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Stanmore Coal, with a market capitalization of $4.8 billion, reported its Q1 2025 financial results, highlighting a significant improvement in cash flow and liquidity despite a challenging coal market. The company’s stock saw a modest increase of 1.6%, closing at $1.87, though InvestingPro data shows the stock has experienced a 21.5% decline over the past six months. While there was no specific earnings forecast provided, the company’s focus on cost management and strategic project developments were key discussion points. Stanmore’s performance was influenced by fluctuating metallurgical coal prices and strategic operational adjustments. According to InvestingPro analysis, the company maintains a "Fair" overall financial health score.
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Key Takeaways
- Stanmore Coal’s cash balance improved to $224 million by April.
- Saleable coal production was 3.3 million tons, with a reduction in full-year guidance by 200,000 tons.
- Metallurgical coal prices fluctuated, affecting market conditions.
- The company reduced FOB cash cost guidance to $85-90 per ton.
- Capital expenditure guidance was cut by 20% to $80-90 million.
Company Performance
Stanmore Coal’s financial performance in Q1 2025 reflected a mixed environment, with the company managing to maintain liquidity despite market challenges. The company reported a closing cash balance of $169 million and total liquidity nearing $400 million. Net debt increased significantly, highlighting the impact of strategic investments and dividend payments. The company’s production was affected by adverse weather conditions, yet it maintained a focus on cost competitiveness and operational efficiency.
Financial Highlights
- Closing cash: $169 million
- Total liquidity: nearly $400 million
- Net debt: Increased to $146 million from $26 million at 2024 year-end
- Dividend paid: $60 million in March
- Cash balance (April): Improved to $224 million
Outlook & Guidance
Stanmore Coal anticipates a challenging first half of 2025, with expectations of a market recovery in the second half. The company has deferred non-essential capital works to 2026 and expects positive impacts from new coal plant commissions in India. Despite lowering its full-year saleable production guidance, Stanmore remains optimistic about future market conditions.
Executive Commentary
Marcelo Matas, CEO, noted, "2025 is shaping to be a tale of two halves with a more challenging first half with recovery underway and a stronger second half." This reflects the company’s strategy to navigate current market conditions and focus on long-term growth. CFO Shane emphasized the company’s robust cash flow, stating, "We are still generating cash flows," underscoring the financial resilience amid market volatility.
Risks and Challenges
- Fluctuating coal prices: The volatility in metallurgical coal prices poses a risk to revenue stability.
- Weather impacts: Adverse weather conditions have already affected production and could continue to pose challenges.
- Market conditions: Chinese steel exports and supply risks in Australia present ongoing market challenges.
- Cost management: Achieving cost reduction targets is crucial for maintaining competitiveness.
- Regulatory changes: Potential regulatory changes in key markets could impact operations and profitability.
Q&A
During the earnings call, analysts inquired about Stanmore’s sustainable cost-cutting measures and the details of the Isaac Plains extension project. The company confirmed its commitment to remaining cash flow positive and provided insights into current coal market dynamics and pricing strategies.
Full transcript - Stanmore Coal (SMR) Q1 2025:
Conference Moderator: I would now like to hand the conference over to Mr. Marcelo Matas, Executive Director and CEO.
Please go ahead.
Marcelo Matas, Executive Director and CEO, Stanmore: Hi, all, and thank you for joining us today as we discuss our performance for the first quarter of twenty twenty five following the reviews 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 four seventy 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 level not seen since mid-twenty twenty one. Nonetheless, we are proud of the efforts from our site teams in managing these headwinds to deliver saleable coal production of 3,300,000 tons, although below our guidance on an annualized 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 different note, we have maintained our focus on project development pipeline and are pleased to have announced the maiden job compliant reserve statement for the combined Isaac Bauser 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 also pleased to have observed a significant reduction in our total recordable injury frequency rate, giving credibility to our proactive safety culture and the commitment of our site teams in identifying and managing risk, especially given the difficult weather driven mining conditions we faced within the quarter.
Moving on to the operational update and starting with South Walker Creek. Overall, ROMCO mining volumes recovered compared to the fourth quarter of twenty twenty four, supporting steady saleable production and a lower strip ratio. This is an impressive result in light of the challenging conditions, demonstrating the underlying strength of the asset and adaptability that comes with a long strike length and multiple active pits as well as the benefits of the asset being well capitalized in recent years. The draglines, which are less impacted by the wet weather, recorded another impressive quarter with total material movement of 8,800,000 BCMs compared to 8,100,000 BCMs in the prior quarter. This sets a good baseline to execute on the recovery plan for the remainder of the year, which as highlighted in the report is expected to be weighted towards the second half as operations manage the flow on effects from restricted coal recovery during the second quarter.
On the projects front, the newly upgraded wash plant reached its nameplate capacity of 1,200 tons per hour during the first quarter and even above this throughput rate at times when consistent feed was achieved. The MRH to C Creek diversion reached substantial completion, enabling clearing works to begin at the newly North pit. Apoitreo produced a standout quarter with stable coal mining volumes quarter on quarter and the almost 850,000 tons of opening raw material inventories providing the FEED stability to support the increase in saleable production. With the North Queensland export terminal and the associated rail network adversely impacted by the extreme weather and flooding conditions in late January and early February in North Queensland, sales volumes were lower compared to saleable production. This has led to a modest build in product inventories, partially offsetting the drawdown in raw inventory and positioning the asset well as weather recovery plans are action through the second quarter.
The excellent operational performance out of Potrero has ultimately led to a slight increase in the full year production guidance range for sale of our production, enabling us to keep portfolio level guidance steady. The Isaac Plains Complex suffered the biggest impact from wet weather with limited flexibility to manage the conditions from fewer active pits at Isaac Downs and lower opening inventories compared to other operations. Round hole was 216,000 tons lower quarter on quarter, whilst saleable production was 240,000 tons lower and sales 140,000 tons lower, resulting in an expected impact to strip ratios, which should improve in the coming quarters with increased coal flows. Direct line performance was a positive, recording strong productivity despite the headwinds and supporting recovery efforts in the second quarter and for the remainder of the year. Nonetheless, considering the impacts in the first quarter and the expected recovery trajectory, we have lowered the full year saleable production guidance range by 200,000 tons with a commensurate impact to sales volumes expected.
As highlighted earlier, we are currently expecting that this impact can be mostly offset by the higher volumes from Portrail, enabling us to maintain the total group guidance for sale of our product. On the project front, we have been accelerating our pace of activity for the Isaac Downs extension project, focusing on those items on the critical path for development and seasonally independent activities. We are pressing ahead with the required studies and the works for the environmental impact statement, targeting submission in early twenty twenty six. As mentioned earlier, we are pleased to have announced today the maiden reserve statement for the project. With a total reserve of 52,000,000 tons, this release reiterates the underlying strength of this project as we press ahead towards an investment this year.
On Eagle Downs, whilst this remains a core project and we are advancing work packages as part of moving towards achieving readiness to support a final investment decision, With the market conditions where they are, we have prudently notched down a gear or two as part of the overall focus on cash preservation, meaning that we would now expect final investment decision readiness to take place in the first half of twenty twenty six. I’ll now hand over to Shane to summarize our corporate activities and updates to guidance.
Shane, CFO, Stanmore: Thanks Marcelo. Stanmore’s balance sheet remains in a solid position despite the current industry conditions. With closing cash of $169,000,000 or around $260,000,000 at current exchange rates and total liquidity of almost USD400 million. This positions net debt at USD146 million compared to USD26 million at the start of 2024 at the end of twenty twenty four, so. The major cash items that are driving this movement include the USD 60,000,000 dividend paid to shareholders in March and $17,000,000 in capital expenditure, primarily related to the wrapping up of our key growth improvement projects at MRA 2C and the South Walker Creek CHPP expansion.
Furthermore, there has been a notable working capital build contributing to the increase in net debt as at March 31, with our customer receivables balance having increased from the end of twenty twenty four, primarily due to timing differences in sales and cash receipts. Collections of those receivables has already seen the cash balance improve to approximately USD $224,000,000 or $350,000,000 by the April. In terms of guidance, as mentioned by Marcelo, we are pleased to have reaffirmed our saleable production guidance despite the weather related headwinds in the first quarter. Hopefully, it is self evident in our quarterly report, but we do expect that our consolidated production and sales profile will be lower in the first half of twenty twenty five compared to the second half if considered in light of our full year guidance as we deal with the associated flow on effects of the weather impacts from Q1 and enact recovery plans throughout the course of the second quarter. With respect to other guidance items, FOB cash costs are currently tracking below our previously stated guidance range of US89 dollars to US94 dollars per tonne.
This is primarily due to lower input costs as well as benefiting from a lower Aussie dollar exchange rate during the first quarter and into April. This, together with cost improvement initiatives being implemented for the remainder of the year, has supported a 4% reduction in FOB cash cost guidance to between US85 dollars to US90 dollars per tonne for the full year. Furthermore, we have taken a deep dive into our capital expenditures for the remainder of 2025, seeking to defer nonessential sustaining and improvement capital works into 2026 for reassessment depending on market conditions at that time. This, together with favorable FX in the first quarter, has supported a significant reduction in capital expenditure guidance, reducing the range by more than 20% to between US80 million to US90 million dollars These changes add to Stanmore’s already strong cost position in the industry, giving all stakeholders further confidence that the business is well placed to withstand volatility that is currently being experienced in commodity markets. I’ll now hand back to Marcelo to conclude the call with a brief overview of market conditions.
Marcelo Matas, Executive Director and CEO, Stanmore: Thanks, Chang. It has clearly not been an easy quarter for metallurgical coal markets with headline coal prices, which opened at the highest level of US200 dollars per ton. For quarter, reducing to a full year low of US166 dollars by mid to late March. The key driver has continued to be the elevated level of Chinese steel exports, further dampening steel market conditions ex China and has obviously been impacted by the overall uncertainty from the tariff announcements, particularly as it relates to metallurgical coal trade flows between U. S.
And China. We perceive that the smoke signals for the price move lower in March were certainly there with no price response in late January and February despite the supply disruptions across Queensland. Nonetheless, our recent rebound in prices back to USD 190 per ton has been well received with supply risks becoming more prevalent following further incidents impacting expected supply from Queensland and New South Wales. On the demand side, buying interest from India has improved, which we expect to be a signal of the beginning of restocking activities ahead of monsoon season and ahead of ongoing new coal governance commissioning from the third quarter in India. This is a positive sign for the market and remains a key it remains key for price direction together with the obvious uncertainties from the global geopolitical environment.
With that, I will now hand over to the moderator so we can take your questions.
Conference Moderator: Thank Your first question comes from Brett McKay with Petro Capital.
Brett McKay, Analyst, Petro Capital: Another good result given the circumstances. Well done. I just wanted to quickly talk about the CapEx and OpEx changes to guidance and how much is sustainable in terms of cost out initiatives you’ve put into place that will remain that way versus the costs that have been taken out this year that might come back in next year? Just trying to get an understanding both from the cost and the CapEx side as to the magnitude of sustainability across both of those buckets versus what might come back in next year?
Shane, CFO, Stanmore: Yeah. No worries. Thanks, Brad. Shane here. Yeah.
Look, I mean, what we’ve sought to do there is to there’s various initiatives that are taking place to look forward to reducing costs and improving the effectiveness and productivity of operations. So, looking at low cost country sourcing and improvements with vendors on the supply chain side of things, Obviously, taking out some low hanging fruit where we can in terms of cost improvement initiatives, as well as areas on the operation side where you’re looking to improve yield or increase throughput through our wash plants. So, at this stage, I think there are a lot of initiatives here that could well be sustainable well into the future as we look to make sure that we focus on productivities and cost improvements through the medium term. So there’s nothing that’s being done that’s, you know, it’s at risk, I think, production. I think one of the things we’re always conscious of though is particularly at Isaac Plains and the steeply dipping coal scene there with strip ratios will naturally increase over time.
But beyond that, I don’t think there’s too much there that is really more one soft in nature. I think there are I think these costs are sustainable into the future.
Brett McKay, Analyst, Petro Capital: What about on the I mean, we were sort of expecting that roughly hundred million dollar number from a sustaining sustaining CapEx point of view going forward, but it seems like that could be a little bit lower given the capital projects are now complete.
Marcelo Matas, Executive Director and CEO, Stanmore: Brett, this is Marcelo. As we explained in in the release, most of the CapEx reductions, are actual deferrals. Because they are, you know, a very low risk deferrals. So we are not putting at risk the integrity, of course, of the assets, like postponing things like shutdowns or or critical overhauls. Most of them are projects that we classify as more like potential improvement opportunities that obviously would generate a benefit.
But in light of, you know, the focus on cash preservation, we just thought that some of those benefits can wait. Okay. As an example, one of them is the project in point 12 for pumping tailings, which will save us some some cost of of tailings haulage, which is a great project with quick payback, but could wait. And so we could well be in the plan for next year, for example. Okay?
So I don’t think anything has changed against our previous message that we are back now to sustaining capital levels. This type of improvement projects are part of this sustaining capital book. Okay. But in light of this year’s market conditions, we decided that some of them can wait and we of course are focusing on making sure that we are protecting margins and preserving cash.
Brett McKay, Analyst, Petro Capital: Yeah. Okay. That makes sense. Thanks, my side. And maybe just quick one for Shane, just on underlying free cash flow at current prices.
Given that there was some working capital movements in the quarter that you stated that cash is now coming and built the cash reserves quite substantially. Just the current prices that we can slow a cost structure in place. Is the business cash flow positive?
Shane, CFO, Stanmore: Yeah. Absolutely. We’re still generating cash flows. And, you know, even if we look at some of the the low points of of coal prices as we experienced through q one, where the business is being positioned, you know, we’re still making margins even at those if even if those low points were to be revisited. That’s one of the things that we’re looking to do is to really, you know, capitalize on what are already, you know, competitive assets on the cost curve by just making sure that they survive all seasons through this volatility we’re seeing at the moment.
Brett McKay, Analyst, Petro Capital: Excellent. Thanks, Shane. And just the last one on Islec Young’s extension. Can you give us a bit of granularity on the OpEx CapEx side of things? I know it won’t include it even though the pre phase has been complete.
Is there any sort of guidance you can provide around those sorts of numbers that came out of the study?
Marcelo Matas, Executive Director and CEO, Stanmore: Brad, if you put some of the contingent payments associated with the acquisition of the block of coal that we’ve concluded with Anglo and Exxaro last year. And if we just look at the which are small payments and end of the day, there’s a first coal payment and there’s a, let’s say, stream of royalties in the future. But if you just focus on the project development itself, we are looking really at around probably US150 million to develop the project. As I said before, it’s a very similar project to the Isaac Downs project comprising of whole road, pit development, which is box cut, the basic flood protection infrastructure in form of levies and associated, let’s say, mining infrastructure. So it’s a very simple project.
We’ve done it before very successfully, and we are very comfortable with the challenge ahead of us. And I think it’s going to be a capital light project for us. And whichever way we look at it as an extension brownfield project is going to be attractive for us with pretty quick payback.
Brett McKay, Analyst, Petro Capital: Alright. Perfect. Thanks, Marcelo. I’ll I’ll leave it there.
Conference Moderator: Your next question comes from Tim Elder with Ords. Please go ahead.
Tim Elder, Analyst, Ords: Hey. Good morning, Marcelo and Shane. Thanks for taking my question. Just interested around the revised CapEx guidance. And Shane, you pointed to some lower assumptions around FX.
I’m just interested in if you can give us a split around how much of that is related to projects that you’ve deferred, those changed assumptions around FX. No
Shane, CFO, Stanmore: worries, Tim. Yeah, I guess referring to FX, was mainly referring to the impact on Q1 CapEx. So in the first quarter, we had about $17,000,000 of CapEx in U. S. Dollar terms, which has benefited from lower exchange rates in that quarter.
When we look forward to the rest of the year, we’ve actually used the same FX assumptions as we had done for the previous guidance. So we’re not seeing the improvements for the rest of the year being necessarily FX related, but more deferrals. And we’ve been seeing sort of up to that $20,000,000 mark of deferrals of CapEx that we can move, that’s $20,000,000 by the way, that we’ve been able to move out of the year without a detrimental impact to our operations or to operating costs. So just looking for that sort of low hanging fruit and ways and means that we can improve our cash position this year and then look to see where markets go over the course of this year and into next year.
Tim Elder, Analyst, Ords: No. Thanks for clarifying that. And then in terms of the Isaac Plains extension, just wondering if you can give us an update on, like, the approvals processes with with Queensland government and how you found working with the new government.
Marcelo Matas, Executive Director and CEO, Stanmore: Look. The initial initial dealings with new government has been pretty positive so far and attempt. We are still on the, let’s say, working hard on the work streams to support the submission of the EIS in early twenty six. And I think a lot of the work now is on all the, let’s say, acquisition of data around groundwater, all the ecology works that are required to support that submission. In parallel, of course, we are firming up the work packages for the project.
We have time for that. So all going well, no issues so far and a pretty good early days with the New Queensland government as well around discussions around how we can fast track the approval towards ensuring, as I said before, our target of good continuity from the moment we start to ramp up the extension project to when Isaac Down starts to reach its its its economic limits, which I expect it to be around somewhere around 02/1928.
Tim Elder, Analyst, Ords: Yeah. Thanks. That makes sense. And then just around the coal quality for for that project, it seems like you’re targeting more of a PCI coal than my understanding was a a bit similar kind of a semi soft product previously. Just wondering if you can talk through the rationale for that.
Marcelo Matas, Executive Director and CEO, Stanmore: Look, Tim, the option is there. We can produce, I mean, the wash plant and the resource will allow us to produce pulp. Okay? We can tweak the plant towards a slightly higher SPCI that could give us a better, let’s say, price relativity compared to what we would get if we targeted a semi soft. Because if we targeted a semi soft in that resource, we would have a larger portion of a secondary thermal coal product.
So that’s where the trade off is, is whether we tweak towards a high ash PCI at times or we change the semi soft depending where the market is. We do that very often with Portrail. Sometimes we have a yield benefit as well. It’s early days. It’s not a decision we need to take now.
Depending on PCI relativities, a slightly higher SPI could actually generate a better revenue outcome combined with the overall yield, let’s say yield margins outcome. As I said, like we do it for trial and this can change from time to time depending on market conditions.
Tim Elder, Analyst, Ords: Thanks for that. I’ll hand it on.
Conference Moderator: The next question comes from Glen Lawcock with Barron Joey. Please go ahead.
Glen Lawcock, Analyst, Barron Joey: Good morning, Marcello. I know it’s a tough question, I don’t want to ask it. But you pulled costs out, done a great job, but coal price goes down again once the weather abates. Well, how much more do you think you can pull out of the business? I mean, good job today.
But is there more? And could we see another you’re working to produce another cost guidance again in the quarter’s time?
Marcelo Matas, Executive Director and CEO, Stanmore: We have. There’s a lot of work going in that space. So far, we’ve banked a portion of the improvement initiatives that we’ve identified. We have a very clear pipeline of improvement initiatives. They go from operational improvements from loss and dilution, productivities, yield, Shane said before, to
Shane, CFO, Stanmore: with
Marcelo Matas, Executive Director and CEO, Stanmore: the procurement book. And so I mean, there’s a range in eight to five. Some of them need to be better, let’s say, defined at a more granular level. We need to understand how much we are able to capture in 2025 or how much is also going to be like a more multiyear type of opportunity. So that pipeline of opportunities are well mapped.
So I would say, yes, there’s more. We identify that we could, let’s say, bank on. Some of them are no regrets, okay, to be frank. And we we might just go and implement anyway. So far, we have not pulled the trigger on on initiatives that could actually have an impact, let’s say, in 02/1926 onwards, like high grading mine plans or chasing lowest preparation areas or let’s say, a shorter haulage calls that could have an impact, let’s say, in the life of mine plans in the future.
So those options are also there if we really need to. So far, we haven’t.
Shane, CFO, Stanmore: Probably just one thing to add to that too, Glenn, is that some of the particularly on the supply chain initiatives, as we implement them, you’ll see an improvement this year, but you won’t get that full year run rate improvement until next year. That’s where you can start to see actually actually weight more weighty improvements going forward depending on how they how successful those initiatives are.
Glen Lawcock, Analyst, Barron Joey: Okay. No. That’s great. So we hopefully, we might get another cost guidance update in the with the June results in July if all goes well.
Marcelo Matas, Executive Director and CEO, Stanmore: We don’t promise that at this stage, a lot of work in this space going on around.
Glen Lawcock, Analyst, Barron Joey: Yeah. Well, you know, don’t promise it, but drive for it. That’s all we ask. Absolutely. Just on the market side, if maybe you could just shed a little bit more color.
I was a little bit confused. You were sort of saying in your release, you know, when we emerged from the monsoon season, which is q three. So that’s actually quite a long way away from today. That’s another four, five months. So how much of the recent bounce in the price then do you think is really just related to the weather and the outages like Moranbah North, which will happen out for a period?
Do do you feel that prices in the next quarter the next three months probably go back down again with all the restarts, etcetera?
Marcelo Matas, Executive Director and CEO, Stanmore: I I I would say the market’s quite balanced now as we speak. Yes. Probably a bit of that, it’s a result of some of the supply withdraw that we’ve seen. We are not seeing a lot of volumes sitting with traders needing to move volumes as as we’ve seen earlier in the in the in last quarter. Okay?
Which is good. So we are not seeing a lot of new producer offering as well. So the market, it’s balanced. A lot of this recent uptick were driven by very few number of cargoes off in spot market. They were driven by the India market.
The Chinese CFR price is at a different level as you’re probably aware. We will need to see what happens ahead of Monsoon. The Indians are still running very low inventories. This hasn’t changed. So they have not come back to buy big time yet to bring inventories back to a higher level, which means they have been taking risk in terms of running lower stocks because the market was reasonably well supplied.
It’s tighter now. So we could see some restocking ahead of Monsoon. When you go through Monsoon, things get a bit weaker. It’s quite normal, right? It’s a seasonal thing every year.
But then we have a few things happening in the second half of this year, which a few new coal plants are commissioning in India. They’re quite well known to the market. And from everything we’ve heard, there won’t be delays in terms of firing up those new coal plants. So we would have we would assume that they will need to go over and of course buy up inventories to fire up those plants, which could have a positive impact in the second half. So it’s all about our waiting to see what happens pre monsoon, if the Indians will take a more conservative approach and restock ahead of monsoon or whether they’re going keep inventories low, protecting their margins, given the pressure they were suffering on Chinese steel imports into India.
As you probably heard, there have been tariffs raised by the Indian government as well on steel imports. So it’s a lot to watch in that space.
Glen Lawcock, Analyst, Barron Joey: Yes. No, I appreciate that. I mean, but obviously, the lack of spot sales is probably more being driven by the weather and the outages than anything else in the least the last two weeks, you’d say?
Marcelo Matas, Executive Director and CEO, Stanmore: To a certain extent, yeah. I think supply titans has contributed to that. Yeah.
Glen Lawcock, Analyst, Barron Joey: Yeah. Alright. Thanks, Marcelo. I appreciate it.
Shane, CFO, Stanmore: No worries,
Conference Moderator: Once again, if you wish to ask a question, please press 1 on your telephone. Your next question comes from Peter Kerr with the Australian Financial Review. Please go ahead.
Peter Kerr, Journalist, Australian Financial Review: Good morning. Thanks for your time, and apologies I haven’t heard all of the call. But in terms of the unit costs going down, obviously, the Australian dollar would be helping there. Can you give us a steer on what’s happening with labor? Like are wages going down?
Or are you have you reduced headcount at the mines?
Marcelo Matas, Executive Director and CEO, Stanmore: Peter, this is Marcelo here. No. There’s been no significant reduction in headcount. Actually, we’ve been on a on an expansion mode. So in the last if you look back in the last eighteen months, we’ve actually increased the number of fleets we were running at South Walker Creek, 1 of our which is our largest operation.
This hasn’t changed. There is a portion of that additional capacity that was always planned to stop because that was part of the ramp up. That’s going to happen during this year, but it’s not a result of what’s happening with the market. For example, it’s more part of the normal process of ramping up capacity and stabilizing the operation. Label costs have not decreased, okay?
They are actually some of our enterprise by gaining agreements with ABA, mean, they have already pre established increases and some of them were concluded in the last couple of years or the last two or three years. And I mean, have had, as you’re probably aware, cost implications as a result of same job, same pay in one of our especially in one of our operations for Trail, where we have quite a substantial increase in costs given that we have we do have, let’s say, larger number of label hire headcount, which was, let’s say, was impacted out of that legislation.
Peter Kerr, Journalist, Australian Financial Review: Okay. Great. Thank you. And I I thought I heard correctly earlier that the cash balance of 169 at March 31 had improved to $2.24 since then, you know, the last month and a half well, sorry, over the last month. So if should we be thinking that if coal prices stay where they are today for the rest of this quarter, that your cash balance will be at least $2.24 at June 30?
Shane, CFO, Stanmore: Yeah. I think that’s an unreasonable assumption. I mean, we need to see where the FX rate goes and hopefully, there’s no further weather interruptions, which was big interrupter for Q1 for us. But at this stage, it’s not an unreasonable assumption, again, depending on on coal prices. And and and probably the only other thing to note is that we do have a debt repayment in in June, the scheduled amortization amount of 35,000,000 US.
Brett McKay, Analyst, Petro Capital: Great. Thank you very much.
Conference Moderator: There are no further questions at this time. I’ll now hand back to mister Matos for closing remarks.
Marcelo Matas, Executive Director and CEO, Stanmore: Well, thanks everyone for your questions and joining today’s call. While it’s been a challenging quarter, we have ultimately delivered a relatively robust operational performance and most importantly, done so safely. 2025 is shaping to be a tale of two halves with a more challenging first half with recovery underway and a stronger second half, but we remain confident on the ability and resilience of our operations to deliver on our guidance numbers. We’d like to once again commend our employees and contractors for driving this outcome, which I believe demonstrates the positive and unique culture we have at Stemo. Thanks again to everyone who has joined today’s call, including our shareholders.
Goodbye.
Conference Moderator: That does conclude our conference for today. Thank you for participating. You may now disconnect.
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