Stanmore Resources Limited

Stanmore reported record 2025 production of 14 million tonnes and sales volume of 14.1 million tonnes. FOB cash costs were USD 87.8 per tonne, down USD 1.80/t year over year, and underlying EBITDA was USD 385 million, supported by USD 381 million of operating cash flows. Net debt was USD 33 million at year-end, with liquidity approaching USD 500 million. Management said 2026 saleable production should be weighted to the second half after ex-tropical Cyclone Koji, South Walker Creek is expected to continue ramping toward expanded capacity, Poitrel is expected to normalize after 2025’s record, and Isaac Plains is guided down to 1.6 million tonnes at the midpoint from 2.4 million tonnes. 2026 CapEx should be broadly in line with 2025, with a small increase, while FOB costs are expected to be affected by inflation and a higher Australian dollar; the company used a USD/AUD assumption of 0.68 for 2026.

Marcelo Matos framed 2025 as a resilient year in the toughest operating and market conditions since the BMC acquisition, emphasizing record production, strong second-half recovery, and continued growth from the existing asset base. He said the company still has “more in the tank,” with a broad improvement pipeline in cost, productivity and margin, but stressed that guidance will remain conservative until initiatives are validated. Strategically, he highlighted South Walker Creek margin optimization, Isaac Plains cash preservation, and Isaac Downs Extension as the highest near-term priority while Eagle Downs remains a longer-term option.

Shane Young focused on how volume gains and internal cost actions offset external pressures. He said 2025 FOB cash cost of USD 87.80/t was USD 1.80/t lower year on year and that if 2024 were rebased for inflation, FX and the Millennium closure, 2025 expectations would have been around USD 91/t before wet-weather impacts. He also highlighted USD 170 million of incremental underlying EBITDA from volume and cost improvements, USD 381 million of operating cash flow, a stable net debt position of USD 33 million, and liquidity near USD 500 million, including a $50 million upsizing of bank revolving credit facilities and USD 270 million of working-capital-style facilities left undrawn. He tied the larger final dividend to the low debt position and stated that aggregate shareholder returns since the 2022 BMC-related equity raise now total USD 0.342/share.

Analysts pressed on what sat behind the company’s “noncontrollable” cost bucket, and management said it mainly reflected inflation, contract rise-and-fall mechanisms, salary/EA changes and FX. Questions also focused on whether the business has already squeezed most operational efficiencies; Marcelo said there is still “more in the tank,” especially at South Walker Creek and through ongoing productivity work, but noted some benefits may only show from 2027 onward. On growth, management said Isaac Downs Extension is progressing through approvals and optimization work, with no critical path on development itself, while Eagle Downs is still under study and will depend on project economics, funding, market conditions and potential overlap with Poitrel; Marcelo also declined to comment on the Anglo sales process beyond saying it remains ongoing.