Stanmore Resources Limited posted a net loss of US$47.2 million for 2025, impacted by a 21% revenue decline due to lower coal prices despite record production and cost efficiencies. The company declared a fully franked final dividend of US 8.9 cents per share.
- Net loss of US$47.2 million for 2025
- 21% revenue decline driven by lower coal prices
- Record coal production volumes maintained
- Fully franked final dividend of US 8.9 cents per share declared
- Strong liquidity with US$211.5 million cash and upsized credit facility
Financial Performance and Market Context
Stanmore Resources Limited has reported a net loss after tax of US$47.2 million for the year ended 31 December 2025, a sharp reversal from the US$191.5 million profit recorded in 2024. The primary driver of this downturn was a 21% drop in revenue to US$1.88 billion, largely attributable to a significant decline in the average realised coal price, which fell from US$167.94 per tonne in 2024 to US$133.24 per tonne in 2025.
Despite the challenging pricing environment, the company maintained steady sales volumes at 14.1 million tonnes, matching the prior year’s output. Operationally, Stanmore achieved record production levels, supported by cost improvement initiatives that reduced free on board (FOB) cash costs per tonne to US$87.8, down from US$89.4 in 2024, helping to partially offset the revenue pressure.
Liquidity and Capital Management
Stanmore’s balance sheet remains robust with cash and cash equivalents of US$211.5 million as at year-end, down from US$288.9 million in 2024. The company also successfully upsized its revolving credit facility from US$150 million to US$200 million, providing total available liquidity of US$481.5 million. Scheduled debt repayments and dividend payments contributed to cash outflows, but the company continues to operate within its financial covenants.
Dividend and Shareholder Returns
Reflecting its commitment to shareholder returns, Stanmore declared a fully franked final dividend of US 8.9 cents per share, payable on 13 March 2026. This follows a dividend payment of US 6.7 cents per share for 2024. The company has delivered a total shareholder return of 252% over the past five years, significantly outperforming the ASX 200 index.
Strategic Projects and Outlook
Stanmore continues to advance key projects, notably the Isaac Downs Extension, with environmental impact assessments on track for submission in the second quarter of 2026. The company also reported an increase in coal reserves to 571 million tonnes, up from 534 million tonnes in 2024, underpinning its long-term production profile.
Operational challenges from wet weather and cyclone impacts in early 2026 are expected to be mitigated by elevated coal stockpiles and improved water management infrastructure. The company remains focused on cost discipline and operational efficiency as coal markets show signs of recovery, with premium hard coking coal prices rising to approximately US$218 per tonne by year-end.
Sustainability and Climate Risk Management
Stanmore’s comprehensive sustainability report details governance structures and climate-related risk management aligned with Australian standards. The company has adopted an internal carbon price and is progressing decarbonisation initiatives, including a methane capture project at South Walker Creek. It remains compliant with the Australian Safeguard Mechanism, which mandates progressive reductions in greenhouse gas emissions.
Climate scenario analysis underpins the company’s strategic planning, balancing transition risks such as carbon pricing with physical risks from extreme weather. Stanmore’s approach integrates these factors into capital allocation and operational decisions, aiming to maintain resilience amid evolving regulatory and market conditions.
Executive Remuneration and Governance
Executive remuneration is closely tied to operational performance and long-term shareholder returns. The 2025 short-term incentive payout was 63% of stretch target, reflecting strong production recovery and cost management despite market headwinds. The 2022-2025 long-term incentive vested at 90.5% of stretch, rewarding sustained shareholder value creation. Non-executive director fees were increased by 5.4% to remain competitive within the coal sector.
Bottom Line?
Stanmore’s 2025 results underscore the volatility of coal markets but highlight operational resilience and strategic progress as it navigates a complex transition landscape.
Questions in the middle?
- How will Stanmore manage ongoing coal price volatility and its impact on profitability?
- What is the timeline and risk profile for regulatory approvals of the Isaac Downs Extension project?
- How effectively will Stanmore’s decarbonisation initiatives mitigate future carbon compliance costs?