A rights issue by West Coast mine developer Bathurst
Resources has fallen flat, with just a 5% uptake on the
In the 1:23 non-renounceable, pro-rata rights issue, up to
41.08 million shares were on offer, for a total $2.67
million, but just 2.1 million shares were taken up, worth
less than $140,000.
Craigs Investments Partners broker Peter McIntyre said the
pricing of the issue, at 6.5c per share, meant shareholders
did not see a lot of value in its latest capital raising.
''Bathurst will be disappointed. But it wasn't a deep enough
discount for shareholders, when the share was [already]
tracking around 6.5c,'' Mr McIntyre said.
Bathurst shares were trading down about 2% at 5.1c, on light
volume, following the company's market update on the issue
The share price's high was $1.74 in April 2011, before the
beginning of multiple court challenges to its granted
consents, which dragged on for about two years and stalled
the Denniston mine start-up.
Mr McIntyre said Bathurst has had to continually come back to
the market place for capital.
In private and institutional capital raisings last September
and April, Bathurst raised almost $27 million, and as of
March had $10 million in cash and short-term deposits.
While Bathurst is confident of shoring up cash flows from its
three South Island coal mines through domestic sales, the
depressed global price of specialist coking coal means it
cannot start commercially viable mining from the Denniston
plateau, above Westport.
Analysts have forecast a coking coal price slump, potentially
through to 2016.
Bathurst has maintained it can rely on its domestic coal
supply sales and can afford to delay ramping up the Denniston