Stanmore Coal Limited (ASX:SMR) is pleased to provide the company's Managing Director Report. YEAR IN REVIEW
Company Highlights since 2015 AGM
Continuation of our strong safety record
- No lost time injuries across Isaac Plains operations and drilling programs conducted during the year
Isaac Plains operational with ramp-up achieved in short period
- Completion of Isaac Plains acquisition1 in November 2015 in parallel with finance facility provided by Taurus
- Commenced mining in February 2016, first coal shipped to customer in May 2016
- Rehabilitation of 82ha completed - strong commitment to environmental legal obligations and responsibility associated with mine ownership
Isaac Plains mine life extension underway
- Environmental Authority amendment and Mining Lease Applications submitted in October 2016. Key approval stage gates in next 6 months
- Further drilling campaign commencing December 2016, providing closer points of observation to be utilised for feasibility assessment
ISAAC PLAINS REVIEW - Operations to date
- Accelerated recommencement of mining from transaction close to first product coal in 6 months
- Dragline overhaul pre-commencement of mining has contributed to +16mbcm annualised total movement rate. Minor additional capex required for propel gearing failures
- CHPP teething issues requiring additional capex to improve reliability and performance. Recent results are encouraging an in-line with steady state expectations
- Stanmore and Golding knowledge of site has improved.
- Stanmore is currently in discussion with Golding on a revised mining schedule to account for changes to mining path and also consider accelerated pre-strip activities in FY17 to improve working areas and dragline system efficiency over the remaining life of the contract
THE BUSINESS AT A GLANCE
- Independent coal company with focus on coking coal
- Isaac Plains operational with ramp-up achieved
-- 1-2Mtpa sales opportunity (FY17 1.25Mt)
-- December 2016 quarter SSCC settled at USD 130 per tonne
-- Mining, port and rail contracts in place
-- Mid-range of international coking coal cost curve
- Isaac Plains represents the Company's platform asset
-- Circa $350m of replacement-cost assets
-- Dragline, CHPP, conveyors, train load out and other infrastructure 100% owned
-- Approvals in place for up to 4.0Mtpa ROM
-- Primarily coking coal with secondary thermal coal for export
- Multiple acquisition targets and internal projects for Stanmore to capitalise on
-- Grow internal production and operational capability
-- Focus on coal quality, reliability and creating value where others can't or won't
STRATEGIC OBJECTIVES - FY17 AND FORWARD
Time horizon - Short
Internal: Establish reliability and repeatability of production from Isaac Plains
External: Assess potential assets in proximity to IP Complex
Time horizon - Medium
Internal:
- Develop Isaac Plains East and complete assessment of Isaac Plains Underground
- Rationalise our portfolio based on highest value to shareholders
External: Pursing realistically attainable assets with premium coal quality
Time horizon - Long
Internal: Development of portfolio assets
External: Assessment of product mix strategy
To view the presentation, please visit:
http://abnnewswire.net/lnk/347984C2
Mr Dan Clifford Managing Director T: +61-7-3238-1000 Mr Andrew Roach Chief Financial Officer & Company Secretary T: +61-7-3238-1000
