Stanmore drops after weak December quarter performance
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More news: Shares in Stanmore Resources are down 2.1% to $2.82 after the coal miner reported weaker production and sales in the December quarter.
The miner said this was a result of significant wet weather and a planned 14-day CHPP shut-down at its South Walker Creek mine in Queensland. Despite this, the company exceeded its full-year production guidance.
Stanmore tops FY guidance despite weaker December quarter
The news: Coal miner Stanmore Resources has hit its full-year guidance despite December quarter production and sales being affected by wet weather and a shutdown at one of its mines.
The numbers: Saleable coal production for the three months to December 2024 was down to 3.3 million tonnes, from 3.8 million in the September quarter. Coal sales also fell to 3.4 million tonnes from 3.9 million tonnes.
The company closed the quarter with cash of USD289 million ($459.25 million).
The context: Despite the slower fourth quarter, Stanmore’s full-year production came in at 13.8 million tonnes, ahead of its guidance range of 12.8 to 13.6 million tonnes. The company said this came despite significant wet weather throughout December and a planned 14-day CHPP shut-down at its South Walker Creek mine in Queensland.
What they said: "Queensland export volumes were stable in the December quarter despite the unfavourable weather conditions, which together with weakness in domestic China net-back pricing, contributed to a short period of pricing pressure late in December," chief executive Marcelo Matos said.
"This was mostly offset by returning demand from India at that time, primarily for prime mid volume coking coals, which will remain a key factor to market outlook in early 2025."
The source: ASX announcement
