Slide 1: Bathurst Update September 2017
Bathurst Update September 2017
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by and issued by Bathurst Resources 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 purchase any securities in the Company or
Slide 3: Overview of Bathurst Resources
Overview of Bathurst Resources Bathurst Resources is a leading New Zealand coal producer with domestic, export coking and opportunities to expand export production. Capital Structure Share Price Performance Share Price (19 Sept 2017) $0.145 Shares Outstanding (Bn) 1.513 Market Cap (A$m) 219.4 Bank D
Slide 4: Health and Safety
Health and Safety Robust Safety Systems based on sound Risk Management principles • Established Health and Safety Management System LTIFR - Zero in place • Risk Management practices introduced at all levels of TRIFR - 5.5 the business • Significant rate of legislative PPI – 94% and policy change ong
Slide 5: Operations
Operations BATHURST RESOURCES LIMITED
Slide 6: Leading Presence in New Zealand
Leading Presence in New Zealand Bathurst has established itself as the pre-eminent coal producer in New Zealand BT Mining Assets (65%)1 BRL Assets (100%) Stockton Buller Coking Coal Assets Production (FY18) 1.0 mt Resource 38.7 Mt Auckland Maramarua Unit Cost (FOB) NZ$100/t Reserve 18.9 Mt FTE 209 R
Slide 7: Stockton (65% BRL)
Stockton (65% BRL1) Stockton is an open cut mine located on the West Coast of New Zealand producing a low- ash metallurgical coal for export Customer Base Stockton Assets Resource 29.6 Mt Reserve 12.8 Mt • Status: Production; O/C; export metallurgical coal (low-ash) • Operations: – Mining: truck & s
Slide 8: Rotowaro (65% BRL)
Rotowaro (65% BRL1) Rotowaro is an open cut mines located in the Waikato region of New Zealand producing a high-quality, low-ash coal for the local steel market Customer Base Rotowaro Assets Resource 19.6 Mt Reserve 2.5 Mt • Status: Production; O/C; sub- bituminous coal (high-quality low-ash) • Long
Slide 9: Maramarua (65% BRL)
Maramarua (65% BRL1) Maramarua is an open cut mines located in the Waikato region of New Zealand producing a high-quality, low-ash coal for the domestic market Maramarua Assets Resource 10.2 Mt Reserve 2.0 Mt • Status: Production; O/C; thermal coal (low-ash) • Long Term contracts • Operations – Mini
Slide 10: Takitimu Mine & Southland Assets (100% BRL)
Takitimu Mine & Southland Assets (100% BRL) Developed mine producing thermal coal for domestic industrial use Takitimu Resource 3.7 Mt Reserve 1.6 Mt Bathurst permits Greenbriar permits • Well established mine with significant resources in adjacent blocks • Mining to progress North into the Black Di
Slide 11: Canterbury (100% BRL)
Canterbury (100% BRL) Provides thermal coal for domestic industrial use and in close proximity to end users Canterbury Resource 7.1Mt Reserve 1.6 Mt • Developing mine on track - produced 100kt in FY2017 and 175kt in FY2018 • Growing industrial coal use in the Canterbury region within close proximity
Slide 12: Sales Profile
Sales Profile Significant footprint in New Zealand Coal Gross Sales under BRL Management (100%)1 2.0 1.0 Million tonnes 2.2 1.0 0.7 0.2 - 0.1 0.3 0.4 - BRL ROM Takitimu Canterbury BRL ROM Maramarua Rotowaro Stockton BRL Group production var. FY18 var. FY18 production FY18 FY18 FY18 100% basis FY2017
Slide 13: Market and Product Mix
Market and Product Mix The following shows the exposure to various market sectors and to export and domestic markets Sales under Management 2.2mtpa Steelmaking Coal NZ Energy Product Use 1.6mtpa 0.6mtpa Export Domestic Market 1.0mtpa 1.2mtpa 13
Slide 14: Key Profit Metrics
Key Profit Metrics The integrated assets will deliver significant lifts in Revenue1 and EBITDA1 70 250 60 200 50 150 Revenue (NZ$m) EBITDA (NS$M) 40 Adj EBITDA Sales 30 100 20 50 10 - - 2014A 2015A 2016A 2017A 2018F 1 Based on BRL internal FY18 budget number as detailed in Slide 15 14
Slide 15: FY18 Bathurst Metrics
FY18 Bathurst Metrics The following are the forecast metrics for the Bathurst assets based on the FY18 operating plans Stockton North Island South Island BRL Domestic Domestic Equity Production 1.0mt Product 850kt Product 400kt Product 1.6mt Product Cash cost (av) $NZ100/tonne at port Margin NZ$50/t
Slide 16: 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 $0.70 for this assessment. Stockton Margin versus Benchmark Price 140 Current Price 120 100 Margin (NZ$) 80 60 Budget 40 20 0 105 120 135 150 165 180 195 210 Benchmark C
Slide 17: Comparison to Peers
Comparison to Peers 350 2.5 • BRL Domestic/Export market split • PHCC/SHCC coking coal products 300 • Safe jurisdiction to operate in 2.0 Market Cap / Enterprise Value (A$m) 250 • 66% of sales are steelmaking material Production (Mtpa) 1.5 • Low Debt 200 • Multiple operations 150 1.0 100 0.5 50 - -
Slide 18: Buller Project
Buller Project BATHURST RESOURCES LIMITED
Slide 19: Strategic Rationale
Strategic Rationale The combination of the BT Mining assets with Bathurst’s existing Buller Plateau assets will unlock material synergies for the Company Strategic Rationale & Benefits Asset Location • Stockton accelerates Bathurst’s entry into the export market with established customer relationshi
Slide 20: Buller Project
Buller Project A short development cycle1 at low capital cost to bring on stream 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 12 3: Consenting and de
Slide 21: Concept Schedule – Production Quantities (100% BRL)
Concept Schedule – Production Quantities (100%BRL) June 15, 2017 15
Slide 22: Conceptual Development Plan Yr1
Conceptual Development Plan Yr1 22
Slide 23: Conceptual Development Plan Yr5
Conceptual Development Plan Yr5 23
Slide 24: Conceptual Development Plan Yr10
Conceptual Development Plan Yr10 24
Slide 25: Conceptual Development Plan Yr20
Conceptual Development Plan Yr20 25
Slide 26: Conceptual Development Plan Yr25
Conceptual Development Plan Yr25 26
Slide 27: Route to Market
Route to Market hristchurch Port Lyttleton Pacific Ocean $ —=. By Piso, 5 BATHURST « COAL TRANSPORT OPTIONS JULY 2017 31 === Clean coal route “== Wash coal route | = Proposed Denniston-Stockton road (1 Proposed pit boundary [1 Exploration permit + | Ml CMs and ACMLs BB Mining permit sone |_ 1773471
Slide 28: Appendices and Biographies
Appendices and Biographies BATHURST RESOURCES LIMITED
Slide 29: Appendix 1: Board of Directors
Appendix 1: Board of Directors Toko Kapea Non-Executive Chairman Commercial lawyer and company director Richard Tacon Executive Director & CEO Over 32 years coal mining operations experience Russell Middleton Executive Director & CFO Strong financial and operations background in mining and construct
Slide 30: 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 31: Appendix 3: Executive Management Team Members
Appendix 3: Executive Management Team Members Damian Spring 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 Commercial Fiona Bartier A
Slide 32: Appendix 4: Bathurst Resources Capital Structure
Appendix 4: Bathurst Resources Capital Structure 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 1,882,982,759 Bond Va
Slide 33: Appendix 5: Competent Person Statements
Appendix 5: Competent Person Statements Bathurst Resources Competent Person Statement The information on this report that relates to the mineral reserves for Escarpment Export and Whareatea West is based on info rmation compiled by Mark Lionnet who is a full time employee of Golder Associates (NZ) L