A strong quarter from SMR which has seen it report record full year production and a beat to its guidance. Net debt continues to decrease and with contingent payments now complete, we expect strong free cash flow from SMR and forecast it to return to a net cash position in the near-term, allowing it to increase capital returns to shareholders. We are bullish on the medium-term price outlook for coking coal and note that SMR has significant leverage to coal prices. A key near-term catalyst will be the CY24 cost result and CY25 guidance which will be released with the annual results in February.
To access the full report please log in under the Research Portal at the bottom of this page.
Argonaut’s Research Portal allows you to access Argonaut’s wealth of Research, as well as view descriptions of the Morning Note, Companies covered and the Team.
If you would like to access our research please contact us to create an account.