In the Stanmore Coal annual report he said the company would engage with these parties when the board was confident that appropriate value could be realised in the difficult market conditions.

“Commodity markets are inherently cyclical in nature and the board believes that the fundamental value in the company’s portfolio of quality projects and its large resource base puts it in a strong positon to recover as coal markets conditions improve,” he said.

“The company is well positioned to manage short-term market volatility as it has substantial cash reserves, a relatively low overhead cost structure and no take or pay liabilities.”

Depressed short-term market conditions present challenges but also opportunities as other organisations re-evaluate their portfolios and assets are rationalised, according to Sneddon.

“We aim to continue to strengthen the company through any continued downturn by selectively adding to our asset base where acquisitions are logical for us and highly value-accretive,” he said.

“The company is driven by the need to deliver its projects with competitive cost structures that will be profitable during periods of volatility in commodity prices.

“The development plans for all of Stanmore Coal’s projects are formulated with this in mind.”