Bathurst Reports FY26 EBITDA of NZD 45 Million, Guides NZD 30-40 Million for FY27

FY26 Financial Performance Surpasses Expectations

Bathurst Resources (ASX:BRL) closed FY26 with an unaudited consolidated EBITDA of NZD 45 million, hitting the top end of its guidance range of NZD 35 million to 45 million. This result is notable given the challenging backdrop of subdued international Hard Coking Coal (HCC) prices for much of the year and escalating fuel costs driven by geopolitical tensions in the Middle East.

The HCC benchmark price started the year languishing at USD 172 per tonne but recovered to USD 243 per tonne by June, a turnaround that materially lifted Bathurst’s export earnings in the second half. Elevated fuel expenses weighed on margins but were largely offset by the price rebound, reflecting the company’s resilience amid market headwinds.

Robust Cash Position Supports Growth Initiatives

Bathurst’s cash pile remained healthy, with consolidated cash and restricted short-term deposits totalling NZD 145 million at 30 June 2026. This strong liquidity position was maintained while the company invested in its long-term growth projects, notably the Buller Plateaux Continuation Project (BPCP) in New Zealand and the Tenas Project in British Columbia, Canada.

Both projects advanced through key regulatory stages in FY26. Bathurst prepared its Fast Track Approvals Act application for BPCP and progressed the Environmental Certificate application for Tenas, with submissions planned early in FY27. These developments aim to extend Bathurst’s operational footprint by up to two decades, enhancing production capacity and underpinning future earnings.

Operational Highlights and Segment Performance

Export shipments from the Stockton mine aligned with forecasts, though production was impacted by unplanned rail load-out repairs. The North Island and South Island domestic segments delivered consistent earnings, cushioning the export segment’s early-year struggles. The Rotowaro mine notably increased overburden stripping and coal production, despite a full-year production shortfall against plan due to mine sequencing changes.

Coal sales revenue for the year reflected these dynamics, with export revenue benefiting from higher HCC prices, while domestic segments experienced mixed volume and cost pressures. Bathurst’s FY27 EBITDA guidance of NZD 30 million to 40 million factors in a stable to gradually rising HCC price environment, improved domestic earnings, and normalising fuel costs.

Project Updates Signal Long-Term Growth Potential

The BPCP targets approximately 20 million tonnes of coking coal over a 25-year mine life, leveraging existing infrastructure to streamline development. The Fast Track Approvals Act application is on track for submission this quarter, following extensive ecological, environmental, and community consultations.

In Canada, the Tenas Project’s updated feasibility study revealed a post-tax NPV of USD 269 million, supported by a low strip ratio and competitive operating costs. The project is expected to commence production in FY29, delivering 750,000 tonnes of saleable coal annually for around 21 years.

Ongoing Challenges and Litigation

Health and safety remain a focus, with three lost time injuries reported at the Rotowaro mine during the quarter, prompting company-wide safety assessments. Environmental initiatives continue, including wetland offset development at the Maramarua mine.

On the legal front, Bathurst faces ongoing litigation with Talley’s Group Limited in New Zealand. The High Court recently declined Talley’s application for a derivative action, but the substantive trial is expected in mid to late 2027, under strict confidentiality orders.