Stanmore ties up remaining BMC stake in $535m deal

A $535 million deal with Mitsui will see Stanmore Resources take 100 per cent ownership of the former BHP Mitsui Coal assets in the Bowen Basin. It comes after the completion in May of Stanmore's $1.8 billion acquisition of mining giant BHP’s 80 per cent stake in the group, now known as Stanmore SMC. The company announced today that its subsidiary, Dampier Coal, had signed a definitive share sale agreement with Mitsui to acquire the remaining 20 per cent. “Following the previous acquisition of the majority interest in SMC from BHP, this transaction allows Stanmore to consolidate its position as a leading metallurgical coal miner in the Bowen Basin," Stanmore chief executive officer Marcelo Matos said. "Having 100 per cent control of South Walker Creek and Poitrel, as well as Wards Well and other projects, allows Stanmore to maximise value amongst our assets in the region.” The purchase price for the transaction payable upon completion is US$380 million (about $A535 million), and will be reduced by any dividends paid to Mitsui by SMC prior to completion. Stanmore reports record $1b EBITDA for half year The announcement came as Stanmore released its half-year financial results, showing fully consolidated record underlying EBITDA of $1 billion ($US726 million) after one-off accounting adjustments and transaction costs of more than $400 million ($US291 million) related to the BMC acquisition. Bringing the operating South Walker Creek and Poitrel mines into its portfolio, which includes the Isaac Plains complex, saw a lift in coal volume - which combined with an increase in prices to drive the record EBITDA, the company said. "We have experienced an unprecedent market and peak prices in the 1H 2022, although have seen a major correction since then mostly resulting from the impact of global inflationary pressures, global supply chain disruptions and tightening monetary policy on consumption, steel demand and consequently met coal prices," Mr Matos said. "Despite the short-term adjustments taking place, we remain confident on the met coal market fundamentals, and expect tight supply to continue going forward with long-term demand supported by the continued growth in steel production and the industrialisation of South East Asia and India. "The next six months will see Stanmore fully integrating the Poitrel and South Walker Creek mines and benefitting full consolidation and expected operational improvement initiatives." Below: Stanmore Resources' key assets.

Stanmore ties up remaining BMC stake in $535m deal

Industry Queensland

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