Earnings call transcript: Stanmore Resources posts record output in Q3 2026

Stanmore Resources reported record output in Q3 2026, with its South Walker Creek mine delivering 2.8 million tonnes of run-of-mine production and 1.9 million tonnes of saleable output. The company's average sales price rose 6% to $163 per tonne, buoyed by stronger metallurgical coal markets. Notably, net debt fell to $19 million, while total liquidity expanded to $501 million.

The board declared an interim dividend of about $20 million, following an earlier postponement. Management indicated the fourth quarter should be steady, with no significant operational surprises anticipated, aside from potential weather-related risks. Stanmore's South Walker Creek mine achieved new records, while Poitrel and the Isaac Plains complex contributed to a solid quarter.

The business enters the final weeks of the year with strong stockpiles and a healthier financial position than at the end of the June quarter. Stanmore operates in the metallurgical coal market, where prices have been supported by supply disruptions in Russia and China. The company's year-to-date average sales price is 18% higher than the same period a year ago.

With a market cap of $2.26 billion and a current ratio of 37.88, Stanmore demonstrates strong liquidity. Investors viewed the update as constructive but not surprising, causing the stock to fall 0.38% to $2.62. Analysts suggest the stock may be slightly undervalued, and while a full-year production forecast and revenue guidance were not provided, quarterly results were viewed positively, highlighting strong operating performance and cash generation.