Stanmore Coal reports 2H18 financial results

The company recorded a profit after tax of AUS$21.278 million for the half year ended 31 December 2018. The results include the following highlights:

• Revenue increase to AUS$148.284 million (79.1% increase pcp).
• Gross margin 48.1% (33.7% in pcp).
• Underlying EBITDA up to AUS$41.618 million and in line with guidance for the half year and on track to meet guidance for F719 year of Underlying EBITDA of AUS$140 million to AUS$155 million.
• Investing activities of AUS$33.541 million (AUS$5.921 million at June 18).
• Interim fully franked dividend declared of 3 cps.

The gross profit from operations improved to AUS$46.139 million (pcp: AUS$21.607 million) with coal sales delivering revenue of AUS$148.284 million in 1H18 (pcp: AUS$82.772 million). The profit before tax of AUS$30.743 million (pcp: AUS$13.944 million) is driven by continued strong coking coal prices, increased volumes, improved sales mix between coking coal and thermal coal and a continued focus on cost control.

Operating highlights

Stanmore’s Isaac Plains complex continued to perform well during the half year and is set up for a strong second half. The operational highlights were:

• In December 2018 the Dragline relocated from the Isaac Plains Mine to the new Isaac Plains East Mine which has a lower strip ratio compared to the Isaac Plains Mine resulting in a significant reduction in waste removal costs.
• Record open cut ROM production of 1298 kt (81.8% increase pcp).
• Record coal production of 978 kt (91.0% increase pcp).
• Record coal sales of 882 kt (48.5% increase pcp).
• 176 kt of product stockpiles at the end of the period due to port congestion which will enable strong sales and cash conversion in 2H19 as port queues return to more normal levels.
• Underlying FOB costs of AUS$104/t (excluding state royalties of AUS$15/t) (16.8% increase pcp).

Read the article online at: https://www.worldcoal.com/coal/12022019/stanmore-coal-reports-2h18-financial-results/