How Stanmore Resources (ASX:SMR) Delivered Record Production and an Interim Dividend in Q3 2026

Sonal Goyal

03 November 2026 11:57 PM AEDT

How Stanmore Resources (ASX:SMR) Delivered Record Production and an Interim Dividend in Q3 2026

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Key Highlights

South Walker Creek achieved new quarterly records for both ROM and saleable production, contributing to Group saleable production of 3.4Mt and ROM coal mined of 5.3Mt in Q3 2026
Average coal sales price of US$163 per tonne in Q3 2026, up 6% quarter-on-quarter and 18% above the same period last year on a year-to-date basis
Net Debt reduced by US$53 million over the quarter to US$19 million, with total cash of US$231 million and total Liquidity of US$501 million
Interim dividend of 2.2 US cents per share declared fully franked, supported by positive Cash Flow and improved market conditions; Moranbah South Acquisition agreed for US$105 million adding 724Mt of Measured and Indicated Resources

Stanmore Resources Limited (ASX:SMR) delivered a strong operational performance in the third quarter of 2026, with its South Walker Creek operation setting new quarterly records for both run-of-mine coal production and saleable coal output. The record result followed a deliberate strategy in the first half of 2026 of prioritising stripping and pit preparation — a decision that constrained near-term volumes but set the stage for the Volume uplift delivered in the September quarter.

South Walker Creek produced 2.8Mt of ROM coal and 1.9Mt of saleable coal in the quarter, surpassing its previous quarterly ROM record of 2.5Mt set in the December 2025 quarter. The strong Mining performance, combined with robust coal handling and preparation plant performance, drove the saleable production record. With healthy ROM stocks heading into the fourth quarter, South Walker Creek is well positioned to meet its full-year saleable production guidance.

Poitrel and Group Production

At Poitrel, third-quarter performance reflected the impact of a planned CHPP shutdown deferred from June and completed in July. Processing rates returned to normal in August and September, but the shutdown constrained saleable production for the quarter. At the Group level, Stanmore produced 3.4Mt of saleable coal and mined 5.3Mt ROM coal in Q3 2026. Year-to-date saleable production of 9.9Mt compares with 10.1Mt in the same period of 2025, reflecting the first-half Investment in strip ratios that enabled the September quarter records.

Coal Market: Prices Recovering

The coal market provided a constructive tailwind during the quarter. Seaborne Supply tightness, driven by disruptions across key Russian and Chinese production basins, supported a recovery in coal prices. Stanmore achieved an average sales price of US$163 per tonne in Q3 2026, up 6% from US$154 per tonne in Q2, and 18% above the same quarter of 2025 on a year-to-date basis. Total coal sales of 3.4Mt for the quarter matched production, indicating no meaningful inventory build.

Financial Outcomes and the Interim Dividend

The combination of record South Walker Creek production and improving coal prices translated into positive cash generation during the quarter. Net debt declined by US$53 million over the period to US$19 million — also benefiting from the receipt of an Eagle Downs stamp duty refund — leaving Stanmore with total cash of US$231 million and total liquidity of US$501 million.

At the half-year reporting, the board had prudently deferred an Interim Dividend to preserve Balance Sheet flexibility given the second-half weighting of coal sales and uncertainty around the then-pending Moranbah South acquisition. With a materially improved position by quarter-end, the board resolved to declare a fully franked interim dividend of 2.2 US cents per share.

Moranbah South: A Strategic Bolt-On

Stanmore also announced an agreement to acquire 100% of the Moranbah South tenements from Exxaro Resources for US$105 million. The acquisition adds 724 million tonnes of Measured and Indicated Coal Resources adjacent to Eagle Downs and the Isaac Plains Complex, creating a contiguous resource base of significant scale in Queensland's Bowen Basin. The transaction also extinguishes up to US$60 million of deferred and contingent consideration related to the Isaac Downs Extension, improving Stanmore's net acquisition cost below the headline US$105 million figure.

Risks and What to Watch

Stanmore's financial performance remains highly leveraged to metallurgical coal prices, which can move sharply on the basis of supply disruptions in Russia, China and Colombia. A Reversal in the current pricing recovery would impact cash generation and future dividend capacity. The safety record — no serious accidents in Q3 and a rolling 12-month Serious Accident Frequency Rate of 0.53, steady and below industry average — is a positive but requires continued vigilance.

Completion of the Moranbah South acquisition and the pace of Q4 FY26 production are the key near-term milestones.

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