Stanmore Resources swings to US$50.5m loss on coal price dip
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The news: Coal producer Stanmore Resources has swung to a first-half loss of USD50.5 million ($79.6 million) after posting a USD136.3 million gain in the first six months of 2024 as the average sales price of coal dropped by nearly 25%.
The numbers: The half-year loss is steeper than the market consensus estimate of USD36.1 million, according to Visible Alpha.
Revenue from ordinary activities fell 29% from USD1.23 billion to USD867.2 million, which was ahead of analysts expecting $857.2 million. Saleable coal production fell 4.4% to 6.5 million tonnes compared to the previous corresponding period.
The average sales price in the six months to 30 June 2025 was USD132 per tonne of coal, 24.6% lower than the USD175 per tonne realised in the previous corresponding period.
No interim dividend was declared. Existing FY25 guidance ranges were reiterated, including saleable production of between 13.8 million tonnes and 14.4 million tonnes.
The context: Stanmore's performance was also impacted by "extraordinary wet weather conditions early in the year", according to Stanmore CEO and executive director Marcelo Matos.
The revenue drop was attributed to "lower average US dollar realised sales prices and the reduced sales volumes," according to the company.
What they said: "Notwithsatnding these robust results, with continued macro-economic uncertainty it remains prudent to adopt a cautious approach to cash management by holding back on an interim dividend at this time, to be reassessed on an ongoing basis and again at year end in accordance with Stanmore's dividend policy," Matos said.
Following the completion of expansion related projects earlier in the year, Matos said the company's "assets are well placed to deliver on a higher run-rate of saleable production in the second half of 2025, in-line with our reaffirmed public guidance".
