Stanmore's coal sales soar in March quarter

9th April 2020 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – Takeover target Stanmore Coal has reported another solid quarter during the three months to March, with run-of-mine (RoM) coal production reaching 813 000 t.

The March quarterly RoM production was down 6% on the 864 000 t produced in the previous quarter, but up by 7% on the previous corresponding period.

In the year-to-date, Stanmore has produced 2.38-million tonnes of RoM coal, up 16% on the previous corresponding period.

Saleable coal production in the March quarter increased by 9% on the previous quarter, from 609 000 t to 665 000 t, but was down by 4% on the previous corresponding period. In the year-to-date, saleable coal production increased by 13% to 1.89-million tonnes.

Total coal sales for the quarter also increased by 24% on the previous quarter, to 615 000 t, but declined by 17% on the previous quarter, while year-to-date coal sales increased by 12%, to 1.83-million tonnes.

Stanmore on Thursday maintained its full-year production guidance of 2.35-million tonnes at underlying free-on-board costs of A$107/t coal sold.

The company recently became the target of a takeover offer from shareholder Golden Investment, which will be offering Stanmore shareholders A$1 for each of their shares held.

Since announcing its intention to launch the takeover offer, Golden Investment has increased its shareholding in Stanmore from over 31% to around 51% through the purchase of on-market shares.