Stanmore Resources Limited (SMR) posted a strong operational recovery in its June quarterly report, reflecting a significant increase in output after weather-related disruptions earlier in the year. The company recorded Run of Mine (ROM) coal production of 5.1 million tonnes for the second quarter, marking a substantial improvement over the 4.0 million tonnes reported in the first quarter of 2026. Saleable production reached 3.3 million tonnes, keeping the company on track to meet its reaffirmed full-year production guidance.

"Stanmore delivered a strong operational performance in the second quarter, with ROM production up 27% as we recovered from the considerable first-quarter wet weather impacts." — Marcelo Matos, Chief Executive Officer & Executive Director

The operational success was supported by proactive mine sequencing and steady performance across its core assets, including the South Walker Creek project. Stockpile levels also rose by 67% during the period, providing a buffer that helps de-risk the company's production plan for the remainder of the year. Beyond existing operations, the company continues to move forward on its development pipeline; the Environmental Impact Statement for the Isaac Downs Extension was formally submitted in June, representing a key milestone in the project's regulatory approvals process. Technical work remains ongoing, with a 3D seismic program at the site expected to reach completion in late July.

Financial management remains a priority, highlighted by a comprehensive restructuring of the company’s corporate debt. Subsequent to the quarter’s end, Stanmore secured binding commitments to refinance its senior debt facilities, resulting in an upsized term loan of US$250 million, an increase from the previous US$210 million balance. This transaction transitions the debt to a bullet repayment structure, effectively removing US$70 million in annual principal repayment obligations that were previously required until mid-2029.

The refinancing deal also lowers the company's interest margin by 1.00%, reflecting an improved credit profile and strong appetite from lenders. By extending the maturity of its revolving credit facility and reducing funding costs, the company aims to optimize its capital allocation during a period of stable operations. This financial flexibility arrives as the company prepares for upcoming development studies, including further work at Eagle Downs, which is targeted for completion in the first quarter of 2027.

Investors should look toward the company's next major financial update, with the 2026 half-year financial results scheduled for release in late August. This upcoming report is expected to provide further clarity on the financial outcomes of these operational and debt-related initiatives, alongside broader performance metrics for the half-year period. Management remains focused on maintaining the safety discipline recorded throughout the recent quarter, during which the company reported no serious accidents and kept its safety performance ahead of the industry average.

Read the full announcement: Quarterly Activities Report Q2 2026