According to Mining News Pro - Stanmore Coal has achieved significant sales and revenue growth for
the 2018 financial year due to strong operational performance and
improved coal sector prices.
The company posted a 70 per cent
year-on-year (YoY) growth in EBITDA (earnings before interest, taxes,
depreciation and amortisation) to $45.5 million, up from the $26.8
million figure posted for the 2017 financial year.
The open cut
Isaac Plains East metallurgical coal project near Moranbah in the Bowen
Basin mining region of Queensland was a factor. The operation commenced
in July with a JORC 2012 resource of 11.9Mt of coal.
In June 2018, NRW subsidiary Golding Contractors won a $93 million contract extension for work at Isaac Plains East.
The
project is part of Stanmore’s wider Isaac Plains coal network, which
also includes Isaac Plains East, the existing Isaac Plains mine and
in-development Isaac Plains underground project.
In total, the project area possess JORC 2012 reserves of 157Mt overall, with 113.9Mt in the measured and indicated categories.
Isaac Plains was on care and maintenance until work recommenced in February 2016.
Revenue
was up 51 per cent to $208.1 million while gross profit was up 55 per
cent to $52.3 million. However, net profit after taxes actually fell on
2017 figures by 100 per cent from $12 million to $5.9 million, largely
due to increased expenses.
The company expects operating costs and
margins to improve in the 2019 financial year due to the integration of
Isaac Plains East and the continued ramp up of Isaac Plains underground
project, which recently moved to a bankable feasibility study (BFS) and
possesses 12.9Mt of maiden coal reserves.
“The outlook for the company as our strategy is delivered is compelling,” said Stanmore managing director Dan Clifford.
“Our
infrastructure is in place, production is increasing by 50 per cent,
costs are reducing, and we have a strong pipeline ahead of us as we take
the infrastructure to full capacity.”