Bathurst Resources (BRL) H2 2024 earnings summary

Executive summary

• FY24 revenue was NZD $315.1m, down from $389.0m year-over-year, with EBITDA at $90.8m–$91m and NPAT at $38.5m, reflecting lower coal prices and operational delays.

• 1.9 million tonnes sold, with 90% of sales to steelmaking customers; consolidated cash balance at $141m and no drawn debt.

• Export revenue declined as coal prices normalized from previous highs and operational disruptions impacted volumes.

• Bathurst remains New Zealand's largest coal producer, serving both domestic and export steelmaking markets.

• Acquisition of the Tenas coking coal project in Canada marks a strategic move to expand metallurgical coal exposure.

Financial highlights

• Revenue declined 19% year-over-year; EBITDA fell 45% to $90.8m–$91m; NPAT dropped 57% to $38.5m.

• Average price received per tonne decreased from $365 in FY23 to $297 in FY24.

• Consolidated cash balance at $141m as of June 30, 2024; no bank debt, only finance leases.

• Underlying profit after tax was $44.6m, with a $6.1m impairment charge related to the Takitimu mine.

• Net assets per share at NZD $1.69.

Outlook and guidance

• FY25 consolidated EBITDA guidance is $55m–$65m, reflecting lower export earnings and reduced sales volumes due to the Tawhai tunnel closure.

• Export market earnings expected to decline; full-year operating costs for the Tenas Project in Canada to be incurred.

• Coal price hedging is expected to provide revenue stability amid ongoing price volatility.

• Production at the Tenas project in Canada is expected to begin as early as FY27.

• Production and sales growth targeted through NZ and Canadian projects, with future combined annual production potential of 3Mt.