Stanmore reports strong 2Q24 production volumes

Highlights:

• June quarter run of mine (ROM) coal mined of 4.9 million t, saleable production of 3.4 million t and total coal sales of 3.5 million t, in line with our annualised guidance range.
• Binding agreement entered into to acquire the remaining 50% of the Eagle Downs Metallurgical Coal Joint Venture and 100% of the Eagle Downs South tenements from Aquila, majority owned by the giant Chinese steelmaker, BaoWu.
• Completed the sale of the southern portion of Wards Well, with cash consideration of approximately US$136 million received.
• Consolidated cash as at June 30 of US$404 million, with net cash of US$192 million after accounting for Stanmore’s long-term debt position at quarter end, receipt of cash from the Wards Well transaction and US$170 million tax paid in June 2024.

Marcelo Matos, CEO & Executive Director, comments:

“Saleable production for the quarter was strong and continues to track to plan. We ended the quarter with healthy levels of product and ROM stockpiles across our portfolio, which should also support 3Q24 sales performance.

“Prime hard coking coal prices were generally stable through the quarter despite a generally challenging steel market. PCI pricing gained strength relative to prime hard coking coal prices along with a general return to Australian origin PCI material in response to imposition of further Russian sanctions.

“Stanmore’s sales volumes continued to perform well in the quarter. The company maintains a strong forward sales programme and is well placed through the upcoming quarters.”

Read the article online at: https://www.worldcoal.com/coal/01082024/stanmore-reports-strong-2q24-production-volumes/