Beginning in June, Stanmore Coal announced a reduction in its coal exports, prompting the company to increase its earnings outlook for the 2020 financial year.
The 250,000 tons of sales are projected to be postponed until the end of the year. There is no revenue outlook for June now.
Stanmore expects its unit costs per tonne to rise accordingly, from $107 per tonne sold (ex royalty) to $109 per tonne.
The company changed its underlying earnings before interest , taxes, depreciation and amortization ( EBITDA) from $92–$100 million to $80–$85 million for the current financial year.
Stanmore is also facing a substantial fall in the price of coking coal, with the low-volatile premium Platts (PLV) for hard-coking coal dropping from US$ 163.5 ($251.2) per tonne in mid-March to US$ 118.5 per tonne as of April 24.
"While this recent price decrease is notable, it will not have a substantial effect on the underlying EBITDA for the 2020 financial year, provided that the company is primarily selling contract rates that are set at 50% for the June quarter," Stanmore said in an ASX announcement.
The production guidelines for Stanmore remain on track at 2.35 million tonnes. The firm operates the Isaac Plains complex in Moranbah, Queensland, which produces coking coal and thermal coal.
Earlier this month, Golden Investments, based in Singapore, made a takeover bid for all of the shares in Stanmore that it did not already own or control.
Days later, Golden Investments purchased more than 50 million Stanmore shares, giving the former a 51% stake in the firm.
Stanmore previously claimed that the takeover bid offered a "compelling opportunity," given the decreasing share prices of Stanmore since July last year and the possible effect of the coronavirus pandemic on global economies.
Golden Investments' offer closes on May 18.
