Stanmore Resources Limited (ASX: SMR) has reported a strong operating and financial performance for the December 2025 quarter, underpinned by improved coal market conditions, higher realised prices and disciplined cost control. The Queensland-based coal producer said the quarter delivered robust cash generation, strengthening its balance sheet and positioning the company for continued investment in its growth pipeline.
Stanmore Resources’ South Walker Creek operation in Queensland is one of the company’s key metallurgical coal assets. (Source: Stanmore Resources)
The update, contained in Stanmore’s December 2025 Quarterly Activities Report released on 27 January 2026, highlighted steady production across its Bowen Basin operations and resilient sales performance despite ongoing logistical and weather-related challenges.
With metallurgical coal prices stabilising above long-term averages and global steel demand showing signs of recovery, the company said it remained well placed to benefit from favourable market dynamics into 2026.
Key Findings and Results
Stanmore reported solid operational metrics for the quarter, reflecting consistent mine performance and improved market realisations.
Quarterly highlights included:
- Coal production broadly in line with guidance, supported by stable output from the Isaac Plains, South Walker Creek and Poitrel operations.
- Sales volumes were maintained at strong levels, aided by improved shipping schedules and higher export demand.
- Average realised prices increased compared with the prior quarter, reflecting firmer metallurgical coal benchmarks.
- Strong operating cash flow generation, contributing to further debt reduction.
- Unit operating costs remained within guidance, supported by productivity initiatives and supply chain optimisation.
Stanmore noted that realised prices remained above historical averages and compared favourably with peer producers operating in the Bowen Basin, highlighting the quality of its metallurgical coal portfolio.
Economic and Strategic Benefits
The company said improved market conditions during the quarter were a key driver of earnings strength, with metallurgical coal continuing to benefit from recovering global steel production and infrastructure spending.
Chief executive officer Marcelo Matos said the December quarter demonstrated the resilience of Stanmore’s asset base and the strength of its operating model.
Stanmore Resources chief executive officer Marcelo Matos
“We delivered a strong quarter with solid production, disciplined cost management and improved realised prices. These results underscore the quality of our assets and our ability to generate strong cash flows across the cycle,” Mr Matos said.
He added that the company’s strengthened balance sheet would support both organic growth and disciplined capital management.
“With market conditions improving and demand for high-quality metallurgical coal remaining robust, we are well positioned to continue investing in our operations and returning value to shareholders,” he said.
Stanmore said its financial position continued to improve, providing flexibility to advance growth projects and manage potential market volatility.
Resource and Exploration Updates
During the quarter, Stanmore progressed a range of resource development and exploration activities across its Bowen Basin portfolio.
The company confirmed that mineral resource estimates across its key assets remained robust, with no material changes to previously reported resources.
Drilling programs focused on near-mine extensions and resource definition at existing operations, aimed at extending mine life and improving production flexibility. The company said these programs were being conducted using industry-standard methodologies and quality assurance protocols.
Stanmore also reaffirmed its commitment to environmental, social and governance (ESG) practices, noting ongoing rehabilitation works, water management initiatives and community engagement programs across its operating regions.
Market and Strategic Context
Stanmore Resources shares last traded at $3.015, down 1.47 per cent on the day, giving the company a market capitalisation of approximately $2.75 billion.
Stanmore Resources share price
The December quarter performance comes amid a stabilisation in global metallurgical coal prices following volatility earlier in 2025. Analysts have pointed to improving steel demand in Asia and infrastructure-led growth in key markets as supportive factors for coal producers.
Stanmore said it continued to monitor global market trends, including Chinese steel output, Indian infrastructure spending and supply-side developments in Australia and Canada.
The company added that disciplined capital allocation and operational efficiency would remain central to its strategy as it navigated an evolving energy and commodities landscape.
The company said it would continue to update the market on operational performance and strategic initiatives as the 2026 financial year progresses.
The December quarter performance comes amid a stabilisation in global metallurgical coal prices following volatility earlier in 2025. Analysts have pointed to improving steel demand in Asia and infrastructure-led growth in key markets as supportive factors for coal producers.
Stanmore said it continued to monitor global market trends, including Chinese steel output, Indian infrastructure spending and supply-side developments in Australia and Canada.
The company added that disciplined capital allocation and operational efficiency would remain central to its strategy as it navigated an evolving energy and commodities landscape.
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Outlook
Looking ahead, Stanmore said it remained focused on maintaining production guidance for the 2026 financial year while continuing to pursue operational improvements.
The company expects demand for metallurgical coal to remain resilient, supported by long-term global steel requirements and limited high-quality supply growth.
Management said the strengthened balance sheet and strong cash generation achieved in the December quarter provided a solid foundation for future growth, including potential expansions and brownfield developments across its asset base.
