Australian (ASX) Stock Market Forum

BTU - Bathurst Resources

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oldblue said:
Today's presentation to Citi forum on emerging coal companies.

http://asx.com.au/asxpdf/20110217/pdf/41wv5df23l38dn.pdf
Click to expand...

That presentation just paints a very rosy picture, BTU is sitting on a fantastic resource and near term production with some facilities already in place. It looks very promising, superior to Australian coking grades and easy access.

I do wonder whether there is any PRC hangover here...

Thanks for that presentation Oldblue.
 
mr. jeff said:
That presentation just paints a very rosy picture, BTU is sitting on a fantastic resource and near term production with some facilities already in place. It looks very promising, superior to Australian coking grades and easy access.

I do wonder whether there is any PRC hangover here...

Thanks for that presentation Oldblue.
Click to expand...

I read a report that BTU were progressing quietly with the NZ Govt with all due respect and sympathy following the PRC tragedy.
No consequences from PRC were forseen by BTU, due to PRC being underground and BTU being open cut.
 
BTU stated in their Dec quarterly report that progress in obtaining environmental approvals had been slowed as a consequence of the Pike River mine disaster but that they remained confident in this regard.

There is strong local support on the West Coast for this mine and govt has also been supportive of the industry in an area where other employment is limited.

I hold.
 
The future looks bright here as the ducks begin to take their position. We have seen an impressive rise in the past three months with the best still to come. Bathurst state final approval will occur within the next three months. Should be a good run into Christmas.
 
This is one of the few coal stocks I hold and it has been on steroids since the Queensland flood broke out. Interesting enough, the coal explorers/soon-to-be-producers seemed to have outperformed the non-QLD based producers, while the coking coal price surge is only expected in the short and medium term. Given the less risky nature of its coal mine, BTU is likely to get a tick from the NZ regulators, so I will at least hold until then :)
 
Was trawling the net for news on BTU and found this.

http://www.smh.com.au/world/tears-and-silence-at-nz-mine-inquiry-20110405-1d2xx.html

and

http://www.stuff.co.nz/business/industries/4839710/Strong-interest-in-Pike-River-purchase

News in NZ is that the Pike River Coalfield may be up for sale soon, amongst the interested parties are, reportedly, BTU.

Any thoughts on this? Is this an expansion bridge too far, or are they right to pursue aggressive expansion? Possibly fattening the portfolio for a takeover bid?
 
I'd have thought that Pike River would be a big distraction for BTU at this stage, particularly given it's history and the difficult geology involved.

I'd much prefer to see them concentrate on the Buller project, an open face/cast operation and a much more straightforward proposition. Too much enthusiasm for Pike River would probably see me taking my profits from BTU.
 
This, from today's Wellington DominionPost:

" Sharemarket-listed company Bathurst Resources has taken another step towards starting an open-cast coalmine near Westport, but hiring up to 225 people will not begin till it gets official consent to mine.

Bathurst's subsidiary, Buller Coal, has appointed Greymouth-based firm Brightwater Engineering to build a coal-processing plant and associated facilities.

The plant will process coal from the mine, in the south of the Denniston Plateau, about 14kms from Westport. Bathurst expected to draw local workers.

Bathurst managing director Hamish Bohannon said: "The pressure is on to get the mine up and running – the community is crying out for jobs."

While Bathurst is based in Perth, Western Australia, Mr Bohannon is based in Nelson.

It had $42 million in the bank and facilities for more, he said. Bathurst hoped to start mining by the end of the year, with commercial production soon after.

The company expected to start hiring straight after it gained consent. But how long that would take was unknown, with no official start date yet.

The mine was no different from what Solid Energy was doing nearby, he said, so consent should be "relatively straightforward".

The project is expected initially to employ up to 160 people, rising to 225, pumping about $30m into the region in salaries and wages.

The 160 would be mining and administration staff, with the balance for the coal washplant when it was completed. "There will be plenty of other jobs," he said, including at the local port.

The mine was expected to produce 360,000 tonnes of coal in the first year, which he said was modest, but would rise to 1 million tonnes, reaching 2 million in later years.

Most of the coal would be shipped out of Westport, with some going through Lyttelton.

The coal from the mine would be sold to Asia, for use in making steel.

Coal was selling for about US$250 (NZ$311) a tonne, and steel was very much in demand in Asia.

"The appetite from China is insatiable," he said. "




"
 
BTU announces timetable for hearings.

http://www.asx.com.au/asxpdf/20110427/pdf/41y7l3msql7g02.pdf

Bathurst making the news in NZ on 2 fronts.

BTU reports resource consent hearings are due to commence June 7, take up to 3 weeks with a decision expected by late July or early August. Leaving the door open for it's target of mining by years end, to still be achievable.

http://www.scoop.co.nz/stories/BU1104/S00745/bathurst-outlines-tight-timetable-to-start-mining.htm

Nothing much new here, but still out there for the public.

http://nzresources.com/showarticle.aspx?id=2035&gid=30002035
 
I am loving Bohannan's "just watch" attitude, these guys are absolutely driven to production by years end.

However, the panel hearing isn't until June 7, yet they are possibly looking at another acquisition. I hope the panel doesn't take this as BTU thinking they have carte blanche to go ahead and do as they please. Any thoughts this may put panels nose out of joint and they may pull the reins on BTU in some way?
Due respect should be shown in all matters.

Oldblue or others thoughts?
 
Just a thought, but maybe it's an acquisition to augment the Takitimu mine in the Ohau region that they bought recently from Eastern Resources?
 
oldblue said:
Just a thought, but maybe it's an acquisition to augment the Takitimu mine in the Ohau region that they bought recently from Eastern Resources?
Click to expand...

It's reported in the AFR, "New Zealand coking coal junior Bathurst Resources is set to announce the acquisition of a coal lease near its existing lease holdings and an associated $55 million capital raising."

Not a subscriber, so don't have the full article.
 
Thanks, springhill.

AFR's article doesn't exactly rule out the Ohai (not Ohau - my mistake!) area but the Buller leases look to be more likely.
 
The announcement is out and it's the acquisition of Brookvale's Buller assets. A good move, IMO, particularly as it enhances the value of BTU's own Buller project with additional consents and improved access.

A slight disappointment in that shareholders aren't to participate in the capital raising - via placement - but at less than 15% of issued capital the dilution factor isn't great.

At $1.05, the placement should be quickly snapped up.

;)
 

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