Stanmore Coal Limited Annual Report, 2016
30.09.2016 | ABN Newswire
Brisbane, Sep 30, 2016 - Stanmore Coal Limited (ASX:SMR) Directors present their report for the year ended 30 June 2016.FY16 HIGHLIGHTS
- Completion of the Isaac Plains East (formerly known as Wotonga) transaction in September 2015
- Completion of the Isaac Plains transaction in November 2015 and recommencement of mining, leading to first coal sales in May 2016
- Establishment of long term coking coal sales contracts with premium steelmill customers
- Significant JORC Resource and Reserve upgrade on 6 April 2016, with an estimated 10 years of open cut coal mining underpinned by JORC Reserves within the Isaac Plains Complex
- Highwall mining commenced at Isaac Plains in June 2016
- Continuation of exploration activity at the Clifford Project, delivering an increased JORC Resource estimate from 370 Mt to 620 Mt (Indicated 190 Mt, Inferred 430 Mt)
Principal activities
During the financial year ended 30 June 2016, the principal activity of Stanmore Coal Limited and its subsidiaries ("the Company", "the Group" or "the Consolidated Entity") was the development of operation of coal mines in Queensland, Australia. The Company announced and completed the acquisition of the Isaac Plains Coal Mine during the year ended 30 June 2016 with first commercial production and export sales occurring before year end. The acquisition of the Isaac Plains Coal Mine represents a transformational investment for the Company and has been detailed in the operating and financial review.
Operating and financial review
Stanmore Coal during the year completed the acquisition of the Isaac Plains Coal Mine and transitioned from explorer to a producing coal miner, with the first commercial sale of product coal achieved in May 2016. Highlights for the year include:
- Completion of the Isaac Plains East (formerly known as Wotonga) transaction in September 2015;
- Completion of the Isaac Plains transaction in November 2015 and recommencement of mining, leading to first coal sales in May 2016;
- Establishment of term coking coal sales contracts with premium steel-mill customers;
- Significant JORC Resource and Reserve upgrade on 6 April 2016, with an estimated 10 years of open cut coal mining underpinned by JORC Reserves within the Isaac Plains Complex4;
- Highwall mining commenced at Isaac Plains in June 2016; and
- Continuation of exploration activity at the Clifford Project, delivering an increase JORC Resource estimate from 370 Mt to 620 Mt (Indicated 190 Mt, Inferred 430 Mt)5.
The transition from explorer to an operating coal mining business is significant for the Company at a time when coal markets are showing signs of improvement after several years of decline. Given the importance of the acquisition to driving long term shareholder value, the Company's focus during the recent financial year has been heavily weighted to bedding down operations at the Isaac Plains Complex.
In addition the Company is actively reviewing further potential acquisition opportunities that offer synergies with the existing Isaac Plains Complex and provide value adding growth for shareholders.
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About Stanmore Coal Limited
Stanmore Coal Limited (ASX:SMR) is an operating coal mining company with a number of additional prospective coal projects and mining assets within Queensland's Bowen and Surat Basins. Stanmore Coal owns 100% of the Isaac Plains Coal Mine and the adjoining Isaac Plains East Project and is focused on the creation of shareholder value via the efficient operation of Isaac Plains and identification of further local development opportunities. Stanmore continues to progress its prospective high quality thermal coal assets in the Northern Surat Basin which will prove to be valuable as the demand for high quality, low impurity thermal coal grows at a global level. Stanmore’s focus is on the prime coal bearing regions of the east coast of Australia.
Contact
Stanmore Coal Limited
Mr Nick Jorss, Managing Director
T: +61-7-3238-1000
Mr Andrew Roach, Chief Financial Officer & Company Secretary
T: +61-7-3238-1000