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Highlights
- Stanmore Resources is an Australia based metallurgical coal production company with operations and explorations projects in the Bowen and Surat basins
- In 1HFY24, SMR’s revenue fell to USD 1,226 million, vs USD 1,493 million in 1HFY23
- In FY24, capital expenditure of USD 165 – 185 million is expected
Stanmore Resources Limited (ASX: SMR) is an ASX-listed resources company with operations in the Surat and Bowen basins. It is a metallurgical coal production firm, headquarterd in Queensland.
In the first half of financial year 2024 (1HFY24), ending 30 June 2024, revenue of SMR declined to USD 1,226 million, compared to USD 1,493 million in the previous corresponding period. Its revenue fell due to a reduction in average sales price during the reported period.
In 1HFY24, underlying EBITDA dropped to USD 375 million, down from USD 650 million in 1HFY23. Profit for the six months stood at USD 136 million, while in the previous corresponding period, it was USD 340 million.
Growth prospects for mining sector
The data released by the Australian Bureau of Statistics (ABS) on 29 August 2024 indicated that private new capital expenditure (capex) increased by 0.3% annually in the June quarter 2024, supported by mining sector which recorded a capex growth of 1.5% in June after a drop in March.
During the June quarter, capex in the non-mining sectors fell by 3.6%, but the rise in mining sector capex offset the decline, resulting in rise of 0.3% in overall capex. The June quarter capex growth bodes well with the mining sector stocks.
Recent business update
On 30 August 2024, the company shared an update regarding its acquisition transaction with BHP Minerals to acquire an 80% stake in BHP Mitsui Coal Pty Ltd, wholly owned by SMR and now renamed Stanmore SMC Pty Ltd.
As per the terms of the agreement, SMR would pay up to USD 150 million to BHP based on a revenue sharing mechanism, in case the average sales prices reach above a certain threshold over two years. The company highlights that the threshold has been exceeded, leading to maximum contingent consideration of USD 150 million. With this transaction, SMR has paid the price for the acquisition in full.
Outlook
The company has revised its guidance for FY24. In FY24, saleable production is expected to be between 12.8 and13.6 million tonnes, while the free on board (FOB) cash cost is expected to range between 93 – 98 USD per tonne sold for FY24.
In FY24, capital expenditure of USD 165 – 185 million is expected.
Share performance of SMR
SMR shares closed 1.66% higher at AUD 3.06 apiece on 2 September 2024. In the last one year, SMR’s share price has increased by around 4.87%, while in the last three months, it has dropped by almost 8.11%.
The 52-week high of SMR is AUD 4.22, recorded on 22 January 2024, and the 52-week low is AUD 2.75, recorded on 28 August 2023.

SMR Daily Technical Chart, Source: EODHD/Others
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, and currency, is 02 September 2024. The reference data in this report has been partly sourced from EODHD/Others.






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