Stanmore Resources reports 27% jump in June quarter production
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The news: Stanmore Resources has reported a 27% quarter-on-quarter increase in its coal run of mine (ROM) production for the June quarter, following a recovery from first-quarter wet weather impacts.
The numbers: The miner is tracking well within its full-year saleable production guidance after recording a 3% quarter-on-quarter increase to 3.3 metric ton (Mt) during the period, bringing year-to-date production of 6.5Mt.
Second-quarter closing ROM stockpiles reached 1.2Mt, representing a 67% quarterly increase, while the company recorded total cashflow of USD138 million ($197 million) against USD72 million in net debt and USD408 million in total liquidity.
The context: CEO Marcelo Matos attributed the rebound in second-quarter production to a recovery across the group’s mines following first-quarter wet weather impacts.
Stanmore has also reported positive market momentum for its pulverised coal injection (PCI) production, as steelmakers continue to prioritise cost efficiency, which has contributed to improved Australian PCI pricing relative to premium hard coking coal. Because PCI represents the majority of the company’s sales mix, Matos stated that Stanmore is well placed to capture this relative strength.
Subsequent to the end of quarterly production report, Stanmore confirmed the refinancing of its senior corporate debt facilities, upsizing the term load to USD250 million and extending the maturity of its USD200 credit facility.
The source: ASX
