Bathurst Reports NZD 170m Cash Reserves and Advances Buller, Tenas Projects

Strong Financial Position Amid Market Challenges

Bathurst Resources Limited (ASX – BRL) has reported a solid financial footing with consolidated cash reserves reaching NZD 170 million as of 31 May 2025, alongside a debt-free balance sheet except for minor finance leases. The company generated a consolidated EBITDA of NZD 91 million in FY24 and forecasts a more modest EBITDA range of NZD 45-55 million for FY25, reflecting subdued coal pricing and operational headwinds.

Despite a challenging market environment, Bathurst’s prudent hedging policies and operational efficiencies have helped sustain profitability. The company’s coal exports primarily serve steelmaking industries in Japan, South Korea, China, and India, markets expected to drive long-term demand growth for metallurgical coal.

Project Development and Growth Strategy

Bathurst is actively advancing its growth pipeline, notably the 100% owned Buller Project in New Zealand, located just 17 kilometres from the Stockton mine. The Buller Project is positioned to extend production life and leverage existing processing and logistics infrastructure, with Fast Track approval applications planned for late 2025 and first coal targeted in mid-2027.

Similarly, the Tenas Project in British Columbia, Canada, is progressing through environmental assessments and feasibility studies, aiming for production commencement in 2028. Bathurst holds full ownership of Tenas and a 22% economic interest in the Crown Mountain Project, also in British Columbia, with an option to increase its stake to 50% through further investment.

Operational Excellence and Safety Commitment

Bathurst continues to prioritise safety and operational excellence across its portfolio, achieving significant milestones such as 3,000 days lost time injury free at the Takitimu mine. The company has implemented advanced technologies, including AI for tyre management and enhanced operator training systems, to improve productivity and safety outcomes.

Legal Proceedings and Governance Risks

Bathurst faces ongoing litigation initiated by Talley’s Group Limited, alleging misleading representations and seeking various declarations and damages. The proceedings, consolidated by court order, include counterclaims by Bathurst against Talley’s entities for breach of confidence and misuse of confidential information. A key interlocutory hearing is scheduled for May 2025, with a substantive trial likely in mid-2027 if preliminary applications are unsuccessful. The company expresses confidence in its legal position but acknowledges the uncertainty this litigation presents.

Investors should monitor these legal developments closely, as outcomes could have governance and financial implications.

Outlook and Market Positioning

While short-term coal prices remain subdued, Bathurst’s diversified asset base, including domestic thermal coal and export metallurgical coal, positions it well to benefit from anticipated long-term demand growth, particularly in Asian steel markets. The company’s strategy to expand production through Buller and Tenas, alongside its option to increase Crown Mountain exposure, underscores a commitment to sustainable growth and cash flow generation.