Stanmore Coal reported first coal sales revenues of AUS$12.7 million in the financial year to 30 June 2016 (FY2016) as the company moved from coal explorer to producer with the acquisition of the Isaac Plains mine. And recent price rises for both hard and semi-soft coking coal provide a positive outlook for sales revenues going forward.
“We are delighted to have successfully completed the transition from explorer to producer in FY2016 through the recommencement of operations at Isaac Plains,” said Stanmore’s Managing Director, Nick Jorss. “Notable we transitions from care and maintenance to first overburden removal within three months with first coking coal sold to major steel mills within six months.”
The start of coal sales helped to partially offset initial capital costs involved with the acquisition and start up of the mine, as well as working capital requirements related to Isaac Plains mining activities. The company also booked an AUS$13.9 million writedown of its development assets in the Surat Basin.
Overall the company booked a loss of AUS$19.7 million in FY2016. The company is positive looking forward, however. “The coking coal market has tightened considerably since we acquired Isaac Plains with spot hard coking coal rising by over 70% since January this year when it stood at a multi-year low,” said Jorss.
“This recent strength in pricing is timely as we move from restart of operations into production and prepare for the lower-cost expansion at Isaac Plains East, where we are targeting approvals in calendar 2017,” Jorss concluded.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/02092016/stanmore-presents-positive-outlook-despite-loss-2016-2357/