Stanmore Resources Limited (ASX: SMR) has reported a resilient March quarter for 2026, overcoming severe wet weather disruptions earlier in the period and restoring operational momentum across its Queensland mining portfolio. The Company delivered steady saleable coal production of 3.2 million tonnes (Mt), maintained full-year production guidance, and closed the quarter with strong liquidity despite paying a substantial shareholder dividend.
Stanmore’s March quarter was heavily influenced by the impact of ex-Tropical Cyclone Koji, which disrupted open-cut coal operations across Queensland in January. However, improved conditions later in the quarter enabled a strong recovery, particularly in March, which accounted for almost half of quarterly run-of-mine (ROM) coal production.
Figure 1: In 2025, Stanmore became one of the first companies to comply with Australia’s new mandatory climate disclosure rules, following three years of work to strengthen governance, risk management, and reporting systems. [Source: Stanmore Annual Report]
Strong Recovery Highlights Operational Resilience
Chief Executive Officer and Executive Director Marcelo Matos said: “The first quarter of 2026 reinforced the resilience of our business, with operations recovering strongly in the latter part of the period to deliver saleable production within the expected annual run rate of Guidance.”
The Company mined 4.0Mt of ROM coal during the quarter and produced 3.2Mt of saleable coal, broadly steady compared with 3.3Mt in the March 2025 quarter. Total coal sales reached 3.0Mt, while the average realised sales price increased to US$152 per tonne from US$139 per tonne a year earlier.
Figure 2: Consolidated Production & Sales Performance of Stanmore Resources Limited for March 2026 Quarter [Source: Stanmore Resources Limited]
South Walker Creek Delivers Record March
Stanmore’s flagship South Walker Creek Mine operation delivered a standout performance in March, achieving its highest-ever monthly ROM and saleable production.
The mine produced 1.1Mt of ROM coal and 0.7Mt of saleable coal during the month, supported by low-strip-ratio mining in the E-pit MRA2C area and strong opening inventories. A new mining services contract with Golding Contractors commenced during the quarter and delivered encouraging early results.
This record March performance gives the Company a strong platform for the balance of FY2026.
Poitrel Maintains Consistency and Lowers Costs
Poitrel Mine maintained production at the run-rate required to meet annual guidance. Strong opening ROM inventories of nearly 1Mt supported consistent coal handling and preparation plant (CHPP) feed throughout the quarter.
Stanmore also completed the CHPP tailings pumping project in March. This removes the need for tailings haulage and is expected to reduce operating and maintenance costs moving forward.
The Company also began a multi-year rebuild program for its Cat 793F truck fleet, aimed at improving long-term reliability and cost performance.
Isaac Plains Complex Holds Steady
Isaac Plains Complex returned to more normalised mining volumes after a strong December quarter. While January rainfall affected operations, proactive mine planning and rescheduling of plant shutdowns helped maintain stable year-on-year saleable production.
This flexibility highlights Stanmore’s operational discipline across multiple assets.
Financial Position Remains Robust
The Company ended the quarter with US$166 million in cash and total liquidity of US$436 million. Net debt increased to US$79 million from US$33 million at the end of December 2025, primarily due to:
- US$80 million dividend payment to shareholders in March
- US$12 million capital expenditure during the quarter
Despite this, Stanmore noted that excluding these outflows, net debt would have improved by almost US$50 million, reflecting continued positive operating cash flow generation.
Mr Matos added: “Stanmore closed the quarter with US$166 million in cash, which, together with available liquidity of US$270 million, provides a strong platform to navigate this period of heightened volatility.”
2026 Guidance Maintained Despite Cost Revision
Stanmore has maintained its full-year saleable production guidance of 12.8Mt to 13.4Mt. Production targets for individual mines also remain unchanged:
- South Walker Creek: 6.7Mt – 6.9Mt
- Poitrel: 4.6Mt – 4.8Mt
- Isaac Plains Complex: 1.5Mt – 1.7Mt
However, FOB cash cost guidance has been revised upward from US$93–97/t to US$98–103/t. The Company cited higher diesel prices and foreign exchange impacts linked to ongoing geopolitical tensions in the Middle East.
Stanmore stated: “Excluding macroeconomic impacts, FOB Cash Cost Guidance would have remained unchanged.”
Also Read: Stanmore Resources Acquires 50% of South 32’s Interests
Growth Projects Continue to Advance
The Company continues to progress the Isaac Downs Extension Project approvals pathway. All baseline studies and groundwater modelling are complete, while the Environmental Impact Statement remains on track for submission in the second quarter of 2026.
Meanwhile, development studies at Eagle Downs Project are advancing, with focus now shifting toward surface infrastructure design and environmental approvals for connecting infrastructure.
Stanmore also spent A$1.4 million on exploration during the quarter, including drilling programs at Poitrel and planned works at South Walker Creek.
Coal Market Conditions Improve
Premium hard coking coal prices rose above US$250/t earlier in the quarter due to cyclone-related supply disruptions and outages at a major Australian producer. Prices later moderated before finishing the quarter at US$237/t.
The Company also noted that Indian steel demand indicators remained supportive, helping sustain import demand for metallurgical coal.
Share Price Activity (ASX)
The Company recently traded at $2.275, up 1.56% for the session [As at 3:00 pm 29/04 (AEST)].
Performance Snapshot:
- 1 Week: +2.02%
- 1 Month: -18.75%
- 2026 YTD: -1.94%
- 1 Year: +19.42%
- vs Sector (1yr): -28.83%
- vs ASX 200 (1yr): +12.04%
Size:
- Market Capitalisation: $2.05 billion
Investors’ Outlook
Stanmore Resources has demonstrated resilience in the face of weather disruption, recovering strongly through March and preserving full-year production guidance. Record output at South Walker Creek, steady operations across the portfolio, strong liquidity, and advancing growth projects all support the investment case.
Although higher diesel costs and geopolitical uncertainty may pressure margins in the near term, the Company remains well positioned to benefit from improving metallurgical coal prices and sustained steel demand from India and Asia. For investors seeking exposure to premium coal markets with disciplined capital management, Stanmore remains one to watch.
FAQs
1. Why did Stanmore revise its cost guidance upward?
The Company increased FOB cash cost guidance mainly due to higher diesel prices and foreign exchange movements linked to Middle East geopolitical tensions.
2. Did Stanmore change its production guidance for 2026?
No. Stanmore maintained full-year saleable production guidance of 12.8Mt to 13.4Mt.
3. What was the key operational highlight of the quarter for Stanmore Resources Limited?
South Walker Creek delivered a record March, achieving the highest monthly ROM and saleable production in its history.
Disclaimer
This article is for informational purposes only and does not constitute financial advice, investment advice, or a recommendation to buy or sell securities. Investors should conduct their own research and consult a licensed financial adviser before making any investment decisions.
Source
https://api.investi.com.au/api/announcements/smr/9c529fe6f20.pdf
https://api.investi.com.au/api/announcements/smr/f79a55ed-6df.pdf
Last modified: April 29, 2026
