Bathurst Resources Ltd · ASX:BRL
Bathurst Resources — Mines & Money March 2014
23 slides from Bathurst Resources's conference presentation, Mar 24, 2014
Slide 1: Bathurst Resources - Mines & Money
For personal use only BATHURST RESOURCES MINES & MONEY March 2014 Investor Presentation | April 2013 | 1
Slide 2: Important Notice
IMPORTANT NOTICE For personal use only This presentation has been prepared by and issued by Bathurst Resources Limited (“Bathurst”) to assist it in informing interested parties about the Company and its progress. It should not be considered as an offer or invitation to subscribe for or purchase any
Slide 3: Capital Structure Overview
CAPITAL STRUCTURE OVERVIEW For personal use only Ticker (ASX / NZX) BRL Shares on issue 821.5M Options & performance rights on issue 12.5m Market capitalisation(1) NZ$69.8M Cash & short term deposits(2) NZ$10M Shareholder Composition Coupl and Ca rdiff 13.3% 13.3% L1 Ca pi tal Reta il / other 12.7%
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS For personal use only 1. Near-Term ♦ Flagship asset, over 6.3 Mt* of resources of high quality metallurgical coking coal Metallurgical ♦ Final Environment Court consent granted Coal Production ♦ No more legal challenges 2. Low capex ♦ Minimal capex required for initial producti
Slide 5: Investment Highlights (cont'd)
INVESTMENT HIGHLIGHTS (cont’d) For personal use only ♦ High ranking, high fluidity hard coking coal 4. High Quality ♦ Suitable blend with other lesser quality coals to deliver superior coking qualities Coal ♦ Not easily replaced by other sources of coal globally 5. Multiple ♦ Low marginal cost of de
Slide 6: Bathurst Targeted Production
BATHURST TARGETED PRODUCTION For personal use only 3,000 2,500 2,000 Coal Sales (kt) 1,170 1,500 690 1,000 750 900 540 540 500 180 359 430 417 412 407 0 Year 0 Year 1 Year 2 Year 3 Year 4 Domestic Export Operations - Escarpment Export Operations - Other Note : Export production targets dependent on
Slide 7: Capital Requirements
CAPITAL REQUIREMENTS For personal use only ♦ Capital for initial start up ♦ Bonding (~$2.7) May be bank financed ♦ Compensation payment (~ $1.7m) ♦ Capital for Stage 2 production ♦ Working Capital (~ $2.0m) ♦ To complete land settlements for key infrastructure at Escarpment (~ $2.0m) ♦ To purchase n
Slide 8: Broader Buller Coal Project
BROADER BULLER COAL PROJECT For personal use only Mines & Money | March 2014 | 8 Investor Presentation | April 2013 | 8
Slide 9: Domestic Operations
DOMESTIC OPERATIONS For personal use only ♦ Domestic Operations: provide solid earnings platform ♦ 3 operating mines – Cascade , Takitimu & Canterbury Coal ♦ Domestic Operations all have new long term contracts to underwrite the operation ♦ Cascade –New Three Year contract with cement plant ♦ Takiti
Slide 10: Cascade Mine – Current Operations
CASCADE MINE – CURRENT OPERATIONS For personal use only Mines & Money | March 2014 | 10
Slide 11: Domestic Operations
DOMESTIC OPERATIONS For personal use only • Domestic annual production – Currently 400,000 tonnes – Major over-burden removal now completed at all mines • 2014 Customer contract prices – Av. range NZ$105-115/t ex-mine • 2014 Mine production cash costs – Av. range NZ$75-85/t ex mine • Domestic busine
Slide 12: Southland Footprint
SOUTHLAND FOOTPRINT For personal use only Mines & Money | March 2014 | 12 Investor Presentation | April 2013 | 12
Slide 13: Current Strategy
CURRENT STRATEGY For personal use only • Escarpment remains the key focus ♦ Export off-take qualification in progress ♦ Project strategically positioned to enter the export market subject to price ♦ Current coal price undermines economics ♦ Cost saving initiatives to ensure viability • Domestic oper
Slide 14: Future Growth
FUTURE GROWTH For personal use only • Export* ♦ Buller ♦ Escarpment - 6.3 million tonnes ♦ Coalbrookdale – 3.4 million tonnes ♦ Whareatea West – 10.7 million tonnes ♦ North Buller ♦ Coal Creek & North Buller permits – 46 million tonnes • Domestic* ♦ New Brighton – 4.2 million tonnes ♦ Coaldale – 2.8
Slide 15: Bathurst – Next Steps
BATHURST – NEXT STEPS For personal use only ♦ Key focus on domestic market cash generation ♦ Establish Escarpment in preparation to enter export markets when markets recover ♦ Obtain bulk samples to complete market qualification of Escarpment product ♦ Management cost control across the business Min
Slide 16: Coal Quality – Escarpment Coals
COAL QUALITY – ESCARPMENT COALS For personal use only PROPERTY Years 1-2 Total Moisture (ar) 8 - 10% Inherent Moisture (adb) 1.0 - 1.5% Ash (adb) 6 - 7% Total Sulphur (adb) 0.6 – 0.7% Free Swelling Index 8-9 Romax 0.9 - 1.0 Volatile Matter (adb) 33 – 35% Maximum fluidity (ddpm) 10,000 to 50,000 Phos
Slide 17: Appendix: Resource Estimates
Appendix 1 RESOURCE ESTIMATES Area Measured Resource (Mt) Indicated Resources (Mt) Inferred Resources (Mt) Total Resources (Mt) For personal use only Escarpment 3.1 2.2 1.0 6.3 Cascade 0.7 0.6 0.3 1.6 Deep Creek 6.2 3.1 1.6 10.9 Coalbrookdale - 3.4 5.1 8.5 Whareatea West 7.7 10.7 4.7 23.1 South Bull
Slide 18: A.2 Average Coal Quality Measured
A.2 AVERAGE COAL QUALITY MEASURED For personal use only Measured Fixed Volatile Sulphur % Calorific Inherent IN SITU Area resource Ash% (ad) CSN Carbon % Matter % (ad) Value (ad) Moisture Moisture (Mt) (ad) (ad) Escarpment 3.1 18.4 0.6 28.9 7.2 49.1 33.0 0.8 5.8 Cascade 0.7 15.1 1.6 31.9 4.6 52.7 39
Slide 19: A.3 Average Coal Quality - Indicated
A.3 AVERAGE COAL QUALITY - INDICATED For personal use only Indicated Fixed Volatile Sulphur % Calorific Inherent IN SITU Area resource Ash% (ad) CSN Carbon % Matter % (ad) Value (ad) Moisture Moisture (Mt) (ad) (ad) Escarpment 2.2 14.0 0.8 29.7 7 50.6 34.4 1.1 5.3 Cascade 0.6 15.3 1.8 30.6 4 49.6 38
Slide 20: A.4 Average Coal Quality - Inferred
A.4 AVERAGE COAL QUALITY - INFERRED For personal use only Inferred Fixed Volatile Sulphur % Calorific Inherent IN SITU Area resource Ash% (ad) CSN Carbon % Matter % (ad) Value (ad) Moisture Moisture (Mt) (ad) (ad) Escarpment 1.0 13.1 1.0 29.8 7 50.7 35.0 1.2 5.8 Cascade 0.3 18.7 2.1 25.6 3 42.5 34.2
Slide 21: A.5 Reserves
A.5 RESERVES ROM COAL For personal use only Area Proved reserves (Mt) Probable reserves (Mt) Total reserves (Mt) Escarpment 3.0 1.9 4.9 Cascade 0.2 0.2 0.4 Deep Creek 5.8 2.7 8.5 Coalbrookdale - 2.2 2.2 Whareatea West 7.9 10.5 18.4 Total 16.9 17.5 34.4 PRODUCT COAL Area Proved reserves (Mt) Probable
Slide 22: A.6 Reserves Coal Quality
A.6 RESERVES COAL QUALITY ROM COAL For personal use only Sulphur (% Area Total (Mt) Total moisture Ash (% arb) VM (% arb) CSN arb) Escarpment 4.9 5.4 21.4 0.7 34.0 6.5 Cascade 0.4 8.0 9.9 1.4 31.4 3.5 Deep Creek 8.5 5.8 11.7 2.6 - - Coalbrookdale 2.2 4.9 21.8 1.3 32.6 4.0 Whareatea West 18.4 6.0 31.
Slide 23: Competent Person Statements
COMPETENT PERSON STATEMENTS For personal use only • The information in this presentation that relates to mineral resources and reserves for Deep Creek is based on information compiled by Adam Bonham-Carter a Competent Person who is a full time employee of Golder Associates (NZ) Limited and is a memb