Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — FY2021 Earnings Presentation
22 slides from Stanmore Resources's earnings presentation, February 2022
Slide 1: Financial Results Release
FINANCIAL RESULTS RELEASE Full year ended 31 December 2021
Slide 2: FY21 Highlights
FY21 HIGHLIGHTS SALEABLE COAL SAFETY – TRIFR1 PRODUCTION FOB CASH COST3 7.9 2,070Kt $104/t vs industry average of 1,263kt in H2 $87/t in H2 8.12 vs 807kt in H1 vs $114/t in H1 UNDERLYING OPERATING CASH EBITDA SHARE PRICE FLOW $54m $1.04 $127m vs $24m for CY20 vs $0.81 as at vs -$28m for CY20 31-Dec-
Slide 3: Business Update
BUSINESS UPDATE 2021 was a transitional year for Stanmore, ending with the successful transition to Isaac Downs and the transformational agreement to acquire an 80% interest in BMC GEAR Completes Start of Isaac Downs Exploration Isaac Downs mining BMC Acquisition acquisition of 75% Bulk Sample Pit l
Slide 4: Acquisition of BMC
ACQUISITION OF BMC Definitive agreement with BHP to acquire its 80% interest in BMC, which owns the South Walker Creek and Poitrel operating mines and the Wards Well underground development project Bowen THIS MAP Abbot Point Wards Well Development Townsville Undeveloped underground HCC project MINE
Slide 5: Acquisition of BMC
ACQUISITION OF BMC With the acquisition of BMC, Stanmore is on track to become a leading Australian supplier of metallurgical coal to global markets Following acquisition SMR will have: BMC Investment Highlights Stanmore will be positioned as one of the largest global Ability to increase exporters o
Slide 6: Operational and Financial Results
02 OPERATIONAL AND FINANCIAL RESULTS
Slide 7: Health, Safety, Environment and Community
HEALTH, SAFETY, ENVIRONMENT AND COMMUNITY Stanmore is committed to the health, safety and wellbeing of our people, the environment and the communities in which we operate TRIFR1 Rehabilitation 7.9 44Ha • TRIFR remains lower than industry averages Community Funding to • Several grants, sponsorships,
Slide 8: Production and Sales
PRODUCTION AND SALES • Record H2 2021 production in all aspects including ROM, Stanmore Saleable Production (Mt) product, CHPP feed, and sales 1 ‒ H2 2021 ROM production at c.95% of current 0.9 nameplate capacity of the Isaac Plains CHPP 0.8 ‒ Despite production being impacted from the onset of La N
Slide 9: Financial Highlights
FINANCIAL HIGHLIGHTS Quarterly Revenue (A$M) and Average Sale Price (ASP) Revenue Average Sale Price A$257/t A$177/t Underlying FOB Cash Cost1 A$122/t EBITDA A$111/t $87/t in H2 $54m vs $114/t in H1 58 36 128 161 127% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 • Significant increase in average selling price ea
Slide 10: Underlying EBITDA vs Operating Cash Flow
UNDERLYING EBITDA VS OPERATING CASH FLOW Full Year Operating Cash Flows Underlying EBITDA vs Operating Cash Flow (A$M) are +$73m Higher than 2021 Underlying EBITDA: • Trade & Other Receivables: Reflects timing of collections for realised sales as at 31 Dec impacted by higher realised prices in Q4-21
Slide 11: Financial Performance
FINANCIAL PERFORMANCE YE 31 DEC (A$M) CY21 CY202 Underlying EBITDA 54.4 24.0 Depreciation and amortisation (26.8) (30.6) Non-Operating Adjustments1 3.4 10.0 Profit / (loss) before income tax and finance expenses 31.1 3.4 Net finance costs (15.3) (9.9) Income tax expense (5.4) (1.6) Profit / (loss) f
Slide 12: Debt and Liquidity
DEBT AND LIQUIDITY • Available liquidity of $68m, made up of cash $63m and Available Liquidity (A$M) undrawn debt $5m • Net debt of $41m, reflecting support for the capital requirements of the Isaac Downs and Millennium & Mavis mine development, as well as BMC acquisition • Existing revolving facili
Slide 13: Operational Performance
\\ s§ stanmore 7) IK OPERATIONAL PERFORMANCE
Slide 14: Historical Operating Performance
HISTORICAL OPERATING PERFORMANCE ROM (Kt) Strip Ratio 2,768 1,658 3,003 2,943 2,262 13.4 1,110 9.7 10.9 10.7 7.9 2018 2019 2020 2021 Full Year H1 H2 2018 2019 2020 H1 2021 H2 2021 Saleable Production (Kt) FOB Cash Cost ex. Royalties (A$/t sold) 2,069 2,642 1,262 2,262 1,594 111 122 114 100 87 807 20
Slide 15: Isaac Plains Complex
ISAAC PLAINS COMPLEX • Transition from Isaac Plains East to Isaac Downs well progressed: – Bulk sample pit successfully mined and facilitated testing of Saleable FOB proposed product coal cargos Production Cash Cost1 – The Isaac Downs mining leases granted extending life by 5+ years – EPSA Pacific a
Slide 16: Millennium Complex
MILLENNIUM COMPLEX Poitrel Mine Millennium and Mavis Downs Pits • Acquisition from Peabody Energy completed in July 2021 (Stanmore 50% ownership) Millennium Millennium • PIMS Mining awarded the underground mining services contract at a Complex Complex value of $425 million Reserves Resources • First
Slide 17: BMC Assets
BMC ASSETS South • Open-cut coal mine located approximately 35km Walker west of Nebo in the northern region of the Bowen Creek Basin Reserves Resources – It produces high quality, low volatile PCI coal for export – Commenced production in 1996 171Mt1 2,245Mt1 – 25+ year mine life – JORC Marketable R
Slide 18: Reserves and Resources
RESERVES AND RESOURCES • Mineral Reserve Estimates at Isaac Plains, Isaac Plains East Stanmore Mineral Resources and Isaac Downs have been updated, which has taken account as at end December 2021 of any mining depletion during 2021 and as applicable, all new Measured Indicated Inferred Total mine pl
Slide 19: Outlook
04 OUTLOOK
Slide 20: FY22 Priorities
FY22 PRIORITIES • Transfer dragline to Isaac Downs and operate in areas with strip ratio lower than Isaac Plains Deliver on de- East 1 risked Isaac Downs project • Achieve targeted ROM capacity of 4.0Mtpa with increased CHPP capacity to support rapid coal uncovery Commence • Continue to ramp up prod
Slide 21: Strong Coal Market Dynamics
STRONG COAL MARKET DYNAMICS Historical benchmark prices (US$/t) 500 • Record metallurgical coal prices – Tight supply due to various supply issues in Australia, Russia, US, 450 Mozambique, Canada and Mongolia over past several months – Strong demand from rebounding global industrial production and 4
Slide 22: Important Information
IMPORTANT INFORMATION This presentation should be read in conjunction with the announcement “SMR 2021 Annual Financial Report” released on 16 February 2022, which is available on Stanmore Resources Limited’s (“Stanmore”, “Company”) website: https://stanmore.net.au/. Forward-looking statements This d