Stanmore Resources shares rally as outlook, dividend impresses analysts
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More news: Stanmore Resources advanced in morning trade despite the coal miner reporting a 60% downturn in full-year profit.
Stanmore shares were up 6.4% to $2.75 at 11:40am AEDT, having shed more than 20% over the last 12 months.
Citi analysts said that Stanmore's guidance for the 2025 calendar year is "modestly better" than expected, reflecting the impact of the expansion at its South Walker Creek mine in Queensland.
Cash costs for the year are expected to be lower given higher production, plus favourable foreign exchange rate movements.
The analysts also noted that Stanmore's dividend of 6.7 US cents per share, down from 8.4 US cents a year ago, beat their estimates of 3 US cents per share.
Stanmore Resources posts 60% profit fall as coal prices weigh
The news: Coal miner Stanmore Resources reported a 60% drop in full-year profit after tax, despite topping its production guidance, as lower average sales prices weighed on revenue.
The numbers: Net profit for the year to December fell 59% to USD191.5 million ($300.5 million). Revenue was down 15% to USD2.4 billion and the company will pay a final dividend of 6.7 US cents a share, down from 8.4 US cents a year ago.
The context: Stanmore said it delivered record production in 2024, with full-year output of 13.8 million tonnes ahead of its guidance range, but moderating coal prices through the year weighed on the result. Its sales price averaged USD168 per tonne, down from USD214 a tonne in 2023.
The miner expects to lift production further in 2025 on the back of a ramp up at its South Walker Creek coal mine in Queensland. It is forecasting full-year production in the range of 13.8 million to 14.4 million tonnes.
The source: ASX release
