Slide 1: 2023 Full Year Financial Results Release
2023 Full Year Financial Result s Release Twelve months ended 31 December 2023 26 FEBRUARY 2024
Slide 2: Important Information
Impor t ant Infor mat ion Forward-looking statements This document contains certain “forward-looking statements”. The words “forecast”, “estimate”, “like”, “anticipate”, “project”, “opinion”, “should”, “could”, “may”, “target” and other similar expressions are intended to identify forward looking st
Slide 3: 2023 Highlights
2023 Highlights Saleable FOB Safety Production Cash Cost3 0.19 SAFR1 13.2Mt 86 US$ /t Below industry Above upper-end of Below guidance range average of 0.57 2 1 3.0Mt guidance, driven US$87-93/t achieved, by multiple production supported by strong Underlying records sales volumes EBITDA4 Dividend 1,
Slide 4: Safety & Sustainability
Safety & Sust ainabilit y
Slide 5: Health & Safety
Healt h & Safet y Safety is paramount to everything we do at Stanmore, and remains our top priority Rolling 12-Month TRIFR8 and SAFR1 (per Million Hours) • The SAFR1 rate remained below the latest reported industry 3.4 average, although one serious 3.2 accident was recorded in 3.0 December 2.5 2.1 •
Slide 6: Our Sustainability Performance
Our Sust ainabilit y Per for mance We aspire to positive legacy in the regions in which we operate We aim to operate in a responsible manner – in a way that balances short and long-term interests, and integrates economic, environmental and social considerations, and our governance obligations Enviro
Slide 7: Rehabilitation
Rehabilit at ion Substantial rehabilitation completed, with focus on exceeding statutory requirements in areas where future mining is not viable 191ha of Rehabilitation across the Group in 2023 Isaac Plains Rehabilitation STANMORE | 2023 FULL YEAR RESULTS 7
Slide 8: Community and People
Communit y and People Stanmore is proud of its contributions to the regions in which we operate Regional Female Indigenous Employment 9 Participation9 Representation9 507 19% 7.8% Comprising 67% of the Positive approach Of the total personnel total employed to diversity pool (including major workfor
Slide 9: Metallurgical Coal Markets
Metallurgical Coal Mar ket s
Slide 10: Our Customer Base Focused on Key Seaborne Markets
Our Cust omer Base Focused on Key Seabor ne Mar ket s Global reach with customers located in long-term stable markets and growth regions Product and Customer Mix (by sales tonnes, 2023) 2.7% of Revenue 7.0% Europe 32.0% 21% Japan, Korea, Taiwan 50% India 61.0% 20% South-East Asia 5% Coking Coal Othe
Slide 11: Total Steel Capacity Growth Set to Continue
Tot al St eel Capacit y Gr owt h Set t o Cont inue India and South-East Asia key drivers of projected increase in global steel output Forecast Change in Total Crude Steel Production by Region to 2050 • Steel forecast to remain the world’s largest metals market and continue World 17% growth trajector
Slide 12: Conventional Steel Making to Increase in Growth Regions
Convent ional St eel Making t o Incr ease in Gr owt h Regions BOF steel making forecast to remain primary means of steel production, driven by expansion in India and SEA 60% 700 Ex-China BOF Steel Production Forecast 600 50% 656 • Ex-China BOF steel making forecast to continue to grow, whilst EAF ba
Slide 13: PCI Value in Use to Support Steady Demand
PCI Value in Use t o Suppor t St eady Demand Growth in Indian demand forecast to align with Australian PCI supply by 2050 Share of PCI seaborne import demand and supply by region (%) 160% • Stanmore produces benchmark grade PCI with a 79 80 high replacement ratio of coke in the Blast 140% 74 Furnace
Slide 14: Demand Increase Calls for Growing Australian Supply
Demand Incr ease Calls for Gr owing Aust r alian Supply Growing ex-China BOF steel making supportive of seaborne metallurgical coal demand 300 Forecast change in seaborne 90 metallurgical coal supply 60 by product type (Mt) 79 80 51 • Australia is set to retain the 243 74 5 250 50 47 dominant share
Slide 15: Historical Price Trends & Short-Term Outlook
Hist or ical Pr ice Tr ends & Shor t -Ter m Out look Metallurgical coal prices remained strong through 2023, two-tier market established in second half US$/tonne Wet weather driving tight 400 supply environment, flowing through to Upside Risks higher prices Supply side constraints resulting in const
Slide 16: Short-Term Supply Dynamics
Shor t -Ter m Supply Dynamics Tight conditions providing support for hard coking coal prices, with increased volumes from Russia continuing to impact on other grades Annual Metallurgical Coal Exports by Country (Mt) QLD Coal Shipments by Year (Mt) Lowest Australian annual exports since 2012, reflect
Slide 17: Operating Performance
Operating Per for mance
Slide 18: Operating Summary
Oper at ing Summar y Strong operating performance coupled with cost management and supportive market conditions Production (Mt) FOB Cash Cost 3 and ASP (US$/t) 290 18.4 • First full year of production with South Walker Creek and Poitrel in the portfolio 214 13.5 • Saleable production exceeded 13.2 g
Slide 19: South Walker Creek
Sout h Walker Cr eek Multiple annual production records achieved supported by steady cost base Full Year Full Year 2023 202210 ROM Coal Produced ROM Strip Ratio Mt Prime 8.0 8.3 5.4 7.8 Sales11 Saleable Coal Produced Total Coal Sales11 Product Coal Stockpile Mt Mt Mt 6.3 6.1 0.4 4.0 4.1 0.1 6.1Mt RO
Slide 20: Poitrel
Poit r el Consistent production performance supported by the recovery of sales volumes during the second half Full Year Full Year 2023 202210 Sales11 ROM Coal Produced Mt 6.9 4.2 ROM Strip Ratio Prime 6.7 8.4 4.0Mt Saleable Coal Produced Total Coal Sales11 Product Coal Stockpile Mt Mt Mt 4.0 4.0 0.3
Slide 21: Isaac Plains Complex
Isaac Plains Complex Record saleable production achieved in 2023 contributing to improved annual sales performance Full Year Full Year 2023 2022 ROM Coal Produced Mt 3.6 3.9 ROM Strip Ratio Prime 7.9 5.6 Sales11 Saleable Coal Produced Total Coal Sales11 Product Coal Stockpile Mt Mt Mt 2.9 3.1 0.0 2.
Slide 22: Financial Results
Financial Result s
Slide 23: Financial Performance
Financial Per for mance Delivering on earnings potential and continuing to generate significant shareholder value Share Price Performance Underlying Operating Income EBITDA4 Cash Flow Dec ’23 2,807 US$ m 1,100 US$ m 737 US$ m A$4.01 202210 202210 202210 2,699 US$ m 1,456 US$ m 1,182 US$ m Special Di
Slide 24: Summarised Financial Results
Summar ised Financial Result s Strong performance reflective of full year of ownership of the SMC assets Profit and Loss Statement 4,13 (US$m) Underlying EBITDA4 Walk-Forward (US$m) Profit and Loss Statement 4,13 (US$m) 2023 2022 Total Income 2,807 2,699 Extra 4-months 1,456 ownership Expenses (1,70
Slide 25: Dividends and Capital Management
Dividends and Capit al Management Dividend declared of 8.4 US cps, building on strong shareholder returns in 2023 Dividend Determination (US$m) 2023 Cash Flow from Operating Activities 737 • The Board has resolved to declare Capital Expenditure (193) a dividend of 8.4 US cps, Debt Servicing (Excl. D
Slide 26: Balance Sheet Management
Balance Sheet Management Strong operating cash flows supporting a debt reduction of almost 50% during 2023, organic development and shareholder returns • Finishing the year with aggregate cash of Change in Net Cash (Debt)12 (US$m) US$446 million, despite reducing gross debt by 48% in 2023 737 550 •
Slide 27: Capital Expenditure
Capit al Expendit ur e Approximately 60% of total 2023 capital expenditure dedicated to growth and improvement projects Major Projects Break-up of 2023 Capital Expenditure Total material movement remains ahead of schedule with the 66Kva Powerline MRA2C relocation completed and 75% of Water Infrastru
Slide 28: Projects & Growth
Projects & Gr owt h
Slide 29: South Walker Creek
Sout h Walker Cr eek Pipeline of improvement and growth projects to strengthen South Walker Creek’s status as world- class asset US$125m budget US$69m budget MRA2C 21% Spend to date 19 SWC Expansion 18% Spend to date 19 Project summary Project Summary • Provides access to high quality, low strip • I
Slide 30: Poitrel
Poit r el Improvement projects at Poitrel well progressed in 2023 US$85m budget US$32m budget R10 Box-Cut 76% Spend to date R30 Levee 75% Spend to date R30 Levee 19 19 Project summary Project summary • Sustains production in the short • Construction of levee to 1:1000- 1:1000-year flood term year fl
Slide 31: Mavis Downs Development
Development Mavis Downs underground activities continued ramp up in 2023, with studies ongoing ahead of Lancewood pre-feasibility later in 2024 Millennium Complex Mavis Project Summary • Acquisition of the remaining 50% interest in MetRes JV completed December 21, 2023, Downs with the relevant proje
Slide 32: Acquisition of 50% Interest in Eagle Downs
Acquisit ion of 50% Int er est in Eagle Downs Significant resource base of high quality hard coking coal, strategically located nearby existing assets Summary and Strategic Rationale18 Moranbah North Coppabella North Burton Broadlea Annandale East Grosvenor Isaac Annandale World-Class Low up-front c
Slide 33: Updated Guidance
Updated Guidance
Slide 34: Production and Cost Guidance
Pr oduct ion and Cost Guidance 2024 guidance update to incorporate the Millennium Complex into consolidated guidance Previous Guidance20 Current Guidance21 2024 2024 Saleable Production • Incorporation of the Millennium Complex Saleable Production Mt 12.3 - 13.0 12.8 – 13.6 post 100% acquisition see
Slide 35: Glossary of Terms and Footnotes
Glossar y of Ter ms and Foot not es A$ Australian Dollar AC Alternating Current 1. Serious Accident Frequency Rate (SAFR), measured per million hours (industry average used is 12 month rolling average). Calendar year 2023 SAFR corrected to 0.19, from ACCU Australian Carbon Credit Unit 0.016 as repor
Slide 36: Contacts
Cont act s Invest or s Investors@stanmore.net.au +61 (7) 3521 8317 Media Media@stanmore.net.au +61 (7) 3238 1000 Regist er ed Addr ess Level 32, 12 Creek Street Brisbane, QLD, Australia, 4000 GPO Box 2602 Brisbane, QLD, Australia, 4000