It expects mining activities to cease at Isaac Plains and Isaac Plains East in early 2022.

"The regulatory timelines for the Isaac Downs project have been met ahead of schedule, and planning is well underway for the required works to relocate the dragline from Isaac Plains East to Isaac Downs during 1Q 2022," the company said.

"With the move to Isaac Downs, lower strip ratios and higher-ranking coking coals are forecast to improve margins. Despite the lower volumes produced and sold in 1H 2021, the company anticipates higher volumes in 2H 2021 back to the equivalent of previous annualised levels of 2.4 million tonnes per annum of product coal sales given the ramp up of volumes in both Isaac Plains East and the bulk sample pit at Isaac Downs."

These increased sales volumes are expected to be produced at lower strip ratios and therefore significantly lower unit costs when compared to volumes sold to the six month period ending June 30 2021.

"Additionally, it is anticipated that these sales will benefit from improved market conditions leaving Stanmore well placed leading into 2022 and will lead to strong operational cash flow results in 2H 2021," the company said.

"Stanmore has introduced auger mining as a cost-effective mining method based on the forecast final highwall positions. The company continues to pursue high value coal sales opportunities, to expand its customer base as well as continuing to meet the requirements of its existing customers and is continuing to work on identifying new customers and markets where it makes financial sense to do so."