BRL
30/01/2015 10:20
GENERAL
PRICE SENSITIVE
REL: 1020 HRS Bathurst Resources Limited
GENERAL: BRL: Bathurst's Business Efficiency Review
Bathurst's Business Efficiency Review Delivers Cash Positive Quarter
Following the implementation of a business efficiency review across the
company early last year, as flagged in the announcement of 25 February 2014
"Bathurst Knuckles Down to Preserve Value", the company was pleased to
release its December Quarterly Report demonstrating a positive operating cash
flow, with costs reduced across the business.
The aim of the review, which remains ongoing, is to streamline the business
process and systems, and ensure the company is appropriately resourced for
sustainable operations in the current market. The changes resulting from the
review have delivered to date a drop in cash operating costs by over 25% to
under NZ$115/tonne mined.
The review has resulted in changes to most aspects of the business and has
reduced the number of positions in the company, with some 30 positions being
made redundant across operations earlier in 2014, the board being reduced to
three last November and now, having successfully implemented the review, the
executive management team is to be reduced by four.
Bathurst's Managing Director, Hamish Bohannan, said "It is always a difficult
decision to reduce staff numbers. These organisational changes are necessary
to ensure our operations continue to remain sustainable.
"Bathurst's domestic operations are well established and competitive in the
current market. The company is now in an even stronger position to meet the
challenges associated with a weaker commodity price environment with all-in
sustaining costs at our operating mines allowing for healthy margins at
prevailing prices.
By focusing on improving efficiencies we will maximise the value of our
existing operations through enhanced margins and cash flow generation".
Energy demand in the agri-sector on the South Island is expected to increase
over the next few years. Bathurst believes that the measures currently being
taken leave the company well positioned to benefit from any increased demand
and able to quickly transition its export operations to full development when
international coking coal markets recover.
End CA:00260167 For:BRL Type:GENERAL Time:2015-01-30 10:20:15
