Bathurst Resources - BRL

[Regi]

Bathurst is delisting from the NZX! What does this mean for the share price?

https://www.nzx.com/companies/BRL/announcements/265000

[trader_jackson]

From what I can see, 1 million new orders were placed between that announcement and now, while 100k sell orders removed and the lowest sell price increased.... Buy's are outstripping Sells by a wide margin (2:1) on both NZX and ASX exchanges. Although no trades have taken place.

I think long term it will be good, I mean they saving money, how bad can that be?

[Xerof]

Tough day for local holders. Apart from being on the wrong side of the coal price, you now have a currency risk, and perhaps an FIF liability. Very poor move by the board - they must be desparate

[BlackPeter]

Tough day for local holders. Apart from being on the wrong side of the coal price, you now have a currency risk, and perhaps an FIF liability. Very poor move by the board - they must be desparate

Xerof, I first thought you must be joking ... surely - a New Zealand company listed on the ASX can't be subject to the FIF regime? Does not make any sense what-so-ever. However - just checked the most recent IRD's exception list (https://www.ird.govt.nz/resources/8/...ir871-2014.pdf) ... and couldn't find BRL listed on it. So - yes, you might be right - while it is a joke, BRL.ASX would be according to current rules subject to FIF. Maybe they change this still for their next update in July 2015, but I must admit that my faith in the common sense of tax officials has faded over the years - i.e. I don't hold my breath.

On the other hand ... I am not sure, whether we can blame BRL management for this idiocy - it is more the elected politicians (and their predecessors) who created this highly unfair mess called FIF regime.

[BlackPeter]

actually - it might not be as bad as I first thought (but hey - better talk with your tax professional if this change brings your foreign investment above the de minimis rule ... i.e. if it would mean that you have after the listing change more than $50k in Foreign Investment Funds ...

Just looked through IRD's FIF guide (https://www.ird.govt.nz/resources/7/...dd2d/ir461.pdf), and it says:

A FIF is
• a foreign company
• a foreign unit trust
• a foreign superannuation scheme (prior to 1 April 2014)
• a FIF superannuation interest (from 1 April 2014)
• an insurer under a life insurance policy (and the policy is not offered or entered into in New*Zealand)

Given that BRL is still a New Zealand company (just listed on the ASX) it would IMHO not fall under the definition above.

However - please talk with your tax professional or do your own research - I am NOT a tax professional, just trying to use common sense (which might not be that common after all).

[Regi]

just trying to use common sense (which might not be that common after all).

Love it.

[Xerof]

I did say 'perhaps' and certainly wasn't joking.

BP, Your common sense is uncommonly sensible - I couldn't find them on the Companies Office the first time I searched (fat fingers perhaps), so looked up ASIC and found them there (although on second glance, they are registered as a foreign company on ASIC), hence my alert to FIF

Sorry for potentially frightening the daylights out of you

Currency risk still stands as a new element of holding this stock though, for those currently holding NZ:BRL

[tony64peter]

HOLCIM CLOSURE ON TRACK
The Holcim cement plant at Cape Foulwind is on track to close in the second half of 2016. The company announced in 2013 that it would stop making cement in New Zealand and instead build two new cement import terminals, at Timaru and Waitemata. Holcim capital projects manager Ken Cowie said the timeframe remained, and the Westport plant would close later next year. The exact date had yet to be set.
(Greymouth Star – 9 May 2015)

[BlackPeter]

HOLCIM CLOSURE ON TRACK
The Holcim cement plant at Cape Foulwind is on track to close in the second half of 2016. The company announced in 2013 that it would stop making cement in New Zealand and instead build two new cement import terminals, at Timaru and Waitemata. Holcim capital projects manager Ken Cowie said the timeframe remained, and the Westport plant would close later next year. The exact date had yet to be set.
(Greymouth Star – 9 May 2015)

Old news, but yes, this means that international coking coal prices better go up by mid of next year for BRL to stay afloat.

I guess the latest headlines are for the first time in some months somewhat optimistic:

http://www.steelfirst.com/Scrap-and-...king-Coal.html

... but only time will tell whether this is the beginning of the hoped for strengthening (increased demand in Asia meeting reduced supply) or just another blip on the downtrend.

[trader_jackson]

Interesting how 2 directors recently brought about 100k shares each, I mean I realize this is not huge $ values we are talking here, but one would think this purchase shows they believe the company is undervalued...