Slide 1: 2024 Half Year Financial Results Release
2024 Half Year Financial Result s Release Six months ended 30 June 2024 26 AUGUST 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: 1H2024 Key Highlights
1H2024 Key Highlights Saleable FOB Safety Production Cash Cost3 0.48 SAFR1 6.8Mt 91 US$ /t Compared to industry Tracking in-line with A decrease of 6% vs. average of 0.562 upper end of full-year 1H2023, supported by guidance strong volumes Underlying EBITDA4 Dividend 375 US$ m 4.4 US cps Reflecting n
Slide 4: Metallurgical Coal Markets
Metallurgical Coal Mar ket s
Slide 5: Product Mix and Customer Base
Pr oduct Mix and Cust omer Base Continued focus on traditional markets, with India and SEA set for growth Product Mix Customer Mix (1H 2024, by revenue) (1H 2024, by tonnes) 4% Europe 37% 26% Japan, Korea, Taiwan 42% 59% India 20% South-East Asia Coking Coal 4% Other (8%) PCI Thermal Queensland STAN
Slide 6: Historical Price Trends
Hist or ical Pr ice Tr ends Metallurgical coal market range-bound, with PCI relativities normalised US$/tonne Strong India 400 demand through Ongoing glut of late 2023 provides Chinese steel exports price support compressing steel 350 margins Constrained supply Supply normalises, Supply risk of prem
Slide 7: Short-Term Market Drivers
Shor t -Ter m Mar k et Dr iver s Competitive steel export market driven by China, impacting seaborne metallurgical coal Chinese Monthly Finished Steel Exports (Mt, Annualised) Australian Monthly Metallurgical Coal Exports (Mt, Annualised) 2019 2020 2021 2022 2023 2024 YTD 2021 2022 2023 2024 YTD Feb
Slide 8: Operating Performance
Operating Per for mance
Slide 9: Safety & Sustainability
Safet y & Sust ainabilit y We acknowledge that our operations have a direct impact on the environment and the communities in which we operate, and we are strongly committed to minimising this impact Health and Safety SAFR1 and Industry Average 2023 Sustainability Report • SAFR1 increased from releas
Slide 10: South Walker Creek
Sout h Walker Cr eek Production performance remaining strong amidst continuing mobilisation of expansion fleets Saleable Coal Production (Mt)6 6.3 5.9Mt – 6.1Mt 2024 Sales 3.2Mt 4.0 3.2 2.9Mt 1H 2023 2022 2023 1H 2024 FOB 2H 2024 Guidance Range Cash Cost 3 • Record blast volume and total stripping of
Slide 11: Poitrel
Poit r el Consistent coal production despite focus on stripping during first half Saleable Coal Production (Mt)6 Sales 4.0 4.1Mt – 4.4Mt 2.3Mt 2.8 2024 2.1 1.6Mt 1H 2023 FOB Cash Cost 3 2022 2023 1H 2024 2H 2024 Guidance Range 100 US$ /t US$136/t 1H 20236 • Strong opening stocks from the advancement
Slide 12: Isaac Plains Complex
Isaac Plains Complex Recovery of coal production, following wet weather early in the period to maintain guidance Saleable Coal Production (Mt)6 2.9 2.4 2.6Mt – 2.9Mt 2024 Sales 1.3 1.3Mt 1.6Mt 1H 2023 2022 2023 1H 2024 FOB 2H 2024 Guidance Range Cash Cost 3 • Strong saleable coal production recovery
Slide 13: Financial Results
Financial Result s
Slide 14: Financial Scorecard
Financial Scor ecar d Ongoing strength in financial performance, enhancing balance sheet strength and shareholder returns • XXX Total • XXX • XXXX Underlying Operating Income EBITDA4 Cash Flow 1,327 US$ m 375 US$ m 208 US$ m 1,492 US$ m 1H 20236 650 US$ m 1H 20236 395 US$ m 1H 20236 Refinancing Net Ca
Slide 15: Underlying EBITDA Walk Forward
Under lying EBITDA Walk For war d Robust EBITDA performance with strong volumes partially offsetting the impact of lower prices Underlying EBITDA4 Walk-Forward (US$m) • Normalised price environment, with Average Sales Price reducing US$75/t compared to 1H 2023, partially offset by lower average FX 6
Slide 16: FOB Cash Cost Walk Forward
FOB Cash Cost Walk For war d Cash costs lower year-on-year, with comparative period impacted by timing FOB Cash Cost Walk Forward Analysis3 • Inflationary impacts were offset by lower average (US$/t) FX half-on-half • Higher volumes half-on-half across South Walker Creek and Poitrel, with lower sales
Slide 17: Summarised Financial Results
Summar ised Financial Result s Strong volumes support earnings generation despite lower pricing environment Profit and Loss Statement 6 1H 2024 1H 2023 • Revenue from coal sales 18% lower year-on-year, Total Income 1,327 1,492 with higher sales volumes offsetting a 30% reduction in Average Sales Pric
Slide 18: Capital Expenditure
Capit al Expendit ur e Major project spend weighted more heavily toward 1H 2024 Capital Expenditure Build-Up (US$m) $165 - $185m • Capex in line with full-year guidance range, noting 2024 Guidance heavier weighting of project spend planned for the first half • MRA2C (SWC) – 85% of Creek Diversion wor
Slide 19: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet Growth in net cash position further enhances strength of balance sheet Cash Flow Walk Forward5 (US$m) • Numerous one-off cash flows settled during the first half, including a US$170 million tax payment relating to a prior period and US$134 million in proceeds (net of FX) fr
Slide 20: Corporate Refinance
Cor por at e Refi nance Stanmore has closed a comprehensive process to establish new senior corporate facilities to refinance existing debt Previous Financing Structure Refinanced Debt Facilities (US$m)12 (US$m) • Stanmore is pleased to announce that it has received binding commitments to refinance the
Slide 21: Production and Cost Guidance
Pr oduct ion and Cost Guidance Guidance updated for higher sales volumes and closure of Mavis Downs Underground 1H 2024 Previous Guidance13 Current Guidance14 Actuals 2024 2024 Saleable Production • 1H 2024 meeting upper-end of guidance Saleable Production Mt 6.8 12.8 – 13.6 12.8 – 13.6 on an annual
Slide 22: Projects & Growth
Projects & Gr owt h
Slide 23: Capital Investment Program and Organic Growth Pipeline
Capit al Invest ment Pr ogr am and Or ganic Gr owt h Pipeline Significant progress of growth and improvement projects at South Walker Creek & Poitrel 2022 2023 2024 Future Acceleration of Further Investment Execution and Significant Portfolio Essential Projects to Support Growth Project Delivery Growt
Slide 24: Capital Projects Highlights
Capit al Pr oject s Highlight s Update on key South Walker Creek Projects CHPP Dr agline Expansion Upgr ade Supporting Expansion Conversion to AC at Project at South Walker South Walker Creek Creek Clearing and AC upgrade completed late grubbing works July, solidifying long-term reliability and impr
Slide 25: South Walker Creek Gas to Power Project
Sout h Walker Cr eek Gas t o Power Pr oject Major milestone in meeting our decarbonisation objectives Project Highlights & Funding 20 MW 15 yr PPA LEIP • Project for a new gas to electricity project at South Walker Creek • Supported by the Queensland Government’s Low On-site gas power Long term PPA
Slide 26: Acquisition of Eagle Downs
Acquisit ion of Eagle Downs Large Premium Hard Coking Coal Resource Strategically located nearby Stanmore’s Existing Assets Transaction Overview Strategic Rational Tenure Location • Stanmore announced • Fully permitted underground coal development transactions to acquire a project, strategically loc
Slide 27: 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
Slide 28: Glossary of Terms and Footnotes
Glossar y of Ter ms and Foot not es Term Meaning 1. Serious Accident Frequency Rate (SAFR), measured per million hours (industry average used is 12 month rolling average) A$ Australian Dollar 2. Reported as of March 31, 2024, by Resources Safety and Health Queensland AC Alternating Current FOB cash