Earnings release
Page 1
27 January 2026 December 2025 Quarterly Activities Report 1 Record quarter for production and sales, closing out a strong recovery for the full year to meet Guidance ”The December quarter marked an exceptional close to the year, with operations delivering record performances across all production metrics. Most impressively, this was achieved safely and despite the first-half challenges from adverse weather, which demonstrated operational agility and flexibility. Market conditions improved over the course of the period, with premium hard coking coal prices rising to approximately US$218 per tonne. This late rally provided welcome relief after a challenging year for metallurgical coal markets. The improvement was driven by stronger demand for seaborne material from China and India, com pounded by ongoing supply concerns during Australia’s wet season. Combined with the record production and sales, the improved market conditions supported strong cash generation. Net debt reduced substantially to just US$33 million, while total liquidity approached US$500 million, providing a strong balance sheet position at year-end. Looking ahead to 2026, the year has commenced under challenging conditions following the arrival of ex- tropical cyclone Koji in early January. This severe weather event has intensified supply concerns, with impacts understood to be widespread across producers in the Bowen Basin. Whil e we have sought to maximise ROM inventories to mitigate the potential effects of the wet season, we continue to monitor the situation closely and will update the market on likely impact and recovery plans in due time.” Marcelo Matos, Chief Executive Officer & Executive Director Highlights • Successfully delivered our back-ended operational plan, achieving quarterly records across the board with ROM production of 6.0Mt, saleable production of 3.9Mt, and sales of 4.0Mt • Overcame significant operational headwinds early in the year to deliver record full-year saleable production of 14.0Mt, landing at the mid-point of the revised Guidance • Maintained strong safety performance with a twelve-month Serious Accident Frequency Rate of 0.33, well below industry average and underscoring Stanmore’s commitment to operational discipline • Closed the year with a healthy inventory position, holding more than 1.5Mt in ROM inventories in advance of the wet-season period heading into 2026 • Record production and sales translated into robust cash generation, reducing net debt position by US$57 million over the quarter to finish the year at a modest US$33 million • Strengthened liquidity, with the revolving credit facility upsized to US$200 million - together with the GEAR facility and cash on hand, this brings total available liquidity to US$482 million as of 31 December 2025 For personal use only
Page 2
2 Consolidated Production & Sales Performance1 Quarter-Ended Full Year Dec-25 Sep-25 Dec-25 Dec-24 ROM Coal Mined Mt 6.0 5.3 20.5 19.4 ROM Strip Ratio Prime 6.7 8.8 8.1 8.9 Saleable Coal Produced Mt 3.9 3.6 14.0 13.8 Sales of Produced Coal Mt 4.0 3.6 14.1 14.1 Sales of Purchased Coal Mt 0.0 0.0 0.0 0.1 Total Coal Sales Mt 4.0 3.6 14.1 14.2 Average Sales Price US$/t 136 132 133 168 Safety Stanmore’s operational safety performance remains solid, d espite recording two unfortunate serious accidents during the quarter. The Serious Accident Frequency Rate 12-month moving average stands at 0.33, well below the latest industry benchmark2. Recordable injuries for the year decreased by 57% compared to 2024, which reflects the success of our focus on robust risk mitigation and proactive in -field engagement. In 2025, we advanced critical control s verification and implemented technology -driven safety systems, enabling early hazard detection and mitigation, including psychosocial risks with severe potential consequences. Operational Highlights South Walker Creek Quarter-Ended Full Year Dec-25 Sep-25 Dec-25 Dec-24 ROM Coal Mined Mt 2.5 2.5 9.3 8.0 ROM Strip Ratio Prime 7.6 8.2 8.1 9.8 Saleable Coal Produced Mt 1.7 1.8 6.6 6.3 Total Coal Sales Mt 1.7 1.8 6.6 6.4 The fourth quarter delivered on the operational plan at South Walker Creek, with continued growth in ROM production following record levels in the previous two quarters. This supported healthy closing inventories, helping to provid e some resilience ahead of the wet season in early 2026. The CHPP operated above nameplate capacity, supporting steady saleable production quarter -on-quarter. This enabled saleable production to finish at the mid-point of full year Guidance, which remained unchanged despite the significant weather-related challenges early in the year. Overall, 2025 was a strong year, achieving records across all physical metrics as capacity ramped up following completion of the capital investment phase early in the year. 1 Rounding may impact totals when computed in this table 2 0.73 as of 30 September 2025 as published by Resources Safety and Health Queensland for Surface Mines as at the date of this report For personal use only
Page 3
3 Poitrel Quarter-Ended Full Year Dec-25 Sep-25 Dec-25 Dec-24 ROM Coal Mined Mt 2.4 1.9 7.5 7.2 ROM Strip Ratio Prime 6.1 9.2 7.8 8.1 Saleable Coal Produced Mt 1.4 1.2 5.0 4.6 Total Coal Sales Mt 1.4 1.2 5.0 4.9 Poitrel delivered an exceptional quarter, with an increase to ROM volumes of almost 30% on the prior quarter supporting the delivery of record saleable production and sales of over 5.0Mt for the year. The strip ratio reduced significantly as planned, following higher stripping in the previous quarter. Operational performance was supported by record dozer push volumes and mine plan optimisation to deliver higher-yielding coals. This concludes a standout year for Poitrel, with record ROM production supporting saleable production at the top- end of Guidance. Poitrel’s performance reflects the benefits of Ramp 10 North development, improved dozer push and equipment productivity, and enhanced CHPP availability and utilisation. Isaac Plains Complex Quarter-Ended Full Year Dec-25 Sep-25 Dec-25 Dec-24 ROM Coal Mined Mt 1.1 1.0 3.7 3.9 ROM Strip Ratio Prime 6.1 9.3 8.9 9.2 Saleable Coal Produced Mt 0.8 0.6 2.4 2.8 Total Coal Sales Mt 0.8 0.6 2.5 2.7 The Isaac Plains Complex delivered solid results in the fourth quarter, with ROM production of more than of 1.1Mt. This was achieved despite constraints on prime dig unit availability, early weather- related operational impacts, geotechnical challenges within the I saac Downs South and Isaac Downs North overthrust pit areas, and the completion of mining activities in Pit 5. Consistently strong mining performance and stable CHPP operations supported the highest quarterly saleable production for the year of 0.8Mt. December marked a record month, with the site achieving its highest -ever CHPP feed of 425Kt. While severe weather earlier in the year had a disproportionate impact on operations at the Isaac Plains Complex, the subsequent recovery efforts, though challenging, have led to an impressive second-half performance to finish within annualised Guidance ranges. Development and Exploration Projects Exploration A total of A$5.5 million was spent on exploration activities during the quarter. The 2025 drilling program concluded in November at South Walker Creek with the completion of all structural, coal quality and geotechnical works. The 2025 seismic program als o concluded in December with the finalisation of the Lancewood 3D program. Planning works for the 2026 program were ongoing throughout the fourth quarter, ahead of a n anticipated March commencement following the expected conclusion of the wet season. Projects The Isaac Downs Extension project approvals pathway is progressing as planned with supporting baseline studies and impact assessments well advanced. Final pit and landform modelling is complete, groundwater modelling and impact assessment remains on the critical path , and early stakeholder engagement is occurring as planned. The Environmental Impact Statement is on track for submission in the second quarter of 2026. For personal use only
Page 4
4 Eagle Downs development studies and design work continue d during the quarter, covering underground mine planning, geological studies a nd surface infrastructure design reviews. Environmental approvals for the haulage infrastructure, interconnecting with Stanmore’s adjoining operations, are also advancing to enable future shared efficiencies. Corporate Stanmore finished the year with a strong cash and balance sheet position, underpinned by the successful execution of its fourth quarter -weighted operational plan. Total cash as of 31 December 2025 improved to US$212 million , inclusive of a scheduled half-yearly debt repayment of US$35 million, reducing the term loan facility balance to US$245 million. Net debt 1 decreased significantly to US$33 million from US$90 million in the prior quarter, supported by strong operational cash flows after capital expenditures of US$ 27 million. Total liquidity2 stood at US$482 million, further strengthened by the upsizing of the revolving credit facility to US$200 million in the fourth quarter , reflecting continued confidence and support from the commercial bank market. Guidance3 2025 Full Year Actual Revised Guidance Saleable Production Mt 14.0 13.8 – 14.2 South Walker Creek Mt 6.6 6.5 – 6.7 Poitrel Mt 5.0 4.9 – 5.0 Isaac Plains Complex Mt 2.4 2.4 – 2.5 Capital Expenditure US$m 85 80 – 90 Full-year saleable production and capital expenditure for 2025 concluded at the mid -point of the ir respective Guidance ranges. This is a remarkable outcome and further reinforces the resilience of the platform in meeting Guidance despite significant operational challenges. These figures represent preliminary views. Final positions, including an update on cost per tonne compared to Guidance, will be provided with Stanmore’s 2025 annual report scheduled for release in late February , at which time the company will also issue full- year 2026 Guidance. South Walker Creek and Poitrel are expected to deliver another solid operational year. P roduction from the Isaac Plains Complex is planned to be lower than 2025, as mining activities and the associated cost structure are strategically adjusted and optimised ahead of the planned transition to the Isaac Downs Extension. 1 Unaudited net cash / debt is calculated as the outstanding principal balance of any long-term balance sheet debt facilities, excluding lease liabilities accounted for under IFRS-16 and finance leases, less consolidated unrestricted cash on hand, including cash in transit 2 Unaudited total liquidity includes available cash and US$270 million of available debt capacity, comprised of the undrawn US$200 million bank revolving credit facility and the undrawn US$70 million GEAR working capital facility 3Assumes average AUD/USD of 0.6450 for 2025, in-line with consensus at the time of release. All figures presented on a nominal basis and may differ due to rounding. Investors are cautioned not to place undue reliance on the forecasts provided, particularly in light of the general volatility in coal prices as well as the significant uncertainty surrounding global inflation and global economic outlook For personal use only
Page 5
5 Metallurgical Coal Markets Prices for premium hard coking coal increased from US$190 per tonne to US$218 per tonne during the quarter, driven initially by an increase in the domestic met coal price s in China from October, and a consequent rapid increase in seaborne imports of prime coking coals by China. The resulting scarcity of coking coal availability from Australia, concurrent with ongoing demand from India supported further price rises through December. Mongolian supply to the Chinese market normalised through the quarter. Since year end, prices have risen to US$250 per tonne as weather disruptions in Queensland and supply interruptions by other premium coking coal mines have contributed to a further tightening of the supply environment. Steel markets remained highly competitive through the period, with continued strong Chinese steel exports. Late in the quarter, the Indian Government provided policy clarity to anti-dumping duties on coke imports and subsequently reconfirmed the steel safeguard duty in early 2026. This contributed to steel price improvements in India and confidence for metallurgical coal imports given generally lower inventory levels. Australian supply remained generally stable, relative to the heavily weather-disrupted first half, although constraints persisted in specific product segments – particularly in the premium mid-vol market, which continued to be affected by outages at key mines. - 50.0 100.0 150.0 200.0 250.0 300.0 350.0 Jan-24 Apr-24 Jul-24 Oct-24 Jan-25 Apr-25 Jul-25 Oct-25 Jan-26 US$ Price / Metric Tonne Source: S&P Global Commodity Insights Platts Premium Low Vol HCC FOB Australia and Low Vol PCI FOB Australia indices: 7-day moving average 2 January 2024 to 23 January 2026 Source: S&P Global Commodity Insights, ©2026 by S&P Global Inc. Platts Premium Low Vol HCC FOB Australia Platts Low Vol PCI FOB Australia For personal use only
Page 6
6 Summarised Production Statistics1,2 Quarter-Ended Full Year Dec-25 Sep-25 Dec-25 Dec-24 ROM Coal Mined Mt 6.014 5.341 20.526 19.357 South Walker Creek Mt 2.490 2.460 9.340 8.016 Poitrel Mt 2.376 1.855 7.494 7.158 Isaac Plains Complex Mt 1.148 1.026 3.692 3.941 Millennium Mt - - - 0.242 Strip Ratio Prime 6.7 8.8 8.1 8.9 South Walker Creek Prime 7.6 8.2 8.1 9.8 Poitrel Prime 6.1 9.2 7.8 8.1 Isaac Plains Complex Prime 6.1 9.3 8.9 9.2 Saleable Production Mt 3.876 3.608 13.994 13.828 South Walker Creek Mt 1.732 1.824 6.577 6.257 Poitrel Mt 1.366 1.185 5.049 4.583 Isaac Plains Complex Mt 0.778 0.600 2.368 2.765 Millennium Mt - - - 0.224 Total Coal Sales Mt 3.958 3.584 14.096 14.238 South Walker Creek Mt 1.728 1.811 6.621 6.413 Poitrel Mt 1.425 1.185 5.020 4.862 Isaac Plains Complex Mt 0.806 0.587 2.455 2.714 Millennium Mt - - - 0.249 Sales – Coking Coals % 29% 21% 26% 30% Sales – PCI % 65% 72% 68% 64% Sales – Thermal Coals % 5% 7% 6% 6% Average Sales Price US$/t 136 132 133 168 Product Coal Stockpile Mt 0.260 0.367 0.260 0.413 South Walker Creek Mt 0.063 0.071 0.063 0.132 Poitrel Mt 0.104 0.170 0.104 0.087 Isaac Plains Complex Mt 0.093 0.126 0.093 0.193 - ROM Coal Stockpile Mt 1.581 1.066 1.581 1.080 South Walker Creek Mt 0.548 0.448 0.548 0.194 Poitrel Mt 0.924 0.461 0.924 0.856 Isaac Plains Complex Mt 0.109 0.157 0.109 0.030 1 Rounding may impact totals when computed in this table 2 Note that Millennium underground operations ceased June 30, 2024 For personal use only
Page 7
7 This announcement has been approved for release by the Board of Directors of Stanmore Resources Limited. Further Information Investors Investors@stanmore.net.au Media Media@stanmore.net.au We acknowledge the Traditional Owners of the land on which we work and operate: Turrbul and Jagera Country in Brisbane and Barada Barna, Widi and Jangga Country in Central Queensland. Follow us on LinkedIn. About Stanmore Resources Limited (ASX: SMR) Stanmore Resources Limited controls and operates the South Walker Creek, Poitrel and Isaac Plains Complex metallurgical coal mines as well as the undeveloped Isaac Downs Extension, Eagle Downs, Lancewood and Isaac Plains underground projects, in Queensland’s prime Bowen Basin region. Stanmore Resources holds several additional high-quality prospective coal tenements located in Queensland’s Bowen and Surat basins. The Company is focused on the cre ation of shareholder value via the efficient operation of its mining assets and the identification of further development opportunities within the region. More information about Stanmore can be found at stanmore.au For personal use only