Slide 1: Transaction Presentation
For personal use only Transaction Presentation November 2016
Slide 2: Important Notices and Disclaimer
Important Notices and Disclaimer IMPORTANT: You are advised to read the following carefully before making any use of the information contained in this presentation. For personal use only This presentation has been prepared by Bathurst Resources Limited ACN 125 679 469 (“BRL”, “Bathurst”, “Bathurst R
Slide 3: Disclaimer
Disclaimer For personal use only Past Performance Past performance and historical information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of the BRL’s views on its or Solid Energy’s future financial performance or con
Slide 4: Overview of Bathurst Resources
Overview of Bathurst Resources Bathurst Resources is a leading domestic thermal coal producer with significant upside For personal use only opportunities in metallurgical coal Overview Location • Bathurst Resources Limited is a New Zealand coal mining company with a strong focus on people and long-t
Slide 5: Background to Transaction
Background to Transaction Following the approval of Solid Energy’s DOCA in September 2015, Bathurst signalled its For personal use only intention to participate in the asset sale process in November 2015 Solid Energy Sale Process Relevant Solid Energy Asset Locations • Solid Energy is the largest co
Slide 6: Overview of Phoenix Coal
Overview of Phoenix Coal Bathurst Resources together with Talley’s Group have formed a joint venture, Phoenix For personal use only Coal Limited (Phoenix Coal), to acquire select North and South Island assets from Solid Energy Talley’s Group Overview Phoenix Coal Overview • Talley’s Group, establish
Slide 7: Phoenix Coal Funding Sources & Uses
Phoenix Coal Funding Sources & Uses Phoenix Coal will acquire the Rotowaro, Maramarua, and Stockton mines for an upfront For personal use only cash consideration of NZ$46m funded through equity commitments from Bathurst and Talley’s, and a bank debt facility provided by BNZ Selected Asset Considerat
Slide 8: Bathurst Resources Funding Sources & Uses
Bathurst Resources Funding Sources & Uses Bathurst will fund its ~NZ$26m equity contribution to Phoenix Coal through a For personal use only combination of an RCPS, Convertible Note, and Bond issuance Funding Instrument Overview1 Bathurst Resources Sources of Funds • A placement of redeemable conver
Slide 9: Capital Raising Pricing
Capital Raising Pricing Slippage in the process timetable coincident with a rally in the metallurgical coal price For personal use only has reduced the discount/premium to which the instruments were originally priced $0.07 220.0 28-Oct-16: Execution of SPA; Hard Coking Coal Quarterly Benchmark Price
Slide 10: Sale & Purchase Conditions
Sale & Purchase Conditions Phoenix Coal’s sale and purchase agreement is conditional on, among other things, OIO For personal use only approval. This is expected to occur between end Q1 2017 and Q2 2017 Sale & Purchase Conditions Key Process Milestones2 • Phoenix Coal has signed a Key Event Date con
Slide 11: Rotowaro Overview
Rotowaro Overview Rotowaro is an open cut mine located in the Waikato region of New Zealand producing a For personal use only high-quality, low-ash thermal coal for the domestic market Snapshot Location • Status: production; O/C; domestic thermal coal (high-quality low- ash) • Location: 9km West of
Slide 12: Maramarua Overview
Maramarua Overview Maramarua is an open cut mine located in the Waikato region of New Zealand producing For personal use only a low-ash thermal coal for the domestic market Snapshot Location • Status: production; O/C; thermal coal (low-ash) • Location: 45km North of Huntly, Waikato, New Zealand • Op
Slide 13: Stockton Overview
Stockton Overview Stockton is an open cut mine located on the West Coast of New Zealand producing a low- For personal use only ash metallurgical coal for export Snapshot Location • Status: Production; O/C; export metallurgical coal (low-ash) • Location: 25km North of Westport, West Coast, New Zealan
Slide 14: Strategic Rationale
Strategic Rationale The combination of the Solid Energy assets acquired with Bathurst’s existing Buller For personal use only Plateau assets could unlock material synergies for the Company Strategic Rationale & Benefits Asset Location • The addition of these assets to Bathurst’s existing portfolio w
Slide 15: Pro Forma Bathurst Resources
Pro Forma Bathurst Resources The transaction could have a material impact on Bathurst’s production profile, as well as For personal use only its resource and reserve base Pro Forma Production (100%)1 Pro Forma Resources (100%)1 2,500 250 200 Resources (Mt) 150 2,000 100 50 Production (Iktpa) 1,500 -
Slide 16: Risk Factors
Risk Factors There are risks associated with an investment in Bathurst and its subsidiaries (together, the Group). These can be categorise d as specific risks (that is, matters that relate directly to the For personal use only Group’s business) and general risks (those that relate to the industry in
Slide 17: Risk Factors
Risk Factors • Buller Coal Project For personal use only – BRL completed the acquisition of its Buller Coal Project in 2011. The acquisition contained an element of deferred consideration comprising cash consideration and/or royalties on coal sold. The deferred cash consideration is made up of two p
Slide 18: Risk Factors
Risk Factors For personal use only • Resource Estimations – Resource estimates are expressions of judgment based on knowledge, experience and resource modelling. As such, resource estim ates are inherently imprecise and rely to some extent on interpretations made. Despite employing qualified profess
Slide 19: Risk Factors
Risk Factors • Potential Acquisitions For personal use only – As part of its business strategy, the Group may make acquisitions of or significant investments in companies, products, techn ologies or resource projects. Any such future transactions would be accompanied by the risks commonly encountere
Slide 20: Risk Factors
Risk Factors • Government Regulation For personal use only – The mining, processing, development and mineral exploration activities of the Group are subject to various laws governing prospecting, development, production, taxes, labour standards and occupational health, mine safety, toxic substances,
Slide 21: Risk Factors
Risk Factors • Liquidity risk For personal use only – There may be relatively few buyers or sellers of securities on ASX at any given time. This may affect the volatility of the m arket price of the securities and the prevailing market price at which Shareholders are able to sell their Shares. This
Slide 22: Competent Person Statements
Competent Person Statements Bathurst Resources Competent Person Statement The information on this report that relates to mineral resources for Deep Creek and the mineral reserves for Escarpment Expor t and Whareatea West is based on information compiled by For personal use only Sue Bonham-Carter who