Bathurst Resources Ltd · ASX:BRL
Bathurst Resources — Shareholder Meeting (November 2017)
27 slides from Bathurst Resources's shareholder meeting presentation, Nov 28, 2017
Slide 1: Bathurst Resources AGM Presentation
For personal use only Bathurst Resources AGM Presentation November 2017
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 (20 Nov 2017) $0.120 Shares Outstanding (Bn) 1.513 Market C
Slide 4: Health and Safety
Health and Safety Robust Safety Systems based on sound Risk Management principles For personal use only • Established Health and Safety Management System LTIFR - Zero in place • Risk Management practices introduced at all levels of MTIFR - Zero the business • Significant rate of legislative PPI – 93
Slide 5: Highlights
Highlights Bathurst has delivered on its strategy across operations, safety performance and financial outcomes as well as expanding via acquisition at a low point in the cycle For personal use only Ongoing training Increased underlying Reduced average under Health and profit despite cash cost of min
Slide 6: Operations
For personal use only Operations
Slide 7: 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 Auckland Maramarua Rotowaro Stockton Buller Wellington Westport Canterbury Christchurch Takitimu Invercargill 1 65% BRL ownership of the Rotowaro, Maramarua, and Stoc
Slide 8: Export (65% BRL)
Export (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 Customer Base Stockton Production (FY18) 1.0 mt Unit Cost (FOB) NZ$100/t FTE 209 Crown Rehab. Indemnity NZ$44.5m Resource 69.2 mt Volume Pr
Slide 9: 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 (FY18) 700 kt Margin NZ$30/t FTE 123 Crown Indemnity NZ$15.3m Resource 9.7 Mt Reserve 2.0 Mt Marama
Slide 10: 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 (FY18) 225 kt Margin NZ$30/t1 FTE 45 Resource 5.3 Mt Reserve 1.8 Mt Canterbury Produ
Slide 11: Sales Profile
Sales Profile Significant footprint in New Zealand Coal For personal use only Gross Sales under BRL Management (100%)1 2 1.0 Million tonnes 2.2 1 0.7 0.2 0.4 0 BRL ROM Maramarua FY18 Rotowaro FY18 Stockton FY18 BRL Group 100% production FY2018 basis FY18 1 Assumes first year of full production inclu
Slide 12: Market and Product Mix
Market and Product Mix The following shows the exposure to various market sectors and to export and domestic markets For personal use only Sales under Management 2.2mtpa Steelmaking Coal NZ Energy Product Use 1.6mtpa 0.6mtpa Export Domestic Market 1.0mtpa 1.2mtpa 12
Slide 13: FY18 Bathurst Updated Metrics
FY18 Bathurst Updated Metrics The following are the forecast metrics for the Bathurst assets based on the FY18 operating plans For personal use only Stockton North Island South Island BRL Domestic Domestic Equity Production 0.9mt Product2 850kt Product 400kt Product 1.6mt Product Cash cost (av) $NZ1
Slide 14: EBITDA Guidance Update
EBITDA Guidance Update The graph depicts the forecast EBITDA for Bathurst by quarter. For personal use only FY18 EBITDA forecast has been upgraded to NZ$75m. Quarterly EBITDA $40 Millions $35 Current Prices $30 $25 EBITDA Assumes HCC price of $20 USD150/tonne $15 September $10 only $5 $- Q1 Q2 Q3 Q4
Slide 15: Coking Coal Price v EBITDA
Coking Coal Price v EBITDA The graph depicts the change in Stockton margin with changing coal price. The exchange rate is fixed at $0.70 for this assessment. For personal use only Stockton Margin versus Benchmark Price 140 Current Price1 120 100 Margin (NZ$) 80 60 Budget 40 20 0 105 120 135 150 165
Slide 16: Buller Project
For personal use only Buller Project
Slide 17: Strategic Rationale
Strategic Rationale The combination of the BT Mining assets with Bathurst’s existing Buller Plateau assets For personal use only will unlock material synergies for the Company Buller Coking Coal Assets Resource 40.2 Mt Reserve 18.9 Mt Purchase of the Sullivan CML is subject to consent being granted
Slide 18: Buller Project
Buller Project A short development cycle1 at low capital cost to bring on stream For personal use only 1: Prefeasibility Signoff 6 ♦ Development phase 2: Finalise Feasibility ♦ Relatively short development phase months Study ♦ Low CAPEX entry for project commencement • Resource Consenting for mine 1
Slide 19: Buller Capital Requirements
Buller Capital Requirements Significant reduction in capital required to develop the Buller Project For personal use only Item With Synergies Without Synergies CHPP nil $100m Access to Rail $6m $50m Rail loadout nil $25m Water treatment $3m $3m Workshops etc $1m $10m Working Capital (1st Coal) $15m
Slide 20: Conceptual Development Plan
Conceptual Development Plan For personal use only 20
Slide 21: Route to Market
For personal use only Route to Market 21
Slide 22: Appendices and Biographies
For personal use only Appendices and Biographies
Slide 23: Appendix 1: Board of Directors
Appendix 1: Board of Directors For personal use only Toko Kapea Non-Executive Chairman Commercial lawyer and company director Richard Tacon Executive Director & CEO Over 37 years coal mining operations experience Russell Middleton Executive Director & CFO Strong financial and operations background i
Slide 24: Appendix 2: Director Profiles
Appendix 2: Director Profiles Toko Kapea – Non-executive Chairman Toko is a Wellington based commercial lawyer, consultant and director. He is a director of Tuia Group Limited and a partner in Tuia Legal. Toko has worked at Chapman Tripp and in legal roles in-house at Meridian Energy, Bank of New Ze
Slide 25: Appendix 3: Executive Management Team Members
Appendix 3: Executive Management Team Members Damian Spring For personal use only Martin Doull General Manager, General Manager, Domestic Operations Stockton Operation Craig Pilcher Sam Johnstone Craig Palmer General Manager, General Manager, General Manager, Domestic Marketing Export Marketing Comm
Slide 26: Appendix 4: Bathurst Resources Capital Structure
Appendix 4: Bathurst Resources Capital Structure For personal use only Number of Equity Shares Shares currently on Issue 1,513,164,577 Convertible Notes 3,483 22-Jul-19 $0.022 158,318,182 Convertible Notes 7,500 01-Feb-21 $0.0375 200,000,000 Retention Rights 31-Mar-19 11,500,000 Fully Dilutes Shares
Slide 27: Appendix 5: Competent Person Statements
Appendix 5: 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 b
Bathurst Resources — Shareholder Meeting (November 2017) on 6ix