Stanmore Resources Locks in 724Mt Coal Asset for US$105M Cutting US$60M in Future Costs
Key Takeaways
- Stanmore Resources has agreed to acquire 100% of the Moranbah South tenements from Exxaro Resources for US$105 million, funded entirely from existing cash with no shareholder approval required.
- The deal adds 724 Mt of Measured and Indicated resources in the Goonyella Middle Seam, expected to be premium hard coking coal quality, to Stanmore's development portfolio.
- Acquiring 100% of Moranbah South extinguishes up to US$60 million in deferred and contingent consideration under the 2024 Designated Area Agreement, directly improving the economics of the Isaac Downs Extension.
- MBS sits immediately adjacent to both Eagle Downs and the Isaac Plains Complex, giving Stanmore a contiguous block of high-quality coking coal assets in Queensland's Bowen Basin.
- Completion is expected before the end of Q4 2026, subject to FIRB, ACCC, and ministerial approvals — standard regulatory conditions for a cross-border asset transaction of this nature.
Stanmore locks in Moranbah South acquisition for US$105 million
Stanmore Resources (ASX: SMR) has agreed to acquire 100% of the Moranbah South (MBS) tenements from Exxaro Resources Limited (JSE: EXX) for US$105 million, funded from existing cash balances and liquidity with no shareholder approval required. The deal, released to ASX on 4 September 2026, brings 724 Mt of Measured and Indicated coal resources in the Goonyella Middle Seam into Stanmore’s portfolio. MBS sits immediately adjacent to both Eagle Downs and the Isaac Plains Complex, and the resources are expected to be of premium hard coking coal quality. Completion is expected before the end of Q4 2026, subject to regulatory approvals from FIRB, ACCC, and indicative ministerial approval.
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Transaction rationale — what Stanmore is actually acquiring
MBS is an underground project comprising two mineral development licences (MDL 277 and MDL 377) and an exploration permit for coal (EPC 548), located immediately adjacent to Eagle Downs and the Isaac Downs Extension in Queensland’s Bowen Basin.
The deal structure has an important intermediate step. Exxaro currently holds 50% of MBS through a joint venture with Anglo Coal (Grosvenor) Pty Ltd, a subsidiary of Anglo American. Exxaro exercised its pre-emptive rights, triggered by the sale of Anglo’s Australian coal assets to Dhilmar QLD Pty Ltd, to acquire Anglo’s 50% interest. Once Exxaro holds 100% of MBS, the joint venture terminates and the transaction with Stanmore can complete.
On the infrastructure side, MBS resources may potentially be accessed using Eagle Downs infrastructure, such as drifts, should that project be developed, subject to further technical studies, feasibility assessments, and all necessary mining and environmental regulatory approvals. This is a potential outcome, not a confirmed development pathway.
A meaningful secondary value driver is the extinguishment of up to US$60 million in deferred and contingent consideration under the 2024 Designated Area Agreement, which had enabled access to the Isaac Downs Extension through the MBS tenements. Acquiring 100% of MBS removes those obligations entirely.
Key transaction terms at a glance:
- Acquisition price: US$105 million
- Interest acquired: 100%
- Vendor: Exxaro Resources Limited (JSE: EXX)
- Resources: 724 Mt Measured and Indicated (Goonyella Middle Seam)
- Deferred/contingent consideration extinguished: up to US$60 million
- Expected completion: before end of Q4 2026
- Funding: existing cash balances and liquidity
Resource base in focus — 724 Mt of premium hard coking coal
Understanding the Moranbah South resource estimate
Under the JORC (2012) Code, coal resources are classified by confidence level into three categories: Inferred, Indicated, and Measured. Inferred resources carry the most uncertainty and cannot be assumed to be upgraded through further exploration. Indicated resources have a higher level of geological confidence, while Measured resources, the highest category, are supported by sufficient data for detailed mine planning.
Hard coking coal is a high-grade metallurgical coal used as a key input in steel production. Premium hard coking coal commands higher prices than other coking coal grades because of its superior coking strength and low impurity levels, making it particularly sought after by steelmakers globally.
MBS resource breakdown
The following resource estimates have been extracted from the Exxaro Resources Consolidated Mineral Resources and Mineral Reserves Report 2025, dated 29 April 2026. Stanmore notes that neither Exxaro nor Anglo consented to the inclusion of this information in the announcement, and the data has not been independently verified by Stanmore. Following completion, Stanmore intends to commission an independent resource report for the MBS assets and will update the market accordingly.
| Category | Tonnes (Mt) | VM (%) |
|---|---|---|
| Measured | 505 | 18.5% |
| Indicated | 219 | 17.6% |
| Inferred | 19 | 16.9% |
| Total | 743 | 18.2% |
The headline investment-relevant figure is 724 Mt of Measured and Indicated resources. The 743 Mt total includes 19 Mt of Inferred resources, which carry material uncertainty and cannot be assumed to be upgraded to a higher confidence category. Stanmore has not independently validated these estimates and does not adopt or endorse them at this stage.
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Why this deal strengthens Stanmore’s long-term growth thesis
This acquisition represents a portfolio consolidation move in one of Australia’s premier metallurgical coal regions. With MBS sitting between Eagle Downs and the Isaac Plains Complex, Stanmore is assembling a contiguous block of high-quality coking coal assets in the Bowen Basin, creating geographic and operational optionality that did not previously exist in this form.
The deal delivers value on two fronts simultaneously. First, it adds 724 Mt of expected premium hard coking coal resources to the development portfolio. Second, it strengthens Stanmore’s balance sheet by removing up to US$60 million in future contingent obligations under the 2024 Designated Area Agreement. That extinguishment also improves the economics of the Isaac Downs Extension project directly.
It is also worth noting that Stanmore had already secured rights to apply for a future mining lease over a Designated Area on the MBS tenements (MDL 277 and EPC 548), as announced to the ASX on 4 September 2024. Those tenements already form part of the Isaac Downs Extension project. This acquisition deepens and secures that position outright.
Marcelo Matos, Chief Executive Officer & Executive Director
“The acquisition of the Moranbah South tenements will represent a significant milestone for Stanmore’s development portfolio, increasing our resource base and strengthening the platform to deliver on our future growth aspirations. The tenements are strategically complementary to Stanmore’s neighbouring projects, particularly Eagle Downs and the Isaac Downs Extension. The significant resources base of Moranbah South is expected to be of premium hard coking coal quality and may potentially be accessed through mine infrastructure at Eagle Downs, should that project be developed. Furthermore, the acquisition of 100% of Moranbah South extinguishes up to US$60 million of deferred and contingent consideration under the 2024 Designated Area Agreement, which enabled access to the Isaac Downs Extension through the Moranbah South tenements. This further enhances the value of the transaction and the economics of the Isaac Downs Extension.”
Completion remains expected before the end of Q4 2026, pending FIRB, ACCC, and ministerial approvals. These are standard regulatory conditions for a cross-border asset transaction of this nature and do not signal unusual execution risk.
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