Highlights

  • Stanmore Resources (ASX:SMR) declared a fully franked interim dividend of 2.2 US cents per share, totalling approximately US$20 million, after a record quarter at South Walker Creek.
  • Group ROM coal mined was 5.3 million tonnes, with saleable production of 3.4 million tonnes and average sales price up 6% to US$163 per tonne.
  • South Walker Creek set records for quarterly ROM output (2.799Mt) and saleable production (1.882Mt).
  • Net debt fell to US$19 million, and Moranbah South (724Mt of Measured and Indicated Resources) is on track to complete in the December quarter.

Record Quarter at South Walker Creek

Stanmore Resources has reported its best-ever quarterly production at South Walker Creek in Queensland's Bowen Basin. The mine produced 2.799 million tonnes of run-of-mine coal in the September quarter, surpassing the previous record of 2.5 million tonnes set in December 2025, and saleable production of 1.882 million tonnes also set a quarterly record. The strong performance supported a decision to declare the company's first interim dividend.

Group Financials and Dividend

Group ROM coal mined was 5.3 million tonnes, saleable production was 3.4 million tonnes and sales were also 3.4 million tonnes. The average sales price rose 6% quarter on quarter to US$163 per tonne from US$154. Stanmore ended the quarter with US$231 million in cash and total liquidity of US$501 million. Net debt improved by US$53 million to US$19 million, helped by a US$26 million stamp duty refund. The board declared an interim dividend of 2.2 US cents per share, payable 16 November in Australian dollars.

Portfolio Performance

At Poitrel, saleable output fell to 1.070 million tonnes following a planned maintenance shutdown completed in July, with production normalising in August and September. Year-to-date Poitrel output is tracking toward the upper end of guidance. The Isaac Plains complex produced 0.482 million tonnes. Stanmore took full control of mining at Isaac Downs during the quarter, with fleet performance and dragline methodology changes improving results.

Moranbah South Acquisition

Stanmore has agreed to acquire 100% of the Moranbah South tenements from Exxaro Resources for US$105 million, covering 724 million tonnes of Measured and Indicated Resources in the Goonyella Middle Seam. Completion is expected in the December quarter, subject to Exxaro first completing its own acquisition of the remaining 50% interest. The acquisition would also extinguish up to US$60 million of deferred and contingent consideration related to Isaac Downs Extension.

Market Risks

Stanmore flagged steel margin pressure in China, the direction of Chinese steel output and US-China tariff discussions as ongoing risks. FOB Australia premium coking coal peaked at US$285 per tonne during the quarter following supply disruptions in Russia and China.