The Stanmore Coal Limited (ASX: SMR) share price closed 2.3% higher today with the release of the company's half-year results for the period ending 31 December 2018.
The Stanmore share price now sits at $1.10, decidedly higher than the $0.95 per share offer made by Golden Investments which expired on the 23 January.
Financial performance
The company showed record financial performance for the half year, attributable to "strong coking coal prices, increased volumes, improved sales mix between coking coal and thermal coal and a continued focus on cost control".
Underlying EBITDA of $41.6 million was in line with guidance and puts Stanmore on track to meet FY19 underlying EBITDA in the range of $140–$155 million.
A summary of Stanmore's other financial results for the half year ending 31 December 2018 is provided below:
- Profit after tax of $21.3 million (165% growth on the previous corresponding period)
- Revenue of $148.3 million (79% growth pcp)
- Gross margin of 48.1% (33.7% in pcp)
- Interim fully-franked dividend of 3 cents per share
Operating performance
- The company is on track to meet full-year coal production guidance of 2.15mt, representing a 90% increase on FY18.
- Record coal production of 978kt (91% growth pcp)
- Reduction in waste removal costs due to the relocation of operations to the new Isaac Plains East Mine, which has a more favourable strip ratio
The Stanmore Coal share price has climbed 73% higher over the last 12 months, compared to the S&P/ASX 200 index which has risen 4.4%.
