Slide 1: Bathurst Resources Limited – New Zealand's leading coal group
For personal use only BATHURST RESOURCES LIMITED New Zealand’s leading coal group Macquarie Melbourne Mining Forum June 2019
Slide 2: NZ's leading coal producer and exporter
NZ’S LEADING COAL PRODUCER AND EXPORTER Forecast coal production under our management of 2.4Mt in FY19 For personal use only 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
Slide 3: Sound capital management
SOUND CAPITAL MANAGEMENT Capital structure Substantial shareholders For personal use only Currency 25 June 2019 Share price AUD $0.120 Market cap AUD $199.8m Borrowings (excl. leases) USD $7.9m Cash incl. restricted NZD $43.8m deposits Share Buyback Shares purchased Avg. price Cost 30,475,260 AUD0.1
Slide 4: Key results
KEY RESULTS For personal use only Investments in two key HY1 EBITDA - $54.0 million growth projects FY EBITDA maintained at Gearing - 13% CY $105.0 million (excl. lease liabilities) All operations exceeding HY1 NPAT - $25.4 million budget Financial figures noted above are reviewed consolidated Bathu
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 For personal use only and community SAFETY HEALTH ENVIRONMENT TRIFR1 = 5.0 Zero 0 occupational health illness major environment incidents • 14 Two Lost Time Injurie
Slide 6: FY19 EBITDA guidance maintained at $105M
FY19 EBITDA GUIDANCE MAINTAINED AT $105M Measure Export North South Bathurst For personal use only • 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 $991 $42 $27 price assumption based on 8
Slide 7: LMCH case update
LMCH1 CASE UPDATE On 20 August 2018 the High Court found in favour of LMCH regarding a disputed USD $40m For personal use only 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
Slide 8: 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 For personal use only 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 Indemni
Slide 9: 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 For personal use only material synergies for the Company Item With Without Synergies Synergies CHPP nil $100m Access to Rail $6m $50m Rail loadout nil $25m Water
Slide 10: Stockton organic growth project (65% BRL)
STOCKTON ORGANIC GROWTH PROJECT (65% BRL1) A natural southern extension of Stockton For personal use only • 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 mainta
Slide 11: Our export coal: valued by industry
OUR EXPORT COAL: VALUED BY INDUSTRY • Our coal is characterised by: For personal use only ▪ 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
Slide 12: Export market – market summary
EXPORT MARKET – MARKET SUMMARY Current market For personal use only • 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 sq
Slide 13: 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 For personal use only and other processing industries. We are New Zealand’s largest producer. Key stats North Island North Island South Island South Island Rotowaro
Slide 14: Ruawaro development plan (65% BRL)
RUAWARO DEVELOPMENT PLAN (65% BRL1) Ruawaro is an extension project for the Rotowaro mine For personal use only • 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. • Expl
Slide 15: 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 For personal use only $121.5m • The project is located in a mature
Slide 16: Sustained long term company growth
SUSTAINED LONG TERM COMPANY GROWTH For personal use only 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 Islan
Slide 17: Competent Persons Statement
COMPETENT PERSONS STATEMENT Bathurst Resources Competent Person Statement For personal use only 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 compi