Stanmore Coal (SMR) reported December Q results with Isaac Plains East (IPE) production of 864kt ROM coal and 609kt saleable coal versus Argonaut’s forecast of 800kt and 640kt respectively. Coal sales fell 31% QoQ, impacted by co-shipper coal availability. Costs increased 7% to A$107/t FOB (pre-royalties) and are expected to remain at this level for the remainder of FY20. Work has commenced on the Isaac Downs (ID) Bankable Feasibility Study (BFS) and first coal is still expected in early 2020, despite the requirement for additional permitting steps under the Mineral and Energy Resources (Financial Provisioning) Act. ID is expected to increase margins by delivering a higher payable semi-hard coking coal (currently semi-soft coal) and by reducing costs due to lower strip ratios.
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