Bathurst Resources Reports FY26 EBITDA of NZD 44.7 Million with Strong Cash Position

Steady Earnings Despite Coal Price Headwinds

Bathurst Resources (ASX:BRL) closed FY26 with a consolidated EBITDA of NZD 44.7 million, hitting the upper limit of its forecast range. This outcome stands out given the turbulent market backdrop, where the Hard Coking Coal (HCC) benchmark price plunged to USD 172 per tonne in the first half before rebounding to USD 243 by June. The price recovery in the second half was pivotal in cushioning the company’s earnings, offsetting earlier export coal price weakness and rising fuel costs linked to geopolitical tensions in the Middle East.

The company’s net profit after tax swung to a loss of NZD 4.6 million, weighed down by impairments and non-cash adjustments, while underlying profit also slipped into the red. Nonetheless, Bathurst maintained a solid consolidated cash position of NZD 144.8 million, underscoring its financial resilience amid operational headwinds.

Export Segment Rebounds as Domestic Faces Challenges

Export operations, conducted through the 65% equity-held BT Mining joint venture, saw production rise to 1.04 million tonnes (100% basis) and sales climb to 1.15 million tonnes, recovering from disruptions caused by a tunnel collapse in FY25. The average price received per tonne increased to NZD 232, up from NZD 221 the prior year, though realised hedging swung to a NZD 1 million loss from a NZD 13 million gain in FY25.

EBITDA for the export segment jumped to NZD 44.9 million (65% equity share), driven by higher revenues despite inflationary pressures on fuel and general costs. Freight costs eased compared to FY25 due to the reopening of the rail tunnel, partially offsetting other cost increases.

Meanwhile, the domestic coal segment experienced a decline in production and sales volumes, particularly in the South Island where customers continue transitioning to alternative fuels. Domestic EBITDA nearly halved to NZD 17.3 million, reflecting these volume drops and lower revenues, although the North Island mines saw some production gains.

Progress on Long-Life Growth Projects in New Zealand and Canada

Bathurst advanced its strategic growth pipeline with significant milestones in both New Zealand and British Columbia, Canada. The company submitted its Fast Track Approvals Act application for the Buller Plateaux Continuation Project (BPCP) on 21 August. This project targets around 20 million tonnes of high-quality coking coal, potentially extending mine life by 15 to 20 years by leveraging existing infrastructure at Stockton and Denniston Plateaux.

The BPCP’s Fast Track application benefits from the New Zealand government’s recent legislation aimed at accelerating major projects, positioning Bathurst to meet growing export demand. An updated feasibility study is underway, scheduled for completion in late 2027. This development aligns with Bathurst’s strategy of focusing on long-life steelmaking coal assets.

In Canada, Bathurst’s Tenas Project reached a key regulatory milestone with the British Columbia Environmental Assessment Office confirming the application has met information requirements to enter the final Effects Assessment and Recommendation phase. This stage, with a 150-day legislated timeframe, precedes the decision on the Environmental Assessment Certificate, critical for the project’s planned FY29 production start. The Tenas Project boasts a low strip ratio, positioning it as a low-cost metallurgical coal producer with a 21-year mine life.

Capital Expenditure and Cash Flow Dynamics

Capital expenditure during FY26 focused on advancing development projects, with notable spending on the BPCP Fast Track application and Tenas project assets. Mining development costs eased slightly compared to FY25, offset by increased investment in growth initiatives. Operating cash flow remained positive, supported by EBITDA and working capital movements, while financing costs were stable.

No dividends were declared or paid during the year, consistent with the company’s focus on reinvestment and project development. The consolidated cash balance decreased from NZD 178 million to NZD 145 million, reflecting these investment activities.

Ongoing Litigation and Corporate Governance

Bathurst continues to face litigation with Talley’s Group Limited, with the High Court recently rejecting Talley’s bid to bring a derivative action. The substantive trial is scheduled for May 2028, with confidentiality orders in place restricting disclosure of case details.

Corporate overheads decreased to NZD 17.5 million, contributing to overall cost discipline. The board and executive team remain focused on navigating regulatory, operational, and market challenges while progressing growth projects.