Bathurst Resources - BRL

[barleeni]

True, but it also telling to a degree perhaps how small their entire holdings are... both each at circa $6-8K. I guess at those levels they aren't too confident are they!

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...

[barleeni]

Im trying to get a grasp on what would be a 'go' scenario on exporting coking coal for BRL..... I haven't got much to base this on, but I note in Feb-14 BRL mentioned "expected operating costs at Escarpment to range from about US120/tonne on start-up, reducing to less than USD90 per tonne" that was back when the exchange rate was roughly 0.82 USD, with the change in exchange rate (now circa 0.72 USD) does this mean that operating costs are about $105USD/T?

What is unclear to me is what the 'expected operating costs' cover, is it inclusive of freight to ports i.e FOB?? Im just working out how it relates to coking coal prices (which I believe are about $117USD at present??)

Does anyone have a good (free) source for coking coal price chart? I have not had much joy in finding anything as yet.

Im trying to find a glimmer of hope to reassure myself that all is not lost!

[tony64peter]

30Jan15 BRL report indicated $115/ton mined was their current net cost of extraction. Company admin costs if I remember correctly was another $15/ton

NTA 31Dec14 was 2.9 cents.

Since then at least a million in costs has been taken out of the domestic business, wages and oil . Holcim had a plant defect earlier in the year and I understand income is back to same levels as last year. New report should be out end of next month.

If $NZ drops to $AU .90 then at least BRL will be competitive with Aussie miners negating the extra transport costs.

FOB Free on Board. Exporters are usually paid once cargo is loaded on board.

This webpage is stating that Met coal prices were around $85 US.
http://www.mining.com/whats-ahead-fo...to-joy-global/

A lot miners have had to continue production even at a loss to meet transport commitments hence the world oversupply and low prices. Latest news suggests that only now, production down turns and closures that are occurring world wide will reduce the supply side, price rises in the last week or so may confirm this.



Yesterday 9Jun15 Jintang sales for premium HCC were US$94.11 and Aus FOB was US$87.11/ton

[tony64peter]

Maybe the bottom has been.

Steel first
"Four trades of cargoes of premium hard coking coal were reported; top Australian brands were believed to trade at $90-92 fob, while another deal of lower rank premium hard coking coal was heard concluded at $94-95 cfr.

This is an increase of $3-4 as compared with levels reported earlier.

Steel First's cfr Jingtang premium hard coking coal index surged to $97.15 per tonne, up $3.04 per tonne and the cfr Jingtang hard coking coal index was up $1.14 to $91.40 per tonne.

The fob Australia premium hard coking coal index was up $3.56 to $90.88 per tonne while the fob Australia hard coking coal index was up $0.64 to $84.16 per tonne.

The increase is less a sign of a rally and more a return to "normal" price levels after previous sharp drops, one participant said."


cfr Cost and Frieght

[trader_jackson]

Share price still seems to be extremely week, but hopefully it has bottomed out (time to buy?)... I am still worried that another capital raising (or borrowing or some other way of getting money) may be needed in 1-3 years times to keep the company going (is anyone else thinking this?)

[tony64peter]

Share price still seems to be extremely week, but hopefully it has bottomed out (time to buy?)... I am still worried that another capital raising (or borrowing or some other way of getting money) may be needed in 1-3 years times to keep the company going (is anyone else thinking this?)

As a lot posters have stated COAL is a dirty word, the share price is probably a reflection of this sentiment. Believing the reports then BRL has money in the bank and is operating cash positive. They are mining up on the plateau in a preparation capacity and selling this limited production into the thermal market. When and if the market recovers they should be well positioned to go. In hind sight the thermal asset purchases have been a life preserver.

A good read.
http://www.mining.com/charts-chinas-...th-collapsing/

[trader_jackson]

From what was in the the annual report, the company still burned through $1m of cash in the quarter ending march (even though operating cash flows was positive), this is what worries me...(hopefully I'm reading it wrong...)

(https://www.nzx.com/files/attachments/212062.pdf)

[macduffy]

From what was in the the annual report, the company still burned through $1m of cash in the quarter ending march (even though operating cash flows was positive), this is what worries me...(hopefully I'm reading it wrong...)

(https://www.nzx.com/files/attachments/212062.pdf)

Cash balance was lower at the end of the quarter due to repayment of borrowings and capital payments for acquisitions. As noted, operating cash flow was mildly positive.

Much is made of coal's bleak outlook and there is little doubt that a lot less will be burned in future. Meanwhile, though, I note that exports from NSW were 5% higher in the nine months to 31 March; coal generates over 40% of global electricity - good luck trying to talk those consumers into switching off!; India continues to build coal burning power stations, with an emphasis on using higher quality, "less dirty" fuel. The glass may be not quite empty yet!

[biker]

Some interesting points here.


Firmer market for premium quality metallurgical coals

By Hector Forster in London

June 15, 2015 - The Atlantic coking coal market June 15 heard of tightness around premium quality coking coals for loading over the next two months, lending some support to global markets as quarterly price negotiations in Japan continued.

There has been a pick-up in spot prices, with over $90/mt FOB Australia now possible for the highest spec grades, a trader said.

A miner did deals for two Panamaxes at $92/mt for a premium low-vol and $89/mt for a premium blended coal, both for August loadings.

The July monthly contract price for Goonyella in Europe was heard at $92/mt FOB. Spot prices for the coal may have already reached that level, the trader said.


Several European mills were looking to Australia for material, with good spot demand seen for BHP Billiton's main coals, along with other Australian miners in the premium and other categories, according to sources.

Australian tonnages for July were largely spoken for and said to be tight, while August loadings at slightly higher prices were the focal point.

Better availability was seen for low-vols as mid-vols remain harder to secure given some temporary reduced mining activity.

The mid-vol premium segment was particularly tight, and participants said it may not come as a surprise should these coals end up with higher prices than for premium low-vols in Q3 contracts.

A large decline in the benchmark price accord is assured from the second quarter's $109.50/mt FOB Australia, based on the $95/mt FOB offers discussed going into the negotiation.

In Q2 premium mid-vols were priced at parity to reference brands of low-vol, when previously they were agreed at a discount to low-vols, such as German Creek.

US met coals were widely expected to be offered at a price premium to the eventual benchmark, to align with higher costs, buyers and suppliers indicated.

Only some US high-vols, blends and crossover coals with weak coking properties, or sold as PCI, were heard offered or sold below the mid-$90s/mt FOB USEC.

Colombian met coal remained in some demand regionally, with lower domestic coke production said to be helping lower coal procurement prices for traders.

The Platts US low-vol hard coking coal assessment, based on good-quality CAPP low-vol with 58% CSR and 1.5% MMR at 19% VM, was stable at $100.50/mt FOB US East Coast.

The US high-vol A assessment was steady at $106.50/mt FOB USEC. Platts assessed US high-vol B, based on 34% VM coal with 25,000 ddpm, at $99/mt FOB USEC.

Offers for lower quality high-vol were seen in the mid-$90s/mt, with growing expectations any new spot business for non top-tier high-vol, high fluidity coal would be under $100/mt FOB USEC.

Recent spot rise may help miners in Q3 talks

The quarterly benchmark outcome was looking more positive for suppliers than two weeks ago, said a market source who cited the rise in spot prices.

Weakening steel margins in China may feed another bout of negative sentiment and buyers may be cautious to agree a price much above $92/mt FOB, the source said.

A higher benchmark may help US miners' negotiating position as it may narrow any gap between offers against the industry reference and make them more acceptable for buyers.

[biker]

Surely BRL is worth more than $A15 million?
I'm adding at $A1.5/1.6c

Disc. Hold quite a few on a risk/reward basis. At the moment however, the risk is 'quite large' :-)