Stanmore Resources shares gain on Q3 trading boost
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More news: Stanmore Resources was the best performing company across the ASX 200 in early trading after the coal miner lifted production and sales in the September quarter and reiterated its full-year guidance.
Stanmore shares were up 1.4% to $2.95 by 11:10am AEDT, having lost more than 25% since January.
Stanmore lifts output, sales in September quarter
The news: Coal miner Stanmore Resources has reiterated its full-year guidance after lifting production and sales in the September quarter on the back of higher output at its South Walker Creek and Poitrel operations.
The numbers: Saleable coal production rose to 3.8 million tonnes in the three months to September, from 3.4 million in the June quarter. Coal sales also rose to 3.9 million tonnes from 3.5 million tonnes. The company closed the quarter with cash of USD322 million ($483.9 million).
The context: Stanmore said the third quarter performance was supported by numerous production records, and continues to track to guidance.
The prime hard coking coal price weakened through the quarter, despite a late surge following the announcement of stimulus measures by the Chinese central bank. Prime hard coking coal closed the quarter at approximately USD205 per tonne, Stanmore said.
The company completed the acquisition of 100% stake in the Eagle Downs metallurgical coal project in Queensland from China’s Baowu, and Isaac South in the same state from Anglo American and Exxaro during the quarter.
What they said: “We ended the quarter with healthy levels of product and ROM (run of mine) stockpiles across our portfolio, which should also support 4Q 2024 sales performance,” Stanmore chief executive Marcelo Matos told investors.
The source: ASX announcement
