Slide 1: Half Year Financial Results Release
Half Year Financial Results Release Six Months Ended June 30, 2022
Slide 2: Important Information
Important Information This presentation should be read in conjunction with the announcement “SMR 2022 Half Year Accounts” released on 12 August 2022, which is available on Stanmore Resources Limited’s (“Stanmore”, “Company”) website: https://stanmore.net.au/. Forward-looking statements This document
Slide 3: Half Year 1H 2022 Highlights
Half Year 1H 2022 Highlights Strong safety performance across the Stanmore group with one recordable injury SALEABLE COAL UNDERLYING during the reporting period SAFETY – TRIFR1 PRODUCTION2 EBITDA3, 4 SMC Acquisition (formerly BMC) completed on May 3, with May/June volumes combining with 2.5 2.8M
Slide 4: Health, Safety & Environment Highlights
Health, Safety & Environment Highlights
Slide 5: Health and Safety
Health and Safety • Safety is our major focus especially as we assume direct operational responsibilities for Safety Performance South Walker Creek and Poitrel 2.5 Whole of Business TRIFR* • Strong safety culture and performance well below industry average across all sites per million hours worked 1
Slide 6: Environmental Rehabilitation
Environmental Rehabilitation Stanmore Recontouring (ha) Rehabilitation 250 200 Stanmore 628 ha Recontouring since 2015 150 100 STANMORE WILL MAINTAIN ITS TRACK RECORD OF REHABILITATION PERFORMANCE AT POITREL AND SOUTH 50 WALKER CREEK 0 2015 2016 2017 2018 2019 2020 2021 2022 Target STANMORE | HALF Y
Slide 7: Traditional Owners Engagement
Traditional Owners Engagement • Indigenous Land Use Agreements provide support and consent from traditional owners for Stanmore operations and projects Landmark Agreement • Landmark agreements with traditional owners providing: o Employment o Education Traditional Owners ILUAs at South Walker o Cult
Slide 8: Local Community Procurement
Local Community Procurement Procurement Book Over Local Buying Current Future Program State Opportunities $600m We will engage local Manage 300+ contracts and Multiple upcoming tender businesses, as well as 55K+ transactions each opportunities FORECAST FY22 ANNUAL Traditional Owner and year Long-ter
Slide 9: Consolidated Operational & Financial Results
Consolidated Operational & Financial Results
Slide 10: Production and Sales
Production and Sales South Walker Creek • Strong operational performance of 1.0Mt saleable production in May and June Stanmore Saleable Production (Mt) overcoming wet weather impacts • Improved excavator utilisation with the addition of three haul trucks combined with 3.00 strong dragline performanc
Slide 11: Financial Highlights
Financial Highlights Revenue (US$M) & Average Sale Price (US$M) Underlying FOB Cash Revenue EBITDA Cost1 Average Sales Price US$408/t US$726m US$87.3/t 1,200 US$377/t $400 1,000 US$257/t $300 US$78.2 per tonne 800 US$237/t US$41m in Full Year 2021 in Full Year 2021 US$177/t 600 $200 1,096 969 400 12
Slide 12: Financial Performance
Financial Performance Significant Uplift in EBITDA Translating to Considerable Half Year Six Months Ended June 30 (US$M) 2022 2021 NPAT Uplift from 2021 • The strong first half operational performance has translated into significant Underlying EBITDA 726.1 (10.4) Underlying EBITDA for 1H 2022 • Unde
Slide 13: Debt and Liquidity
Debt and Liquidity • Available liquidity of US$605 million, made up of cash US$546 million and undrawn debt of US$59 million • Net debt of US$258 million1, reflecting financing to support the SMC acquisition, Available Liquidity (US$M) partially offset by strong cash generation during the period Cas
Slide 14: Operating Mine Performance & Projects
Operating Mine Performance & Projects
Slide 15: Overview of Stanmore Resources Key Assets
Overview of Stanmore Resources Key Assets WARDS WELL DEVELOPMENT Rail paths THIS MAP Undeveloped underground HCC project Bowen Stanmore Tenure MINE TYPE: Underground Townsville Abbot Point Rockhampton ISAAC PLAINS COMPLEX SOUTH WALKER CREEK Brisbane Mackay Producing metallurgical coal complex compri
Slide 16: Consolidated Operating Performance Metrics
Consolidated Operating Performance Metrics ROM (Kt) Strip Ratio 4,000 10 8 3,000 6 2,000 10.7 3,890 4 7.9 8.2 7.5 2,865 1,000 5.3 1,658 2 1,109 1,024 - - 1H 21 2H 21 1Q 22 2Q 22 1H 22 1H 21 2H 21 1Q 22 2Q 22 1H 22 Saleable Production (Kt) FOB Cash Cost ex. Royalties (US$/t sold) 3,000 100 2,500 80 2
Slide 17: Isaac Plains Complex
Isaac Plains Complex Transitional Half with Isaac Plains Complex Completing the Move to Isaac Downs Saleable FOB Cash Average Production Cost1 Selling Price • Move from the Isaac Plains ‘East’ mining area into the lower ratio Isaac Downs mining lease completed during 1H 1,134Kt US$83.7/t US$311/t 20
Slide 18: South Walker Creek
South Walker Creek Smooth Integration of South Walker Creek into the Stanmore Portfolio Saleable FOB Cash Average Production2 Cost1 Selling Price • South Walker Creek (SWC) was acquired as part of the 80% acquisition of SMC on 3 May 2022 1,005Kt US$76.6/t US$435/t • SWC contributed 1.0Mt of saleable
Slide 19: Poitrel
Poitrel Strong Production at Poitrel Despite Considerable Cost Headwinds Saleable FOB Cash Average • Poitrel was also acquired as part of the 80% acquisition of Production2 Cost1 Selling Price SMC on 3 May 2022, delivering high-quality saleable production of both coking and PCI coal to market 670Kt
Slide 20: Millennium Complex (MetRes Pty Ltd) Update
Millennium Complex (MetRes Pty Ltd) Update2 Steady Production at Millennium Mine Contributing Positively to Stanmore Results Saleable FOB Cash Average • Although equity accounted as a non-controlled joint Production at 100% Cost1 Selling Price venture, Millennium contributed US$20.1 million to 321Kt
Slide 21: Significant Project Pipeline Across the Platform
Significant Project Pipeline Across the Platform THIS MAP EXPLORATION DEVELOPMENT PROJECTS PRODUCING OPERATIONS Bowen Townsville Abbot Point Rockhampton Mackenzie Brisbane Poitrel Belview Extension Wards Product Mackay Well Optimisation Dalrymple Bay ID to Poitrel Nebo Haul Road South Wards Well Coa
Slide 22: Substantial Controlled Reserves and Resources Base
Substantial Controlled Reserves and Resources Base Stanmore JORC Mineral Reserves – 100% Basis (Mt) 1, 2 • Reserves and Resource estimates noted are consistent with the 2021 annual report with the addition of Stanmore SMC, including the significant mining Proved Probable Total tenements at Poitrel,
Slide 23: SMC 20% Interest Acquisition
SMC 20% Interest Acquisition
Slide 24: Acquisition of Mitsui's 20% Shareholding of SMC
Acquisition of Mitsui’s 20% Shareholding of SMC Stanmore to Gain 100% Ownership of SMC • Agreement has been reached with Mitsui for Stanmore to acquire their 20% holding in SMC for US$380 million, to be reduced by the amount of any dividends paid to Mitsui by SMC prior to completion. Confirms Full S
Slide 25: Transaction Summary
Transaction Summary Transaction Stanmore completed its acquisition of BHP Minerals Pty Ltd’s 80% interest in BHP Mitsui Coal Pty Overview Ltd, now renamed Stanmore SMC Pty Ltd (“SMC”) through the acquisition of all of the shares in Dampier Coal (Qld) Pty Ltd (“Dampier Coal”) on May 3, 2022 Organis
Slide 26: Second Half 2022 Priorities and Outlook
Second Half 2022 Priorities and Outlook
Slide 27: Second Half 2022 Priorities
Second Half 2022 Priorities Upgrade of the Isaac Plains Coal Handling Preparation Plant (CHPP) from 500 tonnes per hour (tph) to Isaac Plains (IP) 600 tph, scheduled for 4Q 2022 1 CHPP Upgrade This, combined with the linkage to the Poitrel CHPP, will facilitate higher production and development
Slide 28: Robust Fundamentals Support Market Outlook
Robust Fundamentals Support Market Outlook Strong First Half 2022 Metallurgical Coal Prices • Metallurgical coal markets peaked at a record ~US$670 per tonne during US$/tonne March 2022 for prime hard coking coal Premium Low Vol HCC - Spot • This was driven by combination of elevated steel pricing a
Slide 29: Updated Second Half 2022 Guidance
Updated Second Half 2022 Guidance 2 months to 6 months ending Prior Guidance Delivered for May/June 2022 30 June 2022 31 Dec 2022 • Saleable volumes produced in line with market guidance Prior Prior Updated Guidance Actuals Guidance Guidance from the date of the SMC acquisition on May 3 to June 30,
Slide 30: Thank You
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