Bathurst Resources Reports NZD 5.2m Q1 EBITDA, Holds FY26 Guidance at NZD 35-45m

Financial Performance and Market Context

Bathurst Resources kicked off FY26 with a consolidated EBITDA of NZD 5.2 million for the September quarter, consistent with company forecasts. Despite a slight decline compared to the same quarter last year, primarily due to softer export earnings and reduced domestic sales in the South Island, Bathurst remains confident in its full-year EBITDA guidance of NZD 35 to 45 million. The company’s robust cash position, totaling NZD 155 million including restricted deposits, provides a solid financial foundation amid ongoing market challenges.

Coal prices showed some recovery during the quarter, with the Hard Coking Coal benchmark rising from USD 170 to over USD 190 per tonne, supported by seasonal demand in India and supply constraints in China. However, producers continue to face cost pressures and tight margins, with many operating near breakeven. Bathurst’s operational resilience is notable given these headwinds and adverse weather conditions that affected mining activities.

Operational Highlights and Contract Wins

Operationally, Bathurst’s coal production remains ahead of plan despite weather-related disruptions. The North Island domestic segment increased coal output by 24,000 tonnes and successfully negotiated a new two-year coal supply agreement with Genesis Energy for the Huntly Power Station. This contract not only secures a stable revenue stream but also supports local energy security by reducing reliance on imported coal.

While export shipments were slightly behind forecast due to shipping schedule adjustments, Bathurst managed to achieve a higher average price per tonne than anticipated. The South Island domestic segment experienced a decline in sales volume as customers transition to alternative fuels, reflecting broader energy market shifts.

Project Development Progress

Bathurst made significant strides on its development projects during the quarter. In New Zealand, the Buller Plateaux Continuation Project (BPCP) is advancing towards submitting its Fast Track Approvals application, which would extend mining operations by 15 years and deliver substantial economic benefits to the Buller region. Key milestones include finalising water load and treatment models and securing critical road access concessions.

Across the Pacific in British Columbia, the updated Feasibility Study for the 100% Bathurst-owned Tenas Project confirmed its viability as a competitive steelmaking coal mine. Despite increased capital and operating costs, higher coal price assumptions improved the project’s post-tax net present value to USD 269 million. The project is on track for production commencement in 2028, with a low strip ratio supporting cost efficiency.

Health, Safety, and Corporate Matters

Bathurst recorded three lost time injuries during the quarter, all musculoskeletal in nature. The company continues to prioritise early intervention and prevention strategies, including enhanced training and ergonomic improvements, to safeguard worker health and wellbeing. On the corporate front, litigation with Talley’s Group Limited remains ongoing, with key court proceedings scheduled for late 2025 and 2027.