BTU - Bathurst Resources

[doogie_goes_off]

Anyone get on the coal bandwagon today? These guys have purchsed some going concerns in Kentucky USA. Very dukes of hazard. Have gone throught the roof and with good reason I suspect.

 

[doogie_goes_off]

+0.29 up 131.82% for the day, not bad for holders that have been waiting for nearly a month. Congratulations for those who have been in a long time, I managed a small take for the day.

 

[stefoid]

I hold and hope for a couple more aquisitions over the next couple of months. I can see this with a market cap around $100 million and a stock price of $1 in about 4-6 months if they do that.

 

[michael_selway]

I hold and hope for a couple more aquisitions over the next couple of months. I can see this with a market cap around $100 million and a stock price of $1 in about 4-6 months if they do that.

Hi its not bad

Thanks MS

Highlights
• Acquisition of up to 100% of operating open pit coal mines in Eastern
Kentucky, USA.
• Current operations producing at 26,000t/month with a significant
operating surplus.
• Opportunity to substantially increase production.
• Substantial potential cost savings through efficiencies.
• Additional deposits to be brought on stream to increase production initially
to one million tonnes per annum.
• Initial JORC compliant Mineral Resource and Ore Reserve estimations
completed.
• Other opportunities exist to acquire fully permitted coal projects.
• Hamish Bohannan appointed as Managing Director.

 

[upndown]

Spoke to CEO yesterday.They are currently ramping up production to 1m tonnes pa and he said within 5 years they will be doing 5m tonnes pa.One to keep in bottom drawer.

 

[happytown]

ann out regarding share placement and share purchase plan

as to share placement (to institutional investors and clients of triple c)

8,652,500 @ .05 (to raise $432,625)
41,347,500 @ .05 (to raise approx $2M subject to s/holder approval)

as to share purchase plan

up to $10K @ .05 (details to be ann'd in due course)

...

Funds raised will be used for working capital purposes to continue to streamline operations at its operating coal mines in Kentucky USA and assess US acquisition opportunities

...

sp currently .07, down approx 12% on typically minimalist volume

cheers

 

[springhill]

Here's a little coal play that was brought to my attention i'm looking into and have started purchasing.

http://www.asx.com.au/asxpdf/20100329/pdf/31pj22yz7f4b5t.pdf

Bathurst Resources announced yesterday they are turning their back on the coal mine in Kentucky (a good move IMO, considering it put the previous owner in financial duress) to focus on the Buller Coalfield project in NZ, said to be a source of premium coking coal.
Coking coal has spiked from $129 ton to $200 ton amidst concerns of tightening supply from Australia.

Sourced from Business Standard 30March 2010.
"The market for coking coal, an important input for steel making, has been tightening on supply concerns from Australian mines. Spot prices are being quoted at $216 a tonne, compared to $180 in July 2009.
In addition, for the first time, a major supplier and buyer concluded a contract on a quarterly basis instead of the usual yearly one ”” BHP, the Australian mining company and the world’s largest, has just signed one with Japanese steel mills. Industry sources say BHP offered two options, an annual contract at $250 a tonne (last year’s contract was at just $129 a tonne) and a quarterly one at $200 a tonne. The Japanese mills chose the latter."
http://www.business-standard.com/in...-daily-metallurgical-coal-price-index/388807/


Currently targetting an open cut resource of 50-90 million tons high quality coking coal.
Last figures i could find on their website quoted costs at US$45/t, (though these were 2009 figures), so say approx AUS$50/t.
Current shares on issue around 100 mill giving a current market cap of around $8 million, with a general meeting being called for approval of the issue of up to 125 million shares over 3 months to investment funds and sophisticated investors at 80% of 5 day averaged share price.
Projected shares on issue in 3 months = 225 million giving a MC based on current price of $17.775 million.

Is this too simple an assumption? .....
POTENTIAL value of coal insitu -$10billion (based on 50mill tonnage)
Less mining costs -$2.5billion
Projected MC -$17.775 million
Or is there very good spectrum for share price growth?

I'm probably out of my depth here, no doubt i've over simplified it, so feel free to pick apart

 

[springhill]

Bathurst Resources have announced today the commencement of their first phase drilling program in the Buller Coalfield. First stage drilling should be completed mid-May. Second phase is due to start mid-July with a JORC compliant resource expected mid-August.
http://www.asx.com.au/asxpdf/20100421/pdf/31pwmmmxdxqh2w.pdf

Has risen in the last 2 weeks from a low of 6.5c to an intraday high of 10c.
There are virtually no sellers left at this point;
Market Depth Buy Sell
No. Quantity Price ($) # Price ($) Quantity No.
2 30,000 0.098 1 0.100 101,336 2
1 45,000 0.096 2 0.105 80,000 4
1 100,000 0.092 3 0.110 200,000 1
1 100,000 0.091 4 0.120 149,750 3
2 25,100 0.088 5 0.150 30,256 2
2 100,000 0.084 6
1 9,176 0.083 7
2 37,000 0.082 8
1 100,000 0.081 9
1 50,000 0.080 10
23 buyers for 2327428 units 12 sellers for 561342 units

One to put on the watch list.

 

[springhill]

Apologies people should have kept my powder dry until EOD.
BTU closed on its high of 12c, up 44.58% for the day.

EOD 29 buyers for 2796453 units
7 sellers for 382092 units

 

[insanedragons]

BTU Bathurst Resources

Been in this one for awhile. Great outlook and beautiful chart.This co provides funding to junior mining companies in exchange for resources, IMO

 

[springhill]

Bathurst have put together an excellent little investor presentation for those that are interested here's the link;
http://www.asx.com.au/asxpdf/20100510/pdf/31q8027nysnvfl.pdf

Some key points i think are positives;
*High quality coking coal province with rail and port available
*Targeting production in Q4 2011
*Open cut mine, quick clean & efficient
*Successful producers in the area (Solid Energy, owned by NZ Govt and Pike River Coal - currently trading at around 80c)
*Has support of NZ Govt, will create employment plus provide royalty revenue to Govt
*Relatively low CAPEX US$50-60m
*OPEX of US$55-70/t, thermal coal prices @US100/t plus premium coking @ US$200

DISC i do hold this and am unashamably excited about it.

 

[vincentpf]

Very good project compare to the Market Cap @ 15M
High quality premium coking coal
Initial production target 850Kpa Coking Coal + 150kpa Thermal Coal

Current price Coking coal $200/ton, Thermal coal $100/ton
Renevue 850k*200+150k*100=190M
Operating cost $55-70/t, take the higher cost, 1M*70=70M
Depreciation + finance cost 10M estimated
Company tax @45%
Net profit (190-70-10)*0.55=60.5M
EPS 60.5/200=30c (possibilly BTU will have a big capital raising)
Valuation of share price 0.3*12=$3.6 (assum the PE ration is 12)
Current share price 0.15c
That's 24times, even you take PE of 6, you will stil have 12 time appreciation
I hold BTU for long term


This is my personal opinion only.
DO your own research!

 

[vincentpf]

Nice move up! More and more people realiza this small one got huge potential! They will have drilling report in the next couple of days. Fly higher!

 

[vincentpf]

Up 20%,seems like some people rush in in the last minute before the drilling result. Will see good news tomorrow!

 

[vincentpf]

Finally, they have the initial JORC compliant resource of 7.3 million tonnes (worth $1.4B. compare to the MC $17M), majority high quality cooking coal. They are on the right truck to be a producer. More exploration coming in the next couple of month, more reserve will be confirmed.
Management of BTU are very confident with this high reward project!

 

[springhill]

Finally, they have the initial JORC compliant resource of 7.3 million tonnes (worth $1.4B. compare to the MC $17M), majority high quality cooking coal. They are on the right truck to be a producer. More exploration coming in the next couple of month, more reserve will be confirmed.
Management of BTU are very confident with this high reward project!

Update on BTU activities since last posting have been impressive, they seem to be ticking all the right boxes on the way to becoming a producer late next year.

June 28,
BTU receives mining approval from the NZ Govt.
http://www.asx.com.au/asxpdf/20100628/pdf/31r19050vjflqj.pdf

July14,
BTU adds key members to it's executive team.
Tim Manners appointed as CFO, most recently he filled this role at Perilya LTD

Steve O'Dea appointed as Executive General Manager, has 20 years experience in underground, and more importantly, open cut mining.

Les McCracken, most importantly in my eyes, appointed on contract basis as Project Manager. He was responsible for the successful five year development of the Pike River Coal Project. So has vital practical experience in the industry, but also in the same country.
http://www.asx.com.au/asxpdf/20100714/pdf/31r9w1cq60gbz4.pdf

July 26,
BTU announces JORC compliant upgrade to 42.2m tons of coal. They are well on their way to the target of 50-90m tons of coal.
The 16 hole drilling program at Deep Creek should be completed this week, so look for further JORC upgrades in the near future.
http://www.asx.com.au/asxpdf/20100726/pdf/31rhh24dzlv7rb.pdf

 

[tahpot]

Great looking company this one. Hold on to you hats, I think we could see some nice upwards movement as the pieces fall into place in the next few months.

 

[prawn_86]

Great looking company this one. Hold on to you hats, I think we could see some nice upwards movement as the pieces fall into place in the next few months.

Care to explain why you think it is a good company? Your post has provided no detail at all. Why do you think it will move upwards?

 

[tahpot]

Sure.

1. Management are proving themselves, delivering on their promises. Have secured a sensible win-win situation with the purchase of the project that has good payment milestones in place.
2. Will be a 1mtpa producer very shortly (end of 2011) with upside of 2mtpa.
3. Very high quality coal which will fetch a premium and ensure the mine is profitable even with a drop in the coal price.
4. Open cut mine with easy access to transport, which will help keep operating costs low.
5. A sound strategy outlined to market for progressing to production.
6. Have a large backer supporting the project who may potentially be involved with the offtake agreement.
7. Buyers are thinning out moving the price up in the short-term.
8. The soon to be completed DFS and expected offtake agreements in the coming months provide a great opportunity for short/medium term growth.

DYOR with valuations, but 1mtpa operation at current coal prices will give BTU $US185m / annum revenue.

 

[springhill]

Bathurst continues to move in the right direction towards becoming a hard coking coal producer by the end of 2011.

BTU have appointed Rob Lord as a Non Executive Director, he most recently filled the role of MD and CEO of Gloucester Coal Ltd.
http://www.asx.com.au/asxpdf/20100818/pdf/31ryp18h5tn11z.pdf

They have also released an interim DFS that confirms their project viability.
http://www.asx.com.au/asxpdf/20100818/pdf/31ryp4mt2nvf2f.pdf

Also, a shareholders presentation, that outlines several key areas, including
*Capex of US$57m + US$5m contingency
*Total costs of $103 per ton, covering mining, processing and transport costs
*The ability to produce 100% hard coking coal, previously it was thought 85% hard coking and 15% semi-soft coking. Which adds upside to the balance sheet as current hard coking prices are $225, while semi-soft is only $150.
*Claims that BTU coal is superior to the best Australian coking coal in composition
http://www.asx.com.au/asxpdf/20100818/pdf/31rypk3svswf60.pdf