Stanmore Resources (ASX: SMR) to Acquire Moranbah South for US$105 Million

Stanmore Resources has agreed to acquire 100% of the Moranbah South coal tenements from Exxaro Resources for US$105 million.

The cash-funded transaction would add a large, undeveloped metallurgical coal resource beside Stanmore’s existing Bowen Basin projects. It would also remove up to US$60 million of deferred and contingent payments linked to the Isaac Downs Extension.

Deal Structure and Conditions

Stanmore plans to fund the consideration from existing cash balances and liquidity. The acquisition does not require shareholder approval.

However, completion depends on Exxaro first securing full ownership of Moranbah South. Exxaro currently owns 50% through a joint venture with Anglo American subsidiary Anglo Coal (Grosvenor).

Exxaro exercised pre-emptive rights after Anglo agreed to sell its Australian coal assets to Dhilmar QLD. Once that purchase completes, Exxaro will own the entire project and the joint venture will terminate.

Stanmore expects its transaction to complete before the end of the fourth quarter of 2026. Conditions include regulatory clearances and indicative ministerial approval for transferring the tenements. The announcement specifically identifies the Foreign Investment Review Board and Australian Competition and Consumer Commission processes.

Strategic Fit Beside Eagle Downs

Moranbah South comprises two mineral development licences and one coal exploration permit. Its tenements sit immediately beside Eagle Downs and the Isaac Downs Extension.

That location is central to the transaction’s industrial logic. Stanmore said Moranbah South’s deeper Goonyella Middle Seam could potentially be accessed through Eagle Downs infrastructure, including drifts.

Any shared development remains subject to technical studies, feasibility work, and mining and environmental approvals. Eagle Downs would also need to be developed.

The deal also changes the economics surrounding Isaac Downs Extension. Full ownership of Moranbah South extinguishes up to US$60 million in deferred and contingent consideration under a 2024 agreement. That earlier agreement gave Stanmore rights to seek a future mining lease over a designated area.

Resource Scale Comes With Caveats

Moranbah South contains 724 million tonnes of Measured and Indicated Coal Resources in the Goonyella Middle Seam. The resource comprises 505 million measured tonnes and 219 million indicated tonnes.

A further 19 million tonnes is classified as inferred, taking the quoted total to 743 million tonnes. Stanmore expects the deposit to contain premium hard coking coal quality.

Still, the estimates require further verification. They were extracted from Exxaro’s 2025 resources and reserves report and originated from Anglo American Steelmaking Coal.

Neither Exxaro nor Anglo consented to their inclusion or verified their presentation in Stanmore’s announcement. Stanmore has also not independently validated, adopted or endorsed the former owner’s estimates.

After completion, Stanmore intends to commission an independent resource report and update the market when that review becomes available.

Development Portfolio Expands

Stanmore already operates South Walker Creek, Poitrel and the Isaac Plains Complex. It also controls undeveloped projects including Eagle Downs, Isaac Downs Extension and Lancewood.

Moranbah South would expand that development inventory rather than add immediate production. The announcement provides no mine construction decision, development timetable or capital estimate. Near-term execution therefore centres on Exxaro’s purchase, regulatory approvals and the subsequent transfer to Stanmore.