Bathurst confident despite March reduction

WELLINGTON: Bathurst Resources has maintained its fullyear earnings guidance, despite reduced production at Stockton and a shipping delay trimming Marchquarter earnings.

New Zealand’s biggest coal miner says earnings before interest, tax, depreciation and amortisation in its third quarter fell to $24 million in the period, down from $26 million in the December quarter and about $2 million less than the firm had been expecting.

Stockton, on the West Coast, produced 255,000 tonnes of coal in the quarter and sales of 248,000 tonnes generated just over $62 million in revenue.

While overburden, or other rock, removal was on plan, production was down by about 25,000 tonnes, reflecting the lessproductive pits being targeted during the period.

‘‘This is not expected to impact Q4,’’ the Wellingtonbased miner said in a quarterly report lodged with the ASX.

‘‘Sales volumes were lower than forecast as one shipment slipped from Q3 into Q4. Strong pricing continues.’’

Bathurst, which acquired Stockton and other former Solid Energy mines in 2017, is benefiting from strong demand from international steelmakers and good local demand from NZ Steel, Genesis Energy, Fonterra and other food processors.

The company reiterated its $105 million Juneyear ebitda forecast, having raised its Junequarter earnings estimate to $27 million from the $25 million it had signalled previously.

Bathurst owns 65% of Stockton and the Rotowaro and Maramarua mines in Waikato, through its BT Mining venture with Talley’s Group. Stockton is expected to deliver about 70% of Bathurst’s fullyear operating earnings, based on fullyear production of almost 1.09 million tonnes and assuming a margin of $99 a tonne.

That is up from $97 a tonne in December and assumes that sales for the June quarter are achieved at 80% of an average benchmark coking coal price of $US182 a tonne and a New Zealand dollar exchange rate of US68c.

Production and sales from Stockton for the nine months through March totalled 810,000 and 869,000 tonnes respectively.

Bathurst noted that it has contracts to sell 193,000 tonnes of hard coking sold out to the end of December at an average price of $NZ271 a tonne. The New Zealand dollar was recently at US66.8c.