Stanmore to Buy Moranbah South from Exxaro for US$105m

Stanmore Resources Limited (ASX:SMR) has agreed to acquire a 100 per cent interest in the Moranbah South tenements from Exxaro Resources Limited and its wholly owned Australian subsidiaries for consideration of US$105 million. Exxaro currently holds a 50 per cent interest in the tenements through a joint venture with Anglo Coal (Grosvenor) Pty Ltd, a subsidiary of Anglo American plc, and has exercised joint venture pre-emptive rights triggered by the sale of Anglo's Australian coal assets to Dhilmar QLD Pty Ltd to acquire Anglo's 50 per cent interest. Completion of Stanmore's transaction is conditional on Exxaro's subsidiaries first holding a 100 per cent interest in the tenements, and on satisfaction of certain limited conditions precedent regarding regulatory approvals such as the Foreign Investment Review Board, the Australian Competition and Consumer Commission and indicative ministerial approval for the transfer of the tenements. Stanmore expects completion before the end of the fourth quarter of 2026, will fund the consideration with existing cash balances and liquidity, and said the transaction does not require shareholder approval.

Moranbah South is an underground project comprising two mineral development licences, MDL 277 and MDL 377, and exploration permit for coal EPC 548. The release is internally inconsistent on what the tenements adjoin: its transaction rationale says they are immediately adjacent to both Eagle Downs and the Isaac Downs Extension, while its highlights say Eagle Downs and the Isaac Plains Complex. The release states the tenements contain 724 Mt of Measured and Indicated Coal Resources in the Goonyella Middle Seam, expected to be of premium hard coking coal quality, which, subject to further technical studies, feasibility assessments and the granting of all necessary mining and environmental regulatory approvals, may be accessed using the same infrastructure available at the Eagle Downs project. The accompanying resource table, extracted from Exxaro's Consolidated Mineral Resources and Mineral Reserves Report 2025, shows 505 Mt Measured, 219 Mt Indicated and 19 Mt Inferred for a total of 743 Mt, with the release noting that it cannot be assumed any Inferred Coal Resource will be upgraded to Indicated or Measured after continued exploration. Stanmore said neither Exxaro nor Anglo consented to the inclusion of that information, that it has not independently validated the former owner's estimates, and that it intends to commission an independent Resource report after completion; a footnote adds that Exxaro received the Moranbah South estimates from Anglo American Steelmaking Coal Pty Ltd and did not audit them. The company said acquiring 100 per cent of Moranbah South extinguishes up to US$60 million of deferred and contingent consideration under the 2024 Designated Area Agreement. Chief Executive Officer and Executive Director Marcelo Matos said the tenements are strategically complementary to Stanmore's neighbouring projects, particularly Eagle Downs and the Isaac Downs Extension. Stanmore is being advised by EY and Palaris Australia.