Highlights

• Higher realised coal prices lifted revenue and underlying EBITDA despite softer sales volumes and elevated operating costs.
• Operating cash generation strengthened during the half, while liquidity remained substantial despite higher financing outflows.
• Post-period debt refinancing extended maturities and reduced borrowing margins, improving Stanmore’s funding flexibility for the second half.

H1 2026 Performance Shows Improvement

Stanmore Resources Limited (ASX: SMR) released its H1 2026 financial results on 24 August 2026, covering the six months ended 30 June 2026. The Queensland metallurgical coal producer reported stronger revenue and underlying earnings, while its net loss narrowed compared to the previous corresponding period.

Revenue increased 13% to US$978.0 million, compared to US$867.2 million in H1 2025. Underlying EBITDA advanced 19% to US$174.1 million from US$146.8 million. However, Stanmore remained loss-making, reporting a net loss after tax of US$44.2 million, improving from a US$50.5 million loss a year earlier.

Coal Pricing Offsets Lower Volumes

The average realised coal price rose approximately 16% to US$153 per tonne, compared to US$132 per tonne previously. This pricing improvement helped compensate for total coal sales declining to 6.4 million tonnes from 6.6 million tonnes. Wet weather across the Bowen Basin and lower activity at Isaac Plains affected volumes during the half.

Cost pressure remained evident, with FOB cash costs excluding royalties increasing to US$101 per tonne from US$89 per tonne. Higher diesel prices linked to Middle East tensions and an unfavourable Australian dollar movement contributed to the increase.

Operating Cash Flow Strengthens

Net cash generated from operating activities increased 17% to US$176.4 million, compared to US$150.6 million. At the end of the period, Stanmore held US$138.4 million in cash and cash equivalents, with available liquidity totalling US$408.4 million.

Refinancing Supports Second-Half Position

After period-end, Stanmore refinanced its senior secured facilities, replacing the amortising term loan with a US$250.0 million non-amortising facility maturing in June 2029. The US$200.0 million revolving facilities were also extended to March 2029, with margins reduced to 3.50% above SOFR.

Operationally, rebuilt run-of-mine stockpiles of 1.2 million tonnes provide greater support for the company’s second-half 2026 production plan following first-half weather disruptions.

Outlook

Looking ahead, Stanmore enters the second half of 2026 with improved operational support from 1.2 million tonnes of rebuilt run-of-mine stockpiles, which should reduce production risk after first-half weather disruptions. The July refinancing also strengthens financial flexibility by extending debt maturities and lowering borrowing margins.

However, performance remains sensitive to coal prices, weather conditions, diesel costs, foreign-exchange movements and sales volumes. Maintaining cost discipline and converting the stronger stockpile position into stable production and shipments will be important for sustaining the improvement in earnings and cash generation.

Note- All data presented is based on information available at the time of writing.

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