Stanmore Resources Limited (ASX:SMR) Reports Record Production Year
Robust Production Performance
Stanmore Resources Limited achieved a remarkable full-year saleable production of 13.8 million tonnes in 2024, surpassing the upper end of its guidance range. This outcome was driven by record outputs from South Walker Creek and Poitrel, despite challenges such as the closure of the Millennium complex earlier in the year and significant wet weather conditions in December.
The December quarter marked a total Run of Mine (ROM) coal mined of 4.1 million tonnes and total coal sales reaching 3.4 million tonnes, solidifying annual sales records for Poitrel and South Walker Creek.
Financial Highlights
The company ended 2024 with a consolidated cash position of US$289 million and total liquidity exceeding US$500 million. An upsizing of the existing Revolving Credit Facility to US$150 million further bolstered its financial standing. This strong liquidity position enables Stanmore to navigate various phases of the commodity cycle effectively.
Safety and Operational Achievements
Stanmore also reported a strong safety performance, with no serious accidents in the December quarter and a reduction in the Serious Accident Frequency Rate to 0.30. The firm’s proactive risk management strategy continues to enhance safety across its operations.
Future Outlook and Initiatives
Looking ahead, Stanmore commenced a trial Pongamia plantation for renewable fuel feedstock, a significant step in its decarbonisation efforts. The first planting is set to occur in the first quarter of 2025. The company expects to ramp up production rates in early 2025 following a successful tie-in of an expanded coal handling and preparation plant at South Walker Creek.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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