Stanmore Resources Limited (SMR) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

I would now like to hand the conference over to Mr. Marcelo Matos, Executive Director and CEO. Please go ahead. Hi, all, and thank you for joining us today as we discuss our performance for the first quarter of 2025 following the release of the activities report this morning. It is no secret that it has not been an easy quarter in the Bowen Basin with rainfall of more than 470 millimeters from January to March. which is almost 80% of the annual average for the previous five years. This has understandably impacted operations and the whole logistics chains, whilst also coinciding subdued demand in the metallurgical coal markets, which has driven down the headline coal prices to a level not seen since mid-2021. Nonetheless, we are proud of the efforts from our side teams in managing these headwinds, to deliver saleable coal production of 3.3 million tons, although below our guidance on an analyzed basis. This result is above market consensus, given the expected weather impacts and in line with the prior quarter. Moreover, we are pleased to have kept full-year saleable production guidance unchanged, owing to the recovery plans being underway and the underlying resilience of our assets. In recognition of the market conditions, we have also announced a reduction in the guidance range for both FOB cash costs and capital expenditure, further solidifying our cost-competitive position. On a deeper note, we have maintained our focus on project development pipeline and are pleased to have announced the maiden JORC-compliant reserve statement for the combined Isaac Downs Extension project. Opening with safety. We are glad to report that no serious accidents occurred during the quarter, reducing our serious accident frequency rate to 0.15. This is a great start to 2025, and we are...