Australian mining firm Stanmore Coal's output of 13.2mn t in 2023 exceeded the top end of its 12.3mn-13mn t guidance, despite unfavourable weather affecting operations.
Stanmore produced 13.2mn t of saleable coal on a 100pc basis in 2023, compared with 9.2mn t in 2022, a reflection of a full year of production from the former BHP Mitsui Coal (BMC) assets acquired in May 2022.
Saleable production across all its operations — South Walker Creek, Poitrel and Issac Plains Complex — increased in 2023 on the year, with output at South Walker Creek hitting a record high of 6.3mn t in 2023. Mining operations recovered well after being affected by wet weather conditions, particularly in the first quarter of 2023. Logistical operations at South Walker Creek improved in the second half of the year, with support provided by a newly-contracted rail service provider. The firm had previously stated in its report for the first half of 2023 that it was working to secure increased rail capacity to alleviate ongoing logistical chain constraints in Queensland's infrastructure network.
The firm expects to produce 12.8mn-13.6mn t of saleable coal in 2024, incorporating the additional volumes from its Millennium Complex.
Stanmore's costs were at $86/t fob for 2023, higher by $3/t compared to 2022, owing to inflationary pressures and operational costs, the company said. The firm expects higher costs per tonne in 2024 with a guidance range of $99-104/t, in view of the relatively higher unit cost of Millennium.
Argus assessed the premium hard low-volatile metallurgical coal price at $314/t fob Australia on 23 February, down from a recent high of $366.25/t on 13 October. It assessed the low-volatile PCI price at $172.20/t fob Australia, down from $222.10/t over the same period.
