CHPP / saleable yield77.2%Saleable tonnes ÷ ROM feed
Realised coal price$184.88/tModeled pricing point
Site cash cost$115.67/tPer saleable tonne
Cash margin$42.91/tAfter royalties and modeled deductions
Risked NPV$1,715m100% ownership
Investment verdict
Large, long-lived low-volatility PCI operation with established export access and a meaningful strip burden
B+
B+
Grade & continuity
Stanmore describes a high-quality, predominantly low-volatility PCI product. Numeric ash, sulfur, phosphorus and CSR/CSN specifications are not disclosed in the current model pack.
B+
Metallurgy
The operating CHPP produced a 70.9% 1H26 saleable-to-ROM yield. Product-by-product washability and quality recovery curves are not disclosed.
B
Mining complexity
Conventional open-cut dragline and truck-and-shovel mining is proven, but the 8.7 bcm/t 1H26 strip ratio is a material cost and execution variable.
A
Infrastructure & power
Established mine, CHPP and Bowen Basin rail path to Dalrymple Bay Coal Terminal provide a proven route to export markets.
B+
Permitting status
The mine is in steady-state production. Mine-level permit life, bonding and closure cash timing are not separately disclosed in the model pack.
A
Resource confidence
The 122Mt marketable reserve supports roughly 18 years at modeled production, backed by a much larger measured and indicated resource inventory.
A
Geological upside
The 593Mt measured and indicated resource plus 225Mt inferred inventory provides substantial reserve-conversion potential beyond the base schedule.
B+
Expansion optionality
Management identifies a mine life beyond 25 years and has invested in stripping; conversion of resources and sustained cost delivery determine the economic extension.
Valuation snapshot
100% NAV retained
Unrisked NPV$1,715m
Project DCF before the published stage and execution-risk charge.
Risk charge−$0m
Value removed by the model's project-stage and execution-risk adjustment.
Risked NPV$1,715m
Selected project value after risk, before ownership attribution.
Effective discount rate7%
Time-value hurdle used for the project DCF after published adjustments.
NPV at first production$1,715m
Production-value anchor with pre-production timing removed; used by the FSV ladder.
Annual operating profile
Spot · risked · 100% of project
Saleable coal and CHPP yieldannual ROM-to-product conversion
Mt · %
Saleable-tonne economics2026E operating row and life-of-mine cost basis
US$/t
Realised price$184.88/t
Site cash cost$115.67/t
Cash cost incl. sustaining$148.87/t
Cash margin$42.91/t
ROM coal158 Mt
Saleable coal122 Mt
LOM saleable yield77.2%
Site cost / ROM t$89.32/t
A 100% yield indicates a schedule already expressed in saleable tonnes.
Revenue and cost stackcosts and capital aligned below zero
US$m
Capital recoveryannual and cumulative project cash flow
US$m
Timeline Built from the stored anchor years: construction start, first production, and closure (or first production plus reserve life where no closure year is published). The marker is the year the current valuation is struck from.
Construction
1996–2026
Production
2026–2044
199620022008201420202026203220382044
Dashed line marks 2026, the year this valuation is struck from.
Resources and reserves
Effective 31 Dec 2025 · Attributable basis
Ore reserves
Asset
Proven & probable (Mt)
South Walker Creek Mine
158
Mineral resources
Asset
Measured (Mt)
Indicated (Mt)
Measured & indicated (Mt)
Inferred (Mt)
Total (Mt)
South Walker Creek Mine
274
319
593
225
818
Coal tonnes are on the disclosed source basis; no equivalent conversion is applied.
Valuation framework Fair speculative value ladderProduction →
Two valuation lenses$1,715m production-value OV anchors the speculative
ladder; $1,715m stage-risked DCF is the selected modeled project value.
Speculative value by development stage
Current model stageProduction 100%–100%
certainty
Market-implied project value$1,690m Company market capitalization