Stanmore Sets New Production Records, Revises 2025 Guidance Amid Market Shifts

• Record quarterly ROM and saleable coal production at South Walker Creek
• 14% increase in saleable production quarter-on-quarter
• Revised upper-end 2025 saleable production guidance due to Isaac Plains output
• Net debt reduced to US$90 million with improved cash position
• Exploration and development projects progressing on schedule

Operational Momentum Builds

Stanmore Resources has reported a robust operational performance in the third quarter of 2025, highlighted by record run-of-mine (ROM) and saleable coal production. The company’s South Walker Creek mine led the charge, surpassing previous production records thanks to strategic investments in overburden removal and pit preparation. This operational momentum was complemented by a 14% increase in saleable production compared to the prior quarter, underscoring the effectiveness of the company’s recovery plan following earlier weather disruptions.

Guidance Adjustments Reflect Site-Specific Challenges

While overall production trends are positive, Stanmore revised the upper end of its full-year saleable production guidance downward. This adjustment primarily reflects lower-than-expected output from the Isaac Plains Complex, where recovery from severe weather and operational bottlenecks, particularly at the coal handling and preparation plant, have delayed full ramp-up. However, this shortfall is partially offset by stronger performance anticipated at the Poitrel mine, which saw a 10% quarter-on-quarter increase in ROM production despite elevated strip ratios due to pit establishment activities.

Financial Resilience Amid Market Softness

Financially, Stanmore demonstrated resilience with a reduction in net debt to US$90 million as of September 30, down from US$99 million at the end of June. Cash reserves improved to US$190 million, supported by undrawn working capital facilities and a total liquidity position of US$420 million. This strong balance sheet provides a buffer against ongoing softness in metallurgical coal markets, where prices have seen modest gains driven by Chinese production limits and stable demand fundamentals.

Exploration and Development Progress

Exploration activities remain a key focus, with A$5.4 million invested during the quarter across multiple projects including Isaac Downs Extension and South Walker Creek. Seismic programs and groundwater bore installations are advancing, supporting environmental approvals and mine planning. Notably, the Isaac Downs Extension project is on track for Environmental Impact Statement submission in early 2026, while Eagle Downs continues to progress underground mine planning and infrastructure design, aiming for operational efficiencies through shared resources.

Market Context and Outlook

Metallurgical coal prices experienced a modest uplift, with prime hard coking coal prices rising approximately 8% over the quarter. This was influenced by anticipated enforcement of domestic coal production limits in China and a stable demand outlook, despite seasonal softness. Tier-2 hard coking coals notably rebounded to historical relativities, although prices remain low relative to global production costs, raising questions about long-term sustainability without a shift in supply-demand dynamics.

Bottom Line?

Stanmore’s operational gains and financial discipline position it well for the final quarter, but market volatility and site-specific challenges warrant close attention.

Questions in the middle?

• Will Isaac Plains Complex overcome operational bottlenecks to meet revised guidance?
• How will evolving Chinese coal production policies impact global metallurgical coal prices?
• What progress can be expected next year from exploration and development projects like Isaac Downs Extension and Eagle Downs?