Slide 1: Bathurst Resources Macquarie Mining Forum – Investor Update June 2018
For personal use only Bathurst Resources Macquarie Mining Forum – Investor Update June 2018
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by and issued by Bathurst Resources Limited (Bathurst or BRL or Company) to assist it in informing interested parties about the Company and its progress which is current as at the date of this For personal use only presentation. This presentation is for
Slide 3: Overview of Bathurst Resources
Overview of Bathurst Resources Bathurst Resources is a leading New Zealand coal producer with domestic, export coking For personal use only and opportunities to expand export production. Capital Structure Share Price Performance Share Price (26 June 2018) $0.14 Shares Outstanding (Bn) 1.513 Market C
Slide 4: Highlights against FY18 Guidance
Highlights against FY18 Guidance1 Bathurst has delivered on its strategy across operations, safety performance and financial outcomes as well as expansion via acquisition at a low point in the cycle For personal use only ✓Consolidated EBITDA: > $92.0 million ✓Domestic tonnes : 2 1.3mT ✓Export tonnes
Slide 5: Export Markets
For personal use only Export Markets
Slide 6: Export Marketing – Metallurgical Coal
Export Marketing – Metallurgical Coal • Market Relatively Stable • Suppliers / Coke Producers / Steel Manufacturers For personal use only are all able to sustain the current pricing levels • Uncertainty exists in some quarters – namely the Chinese markets • Key markets of Japan and India continue to
Slide 7: Export Marketing – Customers
Export Marketing – Customers • Long term contracted customer base For personal use only • Up to 43 years into Japan • Up to 25 years into India • All customer contracts transferred with assets • Seamless supply and contract performance post Bathurst ownership • CEO recent visit to long term customer
Slide 8: Operations
For personal use only Operations
Slide 9: Leading Presence in New Zealand
Leading Presence in New Zealand Bathurst has established itself as the pre-eminent coal producer in New Zealand For personal use only Maramarua Auckland Rotowaro Stockton Buller Westport Wellington Canterbury Christchurch Takitimu Invercargill 1 65% BRL ownership of the Rotowaro, Maramarua, and Stoc
Slide 10: Stockton (65% BRL)
Stockton (65% BRL1) Stockton is an open cut mine located on the West Coast of New Zealand producing a low- ash metallurgical coal for export For personal use only Volume Pricing Stockton (% of Total (% of PLV5 Product Sales) benchmark) Production (FY19) 1.1 mt HCC2 15% 100% Unit Cost (FOB) NZ$102/t
Slide 11: North Island Domestic (65% BRL)
North Island Domestic (65% BRL1) Open cut mines located in the Waikato region of New Zealand producing a high-quality, low-ash coal for the local steel market For personal use only Rotowaro Production (FY19) 588 kt EBITDA margin NZ$40/t2 FTE 123 Crown Indemnity NZ$15.3m Resource 9.7 Mt3 Reserve 2.0
Slide 12: South Island Domestic (100% BRL)
South Island Domestic (100% BRL) Open cut mines located in the Canterbury and Southland regions of New Zealand producing a high-quality, low-ash coal for the domestic market For personal use only Takitimu Production (FY19) 251 kt EBITDA margin NZ$25/t1 FTE 46 Resource 5.3 Mt2 Reserve 1.8 Mt2 Canterb
Slide 13: Sales Profile
Sales Profile Significant footprint in New Zealand Coal For personal use only SALES PROFILE BY MARKET SALES PROFILE BY REGION 1 Domestic Export 1.2 mtpa 1.1 mtpa South Island Domestic 0.4 mtpa Export - SALES PROFILE BY PRODUCT USE Stockton Electricity 1.1 mtpa 0.2 mtpa North Island Domestic Food 0.8
Slide 14: FY19 Bathurst Forecast Metrics
FY19 Bathurst Forecast Metrics The following are the forecast metrics for the Bathurst assets based on the FY19 operating plans For personal use only Stockton North Island South Island BRL Domestic Domestic Equity Share Production 1.1mt Product 800kt Product 400kt Product 1.6mt Product Cash cost (av
Slide 15: Project Pipeline
For personal use only Project Pipeline Staged approach to value growth
Slide 16: Buller Project (100% BRL)
Buller Project (100% BRL) The combination of the BT Mining assets with Bathurst’s existing Buller Plateau assets will unlock material synergies for the Company For personal use only Item With Without Synergies Synergies CHPP nil $100m Access to Rail $6m $50m Rail loadout nil $25m Water $3m $3m treat
Slide 17: Buller Project timetable
Buller Project timetable A short development cycle1 at low capital cost to bring on stream For personal use only 6 • Increase Resource definition – large diameter washability holes months Evaluation • Complete Feasibility Study 36 • Transport route months • Mining Areas Consenting 36 • Initial Boxcu
Slide 18: Conceptual Development Plan - Denniston
Conceptual Development Plan - Denniston For personal use only 18
Slide 19: Buller Plateau - Route to Market
Buller Plateau - Route to Market Ties all the assets together to establish a long term project pipeline For personal use only 19
Slide 20: Conceptual Development Plan – Marshalls (65% BRL)
Conceptual Development Plan – Marshalls (65% BRL) A natural southern extension of the Cypress area of Stockton For personal use only Development of an open cut pit within the Upper Waimangaroa Permit. Resource can be integrated into the current Stockton market plan. Key component for a Deep Creek bl
Slide 21: Conceptual Development Plan – Deep Creek (BRL/BT)
Conceptual Development Plan – Deep Creek (BRL/BT) This area is a blend of BT Mining and Bathurst held resources with access back to For personal use only Stockton infrastructure Development of an open cut pit within the Upper Waimangaroa Permit and incorporating comparable coal within the BRL Buller
Slide 22: Waipuna West – Rotowaro extension project (BRL 65%)
Waipuna West – Rotowaro extension project (BRL 65%) Bathurst extends the life of the Rotowaro complex For personal use only Waipuna West is an extension project for the Rotowaro mine. Bathurst is evaluating options but looking to be Owner Operator utilising the existing heavy fleet. Project Metrics:
Slide 23: Crown Mountain (BRL earn-in to 50%)
Crown Mountain (BRL earn-in to 50%) Project moving toward Bankable Feasibility Study and Permitting For personal use only Comprehensive due diligence has been undertaken by Bathurst Resources. An in-depth understanding of the status of the project has been achieved that includes the next steps requi
Slide 24: Crown Mountain key metrics
Crown Mountain key metrics The pre-feasibility study was updated in April 2017 and demonstrates robust economics, forming the backdrop for Bathurst’s due diligence assessment of the Crown Mountain For personal use only project. • FOB cash cost of US$75/t life-of-mine (US$66/t first four years). • Ha
Slide 25: Bathurst Resources Capital Structure
Bathurst Resources Capital Structure Issued Ordinary Shares 1,513,164,577 For personal use only Potential Ordinary Shares Face Value # of notes Maturity/ Coupon Per note # potential vesting date conversion # ordinary shares shares Convertible Notes $4.0m NZD 3,483 22 July 2019 8% 45,455 158,318,182
Slide 26: 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 Export, Stockton and Whareatea West is based on For personal use only information compiled by Sue Bonham