Stanmore Coal on Monday reported an 18% increase in underlying earnings before interest, taxes, depreciation and amortisation to $174 million for the first half of 2026, driven by higher coking coal prices despite rising costs.
The Australian miner said underlying EBITDA rose from $147 million in the same period a year earlier, as average FOB prices for premium low-volatile hard coking coal remained elevated between $120 and $250 per tonne. The company noted that higher sales prices net of royalties contributed $112 million to EBITDA growth.
Operational improvements offset some cost pressures, delivering $25 million in EBITDA benefits. However, foreign exchange movements and inflation added $78 million to costs, while higher diesel prices contributed an additional $32 million. As a result, Stanmore’s FOB cash costs rose to $101.2 per tonne from $89 per tonne in the prior-year period.
Net operating cash flow increased to $176 million from $151 million, while net debt declined to $72 million as of June 30, 2026, down from $99 million at the end of the previous period. The company paid $81 million in dividends during the half-year.
Capital expenditure totalled $39 million in H1 2026, within full-year guidance of $85 million to $95 million. Stanmore also reduced interest costs by 100 basis points on its term loan and senior revolving credit facilities, upsized the term loan to $250 million and removed $70 million in annual principal repayments.
Production remained flat at 6.5 million tonnes for the period, in line with full-year guidance of 12.8 million to 13.4 million tonnes. The company maintained its safety record with a serious accident frequency rate of 0.51, below the Queensland open-cut coal mining industry average of 0.84.
Stanmore reiterated its full-year guidance, including FOB cash costs of $98 to $103 per tonne and capital expenditure of $85 million to $95 million. The miner also highlighted progress on key projects, including the completion of the Poitrel CHPP tailings pumping project in March and the submission of the Isaac Downs Extension Environmental Impact Statement in June 2026.
