Slide 1: Guidance Increased to $95 Million and Company Update
Level 12, 1 Willeston Street, Wellington 6011, New Zealand PO Box 5963 Lambton Quay, Wellington 6145, New Zealand P. +64 4 499 6830 F. +64 4 974 5218 E. wellington@bathurst.co.nz 14 September 2021 Australian Securities Exchange Level 4, 20 Bridge Street SYDNEY NSW 2000 GUIDANCE INCREASED TO $95 MILL
Slide 2: Bathurst Resources Limited Shareholder Update
BATHURST RESOURCES LIMITED Shareholder update ASX: BRL
Slide 3: Disclosure
DISCLOSURE General information This document is authorised for release by the board of directors of Bathurst Resources Limited (“Bathurst”) on the 14 September 2021. Bathurst’s address is Level 12, 1 Willeston Street, Wellington 6011, New Zealand. General disclaimer This presentation contains forwar
Slide 4: Our Board Members
OUR BOARD MEMBERS Peter Westerhuis Richard Tacon Francois Tumahai Russell Middleton Non-executive CEO and Executive Non-executive Director is CFO and Executive Chairman Director a Director • Six years with Bathurst, • Nine years with Bathurst. • Joined Bathurst this year. • Six years with Bathurst.
Slide 5: Safety Is Important to Us
SAFETY IS IMPORTANT TO US Our key safety stats have been on an upwards trend. We are actively identifying the cause and taking steps to reduce reportable incidents. 12 MONTH ROLLING AVERAGE 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 - LTIFR TRIFR DRIVERS OF UPWARDS TREND FINDINGS & RESPONSE • Range of inju
Slide 6: ESG Highlights
ESG HIGHLIGHTS CORPORATE VALUES REDUCING EMISSIONS SUSTAINABLE OPERATING Values set by directors during the • After successful trials, a new fuel will • Focus on coking coal as there is year: be used across all BT Mining sites currently no viable alternative to coal • Be real. leading to approximate
Slide 7: FY21 Highlights
FY21 HIGHLIGHTS Equity restored Share consolidation 0.68 171m shares Major litigation win debt to equity ratio on LMCH claim -81% -90% Energy used Net profit Capital investment 0.43 $66.7m $28.7m Gigajoules per tonne extracted coal -12% +241% -35% Financial numbers noted are consolidated. 6
Slide 8: Consistent Positive Cash Flows
CONSISTENT POSITIVE CASH FLOWS NZ $m FY18 FY19 FY20 FY21 FY22E • Cash flows in FY18 EBITDA 93.7 106.6 76.8 59.5 95.3 were impacted by intensive cash out Tax (11.6) (16.6) (9.3) (18.2) (10.7) flows relating to the Fixed assets CAPEX (net of disposals) (30.6) (29.9) (14.4) (6.2) (9.6) acquisition of t
Slide 9: Profit Achieved Even During Low Export Pricing
PROFIT ACHIEVED EVEN DURING LOW EXPORT PRICING The export pricing benchmark hit its lowest point in five years in FY21, but our domestic business continues to provide stable cash flows. Revenue1 by product use ($m) Consolidated EBITDA NZD $m NZD $m NZD APR $ 400 120 250 100 200 300 80 150 200 60 100
Slide 10: Record Net Profit & Balance Sheet Recovery
RECORD NET PROFIT & BALANCE SHEET RECOVERY Item (NZ $m except for share FY21 FY20 EARNINGS data) • Revenue and EBITDA both decreased from a retraction in our export segment, driven by lower export pricing. Revenue 212.6 232.7 • The COVID-19 pandemic as well as China’s import ban on EBITDA 59.5 76.8
Slide 11: Operations' Financials
OPERATIONS’ FINANCIALS EXPORT (STOCKTON) SOUTH ISLAND DOMESTIC Metric (100% basis) FY19 FY20 FY21 FY22E Metric (100% basis) FY19 FY20 FY21 FY22E Sales kt 1,178 1,077 1,042 1,083 Sales (kt) kt 396 345 343 261 HCC benchmark price USD/t 205 151 116 268 EBITDA1 $m 19 15 17 14 Benchmark realisation2 % 75
Slide 12: EBITDA Guidance FY22 $95.3M
EBITDA GUIDANCE FY22 $95.3M An increase of $35.8m (60%) from FY21. An increase in the USD Closure of Canterbury pricing benchmark that mine in June 2021. our export sales are #039;m priced against. 120 100 (4.2) (3.5) 80 43.5 60 Contracted reduction in sales 95.3 40 volumes, partially offset by 59.5 un
Slide 13: Business Snapshot
BUSINESS SNAPSHOT EXPLORATION JOINT VENTURE PROJECT Maramarua EXPORT SALES ≈ 1Mt p.a. Canterbury Takitimu •PRODUCTION ≈ 2Mt p.a. •DOMESTIC SALES ≈ 1Mt p.a. Production and sales tonnes under management 12
Slide 14: NZ Business Snapshot
NZ BUSINESS SNAPSHOT Export North South (Stockton) Island Island Maramarua domestic domestic Open cut Open cut Open cut Type Steelmaking Processing Processing Market heat and heat steelmaking Stockton 1.8Mtpa CHPP, 1.0Mtpa Close to Infrastructure 2.5km aerial CHPP, and rail customers or Canterbury r
Slide 15: Proven Record
PROVEN RECORD Over time, we have built a world class portfolio of assets against our strategic setting JV operating JV coking coal Existing mine assets exploration business acquisition acquisition THEN NOW POSITIONED FOR GROWTH PRODUCTION 400kt ≈ 2Mt ≈ 4Mt1 UNDER MANAGEMENT PRODUCT USES 100% thermal
Slide 16: Investment Economics: Canadian Coking Coal Project
CANADIAN COKING COAL PROJECT Crown Mountain – a premium low volatile hard coking coal exploration project, due to enter production late 2025, and produce 2Mt per year. Located in British Columbia in a mature mining region, close to well established transport infrastructure. Further investment is at
Slide 17: Crown Mountain Timeline
CROWN MOUNTAIN TIMELINE CY 2021 CY 2022 CY 2023 CY 2024 CY 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Environmental Submission 1 assessment Review & approval workflows Mine permits 2 Pre-construction Update LOM plan Financing/ Financing 3 final investment decision Engineering/
Slide 18: Demand Has Remained Strong
DEMAND HAS REMAINED STRONG Sales are consistent and primarily coal used for steelmaking Coal sales1 (Mt) FY21 sales by product use 2.5 2.0 19% 1.2 1.0 1.1 1.1 1.5 1.1 10% 1.0 1.1 1.3 1.1 71% 0.5 1.0 0.9 0.0 FY18 FY19 FY20 FY21 FY22E Steelmaking Electricity Process heat Domestic Export Our business
Slide 19: Export Strategy & Markets
EXPORT STRATEGY & MARKETS EXPORT SALES BY COUNTRY % FY22E Value in use focus • Coal marketed on a value in use basis. • Our customers design their coke blends around our product. China 11% South Korea Long-standing relationships 17% and India • Our value in use focus means we have long- Japan 29% 21
Slide 20: The Fundamental Demand for Steel
THE FUNDAMENTAL DEMAND FOR STEEL Demand for steel has nearly doubled over the last 21 years. It is projected to increase by a third by 2050. WHY HAS DEMAND FOR STEEL INCREASED? • Steel is integral to modern economies. • It is the world’s second largest commodity value chain and is essential in engin
Slide 21: Export Pricing Benchmark Recovers
EXPORT PRICING BENCHMARK RECOVERS USD/tonne 380 Monthly USD export benchmark pricing1 360 340 320 300 280 260 240 220 200 180 160 140 120 100 80 Actual Guidance Forward curve • The USD hard coking coal (“HCC”) premium low vol benchmark which our export pricing is set against started to show signs of
Slide 22: Domestic Strategy & Markets
DOMESTIC STRATEGY & MARKETS Life of mine plans are matched against committed sales SHARED volumes; new areas are only explored when there is a India in place. strategic partnership GOALS Our domestic coal sales are used for both steel making and processing heat. STABILITY DIVERSITY Our sales are und
Slide 23: A Sustainable Focus
A SUSTAINABLE FOCUS THE NEW ZEALAND ENVIRONMENT: • Zero carbon bill legislated in 2019; net zero carbon economy by 2050. • Emissions Trading Scheme which is the market mechanism for offsetting A global spotlight on climate change is Co2 emissions. bringing increased focus on mineral OUR POSITION ext
Slide 24: Share Price Is Recovering
SHARE PRICE IS RECOVERING Acquisition of joint MARKET CAP1 & EXPORT BENCHMARK2 venture BT Mining which got Bathurst AUD $m USD $/tonne into the coking coal 300 300 market. 250 250 High court announces judgment against 200 200 Bathurst on LMCH claim. 150 150 COVID-19 pandemic and Court of Appeal 100
Slide 25: Capital Overview Cont'd
CAPITAL OVERVIEW CONT’D 66c 171 81% $20.2 $13.51 SHARE MILLION TOP 20 MILLION MILLION PRICE SHARES HOLDINGS CASH DEBT AU at 13 Shares on issue Top 20 Consolidated BT $10m AUD September 2021. 171m. shareholders hold Mining and convertible bond, These exclude a 81% of equity on Bathurst, and funds rec
Slide 26: Growth Projects Overview
GROWTH PROJECTS OVERVIEW We have a robust pipeline to extend our current operations. Growth projects Production start date1 Status SOUTH ISLAND DOMESTIC New Brighton FY23 Waipuna West extension FY23 NORTH ISLAND DOMESTIC Maramarua M1 pit FY23 Rotowaro North FY27 Stockton organic projects2 FY22: HL H
Slide 27: Future Investments
FUTURE INVESTMENTS We fundamentally view ourselves as a coal mining company, and we envisage that coking coal for steelmaking will continue to underpin our business for the foreseeable future. Noting the increasing global appetite for other minerals, we will also consider leveraging the strong coal
Slide 28: Appendices
APPENDICES BATHURST &
Slide 29: Appendix A: LMCH Litigation Update
APPENDIX A: LMCH LITIGATION UPDATE Following the success in resolving the first claim in our favour, we believe we will have similar success in defending the second claim. Maramarua First performance RESOLVED • In December 2016 LMCH initiated litigation for • payment of the first USD $40m performanc