/t, down from $168/t in 2024.

Outlook and guidance

• Guidance for 2026 will be released with full-year 2025 results in February, incorporating impacts from recent weather events.

• South Walker Creek and Poitrel expected to continue strong operational performance; Isaac Plains output to decline as it transitions to Isaac Downs Extension.

• Recovery from recent weather disruptions is underway, with mining and shipping resumed, though Q1 is expected to be weaker.

• Dividend policy targets 50% of cash flows after debt service, with board to consider final dividend in February.