Stanmore Reports 15% Rise in Coal Production and Positive Cash Flow in June Quarter

Operational Recovery Amid Severe Weather

Stanmore Resources Limited has demonstrated a strong rebound in its June 2025 quarter, overcoming significant wet weather disruptions that impacted early 2025 operations. The company increased its run-of-mine (ROM) coal production by 15% quarter-on-quarter, reaching 4.9 million tonnes, while maintaining stable saleable production of 3.2 million tonnes. This recovery was underpinned by adaptive mine planning and improved productivity, particularly at the South Walker Creek site, which set a quarterly ROM production record despite the challenging conditions.

Wet weather early in the quarter brought nearly 600mm of rainfall; almost matching Moranbah’s five-year annual average; yet Stanmore’s operational adjustments allowed a progressive production increase, positioning the company to meet its full-year saleable production guidance of 13.8 to 14.4 million tonnes.

Safety Milestones and Financial Strength

Safety performance was a standout feature of the quarter, with the rolling twelve-month Serious Accident Frequency Rate (SAFR) returning to zero for the first time since late 2023. This achievement reflects Stanmore’s ongoing commitment to proactive risk management and a disciplined safety culture, with recordable injuries continuing to decline and high reporting rates maintained.

Financially, Stanmore generated positive operating cash flows and reduced net debt from US$146 million to US$99 million quarter-on-quarter. The company ended June with consolidated cash of US$181 million and total liquidity of US$401 million, bolstered by cost improvement initiatives and a US$48 million income tax refund. These figures underscore Stanmore’s robust balance sheet and resilience amid volatile global macroeconomic conditions and metallurgical coal market pressures.

Project Development and Sustainability Initiatives

Exploration and development projects remain active, with A$5.5 million invested in geotechnical and coal quality drilling, including work at the Isaac Downs Extension Project. Mine planning and capital optimisation studies for the Eagle Downs Mine are progressing, aiming to enhance operational efficiency and capital deployment.

In a notable sustainability milestone, Stanmore commenced planting Pongamia trees on a 50-hectare trial area to explore their potential as a renewable fuel feedstock. This initiative aligns with the company’s broader decarbonisation strategy and commitment to environmental stewardship.

Market Context and Outlook

Metallurgical coal prices remained rangebound during the quarter, influenced by constrained Australian supply due to weather and production challenges, and subdued steel market conditions driven by elevated Chinese steel exports. However, early signs of price stabilisation emerged post-quarter, with Chinese domestic coking coal prices rising approximately US$25 per tonne in July. This, combined with maintenance at key Australian production facilities, may support pricing in the upcoming quarter.

Stanmore reaffirmed its 2025 saleable production guidance, confident that operational improvements and higher second-half production will offset earlier weather-related setbacks. The company’s ability to adapt and maintain financial discipline positions it well to navigate ongoing market uncertainties.