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Bathurst Resources Ltd (AU:BRL)
ASX:BRL

Bathurst Resources Ltd (BRL) AI Stock Analysis

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Bathurst Resources Ltd

(Sydney:BRL)

Rating:64Neutral
Price Target:
Bathurst Resources Ltd's stock score reflects strong profitability and a favorable valuation, but is tempered by challenges in revenue growth and cash flow management. Technical indicators show neutral momentum, indicating potential stability but limited immediate upside.

Bathurst Resources Ltd (BRL) vs. iShares MSCI Australia ETF (EWA)

Bathurst Resources Ltd Business Overview & Revenue Model

Company DescriptionBathurst Resources Limited explores for, develops, and produces coal in New Zealand. It also exports coal. The company was formerly known as Bathurst Resources (New Zealand) Limited and changed its name to Bathurst Resources Limited in December 2013. Bathurst Resources Limited was incorporated in 2013 and is based in Wellington, New Zealand.
How the Company Makes MoneyBathurst Resources Ltd generates revenue through the extraction, production, and sale of coal. The company's primary revenue streams come from selling thermal and metallurgical coal to a diverse range of customers, including power generation companies and industrial manufacturers. Significant partnerships with local and international clients ensure a steady demand for their coal products. Additionally, Bathurst may engage in joint ventures or collaborations to optimize their mining operations and expand their market reach, contributing to their overall earnings.

Bathurst Resources Ltd Earnings Call Summary

Earnings Call Date:Feb 25, 2025
(Q4-2024)
|
% Change Since: 2.70%|
Next Earnings Date:Sep 02, 2025
Earnings Call Sentiment Neutral
The earnings call revealed a mix of strong financial stability and future growth potential, overshadowed by recent operational challenges and a reduction in EBITDA. While the company maintains a healthy cash position and has future projects lined up, the significant setbacks in export operations and unmet financial guidance highlight areas of concern.
Q4-2024 Updates
Positive Updates
Strong Cash Position
BRL.AX maintains a strong cash position with $141 million in cash and no real debt, which ensures financial stability and potential for future investments.
Consistent Domestic Demand
Consistent demand for coal in domestic steelmaking, supported by a coalition government in New Zealand favoring mineral development.
Increased Sales at Takitimu
Takitimu mine experienced slightly increased sales and decreased costs, leading to an increase in EBITDA.
Future Growth Potential
Plans for projects in British Columbia, including Crown Mountain and Tenas projects, which could significantly contribute to future production and revenue.
Negative Updates
Reduction in EBITDA and Export Pricing
Significant reduction in EBITDA for the full year due to reduced export pricing and tonnage, with a 5% decrease from the previous year.
Operational Challenges
Issues with lost time injuries and operational delays, particularly impacting export operations and causing a shift of a scheduled boat into FY '25.
Tunnel Closure Impact
Tunnel closure causing a $20 million negative impact and missing export tonnage targets, with a potential five-month delay for reopening.
Unmet Financial Guidance
First time failing to meet financial guidance since 2015, with a $4 million shortfall in expected EBITDA.
Company Guidance
In the Q4 2024 earnings call for BRL.AX, Richard Tacon outlined the company's performance and future guidance, emphasizing various financial and operational metrics. The company reported an EBITDA of $90.5 million for the full year, a decline of approximately 5% from the previous year, primarily due to reduced export pricing and operational disruptions, including a tunnel incident at Reefton. Despite these challenges, the company maintains a strong financial position with $141 million in cash and no significant debt. Looking ahead, BRL.AX anticipates an EBITDA range of $55 million to $65 million for FY '25, factoring in continued challenges with the Reefton tunnel and export pricing. Operationally, the company is focusing on expanding its New Zealand mines and exploring growth opportunities in British Columbia, Canada, while maintaining its commitment to environmental and community responsibilities, particularly with First Nations groups.

Bathurst Resources Ltd Financial Statement Overview

Summary
Bathurst Resources Ltd demonstrates strong profitability margins and effective equity utilization. However, challenges in revenue growth and cash flow generation indicate areas needing improvement, impacting overall financial performance.
Income Statement
70
Positive
Bathurst Resources Ltd shows a mixed performance in its income statement. The gross profit margin for the most recent year is approximately 23.05%, indicating decent efficiency in managing production costs. The net profit margin is high at 89.04%, driven by substantial net income. However, revenue has decreased from the previous year (-1.47%), reflecting slight revenue contraction. The EBIT margin stands at an impressive 89.98%, and the EBITDA margin is similarly high at 94.53%, showcasing strong profitability in operations.
Balance Sheet
65
Positive
The company maintains a solid balance sheet with low leverage, as indicated by a debt-to-equity ratio of 0.006. Return on Equity (ROE) is robust at 12.10%, reflecting effective use of equity to generate profits. Additionally, the equity ratio is strong at 92.48%, suggesting financial stability with a high proportion of equity financing. Overall, the balance sheet portrays financial resilience, though growth in assets and equity is moderate.
Cash Flow
55
Neutral
Cash flow analysis reveals some challenges. The operating cash flow to net income ratio is 0.11, indicating that cash generation from operations could be improved. With no free cash flow reported for the latest period, assessing free cash flow growth is challenging. Nevertheless, historical data shows a decline in operating cash flow, which could affect liquidity. Improvement in cash flow management is necessary for better financial flexibility.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
39.29M39.69M40.20M35.81M44.90M43.99M
Gross Profit
11.46M9.28M5.50M4.76M9.35M10.08M
EBIT
35.74M35.64M-5.90M-6.71M-18.13M-937.62K
EBITDA
6.42M37.45M-1.34M-13.64M67.07M
Net Income Common Stockholders
34.40M35.28M83.14M27.51M62.09M-44.38M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.27M7.10M12.81M4.76M4.39M4.50M
Total Assets
320.78M315.34M298.09M210.21M159.87M174.46M
Total Debt
1.39M1.76M1.18M692.64K10.55M14.61M
Net Debt
-877.82K-11.63M-4.07M6.16M10.12M
Total Liabilities
25.74M23.69M16.13M16.87M31.10M107.54M
Stockholders Equity
295.05M291.64M281.96M193.33M128.77M66.92M
Cash FlowFree Cash Flow
-5.51M8.57M4.53M4.41M8.62M
Operating Cash Flow
2.97M4.00M12.37M7.26M8.88M18.84M
Investing Cash Flow
-4.68M-8.89M6.52M4.43M-5.51M-17.02M
Financing Cash Flow
-145.22K470.39K387.98K-2.31M-3.41M-16.18M

Bathurst Resources Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.76
Price Trends
50DMA
0.72
Positive
100DMA
0.73
Positive
200DMA
0.74
Positive
Market Momentum
MACD
<0.01
Negative
RSI
66.31
Neutral
STOCH
79.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BRL, the sentiment is Positive. The current price of 0.76 is above the 20-day moving average (MA) of 0.71, above the 50-day MA of 0.72, and above the 200-day MA of 0.74, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 66.31 is Neutral, neither overbought nor oversold. The STOCH value of 79.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:BRL.

Bathurst Resources Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUBRL
64
Neutral
$181.18M4.1612.65%-2.01%-30.02%
AUCRN
54
Neutral
AU$310.14M-16.23%8.28%-17.57%-1132.91%
51
Neutral
$2.02B-1.19-21.37%3.64%2.88%-30.57%
AUTER
45
Neutral
AU$48.06M4.48-1.57%-38.32%-102.34%
AUAQC
16
Underperform
AU$45.53M-995.57%-487.06%
$23.19M
AUBCB
41
Neutral
AU$39.87M-67.55%-4.19%84.70%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:BRL
Bathurst Resources Ltd
0.76
-0.06
-7.93%
AU:AQC
Australian Pacific Coal
0.06
-0.01
-14.29%
CKALF
Cokal Limited
0.06
0.00
0.00%
AU:BCB
Bowen Coking Coal Ltd
0.37
-5.63
-93.83%
AU:TER
TerraCom Limited
0.06
-0.15
-71.43%
AU:CRN
Coronado Global Resources Inc. Shs Chess Depository Interests Repr 10 Sh
0.17
-1.03
-85.83%

Bathurst Resources Ltd Corporate Events

Bathurst Resources Limited Issues Informational Presentation
May 2, 2025

Bathurst Resources Limited has released a presentation that serves as a general informational document rather than an offer or financial advice. The presentation emphasizes that the information provided is not comprehensive and should not be solely relied upon for investment decisions. It also clarifies that past performance metrics are not indicative of future results, and any investment decisions should be made independently, considering professional advice.

Bathurst Resources Director Increases Shareholding
Apr 29, 2025

Bathurst Resources Limited announced a change in the director’s interest, with Pier Westerhuis acquiring 40,541 fully paid ordinary shares through participation in the April 2025 Share Purchase Plan. This acquisition reflects an increase in indirect interest, potentially signaling confidence in the company’s future performance and stability, which may positively impact stakeholders’ perception.

Bathurst Resources Director Increases Shareholding
Apr 29, 2025

Bathurst Resources Ltd announced a change in the director’s interest, specifically for Director Richard John Tacon, who acquired 13,514 fully paid ordinary shares through the April 2025 Share Purchase Plan at A$0.74 per share. This acquisition increases Tacon’s total holdings to 2,194,969 fully paid ordinary shares, along with existing performance rights. The transaction reflects ongoing engagement and investment in the company by its leadership, potentially signaling confidence in the company’s future performance and stability, which may positively influence stakeholders’ perceptions.

Bathurst Resources Limited Announces Quotation of New Securities
Apr 28, 2025

Bathurst Resources Limited has announced the application for quotation of 320,954 ordinary fully paid securities on the Australian Securities Exchange (ASX). This move is part of previously announced transactions and reflects the company’s ongoing efforts to enhance its market presence and operational capabilities.

Bathurst Resources Completes Successful Share Purchase Plan
Apr 24, 2025

Bathurst Resources Limited has successfully raised A$237,500 through a Share Purchase Plan (SPP), offering 320,954 fully paid ordinary shares to eligible shareholders in Australia and New Zealand. This SPP is part of a larger capital raising effort, which includes a A$34 million placement to institutional investors. The funds will be used to advance the Buller and Tenas Projects, including environmental assessments, feasibility studies, and early works, as well as for working capital and equity raising costs.

Bathurst Resources Expands Capital Through Strategic Share Issuance
Apr 1, 2025

Bathurst Resources Ltd has issued over 46 million fully paid ordinary shares at A$0.74 each to institutional investors, as part of a placement announced earlier. Additionally, the company plans to raise approximately A$3 million through a Share Purchase Plan at the same issue price, offering shares to eligible shareholders. This move is aimed at strengthening the company’s financial position and enhancing its market presence.

Bathurst Resources Announces A$34.4 Million Share Placement
Mar 25, 2025

Bathurst Resources Limited, a company listed on the Australian Securities Exchange, has announced a proposed offer of new fully paid ordinary shares through a placement to raise approximately A$34.4 million. This capital raising initiative is aimed at strengthening the company’s financial position, although the presentation does not constitute an offer or recommendation to purchase securities and highlights the associated investment risks.

Bathurst Resources Secures A$34.4 Million for Coal Project Expansion
Mar 25, 2025

Bathurst Resources Ltd has successfully secured A$34.4 million through an institutional placement to advance its Buller and Tenas metallurgical coal projects. This capital raising, supported by new South East Asian strategic investors and existing shareholders, enhances Bathurst’s financial position and supports its goal of achieving over 2.5Mtpa of coal production. The funds will facilitate the development of the Buller Project in New Zealand, benefiting from the country’s Fast Track Approvals process, and the Tenas Project in Canada, which is poised for growth due to existing infrastructure. The placement is expected to settle by the end of March 2025.

Bathurst Resources Limited Updates on Financial Performance and Resource Estimates
Mar 18, 2025

Bathurst Resources Limited has released a presentation at the Ord Minnett Mining Conference, providing insights into its consolidated financial performance and resource estimates. The company maintains that its resource and reserve estimates remain unchanged since the last announcement in October 2024, and it continues to operate its mining projects with no significant new data affecting its market position.

Bathurst Resources Sets Ambitious Coal Production Targets to FY40
Mar 4, 2025

Bathurst Resources Limited has announced updated production targets for its mines and development projects, aiming for a total of 33.9 million tonnes of coal by FY40. The targets include projects at various stages of development, with significant contributions expected from the export segment, particularly through the BT Mining Stockton and Cypress mines. The company plans to utilize existing infrastructure and contracts to support these targets, with several projects expected to gain consent under the Fast-track Approvals Act 2024, potentially enhancing Bathurst’s market position and operational efficiency.

Bathurst Resources Updates on Legal Proceedings with Talley’s Group
Feb 24, 2025

Bathurst Resources Ltd has updated the market regarding its legal proceedings with Talley’s Group Limited (TGL). TGL has filed overlapping claims against Bathurst, alleging prejudiced shareholder claims and misleading representations, alongside a request to bring a derivative action in Bathurst’s name. The New Zealand High Court has consolidated these claims into one proceeding. Bathurst has objected to TGL’s use of confidential material and filed a defense and counterclaims. The court has prioritized hearing Bathurst’s application to strike out TGL’s claims related to breach of confidence. Bathurst’s directors remain confident that a successful interlocutory application could undermine TGL’s proceedings.

Bathurst Resources to Announce 2025 Half-Yearly Results
Feb 21, 2025

Bathurst Resources Limited announced it will release its 2025 half yearly financial results on February 25, 2025, followed by a webcast on February 27, 2025, to provide further updates and business outlook. This announcement is significant for stakeholders as it offers insights into the company’s performance and future prospects, impacting its industry positioning and operations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.