Slide 1: Bathurst Resources Limited
BATHURST RESOURCES LIMITED New Zealand’s leading coal group Investor presentation March 2020
Slide 2: Disclosure
DISCLOSURE General information This document is authorised for release by Richard Tacon, Bathurst Resources Limited’s CEO, on the 6 March 2020. Bathurst’s address is Level 12, 1 Willeston Street, Wellington 6011, New Zealand. General disclaimer This presentation contains forward-looking statements.
Slide 3: NZ's Leading Coal Producer and Exporter
NZ’S LEADING COAL PRODUCER AND EXPORTER OPERATIONS QUICK FACTS Domestic Corporate offices Mine in care & Maramarua maintenance Distribution centre Operations Markets FY20 sales Export Rotowaro • Five operating • Export (for and earnings1 mines in New steel making) • 2.4Mt under Zealand. • Domestic (
Slide 4: Our Story
OUR STORY Where we were four years ago: • Four years ago, Bathurst was a domestic only business, selling 0.4Mt of thermal coal for process heating purposes. Where we are today: • Today, we have both domestic and export mining operations, selling 2.4Mt of coal a year, via our existing business and ac
Slide 5: How We Have Evolved
HOW WE HAVE EVOLVED People & LTIFR1 Sales volumes by segment1 600 1.5 Jun 19 Domestic Export 400 1 LTIFR People Jun 18 Domestic Export 200 0.5 Jun 17 Domestic 0 0 Jun 17 Jun 18 Jun 19 0 1 2 3 People LTIFR Mt Consolidated EBITDA $m Revenue by product use1 500 Jun 19 107 400 300 Jun 18 94 200 Jun 17 1
Slide 6: Capital Overview
CAPITAL OVERVIEW • Net assets • 1.7 billion issued $129m at 31 shares. December. • A further potential • Borrowings1 159 million from USD $7.9m. convertible notes, • Cash $33.4m and performance incl. restricted Structure Shares rights. deposits at 31 December. •On market • Republic investment share
Slide 7: LMCH Case Update
LMCH1 CASE UPDATE DETAILS UPDATE Our appeal was heard in In August 2018 the August 2019. High Court found in Management were favour of LMCH happy with the regarding a proceedings. disputed USD $40m performance We expect to receive a payment. judgment from the Court of Appeal soon. An appeal was Our
Slide 8: High Standards in HSEC
HIGH STANDARDS IN HSEC Zero occupational health illnesses BRL TRIFR1 = 6.5 Zero major environment incidents; nine minor incidents Zero regional scale community issues 1 Total recordable injury frequency rate Commercial in Confidence 8
Slide 9: 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 and support NZ’s economic prosperity. • We will supply therm
Slide 10: FY20 EBITDA Guidance $70M
FY20 EBITDA GUIDANCE $70M Export $m Consolidated EBITDA • The decrease in forecast FY20 120 106.6 EBITDA from FY19 is from our 100 93.7 export segment. 80 70.1 • This is primarily due to a lower 67.4 export coal price. 60 68.3 34.7 • FX hedging continues to be in 40 place to manage impacts from sign
Slide 11: Export Market Update
EXPORT MARKET UPDATE > The hard coking coal index has recently risen Current conditions and outlook to over USD $160, as steel mills build inventory, and China utilises additional seaborne coking coal due to the Chinese New Year holiday, and low domestic production following the Coronavirus outbreak
Slide 12: Export: Stockton (65% BRL)
EXPORT: STOCKTON (65% BRL) Stockton is an open cut mine producing a low-ash metallurgical coal for export Sales product mix (FY20) Sales FY20 • 1.3Mt Unit cost FY20 • $107/tonne EBITDA FY20 • $53.4m High ash coking Resource • 67.1Mt. coal/thermal Semi-hard 32% Reserve1 • 8.2Mt. coking coal • 1.8Mtpa
Slide 13: 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 Coal marketed on a ‘Value focus In Use’ basis to maximise value. Diversification Diversified geographic to reduce risk markets, end products, pricing structures a
Slide 14: 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, electricity providers, and food and other processing industries. North Islan
Slide 15: Production Growth Pipelines
PRODUCTION GROWTH PIPELINES1 Buller project EXPORT 52.0Mt resources & 12.5Mt marketable coal reserves Stockton organic growth 18.3Mt resources Maramarua K1 and M1 (North Island domestic “NID”) DOMESTIC Waipuna West and Waipuna West extension (NID) Other (NID) Rotowaro North (Ruawaro, NID) South Isla
Slide 16: Canadian Growth Project: Crown Mountain
CANADIAN GROWTH PROJECT: CROWN MOUNTAIN Crown Mountain is a joint venture with Jameson Resources Limited Cumulative investment to achieve • Mature mining region in British 50:50 ownership: CAD $121.5m Location Columbia with well established transport infrastructure. Initial Tranche Tranche investmen
Slide 17: Crown Mountain: A Strategic Fit
CROWN MOUNTAIN: A STRATEGIC FIT Domestic: > Our long-term Current opportunities Strategic fit > No real focus is on opportunity for metallurgical growth. growth. > Demand is > Canada relatively stable, we represents a already hold a different market dominant geographical and position. political envi
Slide 18: Project In-House Expertise
PROJECT IN-HOUSE EXPERTISE Mark Lionnet – Export projects manager Richard Tacon – Director and CEO • A mining geologist with over 27 years’ experience in the mining industry in NZ and overseas, including 12 years in coal in NZ. • Over 40 years in almost every role in the coal mining • Qualifications
Slide 19: 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 Feasibility level explor
Slide 20: Long Term Company Growth
LONG TERM COMPANY GROWTH Assumes projects as per the growth pipeline on slide 15 come online. BRL production tonnes (100% basis) by market 5.0 Mt 4.5 New projects would potentially add to 4.0 forecast production 3.5 levels. 3.0 Domestic business 2.5 continues in a steady 2.0 state with no new altern
Slide 21: 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 22: 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 23: 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.