Bathurst Resources - BRL

[RTFQ]

Reported yesterday that a desperate paid $211 - $212/MT for premium and grade 2 sea borne shipments were selling at $175/mt.

[biker]

This is a good looking graph.
http://graph.100ppi.com/?w=550&h=332...&state=english

[trader_jackson]

Yes I am surprised Bathurst hasn't already moved past 4 cents (or at least held onto the high 3's)... but I suppose with a bit of volatility around and uncertainty with how Bathurst will proceed, people can't get to carried away yet

Traders who brought in the 1 cent something are probably happy to sell out as well, but this will gradually change as price stabilizes much higher than 1 cent!

[biker]

Some interesting points here.

$1 coal mines turn to jackpots as China's cuts drive price rally
PERRY WILLIAMS - 10:59, October 1 2016


Spot prices for coal have soared as China's steel mills crank out record volumes but cut mining capacity. - 123RF
Advertisement

Buying bargain-bin coal mines amid the worst commodity slump in a generation has turned into a savvy bet as prices of the fuel surge.

Stanmore Coal bought the Isaac Plains metallurgical coal mine in Australia for A$1 in July 2015 from Brazilian miner Vale and Japan's Sumitomo when the price of metallurgical coal, used to make steel, averaged the lowest in about a decade and just three years after the mine was valued at A$860 million (NZ$904 million). One year later, spot prices have soared above A$200 a metric tonne as China's steel mills crank out record volumes while its mines slow production.

"It seems like we did get our timing right in this instance," Stanmore Chief Executive Officer Nick Jorss said in a phone interview from Sydney. "When we bought Isaac Plains, hard coking coal was in the A$70s. We've had pretty substantial movement since then."

Coking coal has surged almost 170 per cent this year as output from China, the world's biggest miner, tumbles under pressure from the government to cut overcapacity even as demand from steelmakers surges. Prices reached A$210.80 a tonne as of Thursday, according to The Steel Index.

Stanmore, which has seen its share price double since the beginning of last month, isn't the only miner who bought low. Last week Australia's TerraCom completed the purchase of the Blair Athol thermal coal mine, also for A$1, from Rio Tinto Group as the world's second-biggest miner exits some of its Australian coal portfolio. Thermal coal in Australia, while unable to match coking coal's rally, has risen more than 50 per cent this year?

Miners who struck deals before the recent price surge were well placed to profit from the unexpected revival, even if they're small producers, said Robin Griffin, research director for global metallurgical coal markets at Wood Mackenzie, a consultant.

"They were brave enough to make the call to try and make it work," Griffin said. "They wouldn't have foreseen this spike, but they would have had a more optimistic view perhaps. So, in some respects, you could argue their gut feeling was justified."

While the A$1 headline price appears a bargain, Griffin notes the deals come with costly commitments. Stanmore is responsible for a A$32 million obligation for the Isaac Plains mine, in Queensland state, while TerraCom is also on the hook for costs related to rehabilitating the mine.

Stanmore is targeting 1.1 million metric tonnes of coal a year from Isaac Plains, while TerraCom hopes to ship 2 million tonnes annually. Australia, the world's largest coking coal producer, exported 186 million tonnes last year, according to Wood Mackenzie.

Japan's Electric Power Development, which owned Blair Athol with Rio Tinto and is known as J-Power, said it decided to sell its stake to a company that was willing to recover the remaining coal resources, according to a J-Power spokesman, who asked not to be named, citing company policy. Sumitomo, Rio Tinto and Vale declined to comment.

Stanmore's Jorss expects coking coal contract prices for the fourth quarter to rise above $150 a tonne, from the current quarter's A$92.50. Analysts at Macquarie forecast deals will be agreed at A$170 a tonne, which is still far short of the record of A$330 a ton in 2011.

"If they have material to sell, the funds will just roar in this quarter," Wood Mackenzie's Griffin said. "If prices continue into the next quarter and into the first quarter of 2017, it will look like a master stroke."

TerraCom Chairman Cameron McRae, a former Rio Tinto executive, said there were good bargains to be found in unwanted coal assets.

"The extent of the commodity down-cycle has put a lot of miners under pressure and you've seen companies sell up because their balance sheets require it," McRae said. "When you see a significant down-cycle you will always see assets come onto the market."

[biker]

Yes I am surprised Bathurst hasn't already moved past 4 cents (or at least held onto the high 3's)... but I suppose with a bit of volatility around and uncertainty with how Bathurst will proceed, people can't get to carried away yet

Traders who brought in the 1 cent something are probably happy to sell out as well, but this will gradually change as price stabilizes much higher than 1 cent!

The decision on the destination of Solid Energy's assets may be a defining event. Hopefully they are involved.
Good to know BRL now have a tight and lean operation in place which will auger well if expansion and growth is imminent.
Still a big if.

[kiwitrev]

The decision on the destination of Solid Energy's assets may be a defining event. Hopefully they are involved.
Good to know BRL now have a tight and lean operation in place which will auger well if expansion and growth is imminent.
Still a big if.

Solid Energy's Dan Clifford has resigned (expected). SE has $320m debt. Bids currently(reported) on the table. What may not be known by posters is that Dan Clifford has taken up the role of Managing Director of SMR/ASX - Stanmore Coal - SMR has great management and been making all the right calls and has publicly stated in the recent past looking for more acquistions. Perhaps they are in the running.
Disc. Hold SMR

[trader_jackson]

http://www.nzherald.co.nz/business/n...ectid=11722409

Written today, end of October we should know who is successful and who is not... I think it will be sold in bits (as Solid Energy as a whole is a dog in my view), and hopefully Bathurst gets a bit of the action...

They did do a note issue a few months back with $750k of the proceeds going to "investigating a New Zealand coal producer" (or some words to that effect), shows they were very serious... and hopefully this $750k doesn't go to waste!

[biker]

Up over 15% today. Nice to see the market showing some interest at last.

[muks]

Up over 15% today. Nice to see the market showing some interest at last.

Got to remember that its a La Nina summer this year too. Its predicted to be a very wet summer and the last time it was a La Nina summer Queensland miners slashed production as they struggled to get coal to the market due to the massive floods. This caused a massive spike in the price of coaking coal.

[biker]

Bathurst Resources Limited – Price Query

I refer to your letter dated 6 October 2016 regarding the change in Bathurst Resources Limited’s ordinary
share price from a low of $0.035 to a high of $0.043, and the increase in trading volume, and respond as
follows;
1. The Company confirms that it is not aware of any information concerning it that has not been
announced to the market which, if known by some in the market, could explain the recent trading
in its securities.
2. Not applicable.
3. We note an announcement made on the 4th October by Solid Energy New Zealand Limited (subject
to Deed of Company Arrangement). Solid Energy announced that the date by which it would accept
offers for the purchase of its assets has now closed and that it expects to be in a position to make
a statement about the successful bidder or bidders from late October.


Bathurst Resources has, and continues to be, involved in due diligence activities in relation to Solid
Energy New Zealand Limited (subject to Deed of Company Arrangement).



The Company has no information and provides no assurances in relation to the outcome of this
process. The Company will update the market as and when any information becomes available.
4. The Company confirms that it is in compliance with the Listing Rules and, in particular Listing Rule