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.”