Overview of Stanmore Resources' 1Q 2024 performance

Stanmore Resources Limited (ASX: $SMR) reported a robust performance in the first quarter of 2024, with a significant increase in production volumes. The company achieved a saleable production of 3.3Mt and total coal sales of 3.4Mt, in line with its annualised guidance range. Stanmore also secured a binding agreement to acquire a 50% interest in the Eagle Downs Metallurgical Coal Joint Venture Project and 100% of Eagle Downs Coal Management Pty Ltd from South32, further strengthening its position in the market. Additionally, the company maintained a consolidated cash position of US$313 million, with a net cash of US$86 million after accounting for long-term debt and dividends paid in March 2024.

Executive Commentary on 1Q 2024 Performance and Strategic M&A

In acquiring 100% of the Eagle Downs project, Stanmore will gain full control over its development and is able to streamline management and fully leverage our strong technical capabilities, unique infrastructure and logistics portfolio to unlock the value of the asset to its full extent. Stanmore will seek to optimise development and take a capital efficient approach to any future investment decision. Metallurgical coal prices decreased through the quarter as supply conditions from East Coast Australia improved towards the later part of the quarter, while demand weakness persisted globally. Stanmore maintains a strong forward sales program and is well placed through the upcoming quarters.

Summary of 1Q 2024 Performance and Future Outlook

Stanmore Resources' strong 1Q 2024 production volumes and strategic M&A activities position the company for continued growth and value creation. The acquisition of 100% of the Eagle Downs project demonstrates the company's commitment to enhancing its asset portfolio and leveraging its technical capabilities. With a healthy cash position and a focus on capital efficiency, Stanmore is well-prepared to navigate market dynamics and optimize its development initiatives. The company's sustained performance and proactive risk management underscore its dedication to operational excellence and safety. Looking ahead, Stanmore's outlook remains positive, supported by its solid financial position and ongoing efforts to capitalize on market opportunities.