Domestic coal from Bathurst Resources' three domestic mines
- Cascade (pictured), Takitimu and Canterbury Coal - are
keeping the company cashflow-positive. Photo by ODT.
Domestic coal sales of more than 80,000 tonnes have kept
Bathurst Resources cashflow-positive for its past quarter
trading, and hopeful of being in a similar full-year position.
Plunging global coal prices forced Bathurst to postpone
mining the Denniston plateau, above Westport, for specialist
hard coking coal, and it is now relying on three domestic
South Island mines for cashflow.
Domestic dairy and cement industry demand remained
''strong'', and was providing Bathurst with ''a stable
revenue stream'', which was not affected by foreign exchange
issues and global pricing trends, Bathurst said in a market
Bathurst shares were unchanged at 6c yesterday.
Global coking coal prices had plunged from $US320 ($NZ376)
per tonne in 2011 to about $US110 and Bathurst said Denniston
extraction could begin at about $US120; while analysts have
predicted depressed prices could continue through to 2016.
Following a successful capital raising during the quarter to
June, Bathurst ended the period with $8.87 million cash in
Revenue for the quarter was $12.8 million, after expenses,
leaving $710,000 in operating cashflow.
''The company has completed the year with a cashflow-positive
quarter, having achieved good production results from its
operating mine,'' the company said.
However, Bathurst cautioned the quarter to September would
see a downturn because of seasonal dairy demand declining,
but the quarter to December and full year was expected to
show a ''return to cash-positive position''.
Total coal mined during the quarter to June was 101,885
tonnes, with 80,904 tonnes sold.
The Cascade mine, adjacent to the Denniston plateau and
targeting 150,000 tonnes annually, produced 40,908 tonnes for
the quarter, Takitimu in Southland 52,367 tonnes and
Canterbury Coal, west of Christchurch, 8610 tonnes.
Discussions with potential customers in India, Japan, Korea
and China were continuing.
''While interest remains strong, the company will wait for
the coal price to recover before committing to long-term
contracts,'' Bathurst said.