Stanmore Resources Limited

Thank you for standing by and welcome to the Stanmore Resources Limited December 2025 Quarterly Activities Report Investor Briefing. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you'd need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Marcelo Matos, Executive Director and CEO. Please go ahead.

Thank you. Morning, everyone, and Happy New Year. Thank you for joining us as we present the December 25 quarterly activities report. With me here is Shane Young, our Chief Financial Officer. I'm pleased to say we had a very strong finish to the year with a high level of stripping and peat preparation in the third quarter, providing the foundation to deliver strong cold flow, and record operational results in the fourth quarter. This performance saw us achieve fully-assailable production of 14 million tons at the midpoint of the revised guidance, and total sales of 14.1 million tons, a fantastic result given the adverse weather and subsequent operational challenges in the first half of the year. Additionally, although we usually don't provide run-of-mind cold guidance, I thought it would be interesting to point out that despite all the weather, the wet weather impacts early in 2025, we delivered 20.5 million tons of rum coal mine for the full year, which is actually ahead of our original plans and enabled us to finish the year with over 1.5 million tons of rum coal inventories across the business. And this will help mitigate potential wet weather impacts in the current season, which, as we all know, has already been taking place. During the quarter, we unfortunately recorded two serious accidents. While these incidents were classified as serious due to the need for hospital admission, and we never take any harm to our people lightly, it's reassuring that both instances were far from being incidents that could lead to a potential fatality. Our overall safety culture and performance remains strong. with our 12-month serious accident frequency rate holding at 0.33, well below the industry benchmark. The market began to see some green shoots late in the quarter, with the premium headline Coke and Coke price finding support back above $200 per ton in December for the first time since late 2024. More recently, supply concerns have intensified following the passing of the ex-tropical cyclone Koji in early January, causing supply disruptions and driving prices further up to around $250 per ton for premium hot cooking coal and $173 per ton for PCI as of today. Record production and sales. coupled with these improved market conditions, supported strong cash generation during the fourth quarter, with the business reducing its net debt position by almost 60 million U.S. over the quarter. I'll now move into the void of the report with a brief summary of the performance of each asset. Starting with South Walker Creek, we saw continued sequential growth in run-of-mine production. with the ongoing ramp-up towards our expanded capacity. This translated to full-year records across all metrics, as a second-half weighted production profile was supported by the upgraded CHPP, delivering consistently above expectations and above nameplate capacity throughout the second half. Full-year saleable production concluded at 6.6 million tons at the midpoint of the guidance range, which remained unchanged despite the wet weather challenges early on. This kept off a strong year following the successful completion of the capital investment phase early in the year. Port Rail delivered an exceptional quarter to close out an exceptional year. We saw all-time records for both saleable production and sales, which each concluded at 5 million tons for the full year. This standout performance demonstrates the benefits of the investment into the in earlier years, and is also a reflection of the operational acumen and excellence of our site teams. For the fourth quarter specifically, the strip ratio reduced significantly as anticipated after elevated stripping in the September quarter. This provided a baseline for the second highest quarterly ROM output on record, with operational performance also supported by record dose-to-push volumes and mine plan optimization to deliver high-yielding calls. Port Royal ended the year with almost 1 million tons in ROM in ventures alone, containing a mix of thermal and MET calls. Turning to the Isaac Plains complex, which I want to remind you was the most severely impacted asset by the wet weather early in 25, It's been impressive to see the recovery of our teams, that our teams have managed to achieve in the second half to ultimately deliver against the revised guidance range. Roam production totaled 2.2 million tons for the second half, comprising almost 60% of the full year total. Furthermore, December was a record-breaking month for the CHPP. with the highest ever monthly feed of 425,000 tons. This was achieved despite additional constraints on prime dig unit availability, geotechnical challenges within the Isaac Downs South and the Isaac Downs North Overtrust pit areas, and the completion of mining activities in Pit 5 North. Looking ahead, the Isaac Downs Extension Project is progressing as planned. with the focus remaining on the approvals work streams and the submission of the EIS in the first half of 2026. While we are tracking our schedule for all baseline studies within our control, groundwater modeling and impact assessments incurred weather delays early in 25 and remain on the critical path. If we continue to update the market on our progress on this front, And we remain very motivated to advance this critical life extension project for the ISA complex. Time now to hear from Shane on the fourth quarter financials.

Thank you, Marcelo. Looking at the corporate section of today's update, Stanmore finished 2025 with a strong cash and balance sheet position. This was underpinned by the successful execution of our fourth quarter weighted operational plan. Total cash as of 31 December improved to $212 million, which is after the scheduled half-yearly debt repayment of $35 million. As a result, net debt decreased to just $33 million as at year-end, from a total of $90 million in the prior quarter. If we look over the full year, net debt increased just $7 million year-on-year, which is after $60 million in dividends, $85 million of capital expenditures and $24 million paid in Eagle Down stamp duty which remains subject to an objection process. This is a remarkable outcome and demonstrates the resilience of our platform which generated positive operating cash flows despite cyclically low market conditions. Off the back of this operational strength, we also took the opportunity to upsize our bank revolving credit facilities during the quarter. which now total 200 million US dollars in undrawn credit. When combined with our closing cash balances and gear working capital facility, Stanmore finished 2025 with total liquidity of 482 million US dollars, a strong position for the platform to enter 2026. Moving on to a comparison of full year production and capital expenditure against market guidance. As Marcelo previously highlighted, The strong finish to 2025 delivered full year saleable production of 14 million tonnes, landing at the midpoint of our revised guidance range. Capital expenditure for the year totalled $85 million US, also at the midpoint of our latest guidance. Notably, this range had been reduced by $25 million earlier in 2025 to support cash preservation. FOB cash cost performance relative to guidance will be reported as part of our full year results next month, but it will finish within our expected guidance range as well. At that time, we will also release guidance for 2026, which will incorporate known impacts from the weather events experienced earlier this year. Aside from those potential weather impacts, we expect South Walker Creek to continue to produce towards its expanded capacity while Portrel is anticipated to deliver another solid performance. In contrast, Isaac Plains output is expected to decline sequentially year on year as parts of that mine approach their established economic limits and mining activities are optimised to maximise cash generation. This step change was anticipated in our mine plans with the economic limit being geologically defined as mining activities approach a split in the light cart scene around 2028. As we work through the approvals required to commence the next phase at Isaac Plains, the Isaac Downs extension, our focus will remain on value preservation and cost optimisation of that mine. We look forward to providing further detail on 2026 guidance along with our full year 2025 financial results in February. With that, Marcelo will now look to provide a quick update on markets and conclude today's prepared remarks.