Slide 1: Annual Results: Presentation to Analysts
For personal use only ANNUAL RESULTS: PRESENTATION TO ANALYSTS August 2013 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 (New Zealand) 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
Slide 3: Business Overview
BUSINESS OVERVIEW For personal use only ♦ Expected to be cash flow positive over the 2014 financial year ♦ Demand driven by growth in South Island dairy production and other 1. Domestic industrial users Operations ♦ No exposure to international coal price volatility and FX risk ♦ Flagship asset, ove
Slide 4: Capital Structure Overview
CAPITAL STRUCTURE OVERVIEW For personal use only Capital Structure as of 21 August 2013 Substantial Holders as at 30 June 2013 Ticker (ASX / NZX) BRL L1 Capital 14.2% Shares on issue 699.2m Coupland Cardiff 9.7% Options on issue 58.0m Related Parties 2.0% Market capitalisation $132.9m Net cash posit
Slide 5: The Buller Coal Project
THE BULLER COAL PROJECT For personal use only Stockton Plateau Denniston Plateau Presentation to Analysts | August 2013 | 5 Investor Presentation | April 2013 | 5
Slide 6: Bathurst Targeted Production
BATHURST TARGETED PRODUCTION* For personal use only 3,500 3,000 2,500 1,170 Coal Sales (kt) 2,000 690 1,500 900 1,000 750 540 540 500 180 629 821 514 617 395 0 Year 0 Year 1 Year 2 Year 3 Year 4 Domestic Export Operations - Escarpment Export Operations - Other * Based on Bathurst’s mine and producti
Slide 7: Domestic Operations
DOMESTIC OPERATIONS ♦ Domestic Operations: provide solid earnings platform For personal use only ♦ Domestic Operations comprise coal mines in Southland, Buller (Cascade) and Canterbury* ♦ Coal sold direct to local industrial users ♦ Revenue independent of global coal prices and FX with majority of s
Slide 8: Export Operations: Escarpment
EXPORT OPERATIONS: ESCARPMENT ♦ Escarpment – update For personal use only ♦ Quality metallurgical coal for export to international steel markets ♦ Targeting first production in FY14 subject to granting of necessary resource consents ♦ Relatively low CAPEX entry to establish mine ♦ Coal to be trucked
Slide 9: Export Operations: West Coast
EXPORT OPERATIONS: WEST COAST For personal use only ♦ South & North Buller could add an additional 1.5-2.0Mtpa** of coking coal ♦ 25.7Mt* estimated reserves and 84.1Mt* estimated resources ♦ Whareatea West coal can be blended with Escarpment coal to optimise value ♦ Relatively easy production profil
Slide 10: Escarpment Development Plan
ESCARPMENT DEVELOPMENT PLAN For personal use only 1: Green light on Escarpment ♦ Development phase ♦ Relatively short development phase ♦ Low CAPEX entry for project commencement 2: Site preparation 1-2* improvement to haul road months 3: First coal extraction • Expected initial begins, improvement
Slide 11: Escarpment Consents: Update
ESCARPMENT CONSENTS : UPDATE For personal use only ♦ Environment Court Appeal • Interim decisions issued March 2013 and 7 August 2013 • Resolution of consents outstanding - court continues to indicate it is likely to grant consents • Awaiting final decision from court ♦ High Court Appeal • Forest an
Slide 12: Capital Cost Estimates
CAPITAL COST ESTIMATES For personal use only Capital Estimates* Year 1 Year 2 Years 3 – 5 $24.9m $45.6m Export Operations $13.3m (Phase 1) ($14.5m Phase 1, $10.5m Phase 2) ($9.2m Phase 2, $36.4m Phase 3) Domestic Operations $6.6m $1.4m $13.8m Export Escarpment Domestic Operations Phase 1 ($28m) – 64
Slide 13: Multiple Routes to Market
MULTIPLE ROUTES TO MARKET For personal use only Westport/Taranaki Rail to Lyttelton Westport Rail link • Operating river port, exclusivity secured for coal • Stockpile → Westport → Lyttelton wharf • 5Mtpa total capacity • Export route already established; NZ$5M capital cost • Agreement with SENZ to
Slide 14: Aerial Conveyor
AERIAL CONVEYOR For personal use only Illustration only of the aerial conveyor proposed to be constructed Presentation to Analysts | August 2013 | 14 Investor Presentation | April 2013 | 14
Slide 15: Southland Assets
SOUTHLAND ASSETS For personal use only Presentation to Analysts | August 2013 | 15 Investor Presentation | April 2013 | 15
Slide 16: Appendices
For personal use only APPENDICES Investor Presentation | April 2013 | 16
Slide 17: Appendix - Resource Estimates
APPENDIX 1 - RESOURCE ESTIMATES For personal use only Area Measured resource (Mt) Indicated resource (Mt) Inferred resource (Mt) Total resource (Mt) Escarpment 2.8 2.1 0.9 5.8 Deep Creek 6.2 3.1 1.6 10.9 Coalbrookdale 0.0 2.3 4.9 7.2 Whareatea West 5.0 12.4 8.1 25.5 Millerton North 0.0 1.9 3.6 5.5 N
Slide 18: Appendix – Coal Quality
APPENDIX 2 – COAL QUALITY For personal use only PROPERTY INDICATIVE RANGE Total Moisture (ar) 8 - 10% Inherent Moisture (adb) 1.0 - 1.5% Ash (adb) 5 - 7% Total Sulphur (adb) 0.5 – 0.7% Free Swelling Index 7-9 Romax 0.9 - 1.0 Volatile Matter (adb) 34 – 36% Maximum fluidity (ddpm) >10,000 to 100,000 P
Slide 19: Appendix - Summary of L&M Payments
APPENDIX 3 - SUMMARY OF L&M PAYMENTS ♦ In November 2010 Bathurst acquired L&M Coal Limited for the following consideration: For personal use only ♦ US$40 million initial consideration (which has been paid). ♦ A performance payment of US$40 million payable when the first 25,000 tonnes of coal has bee
Slide 20: 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