The Stanmore board aims to continue to strengthen the company through any continued downturn by selectively adding to its asset base where acquisitions are logical for it and highly value accretive, he said in the company’s annual report.

“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 position 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.”

The company operates with a small, highly skilled group of employees who are focused on developing the its assets and moving towards production, Sneddon said.

A recent reduction in head count ensures the team is properly resourced to deliver on the business strategy.

“Globally, high quality, low cost coal projects are becoming increasingly difficult to identify and develop,” Sneddon said.

“Stanmore Coal is in the fortuitous position of owning two such projects in Belview and the Range. These projects continue to attract genuine investment interest from investors and off-takers.”

The company will engage with these parties when the board is confident that value can be realised for the company’s shareholders, he said.