Slide 1: Bathurst Resources Limited Investor Presentation September 2022
BATHURST RESOURCES LIMITED INVESTOR PRESENTATIONS SEPTEMBER 2022 ASX: BRL
Slide 2: Disclosure
DISCLOSURE General information This document is authorised for release by the board of directors of Bathurst Resources Limited (“Bathurst”) on the 13 September 2022. Bathurst’s address is Level 12, 1 Willeston Street, Wellington 6011, New Zealand. General disclaimer This presentation contains forwar
Slide 3: Domestic Utility, Global Upside
DOMESTIC UTILITY, GLOBAL UPSIDE EXPLORATION PROJECT JOINT VENTURE, COKING Maramarua COAL EXPORT COKING COALCanterbury SALES Takitimu ≈ 1Mt p.a. •PRODUCTION ≈ 2Mt p.a. •DOMESTIC THERMAL SALES ≈ 1Mt p.a. Approximate production and sales tonnes under management 3
Slide 4: An Essential Energy Supplier in NZ
AN ESSENTIAL ENERGY SUPPLIER IN NZ Maramarua Stockton Canterbury Joint venture assets in BT Mining are 65% equity owned by Bathurst. 4
Slide 5: We sell into two markets that have their own risks and opportunities
WE SELL INTO TWO MARKETS THAT HAVE THEIR OWN RISKS AND OPPORTUNITIES Domestic: coal for processing Export: coal for steelmaking heat & steelmaking • Exposed to market price fluctuations. • New Zealand is moving towards a net zero Risks, • Opportunity to significantly increase profit when carbon econ
Slide 6: Sustainable Earnings Profile
SUSTAINABLE EARNINGS PROFILE We benefit in times of high export pricing, and generate positive cash flows during lower export pricing due to stable earnings from our domestic segment. NZD $m Consolidated EBITDA1 NZD APR2 $ FY23E sales by product use 140 350 120 300 16% 100 250 4% 80 200 60 150 40 10
Slide 7: Export (Stockton Mine)
EXPORT (STOCKTON MINE) Coking coal sales for the steelmaking export market. Mt Export coal sales1 1.5 1.0 “ Earnings fluctuate in line with changes in the USD Hard Coking Coal premium low vol benchmark which our export pricing is set 0.5 against, as well as movements in NZD:USD foreign exchange rate
Slide 8: Domestic Mines (North & South Island)
DOMESTIC MINES (North & South Island) Consistent EBITDA based on predictable revenue, unit costs, and overburden removal. Mt Domestic coal sales1 1.5 1.0 FY23E sales by product use Process 0.5 heat 0.0 Steel FY18 FY19 FY20 FY21 FY22 FY23E making NZD $m Equity share EBITDA 50 40 Electricity 30 20 39
Slide 9: EBITDA Guidance FY23 $120M - $130M
EBITDA GUIDANCE FY23 $120M - $130M #039;m 140 120 16.0 0.7 3.7 Maramarua 100 80 60 125 104 40 20 Stockton 0 FY22 EBITDA Export North Island South Island FY23E EBITDA domestic incl. BT domestic incl. BRL Canterbury overheads overheads • Guidance range reflects potential volatility in export pricing; ass
Slide 10: Export Pricing Outlook Remains Positive
EXPORT PRICING OUTLOOK REMAINS POSITIVE At 12 September we USD/tonne had 226kt sales 700 Monthly USD export pricing tonnes hedged at an average effective 600 price of NZD 496 500 per tonne. 400 300 200 100 0 Actual Guidance Forward curve • The war in the Ukraine and associated sanctions continue to
Slide 11: Financial Health Snapshot
FINANCIAL HEALTH SNAPSHOT1 Cash Healthy Strong positive balance forecast $100m NZD cash sheet earnings incl. restricted short $0 debt $120m - $130m term deposits (excl. finance leases) EBITDA FY23 Potential for upside $184m AUD market cap 1 Consolidated 100% Bathurst and 65% BT Mining, as at 31 Augu
Slide 12: Growth Projects Overview
GROWTH PROJECTS OVERVIEW We have a robust pipeline to extend our current operations. Market Growth projects Production start Status date1 SOUTH ISLAND Process heat New Brighton FY24 Prefeasibility DOMESTIC domestic Process heat Waipuna West extension FY23 Development domestic, Maramarua M1 pit FY23
Slide 13: Canadian Coking Coal JV Project
CANADIAN COKING COAL JV PROJECT Crown Mountain – a premium low volatile hard coking coal exploration project, due to enter production late 2026, and produce 2Mt per year. ECONOMICS • Pre-tax NPV10 USD $469m1. • FOB Vancouver USD 89.41/t. RESOURCE • 1.96Mtpa. • Mine life 15 years. • 57.5Mt reserve, 9
Slide 14: Future Investments
FUTURE INVESTMENTS Noting the increasing global appetite for other minerals, we are considering leveraging the strong coal mining core of our business and our sector expertise as producers to contemplate and potentially take advantage of other resource opportunities. The following are the key criter
Slide 15: Our Contribution
OUR CONTRIBUTION 8.6 315kt total $67m CO2 emissions recordable paid to avoided when injury employees using our frequency export coal 1 rate 1.7 $209m 3 lost time finalists in the paid to New injury Minerals Sector Zealand frequency Awards suppliers rate Financial figures noted are 100 percent Bathur
Slide 16: Questions?
QUESTIONS? BATHURST &
Slide 17: Appendices
APPENDICES BATHURST &
Slide 18: The Ongoing Demand for Steel
THE ONGOING DEMAND FOR STEEL Demand for steel is projected to increase by a third by 2050. Why has demand for steel increased? GLOBAL STEEL PRODUCTION1 • Steel is integral to modern economies. • It is the world’s second largest commodity value Mt chain and is essential in engineering, construction,
Slide 19: L&M Litigation
L&M LITIGATION Two litigation claims brought by L&M Coal Holdings Ltd remain current against Bathurst arising out of the 2010 purchase of shares in Buller Coal Ltd (the owner of two exploration permits and a mining permit application at that time). The first alleges that Bathurst has breached a chan