Coal miner Bathurst to delist from NZX
Hundreds of Kiwi shareholders in cash-strapped coal miner Bathurst Resources will have to trade their shares through the Australian stock exchange in about a month.
The coal miner whose largescale coal mining plans have been stalled by plunging international coal prices will delist from the NZX in early July to save money, it announced yesterday.
However, its main listing on the Australian stock exchange will remain.
Bathurst shares fell 11 per cent to 2.4 cents a share from 2.7c after the news.
It’s the latest in a string of moves to save costs and preserve cash reserves which has included reducing staff numbers.
Bathurst’s chairman Malcolm Macpherson said New Zealand shareholders could trade the shares using a New Zealand stockbroker who can help them trade through the ASX or by dealing with an Australian stockbroker.
The delisting will take effect on July 3.
Bathurst battled two years of opposition by environment groups to achieve resource consents for its large-scale Escarpment Mine on the Denniston Plateau on the West Coast but its mining plans have been placed on hold because prices for coal make mining unprofitable.
Bathurst’s decision was a result of a business efficiency review aimed at streamlining processes and systems to reduce costs, Macpherson said.
Delisting from the NZX would will enable Bathurst to save on the listing fees, legal fees, and registry costs.
June 29 is the last day the shares will trade is on the NZX.
The shares on its New Zealand share register will be automatically transferred to the Australian register, although its principal share register will continue to be maintained in New Zealand.
Macpherson said the shareholders would continue to hold legal title to their shares, be paid any dividends in New Zealand dollars, receive corporate documentation and notices, and to attend meetings and vote directly.
Royal Forest and Bird Society West Coast branch chairwoman Kathy Gilbert said members were pleased coal was not being dug up large-scale on the Escarpment.
The other group that fought Bathhurst’s escarpment plans was the West Coast Environment Network.
Spokeswoman Lynley Hargreaves said ‘‘If this (delisting) is a step towards them withdrawing from mining and rehabilitating the area and keeping it largely intact then that would be fantastic for the environment.’’
Sharebroker Hamilton Hindin Greene director Grant Williamson said the delisting was not a major issue.
‘‘It’s still pretty easy to transact in the Australian market,’’ he said.
But local shareholders would be disappointed because the shares would no longer be quoted in local newspapers.
‘‘That’s always a bit annoying . . . but I’m sure most of them realise it’s for the good of all shareholders.’’
The company would be burning through its remaining capital and would find it difficult to raise any new capital.
At the end of March 31 Bathurst had $4.8m in cash reserves.