PERTH (miningweekly.com) – Coal miner Stanmore has reported an 852% increase in revenue for the full year ended December, and a 10 597% increase in net profits, following its $1.35-billion deal with diversified miner BHP and Mitsui & Co to acquire an initial 80% interest in the SMC asset last year.
The company at the end of the year acquired the remaining 20% interest in the BMC assets for a further $270-million, renaming the assets Stanmore SMC.
As a result, run-of-mine coal production increased from the 2.8-million tonnes reported in the 2021 financial year to 13.5-million tonnes at the end of 2022, with saleable coal production rising from 2.2-million tonnes to 9.3-million tonnes. Total coal sales increased from 2.2-million tonnes to 9.4-million tonnes.
Revenue in the full year increased from the $284-million reported in 2021 to $2.6-billion, while earnings before interest, taxes, depreciation and amortisation (Ebitda) increased from $34-million to $1.12-billion.
Profits after tax for the year increased from $7-million to $727-million.
“This has truly been an exciting year for Stanmore. We completed the acquisition of the SMC assets, including the South Walker Creek and Poitrel mines, and welcomed new employees and contractors into the Stanmore family. We completed the transition of operations to Isaac Downs, which coincided with commencement of a new mining services operator and owner‐operating our coal handling and preparation plant (CHPP) at the Isaac Plains Complex,” said Stanmore CEO Marcelo Matos.
“The second half of the year saw the full integration of the Poitrel and South Walker Creek mines and the commencement of synergistic benefits, including coal blending and the trucking of Isaac Plains run-of-mine coal for washing at the Poitrel CHPP and expected operational improvement initiatives.”
He added that Stanmore’s 2022 financial performance had been strong, generating significant underlying Ebitda and operating cash flows, despite only eight months of ownership of the South Walker Creek and Poitrel assets and wet weather, with no disruptions despite the significant integration and transition process involved in such a large‐scale acquisition.
“This has enabled us to strengthen our balance sheet through deleveraging and position Stanmore well for future growth and value delivery.
“While the unprecedented market prices in the first half of 2022 have somewhat softened in recent months, primarily due to the impact of global inflationary pressures, global supply chain disruptions and tightening monetary policy impacts on consumption and global growth, we remain confident on metallurgical coal market fundamentals going forward with long-term demand supported by the continued growth in steel production and the industrialisation of South‐East Asia and India,” Matos said.