Stanmore Resources (ASX: $SMR) reports strong quarterly coal sales

Stanmore Resources Limited (ASX: $SMR) has reported consolidated December quarter Run of Mine (ROM) production of 4.8Mt, saleable production of 3.4Mt, and total coal sales of 3.8Mt, marking the highest quarterly sales tonnes for the year. The company achieved multiple production records, supporting a full year saleable production figure above Guidance. The consolidated cash on 31 December 2023 closed at US$446 million, supporting a net cash position of US$126 million after accounting for Stanmore's long-term debt position at year-end and net of the special dividend declared and paid in November 2023.

CEO Marcelo Matos on 2023 Performance and Outlook

While our focus on lead safety indicators and maintaining a strong SAFR continued in 2023, we unfortunately reported four non-severe recordable injuries and one serious recordable injury during the quarter. Saleable production for the quarter remained strong with coal sales seeing the benefits of recently acquired additional logistics capacity, and an improvement in rail network and haulage performance in the Bowen Basin. The Company has ended the quarter with healthy levels of product and ROM stockpiles which should also support 1Q 2024 sales performance. Pricing for metallurgical coals remained strong through the quarter, with continued tight balance for supply of prime materials, whilst prices for non-prime materials remained stable. Stanmore is well positioned to benefit from ongoing supportive market conditions, with potential upside should a relativity mean reversion occur in 2024 for our PCI products.

Summary of Stanmore Resources' Quarterly Performance and Outlook

Stanmore Resources (ASX: $SMR) achieved strong quarterly coal sales, with multiple production records supporting a full year saleable production figure above Guidance. The company reported a consolidated cash of US$446 million on 31 December 2023, supporting a net cash position of US$126 million. CEO Marcelo Matos highlighted the focus on lead safety indicators and maintaining a strong SAFR, while also expressing confidence in the company's ability to recover from the impacts of severe storm cells in early 2024. Stanmore's positioning to benefit from ongoing supportive market conditions, with potential upside in 2024 for PCI products, reflects the company's resilience and operational consistency. The company's ongoing projects and exploration activities indicate a focus on efficiency and value delivery from its assets. Stanmore's strong sales book for the January to March period on all coal types positions the company well for the near future.