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Highlights

  • Ord Minnett issues BUY rating on SMR with AUD 2.40 target, representing 6.7% upside

  • SMR reported record production at South Walker Creek in Q2

  • Improved cash position and reduced debt reflect improvment in SMR's financials

Stanmore Resources Ltd (ASX:SMR) has received a reaffirmed BUY rating from an investment firm Ord Minnett. Analyst Tim Elder assigned a price target of AUD 2.40, representing a 6.67% potential upside from the current share price of AUD 2.25 (as of July 29, 2025).

This recommendation likely to come on the back of significant rebound in SMR's production and financial discipline maintained amidst volatile market conditions.

Production Recovery 

Stanmore’s June 2025 quarterly report highlighted a recovery in coal output following weather-related disruptions earlier in the year. The company achieved 4.9 million tonnes of ROM coal production, including a quarterly site record at South Walker Creek, translating into 3.2 million tonnes of saleable coal.

This performance supports the company's reaffirmed full-year guidance of 13.8–14.4 million tonnes of saleable coal for 2025.

Financial Position of SMR

Ord Minnett’s positive rating likely to be based on Stanmore’s improving balance sheet and cash flow generation. As of June 30, 2025, the company reported:

  • USD 181 million in consolidated cash, up from USD 169 million in March

  • A reduction in net debt to USD 99 million, compared to USD 146 million previously

  • Total liquidity of USD 401 million, supporting financial resilience in a volatile macroeconomic environment

This financial position, coupled with disciplined capital allocation, positions Stanmore to weather coal price fluctuations and sustain shareholder returns.

Cost Management and ESG Progress in Focus

Forward-weighted sales volumes are expected to support improved margins in the second half. Importantly, Stanmore continues to progress on its sustainability strategy, with a milestone trial planting of Pongamia trees across 50 hectares to explore their use in renewable fuel production. 

Ord Minnett Sees Long-Term Value

The BUY recommendation issued by Ord Minnett reflects a belief in Stanmore’s long-term value creation potential. The firm’s target price of AUD 2.40 offers a 6.7% upside.

Stanmore controls key metallurgical coal assets in Queensland’s Bowen Basin — including South Walker Creek, Poitrel, and Isaac Plains.