Stanmore posts solid Sept quarter
PERTH (miningweekly.com) – Coal miner Stanmore has reported a solid quarter of production for the three months to September, despite wet weather conditions.
Stanmore on Friday reported that run-of-mine coal production in the September quarter had increased to 5.1-million tonnes, up from the 2.9-million tonnes produced in the June quarter, while saleable coal production in the same period increased from 2.2-million tonnes to 3.2-million tonnes.
Coal sales for the September quarter were reported at 3-million tonnes, up from the 2.4-million tonnes in the June quarter.
CEO Marcelo Matos said on Friday that production for the quarter remained strong, despite unseasonable wet weather experienced during July and early September.
“The metallurgical coal market softened early in the quarter but showed recovery by quarter end, with demand currently stable from all markets and elevated supply risk from forecasted wet weather in the fourth quarter, continued swing of metallurgical coal volumes into thermal coal markets given the price arbitrage, and ongoing tightness in the Australian labour market.
“The recent completion of the acquisition from Mitsui of the remaining 20% in SMC is a great result for the company, allowing Stanmore to fully realise the value of SMC and create opportunities across all assets,” said Matos.
The final price for the remaining 20% interest in SMC was settled at $270-million, after Stanmore earlier this year struck a $1.35-billion deal with diversified miner BHP and Mitsui & Co to acquire an initial 80% interest in the SMC asset.
Stanmore on Friday told shareholders that the company was on track to achieve its second half production guidance, with higher production expected at its Isaac Plains operations in the fourth quarter of the year.
For the second half of 2022, saleable production has been targeted at 6-million to 6.6-million tonnes.
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