ASX-listed Stanmore Resources has reported record run-of-mine and saleable coal production for the 2025 financial year in what CEO Marcelo Matos describes as an expansionary 12-month period for the group despite weaker financial results amid softer prices.

The Queensland-focused producer generated underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) of $385-million and free cash flow of $296-million for the year, while maintaining net debt of $33-million and total liquidity of $482-million.

“The 2025 full year was another expansionary year for Stanmore, with production increasing following the completion of our recent capital investment programme. Despite early weather disruptions, a strong second-half recovery delivered record production and saleable output within both our original and revised guidance ranges," said Matos.

He noted that while market conditions softened to a four-year low, disciplined cost management helped stabilise unit costs and support earnings and cash generation.

RECORD PRODUCTION, LOWER PRICES
Stanmore delivered RoM production of 20.5-million tonnes in 2025, up from 19.4-million tonnes in 2024, while saleable production increased to 14.0-million tonnes.

Total coal sales of 14.1-million tonnes generated revenue of $1.88-billion, down from $2.40-billion in the prior year, reflecting a 21% decline in the average realised sales price to $133/t.

Free on board (FoB) cash costs (excluding royalties) were $88/t, slightly below 2024 levels, supported by cost-reduction initiatives and a lower average strip ratio of 8.1.

Underlying Ebitda fell to $385-million from $700-million in 2024, largely owing to lower coal prices, while the company reported a statutory net loss after tax of $47-million compared with a $192-million profit the year before.

Capital expenditure (capex) declined sharply to $85-million from $170-million in 2024 following completion of a significant investment programme initiated in late 2023.

Production was driven by improved performance across the portfolio in Queensland’s Bowen basin.

At the South Walker Creek mine, saleable production increased to 6.6-million tonnes, while Poitrel mine delivered 5.0-million tonnes. The Isaac Plains Complex contributed 2.4-million tonnes, with Millennium underground having ceased operations in June 2024.

The company also advanced key growth projects during the year, including the Isaac Downs Extension, which progressed through regulatory approvals following a maiden Joint Ore Reserves Committee-compliant reserve declaration in April 2025. Development study work also continued at the Eagle Downs project.

The board declared a fully franked final dividend of $0.089 a share.

For 2026, Stanmore expects saleable production of between 12.8-million and 13.4-million tonnes, reflecting a planned stepdown at Isaac Plains as strip ratios rise and the operation approaches its economic limits.

FoB cash costs are guided at between $93/t and $97/t, incorporating inflationary pressures and anticipated foreign exchange movements. Capex is forecast at between $85-million and $95-million, including a truck rebuilding programme at Poitrel and completion of a tailings pumping project.

Matos said the company was pivoting its focus “to value and cash flow over volume” as it advances the Isaac Downs Extension.

“With metallurgical coal market conditions having improved year-to-date, Stanmore remains uniquely positioned to benefit as an Australia-based pure-play producer,” he said.