Stanmore Resources Ltd (STMRF) Full Year 2025 Earnings Call Highlights: Record Production and …

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Mon, February 23, 2026 at 6:00 PM GMT+9 3 min read

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This article first appeared on GuruFocus.

Release Date: February 23, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Stanmore Resources Ltd (STMRF) achieved a record production year of 14 million tons, translating into strong sales volume performance.

The company maintained low FOB cash costs year on year at $87.8 per ton, within the revised guidance range.

Underlying EBITDA for 2025 was $385 million, supporting robust cash flow generation and a modest net debt position of $33 million.

A final dividend of 8.9 US cents per share was declared, totaling $80 million, reflecting strong shareholder returns.

The liquidity position remains strong, with almost $500 million available, supported by an upsizing of bank revolving credit facilities.

Negative Points

The company faced challenging operating conditions and market environment throughout the year.

Non-controllable cost increases, including inflation and foreign exchange impacts, affected financial performance.

The Isaac Plains complex will see a planned reduction in output, reflecting a strategic shift to maximize dragline utilization.

FOB cash costs are expected to be impacted by inflationary pressures and a higher Australian dollar in 2026.

The approval process for the Isaac Downs extension project poses a risk of delays, potentially affecting future production continuity.

Q & A Highlights

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Q: Can you outline the non-controllable costs that impacted the 2025 financial results? A: Shane Yang, CFO: The non-controllable costs primarily include year-on-year inflation, cost increases through rise and fall mechanisms within established contracts, annual salary changes, and foreign exchange impacts. Our costs are reported in US dollars, but many are incurred in AUD, exposing us to exchange rate fluctuations.

Q: What is the foreign exchange assumption for 2026? A: Shane Yang, CFO: For 2026, we have assumed a 68% exchange rate for the year.

Q: Are there further operational efficiencies to be gained within the existing business footprint? A: Marcello Mattos, CEO: Yes, we have a well-mapped improvement pipeline with potential initiatives for cost and productivity improvements. While some adjustments at Isaac Plains are natural, we are focusing on maximizing cash outcomes rather than just higher volume. At South Walker Creek, we are exploring ways to accelerate mining in high-margin areas, though benefits may not be realized until 2027.

Story Continues  

Q: Is there potential to further increase the wash plant capacity? A: Marcello Mattos, CEO: The existing wash plant is maxed out in terms of value-accretive expansion and is real estate constrained. Any further expansions would require significant investment elsewhere on the mine site. We are focusing on maximizing utilization of the current setup.

Q: Will there be an update on the Isaac Downs extension project once optimization initiatives are finalized? A: Marcello Mattos, CEO: Yes, we plan to provide the market with an update. The project is progressing well, with a focus on obtaining approvals. We are optimizing mine plans to reduce costs and improve project economics.

Q: What are the key factors influencing the decision to proceed with the Eagle Downs project? A: Marcello Mattos, CEO: Key factors include market conditions, funding solutions, and regulatory settings. We are working on ensuring the project is attractive from all angles, including production expectations and cost management. The decision will also consider trade-offs with other growth options.

Q: Are there productivity benefits expected from the new fleet at South Walker Creek? A: Marcello Mattos, CEO: Yes, we are receiving 31 brand new trucks and new diggers, which are expected to enhance productivity. The new mining services contract with Golding aligns incentives towards productivity and production improvements.

Q: Can you provide an update on the Anglo sales process? A: Marcello Mattos, CEO: Unfortunately, I cannot comment on the ongoing process. We are always looking at opportunities.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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