Stanmore Coal announces 1Q21 report

Highlights

• Rolling 12 month total recordable injury frequency rate (TRIFR) at 5.1, down from 10.6 in the prior corresponding period.
• Rate of mine (ROM) coal mining performance of 514 000 t for the quarter, reflecting a reduction in fleet capacity.
• The Isaac Downs environmental impact statement (EIS) assessment report was finalised by the Department of Environment and Science (DES) and posted on the DES website.

Safety performance

During the March quarter, there was one recordable injury at Issac Plains, with no other injuries recorded at Stanmore’s other projects and tenements. The 12 month rolling TRIFR at the end of 1Q21 was 5.1.

Stanmore continued to operated in the quarter with reset and reduced fleet capacity focusing on higher productivity and lower cost mining equipment and on minimising strip ratios and cost.

Prime waste mined was 5.9 million bank m³ being lower than previous quarters, and despite total lower prime overburden mined, equipment productivity increased by 7% in line with ongoing focus on operational improvements, compared to the previous quarter.

Coal mining production at Isaac Plains East was also lower than the previous quarters as a result of the above adjustments and focus on optimising costs and managing the mine plan transition to Isaac Downs.

The company expects coal mining production to be comparable to Isaac Plains East in the upcoming June quarter relative to the previous quarter. Coal mining production from the Bulk Sample Pit at Isaac Downs will commence in the upcoming quarter.

Product coal produced at 428 00 t for the current quarter, which was lower than the total sales for the quarter of 523 000 t shipped as product coal inventories were drawn down.

Despite the lower production and sales volumes, the above adjustments reduced the company’s FOB cash costs per tonne, improving its competitive position and ability to navigate the recent challenging market conditions.

Isaac Downs

During the quarter, the company invested in the establishment of infrastructure (according to conditions established under the Mineral Resources Act of MDL137) at Isaac Downs to undertake a bulk sample for testing of proposed coal cargos with key international customers. A new access road is under construction, including a new intersection at the Peak Downs Highway, as we all as the required infrastructure or environmental controls.

Once the Isaac Downs mining approvals are finalised (estimated mid-2021), the project can commence operations rapidly.

The Queensland government DES completed the EIS assessment report for the Isaac Downs project that allows the project to move through the final stages of the approval process. The project remains on track for development in 2H21.

Corporate

Since the quarter end, the company announced a transaction to purchase the Millennium and Mavis Downs Mine from Peabody Energy Australia in a 50/50 joint venture with M Resources.

Read the article online at: https://www.worldcoal.com/coal/04052021/stanmore-coal-announces-1q21-report/