Bathurst Resources Limited is pulling itself from the New Zealand stock exchange in order to save money.
The decision, effective from July 3, was made to reduce operating costs, chairman Malcolm Macpherson said today. Delisting from the NZX would enable the company to save on ongoing listing fees, legal fees and registry costs.
Bathurst began a Business Efficiency Review at the end of last year to reduce operating costs. The move was in reaction to plummeting international coking coal prices, which are at an 11-year low.
Mr Macpherson said Bathurst's shares would remain listed on the Australian Securities Exchange (ASX) and would continue to be quoted on the ASX.
New Zealand shareholders would still be able to trade Bathurst's shares through any New Zealand stockbroker who could facilitate trading through the ASX.
The last day shareholders would be able to trade Bathurst shares on the NZX Main Board was June 29, he said.
On the delisting date, all shares held on the company's New Zealand register would be automatically transferred to the Australian register. Shareholders whose shares were transferred would continue to hold legal title to their shares, and would be paid any dividends in New Zealand dollars.
"The company appreciates the support of its New Zealand shareholders, and encourages them to continue with their investment in the company," Mr Macpherson said.
In January this year, Bathurst axed four of its Wellington-based senior positions. In February, the company posted a net loss before tax of $6.9 million for the six months to December 31, 2014. The following month its chief executive, Hamish Bohannan, resigned. He had been with the company since 2008.
Bathurst operates four mines in New Zealand, two of which are in the Buller. Last year, it delayed the ramp-up to full commercial production at its Escarpment mine at Denniston until coking coal prices recovered.
Escarpment, along with the adjacent Cascade mine, make up Bathurst's Buller Project. Bathurst has said it will provide over 400 direct and 1600 indirect jobs on the West Coast when the project is fully operational.
However, locals are increasingly sceptical about the cash-strapped company's promises.
Buller Mayor Garry Howard said today's announcement was not the beginning of the end for the Buller Project.
"It's just prudent business management."
The company was cutting down on costs where possible and was doing everything it could to make sure it could stay in business. It needed to keep the coalface at Denniston going, he said.
- By Aimee van der Weyden of the Westport News
