Slide 1: Investor Presentation - Amended (ASX/NZX cover letter)
For personal use only 9 September 2014 Listed Company Relations Company Announcements Platform New Zealand Exchange Limited Australian Securities Exchange Level 2, NZX Centre 10th Floor, 20 Bond Street 11 Cable Street Sydney Wellington, New Zealand NSW 2000 Investor Presentation - Amended Attached i
Slide 2: Bathurst Resources Company Update
For personal use only BATHURST RESOURCES COMPANY UPDATE September 2014 Investor Presentation | April 2013 | 1
Slide 3: Important Notice
IMPORTANT NOTICE For personal use only 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
Slide 4: Overview
OVERVIEW ♦ Clear path to coking coal production and sales For personal use only ♦ All permits and approvals obtained ♦ Infrastructure in place ♦ Commenced operations at Escarpment ♦ All legal issues resolved ♦ Development work progressing ♦ Existing infrastructure in place ♦ Thermal coal production
Slide 5: Capital Structure Overview
CAPITAL STRUCTURE OVERVIEW For personal use only Ticker (ASX / NZX) BRL Shares on issue 944.9M Options & performance rights on issue 12.2m Market capitalisation(1) NZ$47.2M - AUD$42.0M Cash & short term deposits(2) NZ$8.8M - AUD$7.83 Shareholder composition L1 Capital 9% Republic Investment 8% Asian
Slide 6: New Zealand Coalfields
NEW ZEALAND COALFIELDS For personal use only Investor Presentation | September 2014 | 5
Slide 7: South Island Locations
SOUTH ISLAND LOCATIONS For personal use only Investor Presentation | September 2014 | 6
Slide 8: Investment Highlights
INVESTMENT HIGHLIGHTS For personal use only ♦ Flagship asset, 96.4mt* of resources of high quality metallurgical coking coal 1. Commenced Metallurgical ♦ Escarpment siteworks commenced Coal Production ♦ All open cut, simple excavation ♦ First domestic coal Q4, 2014 ♦ Initial bonds and compensation p
Slide 9: Investment Highlights (cont'd)
INVESTMENT HIGHLIGHTS (cont’d) For personal use only ♦ High ranking, high fluidity quality coking coal 4. High Quality ♦ Suitable blend with other lesser quality coals to deliver superior coking qualities Coal ♦ Well known in current export markets ♦ Bulk sample programme in place for customers in J
Slide 10: Development Strategy
DEVELOPMENT STRATEGY For personal use only ♦ Escarpment remains the key focus ♦ Initial site works on Escarpment commenced ♦ Bulk samples 2015 ♦ Offtake partner discussions ♦ Project strategically positioned to enter the export market ♦ Quick ramp up to export when market turns ♦ Domestic operations
Slide 11: Targeted Production
TARGETED PRODUCTION* For personal use only Phase III 3,500 Conveyor 3,000 2,500 ROM coal mined (kt) Phase II 2,000 Export - Trucking 1,757 Phase I 1,500 Domestic Dairy & Cement 875 1,000 800 569 566 500 404 498 408 406 407 - 2015 2016 2017 2018 2019 Domestic Escarpment Export - Other ♦ Phase 1 assum
Slide 12: Escarpment – Quarter One
ESCARPMENT – QUARTER ONE For personal use only InvestorPresentation Investor Presentation| September | April 20132014 | 11 | 11
Slide 13: Coal Quality – Escarpment
COAL QUALITY – ESCARPMENT For personal use only PROPERTY Years 1-2 Total Moisture (ar) 8 - 10% Inherent Moisture (adb) 0.6 - 1.3% Ash (adb) 6 - 7% Total Sulphur (adb) 0.6 – 1.1% Free Swelling Index 8-9 Romax 0.9 - 1.0 Volatile Matter (adb) 34-38% Maximum fluidity (ddpm) 10,000 to 50,000 Phosphorus 0
Slide 14: Domestic Operations
DOMESTIC OPERATIONS • Domestic operations underpin Bathurst’s finances while developing For personal use only coking coal export projects ♦ 3 operating mines – Cascade , Takitimu & Canterbury Coal produce ~400,000 tpa ♦ Cascade –Three Year contract with cement plant ♦ Takitimu - Seven Year contract
Slide 15: Cascade Mine – Current Operations
CASCADE MINE – CURRENT OPERATIONS For personal use only Investor Presentation | September 2014 | 14
Slide 16: Cascade Mine – Current Operations
CASCADE MINE – CURRENT OPERATIONS For personal use only Investor Presentation | September 2014 | 15
Slide 17: Capital Requirements
CAPITAL REQUIREMENTS For personal use only ♦ Capital for Phase I - Domestic production ♦ Bonding and infrastructure now in place ♦ To ramp up will need working capital only ♦ Capital for Phase II - Export trucking 500,000 tonne ♦ Working Capital (~ $15m) – Discussions underway with off take partners
Slide 18: Future Growth
FUTURE GROWTH ♦ Significant future growth potential For personal use only ♦ Substantial land position ♦ Export* (Coking coal) ♦ Buller ♦ Escarpment - 6.3 million tonnes ♦ Coalbrookdale – 3.4 million tonnes ♦ Whareatea West – 10.7 million tonnes ♦ North Buller ♦ Coal Creek & North Buller permits – 46
Slide 19: Escarpment Project
Escarpment Project For personal use only InvestorPresentation Investor Presentation| September | April 20132014 | 18 | 18
Slide 20: Broader Buller Coal Project
BROADER BULLER COAL PROJECT For personal use only InvestorPresentation Investor Presentation| September | April 20132014 | 19 | 19
Slide 21: Greymouth Permits
GREYMOUTH PERMITS For personal use only SENZ permits Bathurst permits InvestorPresentation Investor Presentation| September | April 20132014 | 20 | 20
Slide 22: Southland Footprint
SOUTHLAND FOOTPRINT For personal use only SENZ Ohai New Brighton Black Diamond Takitimu Coaldale Investor Presentation | April 2013 | 21 Investor Presentation | September 2014 | 21
Slide 23: Appendices
For personal use only Appendices InvestorPresentation Investor Presentation| September | April 20132014 | 22 | 22
Slide 24: Board of Directors
BOARD OF DIRECTORS For personal use only Dave Frow, Non-Executive Chairman Experienced energy sector CEO and company director Hamish Bohannan, Managing Director and CEO Mining Engineer with 35+ years experience in resources industry Toko Kapea, Non-Executive Director Lawyer specialising in iwi and M
Slide 25: Coal Quality - Ash
COAL QUALITY - ASH For personal use only New Zealand coals have very low ash yield due to the raised mire depositional environment of the peat (above flood levels, baffling effect of fringing trees, clay flocculation, leaching acidic mire environment) Investor Presentation | September 2014 | 24
Slide 26: Coal Quality - Phosphorous
COAL QUALITY - PHOSPHOROUS For personal use only New Zealand coals typically have very low concentrations of phosphorous compared to other coking coals InvestorPresentation Investor Presentation| September | April 20132014 | 25 | 25
Slide 27: Coal Quality – Volatile Matter
COAL QUALITY – VOLATILE MATTER For personal use only Volatile matter is high in NZ coal due to the high proportion of vitrinite (86 – 92%) and resultant low proportion of inertinite. InvestorPresentation Investor Presentation| September | April 20132014 | 26 | 26
Slide 28: Resource Estimates
RESOURCE ESTIMATES Area Measured Resource (Mt) Indicated Resources (Mt) Inferred Resources (Mt) Total Resources (Mt) For personal use only Escarpment 3.1 2.2 1.0 6.3 Cascade 0.7 0.6 0.3 1.6 Deep Creek 6.2 3.1 1.6 10.9 Coalbrookdale - 3.4 5.1 8.5 Whareatea West 7.7 10.7 4.7 23.1 South Buller Totals 1
Slide 29: Av. Coal Quality - Measured Resource
AV. COAL QUALITY - MEASURED RESOURCE For personal use only Measured Fixed Volatile Sulphur % Calorific Inherent IN SITU Area resource Ash% (ad) CSN Carbon % Matter % (ad) Value (ad) Moisture Moisture (Mt) (ad) (ad) Escarpment 3.1 18.4 0.6 28.9 7.2 49.1 33.0 0.8 5.8 Cascade 0.7 15.1 1.6 31.9 4.6 52.7
Slide 30: Av. Coal Quality – Indicated Resource
AV. COAL QUALITY – INDICATED RESOURCE For personal use only Indicated Fixed Volatile Sulphur % Calorific Inherent IN SITU Area resource Ash% (ad) CSN Carbon % Matter % (ad) Value (ad) Moisture Moisture (Mt) (ad) (ad) Escarpment 2.2 14.0 0.8 29.7 7 50.6 34.4 1.1 5.3 Cascade 0.6 15.3 1.8 30.6 4 49.6 3
Slide 31: Av. Coal Quality – Inferred Resource
AV. COAL QUALITY – INFERRED RESOURCE For personal use only Inferred Fixed Volatile Sulphur % Calorific Inherent IN SITU Area resource Ash% (ad) CSN Carbon % Matter % (ad) Value (ad) Moisture Moisture (Mt) (ad) (ad) Escarpment 1.0 13.1 1.0 29.8 7 50.7 35.0 1.2 5.8 Cascade 0.3 18.7 2.1 25.6 3 42.5 34.
Slide 32: Reserves
RESERVES ROM COAL For personal use only Area Proved reserves (Mt) Probable reserves (Mt) Total reserves (Mt) Escarpment 3.0 1.9 4.9 Cascade 0.2 0.2 0.4 Deep Creek 5.8 2.7 8.5 Coalbrookdale - 2.2 2.2 Whareatea West 7.9 10.5 18.4 Total 16.9 17.5 34.4 PRODUCT COAL Area Proved reserves (Mt) Probable res
Slide 33: Reserves Coal Quality
RESERVES COAL QUALITY ROM COAL For personal use only Sulphur (% Area Total (Mt) Total moisture Ash (% arb) VM (% arb) CSN arb) Escarpment 4.9 5.4 21.4 0.7 34.0 6.5 Cascade 0.4 8.0 9.9 1.4 31.4 3.5 Deep Creek 8.5 5.8 11.7 2.6 - - Coalbrookdale 2.2 4.9 21.8 1.3 32.6 4.0 Whareatea West 18.4 6.0 31.1 0.
Slide 34: Competent Person Statements
COMPETENT PERSON STATEMENTS For personal use only • The information in this presentation that relates to mineral resources and reserves for Deep Creek is based on information compiled by Adam Bonham-Carter a Competent Person who is a full time employee of Golder Associates (NZ) Limited and is a memb