Bathurst advances Tenas and Buller projects as coal prices strengthen

Stronger export pricing supports FY27 guidance

Bathurst Resources Limited (ASX:BRL) has started FY27 with consolidated EBITDA of NZ$9 million, up NZ$4 million from the comparable period and in line with forecast. The result was enough for the coal producer to maintain full-year guidance of NZ$30 million to NZ$40 million, despite higher fuel, freight and mining costs.

The reported consolidated view represents 100% of Bathurst’s operations and 65% of BT Mining’s operations, rather than a statutory NZ GAAP or NZ IFRS consolidation. Cash stood at NZ$130 million at 30 September, including restricted short-term deposits, down from NZ$155 million a year earlier.

Export and North Island operations offset South Island weakness

Export earnings improved as the average realised price, including hedging, rose to NZ$278 a tonne from NZ$207 a tonne in the prior comparable period. The benefit was partly offset by an 18,000-tonne decline in sales, higher fuel and freight costs, increased labour and contractor expenses, and more expensive third-party coal used to meet customer specifications.

The North Island domestic segment, including BT Mining corporate overheads on the stated equity basis, generated NZ$3.1 million of EBITDA compared with a NZ$0.2 million loss in the prior period. Rotowaro and Maramarua recorded higher sales and revenue, while lower stripping requirements and workforce changes reduced direct mining costs. South Island domestic EBITDA fell to a NZ$2.6 million loss as wet-weather conditions delayed the agricultural season and customers continued shifting towards alternative fuels.

Coal benchmark rebounds but company expects easing

The premium hard coking coal benchmark moved from US$213 a tonne early in the quarter to more than US$272 a tonne at the end of September, after reaching about US$285 a tonne in mid-September. Bathurst attributed the recovery to stronger Chinese seaborne demand amid domestic supply disruptions and constraints on Mongolian supply, with Indian demand also providing support after the monsoon.

The company expects the benchmark to ease through December and remain around US$250 a tonne. That view leaves the earnings outlook exposed to the familiar counterweights of fuel prices, freight rates, Chinese domestic supply and Australian coal availability, even as Bathurst continues to point to longer-term coking demand growth in India and Southeast Asia.

Tenas reaches final environmental assessment stage

Bathurst’s Tenas metallurgical coal project in British Columbia progressed to the Effects Assessment phase on 17 August after completing information requests and work under its Project Assessment Agreement. The British Columbia Environmental Assessment Office is expected to make a recommendation by 18 January 2027, followed by a ministerial decision expected on 18 February 2027. The project is planned to produce 750,000 tonnes of saleable coal a year from FY29 for about 21 years.

The milestone extends the Tenas final assessment reported in Bathurst’s FY26 results, but it does not remove the subsequent permitting, development, construction and reclamation steps. Bathurst’s updated feasibility study puts startup capital expenditure at US$139 million and operating costs at US$80.48 a tonne FOB, while reporting a post-tax NPV8 of US$269 million.

Buller application resubmitted after EPA completeness issues

In New Zealand, the Buller Plateaux Continuation Project application was resubmitted on 29 October after the Environmental Protection Authority identified two missing matters in the initial submission: evidence that proposed lizard-management methods would meet best-practice standards, and written agreement from Buller District Council for activity on Ngakawau-Hector Reserve land. The project targets about 20 million tonnes of coking-quality coal and could extend Bathurst’s West Coast operations for up to 25 years.

The correction follows the Buller application review, which found that further wildlife and reserve-consent information was required. Bathurst says work is continuing on the next phase of the application, while a definitive feasibility study is scheduled for completion in the fourth quarter of FY27.