Bathurst Resources (ASX:BRL) provided an update on its first-half FY2026 performance and outlined progress across its New Zealand operations and development pipeline, including the Buller Project and two metallurgical coal projects in British Columbia, Canada.
Operations and business mix
Management described Bathurst as an operating company with four mines in New Zealand: Takitimu, Stockton, Rotowaro, and Maramarua. The company also has the Buller Project, described as an extension project of the Stockton mine. In Canada, Bathurst is advancing the Tenas and Crown Mountain projects, which were characterized as development assets.
First-half FY2026 financial and operating drivers
On the half-year results, management said revenue was “only about NZD 4 million down,” with performance impacted more by volume than price. Export coal prices were lower than those experienced through FY2025, although Bathurst recorded increased volume in the first half versus the prior comparable period because the prior period was affected by rail disruption.
Management explained that in the first half of FY2025 the company faced an issue on the main rail line from Stockton to Lyttelton due to the Tawhai Tunnel being out for several months. As a result, Bathurst had to truck coal around the disruption and was “down about 150,000 tons” in the prior half-year comparison. In the current first half, production and sales increased versus the FY2025 first half as logistics normalized.
EBITDA declined, which management attributed primarily to higher costs tied to development cutbacks at Maungaroa and Rotowaro and a higher strip ratio at Stockton. Profit was also lower, which management linked to reduced export EBITDA and ongoing spending on the company’s various projects.
Cash in the bank increased, which management said reflected a capital raise completed earlier (in the first part of the financial year), with proceeds flowing into the company’s accounts. Management also highlighted balance sheet metrics at the end of December, including NZD 155 million in cash, a “very low enterprise value” cited as AUD 32 million, and no debt aside from minor lease finance for equipment.
Mine-by-mine update: Rotowaro, Maungaroa, and Takitimu
At Rotowaro, management said the operation remains in a large cutback phase, with just under 5 million BCM moved in the half year versus 4 million BCM in the same period of 2025. Costs were elevated due to plant hire and labor, which were used to address shortfalls and equipment outages. Management said the operation is moving toward the end of a “large hill of overburden,” with expectations of returning to steadier overburden removal and coal sales thereafter. Rotowaro’s coal was described as fully sold into its major markets: steelmaking and North Island electricity generation.
At Maungaroa, management said market conditions are changing significantly, with the North Island process heat market “disappearing quite quickly.” The company said it is aligning production with two larger customers and will move from a six-day week to a five-day week on a single shift in the next couple of months. Rotowaro will also shift from seven-day operations back to five days, with maintenance crews on weekends to improve equipment availability and reduce plant hire costs.
At Takitimu, management described a shift from last year’s plan. While the initial plan was to maximize production and rehabilitation in FY2026, Bathurst found “more coal in the pit than what we originally anticipated.” The company now expects to continue operating on a full basis through FY2026 and into FY2027 while accelerating rehabilitation. Management said this approach would likely generate slightly less cash in the current year than previously anticipated but should support similar cash generation next year while rehabilitation is completed.
Safety and training initiatives
Management said health and safety remains a core focus, but noted an increase in low-level incidents over the past six months that resulted in minor injuries and included some higher-potential events. In response, Bathurst strengthened its field leadership program, which management said has previously been associated with a significant reduction in injuries and incidents.
The company also identified weaknesses in training record-keeping and compliance with training plans. Management said a comprehensive training system has now been rolled out and completed across all operations and offices. A critical risk program is also being initiated, starting at Stockton and Rotowaro and expected to expand across the company over the next 12 months, focusing on controls designed to prevent catastrophic, high-consequence events.
Guidance, pricing outlook, and development projects
Bathurst maintained its full-year EBITDA guidance of NZD 35 million to NZD 45 million by the end of June. Management said export performance is tracking lower, reflecting softer pricing than in recent years, while North Island results are expected to be slightly higher due to easing overburden removal and the effect of corporate costs. South Island results are expected to reduce given lower sales tonnage, which management indicated will persist for another year.
On metallurgical coal pricing, management noted an uplift in benchmark prices that it attributed in part to cyclone-related impacts on Queensland supply, with prices reaching about $252 per tonne before easing back to around $240. Management said the forward curve suggested pricing around $220 by the end of the financial year, while also indicating confidence in demand trends and limited future supply growth.
In New Zealand, management highlighted two extension opportunities: Maramarua’s M2 project (in final stages of consenting) and the Buller Plateau coal project, which is intended to utilize Stockton’s existing infrastructure and supplement supply as Stockton’s resource depletes. Management said the Buller plan includes linking plateaus with a haul road and accessing additional areas such as Mountford South. The company is pursuing approvals via New Zealand’s Fast-track process to consolidate multiple authorizations into a single pathway, while emphasizing that it is consulting with councils, landholders, and local communities. Management said it expects to have the application ready by the end of March, with an assessment period beginning in April. The company cited an estimated NZD 104 million to bring the Buller project into production.
In Canada, management provided updated economics and a timeline for the 100%-owned Tenas project in British Columbia. Bathurst said a DFS update showed a start-up capital estimate of about $140 million (US), operating costs of about $80 (US) per tonne on a boat, an assumed average realized price of about $175 per tonne based on long-term price decks, and a post-tax NPV of about $270 million (US). The company said it is progressing through the Environmental Assessment Office process, addressing information requests, and moving toward final stages of effects assessment over the next two quarters. Management said it is conservatively assuming 12 months to compile mining permit documentation and another 12 months for approvals, while targeting first coal around October 2028 and production of roughly three-quarters of a million tonnes. Management also emphasized ongoing engagement with First Nations groups as a key factor in advancing the project.
Management also referenced Crown Mountain in the Elk Valley, describing Bathurst’s interest as a 22% stake through a joint venture with Jameson.
Finally, management addressed litigation and its perceived impact on the share price. The company said long-running litigation with L&M Coal that began in 2016 concluded after Bathurst prevailed through to the Supreme Court. Management also noted a separate action by joint venture partners, the Talley’s Group, directed at directors, describing it as not an attack on the underlying business.
About Bathurst Resources (ASX:BRL)
Bathurst Resources Limited explores for, develops, and produces coal in New Zealand. It also exports coal. The company was formerly known as Bathurst Resources (New Zealand) Limited and changed its name to Bathurst Resources Limited in December 2013. The company was incorporated in 2013 and is based in Wellington, New Zealand.Bathurst Resources Limited operates as a subsidiary of Bathurst Resources Limited.
