Stanmore Resources Surpasses 2024 Production Targets Amid Weather Challenges

Record Production Despite Challenges

Stanmore Resources Limited (ASX: SMR) delivered a standout performance in 2024, reporting a record saleable coal production of 13.8 million tonnes. This achievement exceeded the upper end of the company’s guidance range, underscoring operational resilience despite the early closure of the Millennium mine and significant wet weather disruptions, particularly in the December quarter.

The company’s three core assets, South Walker Creek, Poitrel, and Isaac Plains Complex, each set new production benchmarks. South Walker Creek and Poitrel notably drove the strong results, with South Walker Creek completing a major expansion project that increased its processing capacity. The planned 14-day shutdown for the new CHPP module tie-in was executed smoothly, with throughput rates already surpassing nameplate capacity in early 2025.

Operational Highlights and Safety

Quarterly figures showed 4.1 million tonnes of ROM coal mined and 3.3 million tonnes of saleable coal produced, consolidating full-year records for both production and sales. Poitrel achieved record ROM mining and saleable production, supported by optimized processing schedules and additional CHPP capacity following the closure of the Mavis Downs underground mine.

Isaac Plains Complex faced weather-related setbacks but still recorded increased coal mined year-on-year and improved plant productivity through enhanced crushing unit utilization. Safety remained a priority, with no serious accidents reported in the quarter and a reduction in the Serious Accident Frequency Rate to 0.30, below the industry average.

Financial Strength and Strategic Initiatives

Stanmore ended 2024 with a robust financial position, holding US$289 million in cash and over US$500 million in total liquidity after upsizing its Revolving Credit Facility to US$150 million. This liquidity buffer provides the company with flexibility to navigate commodity cycles and invest in growth opportunities.

In a notable step towards sustainability, Stanmore commenced a trial Pongamia plantation adjacent to South Walker Creek. Pongamia trees are a promising feedstock for renewable fuels, marking a tangible advancement in the company’s decarbonisation journey. The first planting phase is scheduled for early 2025, reflecting Stanmore’s commitment to integrating environmental initiatives alongside its core mining operations.

Market Context and Outlook

Coal pricing during the quarter was relatively stable, with prime hard coking coal prices trading sideways amid subdued seaborne demand driven by high Chinese steel exports. However, late-quarter pricing pressure was partially alleviated by renewed demand from India, particularly for prime mid-vol coking coals. Weather-related supply disruptions in Queensland have introduced some volatility, but overall export volumes remained steady.

Looking ahead, Stanmore’s expanded processing capacity and healthy coal stockpiles position it well to meet sales targets in 2025. The company plans to provide updated cost and capital expenditure guidance in its forthcoming annual report, due in late February.