Bathurst Resources - BRL

[BlackPeter]

Has anyone tried to sell their BRL shares on the asx since the delisting on NZX? I trade via ASB Securities and it currently wont let me place a sell order on the asx... as it tells me I don't have any existing shares to sell. Bugger.

The ASX allows several different ways to hold shares. One of them is CHESS, which is probably the closest to our system (with common CSN on the NZX), but per default shares get into an "Issuer sponsored holding". I guess most "full-service" brokers are able to deal with these as well, but it might not fit that neatly into their process - and the e-brokers seem to have problems with them.

However - if you ask your broker to transfer these shares into a CHESS account (just give them a call and they will send you the necessary form), than you can deal with them similar to any NZX shares you might have in your portfolio. In our case the transfer took a couple of days. Might be longer though, in case you first need to apply for a CHESS account.

Anyway - contact your broker and make sure you talk with a real human, they will be able to sort it out for you.

[blackcap]

I thought Hamish earned enough whilst at BRL. Maybe she was just bored? Ah I see it happened before he started at Bathurst. Is this why he resigned?

http://www.stuff.co.nz/business/worl...-welfare-fraud

[trader_jackson]

Could be... don't really think it impacts Bathurst in anyway to be honest, but thoughts welcome.

[100101]

Interesting times must be close.
With solid energy announcing that they will sell down I wonder if Bathurst are pressured into buying. Will they have to buy?
If they do there must be a rights issue in the wings, which would go down like a lead balloon if they aren't exporting coal.

[trader_jackson]

I don't think Bathurst would be pressured into buying anything... how can the exert pressure on them? Its not Bathurst's fault Solid Energy went under... if anything it could represent a unbelievably cheap buying opportunity by Bathurst... maybe, like that coal mine overseas that sold for $1, Bathurst can work out a deal like this? no capital raising needed for that purchase!

[macduffy]

From memory, Bathurst's Buller project adjoins Solid Energy's territory in that region. There may be strategic reasons for BRL to acquire those permits/operations but whether they can afford them may be another matter.

[tony64peter]

There is a rail load out facility at Ikamatua that would come in handy, ex PRC. and maybe the piping that PRC was using to get the coal part way to Ikamatua. Interesting opportunities.

[biker]

From CNBC

Global miner BHP Billiton expects coal prices to stay weak in the near term, but sees the fuel remaining an important part of the world's energy mix for decades, even amid a push to cut carbon emissions, its coal chief said on Friday.
BHP's coal president Mike Henry .............
............On steel-making, or metallurgical, coal, BHP sees demand rising for many years as China continues to grow and India becomes a major steel producer.
"While China has significant domestic met coal resources, we do not believe they will become wholly self-sufficient," Henry said, adding the country will need to import coal to obtain certain qualities and supply steel mills on the coast.

[trader_jackson]

So met coal (Bathurst's primary focus) might be ok? (at least in the long run)

Also, do you think Bathurst would be interested in buying any of Solid Energy's met coal mines? (do they even have the cash to do this?)

Thoughts welcome

[BlackPeter]

Good question (both of them). There is no doubt for me that the met coal demand will at some stage again go up again (but this still might take years) ... just too many infrastructures worldwide in dire need of repair (like all of Europe and US) or in need to be build in the first place (like India, SE Asia, still lots of potential in China). The question is just ... is BRL in a position to survive long enough until the demand rises again, and are they in a position to compete in the race for lower production cost.

At this stage they can fund themselves until mid 2016 (without new customers / orders), however - given Solid Energy's demise, they might be able to get some of Solids customers, which could be their lifeline for longer.

Re you second question (buying some of Solid Energy's assets): would make sense and is certainly better than having some new neighbour competing for the same customers. Don't think however that Bathurst is able to pay much without capital raising ... and any capital raising would be for a company with a $17m market cap highly dilutive.

Maybe they can buy some of the SE mines as going concern for one dollar, though in doubt about that ... the creditors do want to see real cash, otherwise they could have liquidated immediately.

Anyway - interesting times .. this might be a change of game for BRL, but I guess we will see.

Discl: hold a wee parcel ...