Stanmore Resources (SMR) - Yield on offer
August 2, 2024
Stanmore Resources is an Australian company with operations and exploration projects in the Bowen and Surat basins.
The company is a globally significant metallurgical coal producer with three operating assets: Isaac Plains complex, South Walker Creek (SWC) and Poitrel. Stanmore is also delivering incremental growth at SWC (+1Mt by CY26) and has organic growth options at the recently acquired Eagle Downs asset (transaction expected to close 2HCY24).
Stanmore’s underlying business is achieving strong underlying EBITDA margins (28% in CY24). Free cash flow (FCF) will be lower in CY24 due to one-off impacts, but this should also drive strong FCF yields in CY25 (21%) and CY26 (19%). We also forecast the stock to pay a solid dividend of US$0.11 per share in CY24, representing a circa 5% yield, before increasing in CY25 to US$0.14 per share, for a yield of around 7% yield. This compares favourably to other coal names under our coverage, which offer an average yield of circa 2%.
Insights that count
Discover the best opportunities to outperform the market. Our research team dig deep into the market, company and stock data to bring you insights others might overlook.
Regis Healthcare (REG) - Short-changed by short-sighted policy
Regis Healthcare provides residential aged-care services in Australia, including ageing-in-place, respite care, specialist dementia care, and palliative care services through operation of aged care homes.
Universal Store Holdings (UNI) – Reinvesting for growth
Universal Store Holdings is a fashion and accessories retailer targeting the youth and young adult market, which operates through two divisions, Universal Store and Cheap Thrills Cycles.
SiteMinder (SDR) - Ducks lined up and ready to quack
SiteMinder provides online booking and management software for hotel operators and travel groups, with customers across Asia Pacific, Europe, the Middle East, Africa, and the Americas.
.jpg)