Bathurst Resources (ASX:BRL) increases EBITDA guidance to A$95 million

Highlights 

  • Bathurst Resources has increased its EBITDA guidance from AU$65 million to AU$95 million.
  • Backed by this announcement, shares of Bathurst Resources increased by over 12% on the ASX.

The shares of ASX-listed Bathurst Resources Limited (ASX:BRL) gained 12.121% to close at AU$0.740 per share today. The Company has issued an update wherein, it increased the EBITDA guidance from AU$65 million to AU$95 million. The mineral exploration Company revealed that the increase in guidance was backed by the publication of an updated investor presentation following the recent release of FY21 year end results.

Today’s announcement also said that the date of the arbitration hearing regarding the second performance payment claim by L&M Coal Holdings Ltd has been rescheduled from November 2021 to between April 2022 to July 2022.

Key points from today’s update include:

  • The Company has reported a net profit of AU$66.7 million.
  • The COVID-19 pandemic as well as China’s import ban on Australian coal both drove the export benchmark price down to its lowest point in five years.
  • There was also AU$22.2 million of impairment expense.
  • Domestic business continues to offer steady cash flows.

The Company has attributed a drastic increase in the benchmark to a decreasing iron ore price and reduced coal stockpile levels, which are increasing demand and ability to pay higher coal prices, while supply has remained stable. In its ESG highlights, the Company stated that its CO2 emissions will reduce by 1,600 tonnes per year.

Bottom line

The Company has noted that its business from a demand perspective has been relatively unaffected by the disruptions of the COVID-19 pandemic.

Bathurst says it expects increase in FY22 EBITDA due to recent significant uplift in hard coking coal prices.

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