Stanmore Resources Ltd · ASX:SMR
Stanmore Resources — H1 2023 Earnings Presentation
30 slides from Stanmore Resources's earnings presentation, Aug 14, 2023
Slide 1: 2023 Half Year Financial Results Release
2023 Half Year Financial Result s Release SIX MONTHS ENDED 30 JUNE 2023 14 AUGUST 2023
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: 1H2023 Highlights
1H2023 Highlight s First half results driven by strong operating performance to further strengthen Stanmore’s position following acquisitive period Safety TRIFR1 Saleable Production3 FOB Cash Cost4 2.5 6.4 Mt 97 US$ /t sold Steady TRIFR1 rate Strong operating Reflective of below run- maintained thro
Slide 4: Safety and Sustainability
Safety and Sustainability
Slide 5: Health & Safety
Healt h & Safet y Stanmore remains committed to safety as its number one priority Rolling 12-Month TRIFR1 7.9 2.5 2.5 1.5 2021 1H2022 2022 1H2023 • Commitment to safety demonstrated by stable TRIFR1 since 1H2022, despite the significant increase in workforce and ongoing integration activities follow
Slide 6: Our Sustainability Journey
Our Sust ainabilit y Jour ney Our vision is to be a leading resources company in Australia, creating value through sustainable development 1. 2. 3. Sustainability Environment Social Governance Pathway We are committed to striking Fostering strong Our robust and transparent Materiality Topics aligned
Slide 7: Highlights
Highlight s Committed to making a positive contribution in our local communities Royalties contribution to State Government Originally announced in March 2022, The collaboration with Action Drill and Blast Stanmore is pleased to announce that the Royalties to have traditional artwork by local Barada
Slide 8: Operating Performance
Operating Performance
Slide 9: Operational Highlights
Oper at ional Highlight s Robust operating performance to overcome wet weather, whilst logistics underperformance limited sales 1H2023 EBITDAa by Asset South Walker Creek Poitrel Isaac Plains Complex (US$m) • Multiple production records set during • Drill and blast as well as total material • Set to
Slide 10: South Walker Creek
Sout h Walker Cr eek 1H2023 Multiple production records supporting stable Sales8 cost base on a saleable tonne produced basis 2.9 Mt FOB Cash Cost Walk Forward Analysis4 (US$/t) 3.0Mt 2H2022 Rebased from Sales Tonnes to Produced Tonnes 2.4 1.9 2.9 79.9 2.7 75.4 1H2023 7.4 FOB Cash Cost4 72.5 US$ 80
Slide 11: Poitrel
Poit r el 1H2023 Sales8 Temporary cost impact with lower first half sales volumes from mine sequencing and previous coal flow prioritisation 1.6 Mt FOB Cash Cost Walk Forward Analysis4 2.3Mt 2H2022 Rebased from Sales (US$/t) Tonnes to Produced 49.8 Tonnes 0.4 4.6 7.4 136.4 12.3 124.1 5.4 1H2023 93.6
Slide 12: Isaac Plains Complex
Isaac Plains Complex 1H2023 Building to a record year for sales with increased Sales8 processing capacity and logistics flexibility 1.6 Mt FOB Cash Cost Walk Forward Analysis4 (US$/t) Rebased from Sales 1.2Mt 2H2022 Tonnes to Produced Tonnes 2.9 15.3 5.2 92.4 5.1 87.3 7.5 79.0 1H2023 FOB Cash Cost4
Slide 13: Consolidated Financial Performance
Consolidated Financial Performance
Slide 14: Financial Scorecard
Financial Scor ecar d Net cash5 position achieved in under 12-months from acquisition of SMC2 Underlying Operating Revenue EBITDA3,9 Cash Flow 3,9 1,493 US$ m 650 US$ m 395 US$ m 1H2022 1H2022 1H2022 1,096 US$ m 726 US$ m 563 US$ m Cash Balance10 Total Debt5,10 Net Cash5,10 421 US$ m 351 US$ m 70 US
Slide 15: Summary of Financial Performance
Summar y of Financial Per for mance Earnings remained robust in normalising price environment and despite logistics headwinds Profit and Loss Statement 3,9 (US$m) 1H2023 1H2022 • Revenue generation was driven by extra four Total Income 1,492 1,097 months of ownership of the SMC2 assets – partially o
Slide 16: Cash Flow and Capital Management
Cash Flow and Capit al Management Balance sheet deleveraged and positioned to withstand short-term market uncertainty 56 • Operating cash flows of US$395 million used to support significant 7 deleveraging of 43% of the acquisition financing facility, reducing the 316 outstanding principal balance by
Slide 17: Projects & Organic Growth
Projects & Organic Growth
Slide 18: Capital Projects
Capit al Pr oject s A significant pipeline of potential projects across the portfolio to build a strong future Final Investment Decision Internal Investment Asset Exploration Technical Studies Project Construction Mining Operations Case and Approvals Environmental / Approval Timeline Isaac Plains Pi
Slide 19: South Walker Creek Expansion Project
Sout h Walker Cr eek Expansion Pr oject Continued investment in the mine to enable a step change in production to realise greater potential ~ 6 Mtpa ~ 7 Mtpa Current Saleable Production Capacity Targeted Saleable Production Capacity by ear ly 2025 EA amendment to increase Debottlenecking of the CH
Slide 20: Lancewood
Lancewood An open cut opportunity in one of the last undeveloped premium hard coking coal deposits ML 4752 JORC Resource Lancewood Area MI&I 249Mt M 62Mt Potential Open-cut • Opportunity identified for a potential low cost of entry 2-3 excavator fleet 10-15 year open-cut operation within the Moranba
Slide 21: Market Conditions & Outlook
Market Conditions & Outlook
Slide 22: First Half Metallurgical Coal Prices
Fir st Half Met allur gical Coal Pr ices Dynamics characterised by initial supply constraints followed by softening global economic conditions US$/tonne Relativity 500 Significant wet weather 100% in January limited Concerns about Chinese supply, providing further Seasonal slowdown in economy drivin
Slide 23: Short-Term Outlook
Shor t -Ter m Out look Signs of PCI floor emerging with catalysts for near-term upside limited Supply – Increased Russian PCI trade penetration to result in Demand – softening end-use steel demand driving lower blast saturation of traditional markets furnace utilisation Australia • Third quarter has
Slide 24: Long-term Value Proposition for Metallurgical Coal
Long-t er m Value Pr oposit ion for Met allur gical Coal Steel demand expected to continue increasing, coupled with growing blast furnace fleet capacity Metallurgical Coal Remains a Key Input to Steel Making Robust Long-Term Steel Demand Fundamentals Finished Steel Demand (Mt) Iron Ore 2,250 World C
Slide 25: Growing Export Market to Meet Demand Expectations
Gr owing Expor t Mar ket t o Meet Demand Expect at ions Australia to remain the primary exporter of high quality metallurgical coal Forecast Metallurgical Coal Exports Supply Side (Mt) 350 Projections call for additional 38mt metallurgical coal 1. exports from Australia between 2022 and 2027 against
Slide 26: Global Customer Base
Global Cust omer Base Customer mix strategically balanced for long-term reliability and growth Exports by Region India Steel Making Capacity Growth (1H2023 Sales Tonnes) • Stanmore stably produces low ash coking coals with low wall pressure, ideal for Indian coke blends • Stanmore produces PCI in th
Slide 27: Guidance
Guidance
Slide 28: Guidance and Outlook
Guidance and Out look Forecast to achieve up to 13Mtpa production, supported by normalising costs in the second half 2022 1H2023 2H2023 2023 Saleable Production3 Actual Actuals Guidance Guidance • South Walker Creek at steady state for 2H2023 to achieve nameplate by full-year • Poitrel to normalise
Slide 29: Footnotes
Foot not es 1. Total Reportable Injury Frequency Rate (TRIFR), measured per million hours (industry average used is 12 month rolling average) 2. Stanmore SMC Pty Ltd (SMC), formerly BHP Mitsui Coal Pty Ltd 3. 100% consolidated, with physical statistics excluding the MetRes JV, whilst financial stati
Slide 30: 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