Stanmore Resources (ASX:SMR) executives said the company finished 2025 strongly, pointing to record fourth-quarter operational results that helped it meet revised full-year guidance despite significant wet weather disruption earlier in the year.
Chief Executive Officer Marcelo Matos told investors the elevated stripping and pit preparation completed in the third quarter “provided the foundation” for stronger coal flow in the fourth quarter. The company reported full-year saleable production of 14.0 million tonnes, at the midpoint of revised guidance, and total sales of 14.1 million tonnes.
Operational performance and inventories
The company recorded two serious accidents during the quarter. Matos said both were classified as serious due to hospital admission, but were “far from being incidents that could lead to a potential fatality.” Stanmore’s 12-month serious accident frequency rate held at 0.33, which he said was well below the industry benchmark.
Asset-level results: South Walker Creek, Poitrel, and Isaac
At South Walker Creek, Stanmore reported continued sequential growth in ROM production as it ramps toward expanded capacity. Matos said the upgraded coal handling and preparation plant (CHPP) delivered consistently above expectations and above nameplate capacity in the second half, supporting full-year records across metrics. Full-year saleable production was 6.6 million tonnes, at the midpoint of the guidance range, with guidance unchanged despite early-year wet weather challenges.
Poitrel delivered what Matos called an “exceptional quarter” to close an “exceptional year,” including all-time records for both saleable production and sales. Both finished at 5.0 million tonnes for the full year. He attributed the performance to prior investment in Ramp 10 North and site execution, and said fourth-quarter strip ratios fell as expected after elevated stripping in the September quarter. Matos also highlighted record dozer push volumes and mine plan optimization, and said Poitrel ended the year with almost 1.0 million tonnes of raw inventories containing a mix of thermal and metallurgical coals.
At the Isaac Plains Complex, Matos said the asset was the most severely impacted by wet weather early in 2025, but recovered in the second half to deliver within the revised guidance range. The company reported 2.2 million tonnes of raw production in the second half, representing almost 60% of the full-year total. December was a record month for the CHPP, with the highest-ever monthly feed of 425,000 tonnes, achieved despite constraints including limited prime digging unit availability, geotechnical challenges in the Isaac Downs South and Isaac Downs North overthrust pits, and the completion of mining activities in Pit 5 North.
Management also discussed strip ratios during the question-and-answer session, noting that the very low strip ratio in the fourth quarter was anticipated due to heavy stripping in the third quarter. Matos said strip ratios are expected to return to more normal levels at Poitrel and South Walker Creek, and referenced a prime strip ratio around 8.5 for the two assets. For Isaac, he said strip ratios are increasing due to the pit profile, and reiterated that the mine plan anticipates challenging economic conditions around 2028.
Balance sheet, liquidity, and guidance timing
Chief Financial Officer Shane Young said Stanmore ended 2025 with “a strong cash and balance sheet position,” supported by the fourth-quarter operating plan. Total cash as of Dec. 31 was $212 million, after a scheduled $35 million half-yearly debt repayment. Net debt declined to $33 million at year-end from $90 million in the prior quarter, reflecting a nearly $60 million reduction over the quarter that Matos also referenced.
Young added that over the full year, net debt increased $7 million year over year after $60 million in dividends, $85 million of capital expenditure, and $24 million paid in Eagle Downs stamp duty, which he said remains subject to an objection process. The company also upsized its bank revolving credit facilities, which now total $200 million in undrawn credit. Including cash and a working capital facility, Young said total liquidity was $482 million entering 2026.
Full-year capital expenditure totaled $85 million, at the midpoint of the latest guidance range, which Young noted had been reduced by $25 million earlier in 2025 to preserve cash. He said FOB cash costs versus guidance will be reported with full-year results next month and are expected to finish within the guidance range.
Management said 2026 guidance will be released alongside the full-year 2025 results in February and will incorporate known impacts from weather events experienced earlier in the year. Young said, beyond potential weather impacts, South Walker Creek is expected to continue producing toward expanded capacity and Poitrel is expected to deliver another solid year, while Isaac Plains output is expected to decline year over year as mining approaches economic limits and is optimized to maximize cash generation.
Markets, wet season impacts, and project priorities
On markets, Matos said premium hard coking coal prices improved during the quarter from $190 per tonne to $218 per tonne, supported by stronger Chinese demand, a recovery in domestic netback pricing, and a normalization of Mongolian imports. He said Indian demand improved as buyers began restocking after running relatively low inventories in preparation for Queensland’s wet season.
He also pointed to supply disruptions following ex-tropical Cyclone Koji in early January, saying the Moranbah weather station recorded nearly 160 millimeters of rain in a single day compared with 116 millimeters for all of January last year. Matos said prices rose to around $250 per tonne for premium hard coking coal and $173 per tonne for PCI “as of today.”
In the Q&A, Matos said mining had restarted and the company was mining and selling coal, though recovery varies by site, with Isaac typically recovering more slowly due to less flexibility and fewer active pits. He said Dalrymple Bay Coal Terminal (DBCT) was closed for almost a week, which would significantly affect January shipments, prompting the company to declare force majeure before later lifting it and adjusting shipping programs. Matos said January would be “a significantly lower month” than expected with a likely flow-on impact to the first quarter, and suggested the business may need to reprofile production and shipments across quarters to adjust.
On the Isaac Downs Extension, Matos said the project is progressing as planned, with focus on approvals and the submission of the environmental impact statement (EIS) in the first half of 2026, while noting that groundwater modeling and impact assessment work faced weather delays early in 2025 and remains on the critical path. He also described additional work on pit design to minimize end-of-life backfilling obligations, which he said introduced small delays but could improve project economics. He told analysts the company is aiming to submit required materials by the end of the first half.
On Eagle Downs, Matos said nothing had changed and the company is working toward “FID readiness by the end of this year,” adding that the recent increase in coal prices did not justify rushing the work stream. He reiterated Isaac Downs Extension remains the top priority due to its lower capital profile.
Asked about dividends, Young said Stanmore has paid dividends consistently over the last couple of years, though the board held off at the interim. He said the board would “strongly consider” dividends when it meets in February ahead of the results release, noting the company’s policy targets returning 50% of cash flows after debt service while allowing flexibility based on market outlook and liquidity.
About Stanmore Resources (ASX:SMR)
Stanmore Resources Limited engages in the exploration, development, production, and sale of metallurgical coal in Australia. The company holds a portfolio of 2,000 square kilometers of prospective and granted exploration tenements throughout the Bowen and Surat Basins. The company was formerly known as Stanmore Coal Limited and changed its name to Stanmore Resources Limited in May 2021. The company was incorporated in 2008 and is headquartered in Brisbane, Australia. Stanmore Resources Limited operates as a subsidiary of Golden Investments (Australia) Pte.
See Also
- Five stocks we like better than Stanmore Resources
- Your Signature Is Missing – Act Before It’s Too Late
- “Fed Proof” Your Bank Account with THESE 4 Simple Steps
- Buy This Stock at 9:30 AM on MONDAY!
- What Expenses Can Be Deducted From Capital Gains Tax?
- A U.S. “birthright” claim worth trillions – activated quietly
