Bathurst Resources Ltd · ASX:BRL
Bathurst Resources — Shareholder Meeting (November 2019)
24 slides from Bathurst Resources's shareholder meeting presentation, November 2019
Slide 1: Bathurst Resources Limited Annual General Meeting November 2019
BATHURST RESOURCES LIMITED Annual General Meeting November 2019
Slide 2: Disclosure
DISCLOSURE General disclaimer This presentation contains forward-looking statements. Forward- hey also include all figures noted as FY20 which are forecasted financial year June 2020 results. The forward-looking statements are based on management's and conditions, circumstances and results. As with
Slide 3: FY19 Highlights
FY19 HIGHLIGHTS Investment in two key Record EBITDA - $106.6m growth projects 14% New capital initiatives in Receipt of innovation share buy-backs award Record NPAT - $45.0 million Maiden dividend $39.5 million approved Financial figures Commercial noted above are based on 30 June 2019 audited finan
Slide 4: Strategy
STRATEGY To be the leading NZ domestic and export coal producer VISION with a globally diversified coking coal portfolio TARGETS SUSTAINABLE BUSINESS STABLE MARKETS • 5Mtpa by 2023. • Environmental focus. • Protect domestic • People and safety key MISSIONS • Sustainable costs with relationships. ali
Slide 5: What Makes Us Different
WHAT MAKES US DIFFERENT WE BENEFIT FROM A DIVERSIFIED PORTFOLIO 60 percent of our revenue is forecast for FY20 to come from export sales (coking coal); the remainder domestic sales (thermal coal and Revenue by market (FY201) coal for steelmaking). 74 percent of revenue for FY20 is forecast to come f
Slide 6: FY20 EBITDA Guidance $78.4M
FY20 EBITDA GUIDANCE $78.4M Export Consolidated EBITDA • The decrease in forecast FY20 $m EBITDA from FY19 is coming from 120.0 106.6 our export segment. 100.0 93.7 This is primarily due to a lower 78.4 80.0 export coal price. 67.4 FX hedging continues to be in place 60.0 68.3 45.2 to manage impacts
Slide 7: Export Market Update
EXPORT MARKET UPDATE > The hard coking coal > The outlook for Outlook Current conditions index has recently Chinese imports dropped to swing remains subject to between USD $130 and substantial uncertainty, $150s, following a the key drivers being reduction in steel the extent of an pricing and marke
Slide 8: LMCH1 Case Update
LMCH1 CASE UPDATE DETAILS UPDATE On 20 August 2018 Our appeal was heard in the High Court found the Court of Appeal on 21 in favour of LMCH to 23 August 2019. regarding a disputed Management were happy USD $40m with the proceedings. performance payment under the Buller project Sale We expect to rece
Slide 9: Our Operations / Quick Facts
Our operations Quick facts Domestic Operations 5 operating mines 3 via a Corporate offices 65% owned joint venture Mine in care & maintenance Maramarua Markets Export and domestic Distribution centre Production under 2.2Mt Export management FY20 Rotowaro Revenue by market FY20 60% export, 40% domest
Slide 10: Capital Management
CAPITAL MANAGEMENT Net assets $116m Issued shares Substantial shareholdings at 30 June. 1.7bn. 23.5% Republic Investment Borrowings1 USD Potential shares Management (Singapore) $7.9m. 156m from Cash $50.3m incl. convertible notes 12.1% restricted deposits and performance Zealand) at 30 Sep. rights.
Slide 11: High Standards in HSEC
HIGH STANDARDS IN HSEC Zero occupational health illnesses Revised employee fitness for work periodic health assessments (88 percent complete). Traffic risk profile significantly reduced after initial monitoring programme. 2,600 fitness for work drug and alcohol tests completed YTD. BRL TRIFR1 = 6.5
Slide 12: Sustainable Focus
SUSTAINABLE FOCUS We support the NZ Government in the transition to a net zero carbon economy by 2050. We are working on a plan to do our part towards this. It includes reducing emissions from operations, whilst continuing to Contribute to the NZ We will supply thermal coal to the domestic market fo
Slide 13: Export: Stockton (65% BRL)
EXPORT: STOCKTON (65% BRL1) Stockton is an open cut mine producing a low-ash metallurgical coal for export Sales FY20 1.3Mt Sales product mix (FY20) Unit cost FY20 $107/tonne EBITDA FY20 $69.9m Resource 67.1Mt. Reserve1 8.2Mt. 1.8Mtpa CHPP, 2.5km Infrastructure aerial ropeway, 2.2Mtpa rail loadout f
Slide 14: Our Export Coal & Market Strategy
OUR EXPORT COAL & MARKET STRATEGY Our coal • Very low ash content. characteristics •• Almost all vitrinite. Blend improver. Value in use Our coal is marketed on a focus maximise value to customers and price. Diversification Diversified geographic markets, end products, pricing structures and logisti
Slide 15: Stockton Fines Recovery Project
STOCKTON FINES RECOVERY PROJECT De-risk the existing waste impoundment for now and post mine closure. Current A-18 waste dam Construct infrastructure that will enable the Objectives processing of coal fines (coal sized between 0 250 microns) which can be blended with other coal stocks, adding to coa
Slide 16: Domestic: High Quality, Low Ash Coal
DOMESTIC: HIGH QUALITY, LOW ASH COAL Rotowaro and Maramarua in the North Island, and Canterbury and Takitimu in the South Island, are our open cut mines producing high-quality, low-ash coal for the local steelmaking market and food and other processing industries. North Island1 South Island Sales 31
Slide 17: Production Growth Pipelines
PRODUCTION GROWTH PIPELINES1 Buller project EXPORT 52.0Mt resources & 12.5Mt marketable coal reserves Stockton organic growth 18.3Mt resources Maramarua DOMESTIC Waipuna West and Waipuna West extension (NID) Other (NID) Rotowaro North (Ruawaro, NID) South Island domestic extension projects CANADA Cr
Slide 18: Canadian Growth Project: Crown Mountain
CANADIAN GROWTH PROJECT: CROWN MOUNTAIN Crown Mountain is a joint venture with Jameson Resources Limited Cumulative investment to achieve 50:50 Mature mining region in British ownership: CAD $121.5m Location Columbia with well established transport infrastructure. Initial Tranche Tranche investment
Slide 19: Crown Mountain: A Strategic Fit
CROWN MOUNTAIN: A STRATEGIC FIT Domestic: > -term Current opportunities Strategic fit > There is no real focus is on opportunity for growth metallurgical growth. in the domestic > Canada represents a thermal market. different geographical > Demand is relatively and political stable, and Bathurst env
Slide 20: Crown Mountain Timeline
CROWN MOUNTAIN TIMELINE Activity 2018 2019 2020 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Environmental baseline ✓ ✓ ✓ ✓ ✓ ✓ ✓ EA pre-application AIR ✓ ✓ EA application, preparation and submittal ✓ ✓ ✓ ✓ ✓ ✓ ✓ EA regulatory review and approval Feasability level exploratio
Slide 21: Long Term Company Growth
LONG TERM COMPANY GROWTH GRAPH ASSUMPTIONS BRL production tonnes (100% basis) by market 5.0 Mt Assumes projects as per 4.5 the growth pipeline on slide 17 come online. 4.0 New projects would 3.5 potentially add to forecast production 3.0 levels. 2.5 Domestic business 2.0 continues in a steady state
Slide 22: Competent Persons Statement
COMPETENT PERSONS STATEMENT 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, Upper Waimangaroa and Whareatea West is based on information compiled by Sue Bonham-Cart
Slide 23: Appendix: Resources
APPENDIX: RESOURCES 2019 2018 2019 2018 2019 2018 2019 2018 Bathurst Measured Measured Indicated Indicated Inferred Inferred Total Total Area Mineral Change (Mt) Change (Mt) Change (Mt) Change (Mt) Resource Resource Resource Resource Resource Resource Resource Resource Ownership (Mt) (Mt) (Mt) (Mt)
Slide 24: Appendix: Marketable Coal Reserve Tonnes
APPENDIX: MARKETABLE COAL RESERVE TONNES Bathurst Proved (Mt) Probable (Mt) Total (Mt) Product Coal Mineral Area 2019 2018 Change 2019 2018 Change 2019 2018 Change Ownership Escarpment Domestic (A, C, F & I) 100% 0.2 0.2 0.0 0.1 0.1 0.0 0.3 0.3 0.0 Escarpment Export (A, C, F & I) 100% 1.9 1.9 0.0 0.
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