The country's biggest coal miner has reported a near tripling of its underlying profit as higher prices lifted revenue.
Bathurst Resources chief executive Richard Tacon says the results reflect a tripling in export prices. Photo: Supplied / Bathurst Resources Ltd
Australian-owned, but dual-listed Bathurst Resources reported a headline profit of $30.5 million for the year ended June compared with $66.7m the year before.
But stripping out one-off items, such as changes in value of investments and the previous year's impairments, the underlying profit was $43.1m compared with $14.8m.
Chief executive Richard Tacon said the results reflected a tripling in export prices.
"The long-awaited pricing recovery began in June last year as the global economy began to re-open after Covid related lockdowns, which increased demand against a tight supply and limited spot cargo availability."
Coal production was down about 8 percent to nearly 1.9 million tonnes, of which just under half was export coking coal used in steel making. Production was affected by bad weather, which caused flooding and slips.
Tacon said prices hit record levels for part of the year, but had since fallen to more sustainable levels.
While production in Australia was affected by weather, staffing was disrupted, and while the Ukraine war had unsettled markets, higher prices for fuel and labour added to its overheads.
Bathurst operates the Stockton mine on the West Coast, a small mine in Southland, and two mines in Waikato.
It is looking at developments options for reopening a mothballed operation in Buller, and expansion of one of the Waikato operations. It also has an interest in a Canadian exploration project and is in the process of remediating a mine in Canterbury, which it closed last year.
Bathurst has been locked in a legal battle with L&M Coal Holdings over a mine purchase and deferred payments, which led to claims of breach of contract.
"We continue to believe based on legal advice that it is unlikely these claims will be successful," Tacon said.