Stanmore Coal stood out as one of the better-run junior coal explorers when it listed in late 2009. At one stage, its 20-cent issued shares traded well above $1, and now trade a 17.5 cents, for a $36 million market capitalisation. Stanmore had almost $20 million in cash at the end of September.
Somebody is going to take over these and other higher-quality coal companies if their share prices continue to fall, despite a slow expected recovery in the coking-coal price. Long-life coking-coal assets in Queensland’s Bowen Basin, a premier coal basin were in huge demand a few years ago, but now sell at a fraction of peak prices. That will surely attract cashed-up offshore predators that can hold these assets for several years.
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