PERTH (miningweekly.com) – Coal miner Stanmore Coal has reported a surge in revenues and profit for the 2018 financial year, as coal prices increased.
Revenue for the year ended June was up by 51%, to A$208-million, while gross profits increased by 55%, to A$52.29-million, Stanmore reported on Monday.
Underlying earnings before interest, taxes, depreciation and amortisation increased by 70%, to A$45.5-million, while profit after tax declined from A$12-million reported in 2017, to A$5.9-million.
Stanmore in early June struck a A$30-million deal with Peabody Australia to acquire the Wotong South coking coal deposit, which is located adjacent to Stanmore’s Isaac Plains project, in Queensland.
“There has been nothing more important than executing our strategy on the ground. Disciplined operational performance, capital light project development and acquisition coupled together with a significant rehabilitation performance has proven the company’s ability to perform across the full cycle of resource development in a short period of time,” said Stanmore MD Dan Clifford.
Saleable coal production for the financial year reached 1.1-million tonnes, down from the 1.2-million tonnes produced in the previous financial year, while coal sales increased from just over 1-million tonnes to 1.3-million tonnes.
The average sales price achieved during the full year also increased from A$135.1/t to A$144.8/t.
Looking ahead, Stanmore expected coal production to reach 1.8-million tonnes in 2019, incorporating the transition to the Isaac Plains East operation.
“The outlook for the company as our strategy is delivered, is compelling. Our infrastructure is in place, production is increasing by 50%, costs are reducing and we have a strong pipeline ahead of us as we take the infrastructure to full capacity,” said Clifford.