Bathurst $100 Million Plus EBIT in FY2018

The following basic set of analysis shows the huge value uplift that Bathurst will deliver in the FY18:

Based of the last company update outlining FY18 tonnages., Stockton costs, North Island margins, and applying the current conservative market forecasts at US$170/t vs. current spot HCC of US211/t Bathurst will produce a base NZ$100 Million EBITDA, with an conservative upside of NZ$140 Million.

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7	Column 8	Column 9	Column 10
0	Mine	FY18 Tonnage	USD:NZD   0.72	NZD $/T Margin	NZD $ Margin	Ownership %	Bathurst Gross Margin - NZD $
1	Stockton	1,000,000	170	$    126.67	126,666,667	0.65	82,333,333
2	Rotowara (North Is.)	700,000		$ 30.00	21,000,000	0.65	13,650,000
3	Maramarua (North Is.)	150,000		$ 25.00	3,750,000	0.65	2,437,500
4	Takitimu	250,000		$ 15.00	3,750,000	1	3,750,000
5	Canty	175,000		$ 15.00	2,625,000	1	2,625,000
6		2,275,000			157,791,667		104,795,833	EBITDA
7
8	Mine	Tonnage
9	Stockton	1,000,000	170	$    136.11	136,111,111	0.65	88,472,222
10	Rotowara (North Is.)	700,000		$ 30.00	21,000,000	0.65	13,650,000
11	Maramarua (North Is.)	150,000		$ 25.00	3,750,000	0.65	2,437,500
12	Takitimu	250,000		$ 15.00	3,750,000	1	3,750,000
13	Canty	175,000		$ 15.00	2,625,000	1	2,625,000
14		2,275,000			167,236,111		110,934,722	EBITDA
15
16	Mine	Tonnage
17	Stockton	1,000,000	200	$    177.78	177,777,778	0.65	115,555,556
18	Rotowara (North Is.)	700,000		$ 30.00	21,000,000	0.65	13,650,000
19	Maramarua (North Is.)	150,000		$ 25.00	3,750,000	0.65	2,437,500
20	Takitimu	250,000		$ 15.00	3,750,000	1	3,750,000
21	Canty	175,000		$ 15.00	2,625,000	1	2,625,000
22		2,275,000			208,902,778		138,018,056	EBITDA
23
24
25	Notes:
26	1. All current year (FY18) production tonnages (2.2Mt) are based on public released company update on August 2nd 2017
27	2. Stockton Costs is based on recent public company update on August 2nd 2017 stating FOB unit costs were $100/t[/I]
28	3. Stockton USD Sell is based on recent August 2017 Maquarie Bank FY18 forecasts at US$185/t. The US$170 is discounted slightly for freight and to be conservative. [/I]
29	- Note the current HCC spot price at Sept 5th 2017 US$211.00 (@ 0.72 = $193 per tonne margin / 60,000 panamax is NZ$11.58 M per shipment)
30	4. FX assumption is current USD:NZD spot rate at 0.72 (has been trading at 0.71 in the last week). 0.72 represents the forward FX curve at September 2017
31	5. North Island Domestic Mines - Margin at $30 & $25 as per company update on August 2nd 2017 [/I]
32	6. South Island Mines - Margin at $15, low level estimate based on historical flat earnings from Bathurst domestic operations[/I]