Bathurst Resources (ASX BRL) CEO Richard Tacon has reported to shareholders that the March quarter was noteworthy for the successful fundraise completed by the company, along with reporting a year to date consolidated EBITDA ahead of forecast and an increased consolidated cash position. 

CEO’s Comments

In its first fundraise in almost a decade, and representing a significant step towards Bathurst developing its 100% owned metallurgical coal expansion projects in both New Zealand and in British Columbia, Canada, Bathurst raised over AUD $34m through an institutional share placement. The strong support shown by the market resulted in new institutional investors joining the register, as well as a new strategic investor from Asia.  

The placement’s success was critical to moving these extension projects a step closer to production. The funds raised will be used to accelerate the Fast Track Approvals (FTA) application process for the Buller Coal Plateaux Continuation Project (“Buller”) as well as the Environmental Assessment Application (EAA) for the company’s Tenas Project in Canada. Proceeds from the raise will also be used to complete Feasibility Studies on these projects, which we look forward to reporting to shareholders once finalised. 

Bathurst's Q3 year to date consolidated EBITDA of $40.4m was ahead of forecast and achieved despite the operational challenges faced during the first half of the year following the Tawhai Tunnel failure, and a continued decline in our export segment earnings impacted by decreased coal pricing across the year so far. Along with the positive financial operating result, and the completion of the successful fundraise, Bathurst has been able to grow its consolidated cash position which, including restricted short-term deposits, totalled $165m at 31 March.

While the consolidated EBITDA result was ahead of forecast, it is a reduction when compared to the prior comparative period (PCP) in FY24. As previously reported, this decrease in earnings for the year to date is primarily as a result of the reduced revenue from our export segment. Bathurst’s export business has faced both operational challenges as well as a market impacted adversely by steady pricing declines. 

Although the HCC benchmark price has continued to come under pressure during the quarter and has a direct impact to our export segment earnings, we are happy to announce that we are maintaining our full year consolidated EBITDA guidance of $45m-$55m. We are able to do this as a result of the confidence we have in the performance of our domestic segments as well as operational cost controls already implemented across the wider business.

Use the links below to read the CEO's Comments and the full report.

Bathurst Resources (ASX: BRL) is New Zealand’s largest specialist coal company, producing around 2 million tonnes of coal each year and employing over 600 people. Around 90% of the company's production is used for steel making, and BRL's high-quality, thermal-grade coals fuels are used to help power many iconic South Island food and dairy businesses.