Stanmore Resources (ASX:SMR) shares rose on Monday after the coal miner posted higher 1H26 earnings, with stronger coal prices more than offsetting rising costs and softer sales volumes.

1H26 Results at a Glance

  • Coal sales Revenue up to US$978 million from US$867 million.
  • Underlying EBITDA up US$27 million to US$174 million.
  • Average selling price up US$21/tonne to US$153, though FOB cash costs rose to US$101/tonne.
  • Saleable production broadly flat at 6.5 million tonnes; total coal sales fell to 6.4Mt from 6.6Mt.
  • Net Debt of US$72 million; free Cash Flow of US$47 million before dividends and debt servicing.

Higher Prices Outweigh Cost and Volume Pressure

Every key mine in Stanmore's portfolio benefited from stronger pricing — South Walker Creek's average price rose to US$154/tonne, Poitrel to US$154/tonne and Isaac Plains to US$146/tonne. But this came alongside cost inflation, with FOB cash costs climbing from US$89 to US$101/tonne due to higher diesel prices and a stronger Australian dollar.

Production held up despite record January rainfall from ex-tropical cyclone Koji, with South Walker Creek posting a record monthly output in March as conditions improved.

Refinancing and Outlook

  • Post-half-year refinancing lifted the term debt Facility to US$250 million and removed US$70m/year scheduled repayments.
  • Interest Margin cut by 1 percentage point, giving added Balance Sheet flexibility.
  • 2026 guidance reaffirmed: 12.8–13.4Mt saleable production, US$98–103/t FOB costs, US$85–95m capex.
  • No interim Dividend declared, prioritising balance sheet flexibility and growth capital.

The Bottom Line

Today's gain reflects the market's positive read on rising coal prices flowing straight through to Earnings and cash flow. With guidance reaffirmed and a more flexible refinanced balance sheet, the key swing Factor from here will be coal price trends and execution on the planned South Walker Creek production ramp-up.