Dividends flow after strong year for Stanmore

Multiple production records helped push Stanmore Resources' saleable coal output to 13.2Mt in 2023, in what chief executive officer and director Marcelo Matos described as another fantastic year for the company. The Bowen Basin coal producer reported an underlying EBITDA of $US1.1 billion, or about $1.68 billion in Australian dollars, supporting its dividend payout of about $AU116 million to shareholders. Queensland Government royalties incurred during 2023 totalled more than $AU742 million, according to the company's full-year report. “Stanmore’s 2023 financial performance has been strong, generating significant underlying EBITDA and operating cash flows, enabling us to continue to strengthen our balance sheet through deleveraging and position Stanmore well for future growth and value delivery," Mr Matos said. "Our fully franked US 8.4 cent final dividend for 2023 further demonstrates our ongoing commitment to maximising shareholder returns and application of Stanmore’s stated dividend policy. "The saleable production results for the year are a testament to the consistency and resilience of our operations, especially considering weather events experienced throughout the year and challenges associated with the rail network performance in the first half of 2023." Stanmore remained confident in the fundamentals of the metallurgical coal market going forward, with long-term demand supported by the continued growth in steel production and the industrialisation of South-East Asia and India, he said. 2023 was the first full year of production from South Walker Creek and Poitrel after Stanmore took ownership of the former BMC (BHP Mitsui Coal) assets in May 2022. While South Walker Creek started 2023 with rainfall totals above 200mm in January and March, the mine recovered well through strong overburden performance by the dragline and excavator fleets. Production records achieved at that site for the year included ROM tonnes mined (7.97Mt), an all-time historical saleable coal production record (6.26Mt) driven from 7,862 run hours at the CHPP, total overburden movement (83.05Mbcm), blasted overburden volume (74.5Mbcm) and CHPP coal yield (76.9 per cent). Production records achieved for the year at Poitrel included total material moved, explosives tonnes loaded and drill metres. ROM production at Stanmore's Isaac Downs complex was down, reflecting the impact of wet weather events early in the year and the prioritisation of stripping in 4Q 2023. Stanmore reported that, despite some initial issues experienced earlier in the year from the commissioning and ramping up of the recently upgraded CHPP, throughput continued to improve. This was highlighted by a throughput record of 380Kt ROM coal feed and a record monthly saleable production of 288Kt, both achieved in June. Production records achieved for the year included total material moved (39.1MBcms), CHPP feed (4.2Mt) and an all-time saleable production record (2.9Mt).

Dividends flow after strong year for Stanmore

Industry Queensland

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