Bathurst Resources reports a dip in FY25 earnings due to lower coal prices and operational challenges but pushes forward with key development projects Buller and Tenas, targeting production growth from FY29.
- FY25 revenue and EBITDA declined amid lower coal prices and Tawhai Tunnel closure
- Strong cash reserves with NZ$178 million consolidated cash at July 2025
- Advancing 100% owned Buller and Tenas metallurgical coal projects with approvals and feasibility studies underway
- FY26 EBITDA guidance set between NZ$35 million and NZ$45 million, anticipating coal price recovery
- Ongoing shareholder litigation unlikely to reach trial before mid-2027
FY25 Financial Performance
Bathurst Resources Limited (ASX, BRL) has reported its FY25 financial results, revealing a notable decline in revenue and earnings compared to the previous year. Total consolidated revenue fell to NZ$268 million from NZ$315 million in FY24, while EBITDA halved to NZ$44 million. The downturn primarily reflects a lower hard coking coal benchmark price and operational disruptions, most significantly the Tawhai Tunnel closure from June 2024 to January 2025, which constrained production and increased freight costs.
Despite these headwinds, Bathurst maintained profitable operations across its New Zealand mines, including Takitimu, Stockton, Maramarua, and Rotowaro. The company’s export coal, largely destined for steel production markets in Japan, South Korea, China, and India, continues to underpin its core business.
Project Development and Growth Outlook
Looking ahead, Bathurst is aggressively advancing its 100% owned Buller and Tenas metallurgical coal projects, which are expected to be pivotal in sustaining and growing production beyond FY29. The Buller Project, located just 17km from the Stockton mine, is progressing through New Zealand’s new Fast Track Approvals Act process, with application submission targeted for mid-2025 and approval anticipated in early 2026. The project aims for first coal production by mid-2027, leveraging existing processing and logistics infrastructure to minimise capital expenditure.
Meanwhile, the Tenas Project in British Columbia, Canada, is moving through environmental assessments and feasibility studies, with a definitive feasibility study due in early 2026. Tenas targets annual production of 750,000 tonnes of high-quality metallurgical coal, with first coal expected in late 2028. Bathurst holds 100% ownership of Tenas, underscoring its strategic commitment to expanding its international footprint.
Financial Position and Market Conditions
Bathurst’s balance sheet remains robust, bolstered by a successful AUD 34 million capital raise in April 2025 and consolidated cash reserves of NZ$178 million as of July 2025. The company’s hedging strategy mitigates some exposure to coal price volatility, which remains a key market risk. Notably, the hard coking coal benchmark price has shown signs of recovery, climbing close to US$190 per tonne in August 2025, supported by tightening supply and improving demand dynamics in China and India.
Bathurst’s FY26 EBITDA guidance ranges from NZ$35 million to NZ$45 million, reflecting cautious optimism about coal price improvements and operational stability following the prior year’s disruptions.
Legal Challenges and Corporate Governance
The company is currently engaged in litigation initiated by a significant shareholder, Talley’s Group Limited, alleging prejudiced shareholder claims and misleading representations. Bathurst has filed counterclaims and disputes the allegations, with the High Court proceedings expected to extend until mid-2027. Confidentiality orders limit public disclosure of case details, but the situation adds a layer of legal risk to the company’s outlook.
Despite this, Bathurst’s board remains focused on operational excellence, growth through project development, and delivering shareholder value through cash generation and disciplined capital management.
Bottom Line?
Bathurst’s FY25 earnings dip underscores market challenges, but its advancing projects and strong cash position set the stage for growth as coal prices recover.
Questions in the middle?
- How will the Fast Track Approvals Act impact the timing and cost of Buller’s development?
- What are the potential financial and operational impacts if the shareholder litigation escalates?
- How sensitive is Bathurst’s FY26 guidance to fluctuations in the hard coking coal benchmark price?