Bathurst Resources Ltd · ASX:BRL
Bathurst Resources — Investor Presentation (March 2019)
21 slides from Bathurst Resources's investor presentation, Mar 13, 2019
Slide 1: Bathurst Resources Limited
BATHURST RESOURCES LIMITED New Zealand’s leading coal group Investor presentation – Euroz conference, Rottnest Island, Australia March 2019
Slide 2: NZ's Leading Coal Producer and Exporter
NZ’S LEADING COAL PRODUCER AND EXPORTER Forecasted coal production under our management of 2.4Mt in FY19 Production volumes by site (FY19) Revenue by product use (H1 FY19) Maramarua 0.2Mt 0.2Mt Rotowaro 0.8Mt Stockton 1.1Mt Wellington Buller Revenue by market (H1 FY19) Canterbury 0.13Mt 0.2Mt Takiti
Slide 3: Sound Capital Management: Overview
SOUND CAPITAL MANAGEMENT: OVERVIEW Capital structure Substantial shareholders Currency 28 Feb 2019 Institutional by geographic Share price AUD $0.135c locations Market cap AUD 216.1m Singapore 8.7% Australia 6.5% Borrowings USD 7.9m North 3.3% Cash incl. restricted NZD 29.6m America deposits Hong Ko
Slide 4: H1 FY19 – Exceeding Key Targets
H1 FY19 – EXCEEDING KEY TARGETS Investments in two key $54.0 million H1 FY19 growth projects EBITDA Upgrade in FY EBITDA to Export sales of 621kt at $105.0 million (pcp $93.7 an APR of NZD$214/t million) NPAT $25.4 million (loss of All operations exceeding 12.4 million pcp) budget Financial figures
Slide 5: High Standards in Safety Performance
HIGH STANDARDS IN SAFETY PERFORMANCE To ensure long term sustainability we aim for the highest standards in health, safety, environment and community SAFETY HEALTH ENVIRONMENT LTIFR1 = 1.6 Zero 0 occupational health illness major environment incidents • 10 One Lost Time Injury – • Revised employee f
Slide 6: Key Financials: Strong Performance
KEY FINANCIALS: STRONG PERFORMANCE Profit and loss highlights H1 FY19 H1 FY18 $m $m Revenue 144.8 100.6 NPAT pcp included one-off non-cash fair value movements EBITDA 54.0 40.8 on derivatives related to the corporate convertible notes. NPAT 25.4 (12.4) The vast majority of pcp investing cash flows w
Slide 7: FY19 EBITDA Guidance Increased to $105M
FY19 EBITDA GUIDANCE INCREASED TO $105M Measure Export North South Bathurst • 1 This is the average margin (Stockton) Island Island equity across all sales types including domestic domestic share thermal coal sales. Coking coal Margin/t $971 $42 $27 price assumption based on 80% of benchmark average
Slide 8: LMCH Case Update
LMCH1 CASE UPDATE On 20 August 2018 the High Court found in favour of LMCH regarding a disputed USD $40m performance payment under the Buller project Sale and Purchase Agreement (SPA) of 2010. An update on the case: • We have lodged an appeal to the Court of Appeal against the finding on a number of
Slide 9: Export - Stockton (65% BRL) Excels
EXPORT - STOCKTON (65% BRL1) EXCELS Stockton is an open cut mine located on the West Coast of New Zealand producing a low-ash metallurgical coal for export Stockton Production (FY19) 1.1Mt Unit Cost (FOB) (FY19) NZ$100/t FTE (incl. contractors) 278 Crown Rehab. NZ$41.5m Indemnity (FY19) Resource 68.
Slide 10: Our Export Coal: Valued by Industry
OUR EXPORT COAL: VALUED BY INDUSTRY • Our coal is characterised by: ▪ Very low ash content ▪ Very low phosphorus ▪ Almost all vitrinite ▪ Blend improver • Coal is marketed on a ‘Value In Use’ basis to maximise value to customers and sales price. • Diversified geographic markets, end products, pricin
Slide 11: Export Market – Market Summary
EXPORT MARKET – MARKET SUMMARY Current market • Chinese domestic production down (due to health and safety, environmental concerns) resulting in stronger seaborne sales. • Strong steel demand in Japan and India. • Logistics disruptions in Australia creating short term supply squeeze. Outlook • India
Slide 12: Domestic: High Quality, Low Ash Coal
DOMESTIC: HIGH QUALITY, LOW ASH COAL Our open cut domestic mines produce high-quality, low-ash coal for the local steel market and food and other processing industries. We are New Zealand’s largest producer. Key stats North Island North Island South Island South Island Rotowaro1 Maramarua1 Takitimu
Slide 13: Buller Export Growth Project (100% BRL)
BULLER EXPORT GROWTH PROJECT (100% BRL) The combination of the BT Mining assets with Bathurst’s existing Buller Plateau assets will unlock material synergies for the Company Item With Without Synergies Synergies CHPP nil $100m Access to Rail $6m $50m Rail loadout nil $25m Water $3m $3m treatment Wor
Slide 14: Stockton Organic Growth Project (65% BRL)
STOCKTON ORGANIC GROWTH PROJECT (65% BRL1) A natural southern extension of Stockton • Development of open cut pits within the Upper Waimangaroa permit, incorporating comparable coal within the BRL Buller exploration permit. • High value resource which enables blending to maintain coking coal export
Slide 15: Ruawaro Development Plan (65% BRL)
RUAWARO DEVELOPMENT PLAN (65% BRL1) Ruawaro is an extension project for the Rotowaro mine • Development of an open cut mine within the Ruawaro permit 40698 adjacent to current Rotowaro operations. • Utilise existing infrastructure to access the established customer base. • Exploration has continued
Slide 16: Crown Mountain, Canadian Growth Project
CROWN MOUNTAIN, CANADIAN GROWTH PROJECT Crown Mountain is a Canadian joint venture with Jameson Resources Limited (ASX: “JAL”) in which Bathurst can buy-in over three stages to achieve 50:50 ownership: total potential investment CAD $121.5m • The project is located in a mature mining region in Briti
Slide 17: Sustained Long Term Company Growth
SUSTAINED LONG TERM COMPANY GROWTH Graph assumptions: BRL production tonnes (100% basis) by market • New projects would potentially add to forecast production levels. • Domestic business continues in a steady state with no new alternative viable energy source in the South Island. • The Canadian coki
Slide 18: 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 19: Appendix: Global Coking Coal Market
APPENDIX: GLOBAL COKING COAL MARKET Production • Total coking coal production ~1.1Bt/annum. • China 53% of total output. • Seaborne trade ~300Mt/annum; Australia accounting for 185Mt/annum. Outlook • Global coking coal imports continue growth to 2040. • Steady growth since 2000 mainly from China. •
Slide 20: Appendix: Resources
APPENDIX: RESOURCES 2018 2017 2018 2017 2018 2017 2018 2017 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 21: Appendix: Marketable Coal Reserve Tonnes
APPENDIX: MARKETABLE COAL RESERVE TONNES Bathurst Proved (Mt) Probable (Mt) Total (Mt) Product Coal Mineral Area 2018 2017 Change 2018 2017 Change 2018 2017 Change Ownership Escarpment Domestic (11, 13, 16 & 18) 100% 0.2 0.2 0.0 0.1 0.1 0.0 0.3 0.3 0.0 Escarpment Export (11,13, 16 & 18) 100% 1.9 1.9
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