Bathurst Resources has posted a net loss of $188.9 million
for the year to June 30, mainly due to writing down $449.9m
on its Buller Coal Project.
Revenue from the company's domestic operations totalled
$55.7m against overall operating expenses of $59.3m,
resulting in an operating loss before tax of $3.6m.
The annual report showed Bathurst's cash had plummeted by
$7m, to $5.5m.
Current liabilities exceeded assets by $900,000.
The budget for 2015 was based on increasing coal sales and an
increased coal price, the report said. Bathurst expected
domestic sales only and assumed no improvement in global
export prices. It also assumed no significant operations at
Buller's Escarpment Mine until the export price made the
The budget did not include a range of austerity measures that
could be implemented to reduce cash spend if necessary.
"This includes further reduction in head office staffing,
complete halt to exploration activity and deferral of future
Based on the information available, Bathurst directors
believed the budget was a reasonable basis for continuing to
operate as a going concern.
The report warned that a major commercial domestic sales
contract expired in 2016. The contract allowed Bathurst to
sell coal in the domestic market at a profit while
international coal prices recovered.
Bathurst managing director Hamish Bohannan said the company
was disappointed market conditions meant temporarily
deferring its export Escarpment project.
"However, the result reflects the benefits of building a
robust domestic business that can underpin the company until
such time as Escarpment can ramp up to full production."
Bathurst was pleased to end the year with a cash positive
quarter, Mr Bohannan said.
The current quarter was expected to show a small net cash
outflow, due to seasonal slowing in the dairy sector.
Bathurst expected to return to cash positive after that.
"In the meantime we are focused on developing Escarpment in
preparation for an export market recovery."
By Lee Scanlon of the Westport News