Highlights

  • Bathurst Resources (ASX:BRL) delivered FY26 EBITDA of NZ$44.7 million, reaching the upper end of its guidance range.
  • The company maintained a strong cash position of NZ$144.8 million, including restricted short-term deposits.
  • Growth projects advanced during FY26, with the Buller Plateaux Continuation Project entering the Fast-Track Approvals process and Tenas progressing through environmental assessment.
  • Export coal performance improved as hard coking coal prices recovered during the second half of FY26.

Bathurst Resources (ASX:BRL) has entered FY27 with a stronger operating position after delivering a guidance-topping FY26 result while continuing to progress its pipeline of long-term coal development projects.

The New Zealand coal producer reported improved Earnings despite challenging export coal market conditions during the year, supported by stronger second-half pricing, operational performance and disciplined cost management. Alongside its financial results, Bathurst advanced several strategic projects across New Zealand and Canada that could support future production growth.

FY26 Performance

Bathurst reported consolidated Revenue of NZ$261.0 million for FY26, compared with NZ$268.0 million in FY25.

Consolidated EBITDA increased to NZ$44.7 million, up from NZ$43.8 million in the previous year and at the top end of the company’s guidance range of NZ$35 million to NZ$45 million.

The company recorded an underlying loss after tax of NZ$3.1 million and a statutory net loss after tax of NZ$4.6 million, compared with a profit position in FY25.

The result reflected the impact of softer coal pricing earlier in the year, higher fuel costs and operational cost pressures. However, stronger hard coking coal prices during the second half supported improved earnings performance.

Bathurst maintained a strong financial position, ending FY26 with cash of NZ$144.8 million, including restricted short-term deposits.

Export Operations

Export coal operations remained a key contributor to FY26 performance.

Bathurst’s export segment generated EBITDA of NZ$44.9 million, compared with NZ$32.8 million in FY25.

Export production increased to 1.04 million tonnes, while sales reached 1.15 million tonnes, supported by improved operational performance compared with the previous year.

The average price received increased to NZ$232 per tonne from NZ$221 per tonne in FY25, supported by improved hard coking coal pricing.

During the first half of FY26, benchmark hard coking coal prices remained under pressure before recovering during the second half. The recovery provided support for export earnings and contributed to the company achieving its full-year EBITDA target.

Domestic Operations

Bathurst’s domestic operations continued providing earnings Diversification alongside export activities.

Domestic operations generated EBITDA of NZ$17.3 million during FY26, although this was lower than the previous year due to reduced sales volumes and revenue pressure in some segments.

The North Island domestic Business benefited from increased production and sales volumes at the Rotowaro mine, while South Island domestic operations experienced lower sales as customers continued transitioning towards alternative fuel sources.

The Rotowaro operation continued progressing the Waipuna West Extension pit, with increased overburden removal and higher coal production supporting operational performance.

Growth Projects

Bathurst continues advancing several long-term projects designed to extend production capacity and support future growth.

The Buller Plateaux Continuation Project (BPCP) represents one of the company’s major New Zealand growth opportunities. The project targets approximately 20 million tonnes of coking coal and could provide a 15–20 year mine life.

Bathurst submitted its Fast-Track Approvals application for BPCP in August 2026, marking a significant milestone in the approval process.

The project is expected to utilise existing Stockton infrastructure, including coal handling, processing and transport facilities, which could reduce development requirements.

In Canada, Bathurst’s Tenas Project progressed through the environmental approval process after the British Columbia Environmental Assessment Office confirmed that the application had satisfied information requirements to commence the Effects Assessment and Recommendation phase.

Canadian Expansion

The Tenas Project remains a key part of Bathurst’s international growth strategy.

The project is expected to produce approximately 750,000 tonnes per year of saleable coal over an estimated 21-year mine life once operational.

An updated feasibility study highlighted the project’s potential, with a post-tax NPV8 of US$269 million.

Bathurst is also progressing the Crown Mountain Project in British Columbia, where it holds an Equity interest. The project continues moving through environmental assessment processes, with further application steps expected later in 2026.

Together, these projects provide long-term production opportunities beyond Bathurst’s existing New Zealand operations.

FY27 Outlook

Bathurst enters FY27 focused on maintaining operational performance while progressing its growth pipeline.

The company expects hard coking coal prices to remain supportive, with gradual improvement forecast during FY27.

Management remains focused on advancing BPCP, Tenas and Crown Mountain while maintaining a disciplined approach to Capital allocation.

The company has not declared dividends, with available cash directed towards growth projects and ongoing operational requirements.

Successful delivery of these projects could extend Bathurst’s production profile and support long-term participation in the steelmaking coal market.

Key Focus Areas

Investors will continue monitoring coal price movements, particularly hard coking coal pricing, as export earnings remain closely linked to market conditions.

Progress through approval processes for BPCP, Tenas and Crown Mountain will also be important indicators of future growth potential.

The company’s ability to maintain cost control amid inflationary pressures, particularly fuel and operating costs, will remain another area of focus.

Future capital requirements and development timelines for major projects will also influence Bathurst’s growth outlook.

Risks

Bathurst remains exposed to fluctuations in global coal prices, which can significantly influence revenue and profitability.

Large development projects such as BPCP, Tenas and Crown Mountain remain subject to regulatory approvals, environmental requirements and execution challenges.

Operating costs, including fuel and labour expenses, may continue affecting margins if inflationary pressures persist.

The company’s focus on growth projects also requires careful capital management to maintain financial flexibility while progressing future developments.

Changes in global energy policy and Demand for steelmaking coal may also influence long-term market conditions.

Future Outlook

Bathurst Resources enters FY27 with a strong cash position, improved operational momentum and a portfolio of future growth opportunities.

The FY26 result demonstrated resilience during a challenging coal pricing environment, with stronger second-half conditions helping the company achieve its earnings target.

While near-term performance remains linked to coal markets, the advancement of BPCP, Tenas and Crown Mountain provides longer-term growth potential.

The company’s ability to convert these projects into future production while maintaining disciplined financial management will remain central to its long-term outlook.