West Coast coal miner Bathurst Resources' auditors have tagged its annual accounts over ''uncertainties'' in achieving its cash flow forecasts.
Management remains more upbeat, having produced positive $1million cash flows, but global coal prices remain depressed, forcing the closure of hundreds of mines world-wide.
For the year to June, Bathurst's revenue was down 7.7%, from $55.5million to $51.2million, and its after-tax loss was $16.4million, compared with $188.9million the previous year; the latter due to asset value impairments.
By the time Bathurst had fought off multiple legal challenges to its consents over more than two years, global prices for its specialist hard coking coal had slumped to uneconomic levels, and it could not begin export mining.
Bathurst relies on domestic sales of thermal coal, from its three South Island mines, while it awaits better coking coal prices.
Bathurst said its 2016 budget ''assumes no improvement in the global export price''.
However, next year it has a another hurdle to negotiate, when its customer concrete maker, Holcim, pulls out from the West Coast.
ASX-registered Bathurst has gutted its management team and deregistered from the NZX to save money and has a range of ''austerity measures'' on stand-by to reduce cash burn.
They include further cuts to head office staff, quitting exploration activity and deferring future consenting costs.
The independent auditor's report by PwC noted Bathurst had raised ''uncertainty'' that if ''specific assumptions'' were not met, such as coal sales and maintaining existing financial arrangements, they could affect the company as a going concern.
''This indicates the existence of a material uncertainty that may cast significant doubt about the group's ability to continue as a going concern,'' PwC said.
Bathurst chairman Toko Kapea said Bathurst had produced a positive operating cashflow of $1million for the year, against a $16.7million outflow the year before.
''This represents a significant turnaround in Bathurst's operational performance and creates a solid platform to deliver on the group's operational efficiency targets in the coming year,'' he said in a statement.
Bathurst would continue to focus on domestic business and gaining cost efficiencies.
Notes in the annual result said Bathurst recognised a ''major commercial domestic sales contract'' would expire next year and it had ''advanced its planning'' for that.
Cash in hand and deposits had declined 40% from $8.85million to $5.23million.
