Chairman Neville Sneddon told the company’s annual general meeting it was cashed up and had access to capital for expansion.

“Regulatory changes enacted during the past 12 months, particularly to the taxation regime, continue to challenge the economics of new generation coal development projects,” he said.

“The depressed short-term outlook for both metallurgical and thermal coal pricing does, however, present opportunities as organisations re-evaluate their portfolios and assets are rationalised.

“In conjunction with Sprint Capital, the company will judiciously pursue opportunities where the acquisition of assets adjoining the company’s existing projects will improve project economics or the quality of the company’s resource base.”

Sprint Capital is a Hong Kong-based private equity firm that is focused on undertaking investments in the mining and resources sector.

It is Stanmore’s largest shareholder and has indicated its intention to provide ongoing strategic and financial support to the company as its cornerstone shareholder.

The capital provided by Sprint Capital combined with $25 million of senior debt provided by Credit Suisse allows the company to satisfy any expansion and early works funding commitments for Wiggins Island coal export terminal, the Surat Basin railway and Queensland Rail as those commitments arise, according to Stanmore.

Sneddon said the company continued to enhance its Belview underground coking coal project having acquired the adjoining tenement to the north after the end of the 2012 financial year.

The potential for continued economic and resource market volatility gave Stanmore the opportunity to construct its mines and related infrastructure at a more globally competitive cost base after a period of rising costs, he added.

“We plan to strengthen the company through any continued downturn, such that we are well positioned as the inevitable recovery occurs,” he said.

“The board’s view is that the operating environment will improve as thermal coal prices stabilise in the medium term and excess capacity is eliminated by the combination of continued Asian demand growth and the rationalisation of excess supply.”

Stanmore would soon complete a bankable feasibility study for The Range project which indicated “robust economics assuming a return to more sustainable long-term coal pricing and exchange rates”, Sneddon said.

After the release of the study results, the company will continue the process to secure a joint venture party for the project.