Stanmore output, sales slow in March quarter
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The news: Coal miner Stanmore Resources has reported slower production and sales in the March quarter on the back of bad weather and softer global demand.
The numbers: Coal production slowed to 4.56 million tonnes in the three months to 31 March 2024, down from 4.84 million in the December quarter. Sales also dropped to 3.44 million tonnes from 3.8 million tonnes in the December quarter.
The context: Chief executive Marcelo Matos said production for the quarter recovered well from wet weather experienced across Queensland’s Bowen Basin and is tracking on plan for the annual guidance range, and added the miner had ended the quarter with healthy levels of stockpiles which should support June quarter sales performance.
Metallurgical coal prices have dropped through the quarter, with demand weakness persisting globally. Stanmore attributed this to steel demand in China not keeping pace, and buyers in India also preferring to delay procurement decisions for Australian coking coal.
Earlier this month, Stanmore agreed to buy the balance 50% stake in the Eagle Downs metallurgical coal project in Queensland from China’s Baowu for up to $185 million. It acquired an initial 50% stake in the project from global miner South32 in February.
The source: ASX announcement
