Shareholders of Bathurst Resources Ltd (ASX: BRL) were told at this week’s annual general meeting that the acquisitions from Solid Energy now made the company a robust operator.
Chairman Tokorangi Kapea said the company now had domestic supply operations on both the North and South Islands and export coking coal through the Stockton mine near Westport.
The company has operated its 100% owned Takitimu and Canterbury coal operations on the South Island and, with Tally’s Energy, formed the BT Mining joint venture to acquire the Stockton coking coal mine and two North Island Solid Energy mines – Rotowaro and Maramarua.
Bathurst also owns permits in the Buller coalfield including the Escarpment deposit
Kapea said the company produced an underlying profit of $A1.3 million in FY17 and an EBITDA of $A11.2 M with a strong cash flow.
“We expect increased returns via BT Mining will start to flow from now on,” he said.
In its presentation, the company said it was now established as the pre-eminent coal producer in NZ.
Stockton, part of the BT Mining assets, was producing low-ash metallurgical coal for export. The output rate for FY2018 was 1 million tonnes at a unit cost free-on-board of $NZ100/t. The infrastructure was set for an annual capacity of 1.8 Mtpa.
The presentation showed the late November hard coking coal price at $US202/tonne and the current bench mark price was $NZ120/t.
Looking ahead Bathurst was looking at beginning coal extraction from the Sullivan deposit in the Buller field in two years from feasibility work at an operating rate of 350,000 tpa, followed a year later by Escarpment and West Whareatea with an anticipated rate of 650,000 tpa.