Stanmore had a record-breaking 2024, producing 13.8 million tonnes of coal and exceeding its guidance range of 12.8–13.6 million tonnes.
The company attributed its strong results to its performance at its core assets, including South Walker Creek, Poitrel and the Isaac Plains complex in Queensland.
“Stanmore concluded a strong 2024 with the saleable production from our three core operating assets exceeding the consolidated guidance range, offsetting lower production from the decision to close Millennium earlier in the year,” Stanmore chief executive officer Marcelo Matos said.
“Led by record production from South Walker Creek and Poitrel, this remarkable result was consolidated in the fourth quarter notwithstanding significant wet weather headwinds throughout December and the planned 14-day coal handling preparation plant (CHPP) shut-down at South Walker Creek for the tie-in of the expansion module.”
South Walker Creek delivered 6.3 million tonnes of coal, reaching the upper end of guidance, while Poitrel surpassed expectations with a record 4.6 million tonnes which the company attributes to optimised processing schedules and additional CHPP capacity following the Mavis Downs undermine closure.
The Isaac Plains complex also performed well with 2.8 million tonnes, with the company’s latest achievements offsetting the challenges of closing the Millennium mine earlier in the year.
Stanmore maintained robust coal sales during the December quarter, reaching 3.4 million tonnes despite wet weather impacting Queensland operations.
“Prime hard coking coal prices largely traded sideways through the quarter, with the ongoing thematic of high Chinese steel exports continuing to surpress seaborne demand,” Matos said.
“Queensland export volumes were stable in the December quarter despite the unfavourable weather conditions, which together with weakness in domestic China net-back pricing, contributed to a short period of pricing pressure late in December.
“This was mostly offset by returning demand from India at that time, primarily for prime mid vol coking coals, which will remain a key factor to market outlook in early 2025.”
On the financial front, Stanmore ended 2024 with $459 million in cash and liquidity exceeding US$500 million, bolstered by the upsizing of its revolving credit facility to $794 million.
Stanmore has made an agreement with Idemitsu Kosan and Terviva for a trial Pongamia plantation near South Walker creek.
Pongamia will serve as a renewable fuels feedstock, which the company said “represents a step forward on our decarbonisation journey with first planting scheduled for the first quarter of 2025.”
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
