Peabody Energy
Annual Report 2013

A n n u A l   R e p o R t   2 0 1 3

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 Bathurst Resources (New Zealand) Limited Annual Report 2013Bathurst is focused on becoming new Zealand’s pre-eminent 
coal producer, delivering high quality coal into export markets and 
producing affordable energy for the domestic industrial markets. 

during the year the company completed its move to new Zealand 
and from 1 July 2013 commenced trading as Bathurst Resources 
(new Zealand) limited. Bathurst is now firmly established as a 
new Zealand company. 

Bathurst also worked steadily towards gaining full approvals for 
its escarpment project. whilst the company has faced appeals 
every step of the way throughout the legal process, every issue 
has been determined in favour of Bathurst. the company is 
confident of gaining full approvals and aims to commence 
operations at its flagship escarpment project by year end.

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A n n u A l   g e n eR A l   m e e t i n g   o f   s h A R e h o l d eR s

To be held at 3.30pm on Thursday 31 October 2013 

at the offices of Chapman Tripp,  

Level 17, 10 Customhouse Quay, Wellington. 

All dollar amounts referred to in this report are expressed 

in New Zealand dollars unless otherwise noted.

 Bathurst Resources (New Zealand) Limited Annual Report 2013Section 01 
 
 
 
Bathurst is focused on becoming New Zealand’s pre-eminent 
coal producer, delivering high quality coal into export markets and 
producing affordable energy for the domestic industrial markets. 

During the year the company completed its move to New Zealand 
and from 1 July 2013 commenced trading as Bathurst Resources 
(New Zealand) Limited. Bathurst is now firmly established as a 
New Zealand company. 

Bathurst also worked steadily towards gaining full approvals for 
its Escarpment Project. Whilst the company has faced appeals 
every step of the way throughout the legal process, every issue 
has been determined in favour of Bathurst. The company is 
confident of gaining full approvals and aims to commence 
operations at its flagship Escarpment Project by year end.

01

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The company is building a portfolio 
of assets aimed at value-enhancing 
growth, based on a strategy 
designed to diversify risk.

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 Bathurst Resources (New Zealand) Limited annual Report 2013

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Bathurst is proud to be a member of 
New Zealand’s sustainable Business 
Council and proud to be part of an 
industry that strives to set high 
standards in sustainable resource 
development.

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Contents

s E C T i oN  1

Chairman and managing director’s report 

Review of operations 

Sustainability 

Our people 

Directors’ report 

Information on directors 

Remuneration report 

Corporate governance 

s E C T i oN  2

Income statements 

Statements of comprehensive income 

Balance sheets 

Statements of movements in equity 

Statements of cash flows 

Notes to the financial statements 

Independent auditor’s report 

s E C T i oN  3

Shareholder information 

Tenement schedule 

Coal resources and reserves 

Corporate directory 

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section 01

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We are pleased to present our annual report and financial 
statements for the 2012/2013 year — a time of significant 
development, growth and investment as we followed through 
on our commitment to becoming a wholly New Zealand coal 
mining company. our focus throughout the year has been on 
growing our domestic position, to provide steady cash flow 
and a natural hedge against international price volatility — and 
to underpin the development of our export projects. in June 
2013, the company closed its small Perth office, completing 
the redomicile from australia to New Zealand — the final 
step in the transition to becoming a New Zealand company. 
Bathurst is now a leading coal producer in the south island, 
supplying  energy  to  major  food  and  dairy  processing 
industries. importantly, Bathurst’s coal is a key ingredient 
in the production of cement necessary for the Christchurch 
rebuild, and is the main fuel source for heating community 
facilities  like  schools,  hospitals  and  swimming  pools.

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E s C a R P M E N T   PR o J E C T

appeal to the Court of Appeal. Bathurst 

The company is now in the final 

has opposed that application. At the time 

stages of the legal process for the 

of writing, the hearing date to consider 

consenting of the flagship Escarpment 

the application was yet to be set. The 

Project on the Denniston Plateau 

interim Environment Court decision was 

near Westport. Escarpment will 

appealed on some alleged errors in law. 

produce up to one million tonnes of 

Most of these were either dismissed or 

hard coking coal a year, create around 

withdrawn with two points referred back 

225 new jobs, and inject an esimated 

to the Environment Court in June. The 

$1 billion into the New Zealand 

Environment Court has subsequently 

economy over the life of the project.

issued a further interim decision advising 

that consent is indicated subject to 

A panel of independent environment 

final minor drafting on conditions. 

commissioners granted the necessary 

The company is now awaiting a final 

resource consents for the project on 

decision from the Court. The appeal on 

26 August 2011 after considering 

the climate change issue, which has 

dozens of submissions on the 

been in conjunction with Solid Energy 

matter. However, the consents were 

New Zealand Limited, was run separately 

subject to three appeals. The first 

and appealed through to  

appeal by the Fairdown-Whareatea 

New Zealand’s highest court, the 

Residents’ Association was resolved 

Supreme Court. The appeal was 

by mediation. The other two 

dismissed in September. In the 

appeals, relating to environmental 

meantime, the company remains 

impacts and climate change, were 

committed to a mediated settlement  

brought by the Royal Forest & Bird 

with Forest and Bird, as well as the many 

Protection Society of New Zealand 

other stakeholders on the plateau and 

Incorporated (Forest and Bird) and 

believes that a responsible resource 

West Coast Environment Network. 

programme can provide both community 

and environmental gains. Bathurst 

In March the Environment Court 

has also seen increased and active 

delivered an interlocutory decision on 

support from the local community 

the relevance of the Sullivan permit 

for the Escarpment Project with the 

to the Escarpment Project, as well as 

creation of a new and independent group 

an interim decision to grant Resource 

of West Coast businesspeople and 

Consents subject to the clarification of 

influencers who are concerned about 

conditions. The interlocutory Sullivan 

the economic future of the region. 

decision was appealed to the High Court 

and the appeal was declined. Forest 

While this has been a long process, 

and Bird then made an application to 

the company has not lost a single point 

the High Court for leave to appeal to the 

of law and is confident of a positive 

Court of Appeal. This was also declined 

final resolution in the near future. We 

and Forest and Bird have subsequently 

are excited that mining at Escarpment 

made an application for special leave to 

should commence shortly and have 

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Section 01 
 
 
 
started upgrading the access road to 

an experienced company director 

The 2012/2013 financial year has 

the mine in anticipation of production. 

and engineer with extensive energy 

been a busy year and while we have 

sector experience.With the addition 

been focused on progressing our 

The first production from the Buller 

of Messrs Kapea and Frow, the Board 

flagship Escarpment Project, Bathurst 

operations is from the Cascade mine 

is now predominately comprised of 

is pleased at the substantial growth 

which sits on the edge of the Denniston 

New Zealand directors. During the 

achieved in the domestic market, and 

Plateau. Production has increased 

year, the company was also pleased 

looks forward to being in production 

from 45,000 tonnes per annum (tpa) to 

to welcome on board Simon Doig as 

at Escarpment in the near future.

target 150,000 tpa. The coal is largely 

Executive General Manager Marketing 

sold for cement production to the local 

and Business Development, Marshall 

In closing, we would like to acknowledge 

plant. During the reporting period, the 

Maine as Chief Financial Officer, 

the efforts of our fellow directors, 

company also completed the second 

Alison Brown as General Counsel, 

managers and staff. We would also like 

stage upgrade of the new $5 million coal 

and Mike Cameron as General 

to extend our thanks and appreciation 

storage facility at the Port of Westport, 

Manager — Buller Operations. 

to our shareholders. Bathurst’s directors 

providing a much needed facility at the 

and executives are fully committed 

port and a boost to the local economy. In 

Between the people we have 

to being a successful New Zealand 

Southland, Bathurst’s Takitimu operation 

recruited locally and those who have 

coal company, and we look forward 

met the increased local demand for 

come back from offshore Bathurst 

to your continued support.

thermal coal, without incident to safety 

now employs around 100 staff and 

or the environment. Production is 

contractors in New Zealand, most of 

now well established at Coaldale, and 

them Kiwis. Those numbers are set to 

the final rehabilitation of the original 

rise dramatically with our expanding 

Takitimu pit has commenced, which will 

operations on the West Coast. 

ultimately return the land to pasture.

F i N aN C i aL  R E s uLTs

Bathurst has continued to acquire new 

With NZD $13.8 million cash at 30 June 

positions in the South Island, with our 

2013, it is clear that there has been an 

permit acquisitions supporting our 

ongoing reduction on our reserves from 

development plans for the company. 

the AUD 53.8 million at the beginning 

The company is continuing to acquire 

of the year. Some of this has been 

exploration permits for both domestic 

invested in the development process 

and export production and now has 

for Escarpment, the new coal storage 

significant land positions on the South 

facility at the Port of Westport, as well as 

Island, as well as a smaller position 

land acquisitions for the Buller project, 

near Taranaki in the North Island.

upgraded domestic production and 

PE o P L E 

strategic land and leases in Southland. 

Craig Munro, Chairman

In line with redomiciling to New Zealand, 

Our domestic production showed 

the company was pleased to appoint 

revenue of NZD $41.0 million 

two new directors to the Board —  

and, with the new contracts and 

Toko Kapea, a Wellington-based 

production rates, is expected to be 

commercial lawyer, specialising in 

cash flow positive during this year.

Māori development, and Dave Frow, 

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hamish Bohannan, Managing Director

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Section 01the Denniston Plateau has a proud mining 

history stretching back more than 100 years. 

Decades of mining in the area has shown 

that coal isn’t everywhere on the Plateau. it 

only exists in pockets. Bathurst will take a 

holistic approach to mining on the Plateau 

to balance the needs of West Coast people, 

the local economy and the environment.

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Section 01 
 
 
 
 
 
 
 
B u L L E R  C o a L  P R o J E C T

Approvals

with conditions appropriately framed, 

Bathurst’s flagship development is the 

During the year the company made 

consent was likely to be granted.

Buller Coal Project — a high quality 

considerable progress towards gaining 

export coking coal operation, targeting 

full consents for the Escarpment Project. 

This decision was also appealed in 

a 3 million tonne per annum production 

April by Forest and Bird and WCEN 

profile by 2019. It is located on the 

A significant step was the granting 

to the High Court on twelve alleged 

West Coast of the South Island — in 

of the Access Arrangement by the 

errors in law. The High Court heard all 

a region long recognised as one of 

Minister of Conservation, Hon Dr Nick 

these appeals during the last week in 

New Zealand’s most significant coal 

Smith. The Access Arrangement gives 

May. Prior to the hearings Forest and 

areas with a proud history of mining 

Bathurst permission for open cast 

Bird and WCEN withdrew four of the 

dating back to the 1800s. The area 

coal mining at Escarpment which is 

alleged twelve errors in law in relation 

produces valuable hard coking coal, 

on ground held by the Department of 

to the interim decision and during 

sought by steel makers all over the world. 

Conservation as stewardship land. 

the course of the hearings a further 

three points of law were withdrawn. 

The Buller Coal Project is divided into 

In June 2013, the Minister of 

North and South Buller. The South 

Conservation also announced his 

In judgments given in June, Justice 

Buller permits comprise the Cascade, 

intention to grant a Concession 

Fogarty of the High Court dismissed the 

Escarpment and Coalbrookdale Mining 

for the haul road for Escarpment. 

appeals on Sullivan, and three of the 

Permits and the Whareatea West and 

This was publicly notified in 

remaining five points of law in relation 

Deep Creek Exploration Permits. 

August with a hearing to consider 

to the interim decision. He referred the 

submissions held in September.

remaining two points of law back to the 

Bathurst’s North Buller prospects 

Environment Court for reconsideration. 

include Millerton North, North Buller, 

In terms of the legal processes, on 21 

These were considered in a reconvened 

Seddonville, Ngakawau, Blackburn and 

March 2013 the Environment Court 

hearing of the Environment Court on 

Coal Creek. All the permits are intended 

issued a decision on a preliminary legal 

12 June where submissions were also 

to be developed as open cast mines.

point holding that the Sullivan Coal 

received on the proposed conditions 

s o u T h   B uL L E R  

Escarpment

Mining Licence (Sullivan) adjoining 

of the resource consents. The judge 

the Escarpment Project is not a part 

requested some further information 

of the ‘existing environment’ that 

be supplied following the hearing. 

Bathurst’s main focus continues to  

would otherwise trigger a need for 

This was provided by the company.

be on finalising the resource consenting 

assessment of cumulative effects. 

for Escarpment, located on the 

In July Forest and Bird applied to the 

Denniston Plateau, fourteen kilometres 

In April, this decision was appealed to 

High Court for leave to appeal the 

north east of Westport. Escarpment is 

the High Court on two points of law by 

Court’s decision on Sullivan to the 

expected to initially produce 200,000 

the Royal Forest and Bird Protection 

Court of Appeal. This application was 

tonnes of export coking coal per annum 

Society of New Zealand Incorporated 

opposed by the company and the High 

building rapidly to 500,000 tonnes once 

(Forest and Bird) and the West Coast 

Court refused the requested leave on 

the mine is in full production  

Environmental Network Inc. (WCEN). 

12 July. On 2 August Forest and Bird 

and coal is being trucked from the 

applied to the Court of Appeal for special 

plateau, then increasing to 900,000 tpa 

On 27 March the Environment Court 

leave to appeal the Sullivan decision.  

annum when all infrastructure is in place.

issued a positive interim decision on the 

This application has been opposed by 

Escarpment Project. The Court said that, 

the company but has yet to be heard.

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On 7 August 2013 the Environment 

announced its intention to close its 

Court issued a second interim decision 

Westport operation within two to 

advising that consent was indicated 

three years. At that time, the Cascade 

for the Escarpment Project, subject to 

product will be exported, either as a 

final minor drafting on conditions of 

coking coal blend or directly into the 

consent. The company has responded 

lucrative ferro-silicon metals market.

on this and is now awaiting the final 

decision from the Environment Court.

Earlier drilling confirmed significant 

additional resource in the Cascade area. 

The legal process around whether 

During the year Bathurst was granted an 

or not climate change issues (i.e. 

Extension of Land for Cascade to include 

greenhouse gas emissions from the 

an adjacent area under the existing 

burning of New Zealand coal in foreign 

Mining Permit to enable safe access 

countries) should be considered as 

to the additional coal. Environmental 

part of a resource consenting process 

approvals were granted by the 

was heard separately. The original 

Department of Conservation and by 

decision in Bathurst’s favour was handed 

the district and regional councils for the 

down by the Environment Court. This 

commencement of mining activities in 

was appealed and heard in the High 

the new area. The workforce at Cascade 

Court, where the original decision 

was temporarily increased and additional 

was upheld.  This was appealed again 

plant and equipment put in place to 

and Bathurst, together with the other 

undertake a major cutback which 

appellants, was successful in having 

exposed the next large block of coal.

the matter escalated to the Supreme 

Court (New Zealand’s highest court), 

 The mine achieved record production 

bypassing the Court of Appeal. The 

during March of over 16,000 tonnes, 

matter was heard in Wellington on 

well exceeding the target of 5,800 

12 and 13 March, 2013. On 19 

tonnes. Production slowed while the 

September 2013 the appeal was 

cut back was undertaken however 

dismissed in the Supreme Court. 

coal winning operations are now 

C a s Ca D E

The operating Cascade mine forms 

back on schedule. Cascade employs 

30 staff and 10 contractors.

part of the South Buller operation. 

The next areas in South Buller for 

Cascade has historically produced 

development are the Coalbrookdale 

approximately 45,000 tonnes per annum 

and Whareatea West blocks 

of high value coal however production 

which are located immediately 

has now increased to target 150,000 

adjacent to Escarpment.

tonnes per annum. Cascade coal is a 

semi soft coking coal which is being 

C o a L B R o o k D a L E   a N D   W h a R E aT E a 

sold into the domestic market, largely 

WE s T

for the manufacture of cement. The 

Coalbrookdale is fully consented for 

local cement producer has recently 

underground mining but however 

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Section 01 
development is not planned until market 

conditions improve. Bathurst will apply 

for opencast consents for parts of the 

deposit which can then be developed 

as an extension of Escarpment. Further 

work is underway in preparation for this. 

Whareatea West, which adjoins the 

Escarpment permit’s western boundary, 

is an Exploration Permit. The company is 

currently gathering data in preparation 

for the consenting of this area of 

operation. During the year a further 

26 holes were drilled in the permit to 

determine the extent of the resource 

in preparation for mine planning as 

part of the consenting process. 

N oR T h   B uL L E R

The North Buller projects lie north of 

the Stockton Plateau. All the North 

Buller projects are contained within two 

separate Exploration Permits, Buller 

and Coal Creek. Preliminary analysis 

indicates that the low ash, higher sulphur 

coal from this area can be blended with 

South Buller coal to produce a premium 

product. The location of the washplant 

for South Buller, at a stockpile site on the 

coastal plain, negates the requirement 

for duplicated infrastructure for coal 

handling from the North Buller region. 

Coal will be trucked some twenty 

kilometres from the North Buller sites 

to the stockpile area for beneficiation 

and loading onto rail for export through 

the ports of Westport or Lyttelton. 

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Section 01 
the Buller Coal Project is located on the  

West Coast of the South island — in a region 

long recognised as one of new Zealand’s 

most significant coal areas with a proud 

history of mining dating back to the 1800s. 

the area produces valuable hard coking coal, 

sought by steel makers all over the world.

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Section 01 
 
 
 
 
 
 
 
Ta k i T i M u

rail line. It is prospective for high 

new three year supply contract with a 

The Takitimu mine is located at 

grade sub-bituminous coal and has 

local dairy processor which will underpin 

Nightcaps, north of Invercargill. Mining 

potential to add substantially to the 

the purchase of the Canterbury Coal 

operations originally commenced at 

life of the Takitimu operations.

mine. Production from the mine is 

Nightcaps in 1881. Sub-bituminous 

expected to grow from 36,000 tpa 

coal from the open cut operation is 

This acquisition will provide a sound 

to more than 75,000 tpa by FY17. A 

railed to a number of major industrial 

platform for the development of 

resource statement has been prepared 

customers in the Southland, Otago 

Bathurst’s domestic coal strategy. The 

for Canterbury Coal of 3.3 million 

and South Canterbury areas.

coal from New Brighton will be sold into 

tonnes (0.9 million tonnes indicated 

new and existing domestic contracts 

and 2.4 million tonnes inferred)*.

In January, Bathurst completed the 

and may be considered for export at a 

acquisition of the land immediately 

later date. A consent has been granted 

a L BuR y

adjacent to Takitimu to gain access to 

by the Southland District Council for a 

The Albury project, located 40 

the Coaldale block — the next stage of 

bulk sample to be taken for trials with 

kilometres west of Timaru, was an 

the Takitimu mine. This was a strategic 

potential offtake partners. On the basis 

historic underground and open cut mine 

acquisition that has substantially 

of this acquisition Bathurst was able 

worked from the early 1900s through 

improved the project economics 

to extend its major Southland contract 

to the mid 1960s. The mine produced 

at Takitimu. The coal resource in 

for supply to the dairy industry for a 

low rank sub-bituminous coal for local 

the main Takitimu pit has now been 

further seven years from 1 July 2013. 

sales. The Albury Prospecting Permit 

depleted and Coaldale is the focus of 

was originally 838 square kilometres 

operations. The original Takitimu pit 

In August 2013 a resource 

but areas of non-coal bearing strata 

is being progressively backfilled and 

statement was issued for New 

have been relinquished. An Exploration 

rehabilitated to pasture land. The next 

Brighton of 4.2 million tonnes 

Permit was granted for 34.8 square 

target for expansion will be into the Black 

(0.7 million tonnes indicated and 

kilometres of the most prospective 

Diamond block which lies to the north 

3.5 million tonnes inferred)*. 

area within the Prospecting Permit 

of Coaldale, within the Ohai Exploration 

boundary. The area now held under 

Permit. Negotiations have commenced 

C a N T E R B u R y   C o a L

the Prospecting Permit has been 

with the landowners to gain access.

In August 2013, Bathurst announced the 

reduced to 328.7 square kilometres. A 

conditional acquisition of the Canterbury 

programme of low impact exploration 

A tender for mining services for 

Coal mine. The Canterbury Coal mine is 

during 2012 delivered encouraging 

the Coaldale block was awarded to 

an open cast mine near Coalgate which 

results and a bulk sample was taken for 

mining contractor, Stevenson Mining 

is 70 kilometres west of Christchurch. 

trials to assess the suitability of the coal 

Limited. Takitimu employs 14 staff 

The mine produces thermal coal which 

for energy production for local industry. 

and approximately 33 contractors.

is low in sulphur and ash and in high 

The trials were positive and further 

demand by the local dairy and food 

exploration is planned to determine 

NE W   B R i g h T o N

processing industries. It is of a similar 

the next stages for development.

During the year Bathurst added to 

specification to the Takitimu coal which 

its thermal coal holdings by signing 

supplies other dairy processing plants. 

i N F R a s T R u C Tu R E

an agreement to purchase the New 

Bathurst has been operating the mine 

Stage 1 of the port upgrade at Westport 

Brighton Exploration Permit from 

under a binding heads of agreement 

Harbour was completed in December 

L & M Coal Limited. This permit is 

since 1 February 2013 as part of a due 

2012 with the construction of a 

in close proximity to the Takitimu 

diligence evaluation. During this time 

NZ$5 million covered storage shed. 

mine and is connected by the same 

Bathurst was successful in winning a 

The shed is located on the river side 

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Section 01 
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Bathurst’s takitimu operation met the 

increased local demand for domestic coal, 

without incident to safety or the environment. 

Production is now well established at 

Coaldale, and the final rehabilitation of the 

original takitimu pit has commenced, which 

will ultimately return the land to pasture.

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of the port and utilises existing coal 

P R oD u C T i oN

loading infrastructure. It will be used as 

Bathurst operates two coal mines in 

a storage, blending and ship loading 

New Zealand: the Takitimu mine and 

facility that will eventually have the 

the Cascade mine. Production figures 

capability of loading vessels either at 

of Takitimu and Cascade for the year 

the river wharf or at the inner harbour. 

ended 30 June 2013 are set out below.

Initially coal will be trucked to the 

facility and received via an overhead 

conveyor. At a later stage the coal will 

be transported to the shed by rail.

E x P L oR aT i oN  

During the year up to five rigs were 

operating in the Buller Coal Project 

areas. Early in the year drilling was 

concentrated on the West of the 

Denniston Plateau with drilling 

programmes being undertaken in the 

Escarpment  and Whareatea West 

permits. Drilling was also undertaken 

with three rigs in the North Buller project 

area, on the Ngai Tahu estate, and in 

the Cascade mine area. Results were 

encouraging, with coal being intersected 

well outside the previously mapped 

limits. Overall 168 holes were drilled 

across the North and South Buller areas.

In December one rig was transferred to 

the Bathurst domestic projects, initially 

at Canterbury Coal and then on the New 

Brighton and Ohai permits. A further 28 

holes were drilled across these permits.

Operation

P r o d u c t i o n  
( t )

o v Er b u r d En 
( b c m )

Takitimu

184,589

2,555,274

Cascade

58,832

1,837,808

Total

243,421

4,393,082

B aT h u R s T C R o s s E s  T h E  Ta s M a N

In early April 2013 Bathurst 

announced its intention to redomicile to 

New Zealand from Australia to become a 

truly New Zealand company. Bathurst’s 

projects were all in New Zealand and 

nearly all of the company’s employees 

were in New Zealand so it made 

sense to move the company itself. A 

shareholders’ meeting on 12 June 2013 

approved the proposal which took place 

by way of a ‘Scheme of Arrangement’. 

This was implemented on 28 June. 

Shareholders were issued shares on 

a one for one basis in a New Zealand 

incorporated company, Bathurst 

Resources (New Zealand) Limited. The 

new entity is listed on both the NZX 

and the ASX and commenced trading 

on 1 July 2013 under the code BRL. 

Overall 196 drill holes were drilled in 

the last financial year until exploration 

was scaled back and all drill rigs 

progressively demobilised. Drilling was 

suspended over the winter months 

while data was analysed and further 

exploration programmes planned. 

N E W T o  T h E  B a T h u R s T  T E a M

Fiona Bartier joined Bathurst 

as Consents Manager in 

September 2012. In August 2013 

Fiona was appointed General 

Manager — Projects and Planning.

26

Section 01 
In November 2012 Simon 

Doig was appointed Executive 

General Manager — Marketing 

Revenue from operations

and Business Development. 

Bathurst announced the appointment 

Deferred consideration fair value,  
foreign exchange and unwinding adjustments

of Chief Financial Officer, Marshall 

Foreign exchange loss 

Maine, in February 2013. 

Share based payments 

Alison Brown was appointed as 

Impairment reversal 

General Counsel for Bathurst in April.

Raw materials, mining, freight and other costs

Bathurst appointed Mike Cameron 

to the role of General Manager - 

Buller Operations, in July 2013.

Loss before income tax

Income tax expense

Loss for the year after tax

$ 0 0 0 ’ s

41,024

(6,870)

(1,813)

(1,766)

6,618

(53,147)

(15,954)

(4,485)

(20,439)

Also in July, with the completion of the 

redomicile, two New Zealand based 

directors, Toko Kapea and Dave Frow, 

were appointed to the Board of Bathurst 

Resources (New Zealand) Limited. 

F i Na N C i a L

The group made a net loss before 

tax of $0.4m for the period 27 

March 2013 to 30 June 2013. 

During the period, Bathurst Resources 

successfully redomiciled from Australia 

to New Zealand. Bathurst Resources 

(New Zealand) Limited became the 

ultimate parent of the Bathurst Group, 

comprising Bathurst Resources 

Limited and its subsidiaries. 

The group redomicile and 

reorganisation were enacted via a 

scheme of arrangement between 

Bathurst Resources Limited and its 

shareholders on 28th June 2013.

In accordance with the Financial 

Reporting Act 1993, the group includes 

Pro forma numbers refer to note 30 of the financial statements.

the results and balances of subsidiaries 

The group had $13.8m of cash 

from the day on which they were 

and short term deposits on 

subject to the scheme reorganisation. 

hand as at 30 June 2013. 

The Bathurst Resources Group, 

Additional information for the Bathurst 

assuming the consolidation of subsidiary 

Resources Group presented on 

results for the full year ended 30 June, 

this basis is included in note 30 

would have recorded a net loss before 

to the financial statements. 

tax of $16.0m (2012: $33.3m loss). 

During 2012, the Eastern Coal Business 

was impaired primarily as a result of a 

supply contract with negative margins. 

A renegotiation of this contract in 2013 

and further business improvements 

have resulted in a reversal of this 

impairment charge of $6.6m. 

On the same continuing group basis, 

cash outflows for the year ended 30 

June 2013 were $55.4m. This outflow 

includes $24.8m of capital spend and 

a further $10m of exploration spend.

27

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28

Section 0129

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Responsible resource use is the principle that drives all of 
Bathurst’s activities. This principle applies to the company’s 
approach to sustainable development and management 
of  social  and  environmental  performance.  This  means 
everything the company does is guided by a commitment to 
shareholders, employees, local communities and, importantly, 
the environment. Bathurst’s commitment is backed by a 
significant investment of time and money to ensure social 
and environmental impacts are managed from design and 
planning through to production and eventually rehabilitation.
The ultimate aim is to ensure our operations enable society 
to meet its present needs without compromising the ability 
of future generations to meet their needs. Every year, public 
focus on environmental issues deepens, and the decisions 
people make as custodians of the world’s scarce resources 
grow increasingly important. Bathurst has recently adopted a 
comprehensive health, safety, Environment and Community 
(hsEC) management framework to guide the company’s 
decisions on responsible resource use and the impact of its 
activities. The hsEC management framework will ensure 
Bathurst’s  policies  and  procedures  are  up to  date, that 
leadership is committed to delivering value and that the 
company is held to account for the impact of its activities.

30

Section 01R E v i E W  & 
i M P R o v E M E N T

our auditing, 
review and 
improvement 
standard 
ensures that site 
management 
regularly evaluates 
our performance 
and completes 
the cycle of 
continuous 
improvement

M a N a g E M E N T  s y s T E M

P L a N Ni N g

our planning 
standard requires 
compliances to 
be identified, 
resources 
allocated, targets 
defined, and 
audit/review 
schedules to 
be developed.

M E a s u R E M E N T

i M P L E M E N TaT i o N

Each of our 
standards and 
expectations is 
being tracked 
and measured to 
ensure effective 
implementation

A detailed 
implementation 
matrix describes 
how the site will 
deliver on each 
of our standards 
and expectations

31

Importantly, the principle of continuous 

improvement applies to all HSEC 

issues, which means ongoing review 

and performance improvement. 

In the months and years ahead, 

Bathurst will use the HSEC system for 

managing and reporting health, safety, 

environment and community issues.

h E a LT h   a N D  s a F E T y   o F P E o P L E

Bathurst Resources believes all 

accidents are preventable: the 

company’s focus is on zero harm and 

it takes responsibility for the care and 

consideration of its employees.

Bathurst has implemented rigorous 

programmes so staff learn to expect the 

unexpected. Staff are trained so that they 

fully understand what they should do 

and the company is open to suggestions 

on how to improve those processes. 

Bathurst wants to make a 

difference and believes that it 

has a duty to set an example.

The mines operate under established 

Health and Safety systems that 

include Major Hazard Management 

Plans. The introduction of new risk 

management tools has increased 

the hazard awareness at all sites.

If things do go wrong, Bathurst 

is geared up to respond.

The implementation of the Pike 

River Inquiry recommendations is 

ongoing. Bathurst is participating with 

other industry people to assist in the 

implementation process and will be 

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reviewing and updating existing systems 

be employed during exploration and 

in line with the recommendations. 

development, as well as during the 

actual mining activities. This includes 

EN v iR o N M E N T

techniques such as Vegetation 

Bathurst Resources respects the 

Direct Transfer to preserve flora. 

focus and drive of New Zealanders 

committed to protecting the 

Additionally, this year Bathurst has 

environment and understands the 

commenced a programme of work 

cultural importance of the local 

to develop a new environmental 

landscape and natural resources.

management system. This will be 

developed to provide a systematic 

The company’s operations are 

approach that guarantees compliance 

conducted with deference to the impact 

with relevant laws and approvals, 

mining has and its methods allow it 

Bathurst’s environmental policy and 

not only to rehabilitate the land on 

operational standards, as well as 

which it works, but deliver an overall 

ensuring continual improvement of 

net gain back to the environment.

Bathurst’s environmental performance. 

For example, Bathurst has committed 

B aT h uR s T  k a i T i a k i  g R o uP

to a large programme of pest control 

The Bathurst Kaitiaki governance group 

on the Denniston Plateau, where it aims 

continued its work throughout the 

to start the Escarpment Project. Under 

reporting period, providing checks and 

an agreement with the Department of 

balances on the company’s activities.

Conservation, 4500 hectares on and 

around the Denniston Plateau will be 

“Kaitiaki” is a Maori concept that means 

funded by $3 million for a biodiversity 

guardianship of the natural environment.

enhancement project, including weed, 

pest and predator control. Mining 

The Kaitiaki Group advises Bathurst 

heritage on the plateau will also be 

on its efforts to achieve:

enhanced with almost $600,000 

 — Environmental best practice

allocated to mining preservation works. 

 — Best practice decision making

 — Responsiveness to the changing 

Another $18 million will be spent by 

needs and expectations 

Bathurst in association with Department 

of stakeholders

of Conservation funding pest and 

 — a record of responsible 

predator control over 25,000 hectares 

environmental stewardship.

of the Heaphy River catchment and 

in the Kahurangi National Park, to 

The Kaitiaki Group has continued to 

protect Great Spotted Kiwi, Kaka, Blue 

meet during the year, and has visited 

Duck, and Powelliphanta snails.

both the Takitimu and Cascade mines, 

Bathurst has also devised a carefully 

Escarpment. The focus during the 

phased rehabilitation programme to 

year has been on two main areas.

as well as the site of the proposed 

32

Section 01 
The members provided input into the 

In February, a successful open day was 

Coal Plateaux Reserves process, a multi-

held at Takitimu. During the course of 

stakeholder consensus-building process 

the day around 400 local people took 

which is seeking to define reserves for 

the opportunity to learn more about 

biodiversity and related purposes on 

activities at the mine. Equipment displays 

the Denniston and Stockton plateaux.

and information videos were set up at 

the local rugby club and escorted tours 

The group has also reviewed the 

ran continuously throughout the day 

development plans of Bathurst’s health, 

onto the mine site to give a first hand 

safety and environment management 

view of the actual mining operations.

systems and is supportive of Bathurst’s 

emphasis on creating a culture 

In June a series of information sessions 

within the company that sustains 

were held at Waimangaroa Village to 

the right attitudes to those issues.

update the local community on the 

Escarpment Project and trucking plans. 

The Kaitiaki Group’s next focus 

Over 40 people attended the sessions 

is to monitor the implementation 

which were conducted on a one-on-

of the environment management 

one basis with Buller Coal management 

system to ensure it is applied 

on hand to answer questions. 

consistently across all operations.

In 2012/2013, Bathurst continued to 

The group will also be working towards 

help local community groups achieve 

establishing a framework to ensure 

their goals and participated in a range 

any new project is considered in terms 

of community activities, including:

of its overall net conservation gains.

 — Buller High School scholarship 

C oM MuN i T y

to help fund university studies

 — Contribution to Caroline 

Bathurst Resources cannot operate in 

Bay Aquatic Centre

a way that is efficient and sustainable 

 — Sponsorship of Denniston 

without the support of the communities 

Hill Climb car rally 

in which it works. And it cannot expect 

 — Sponsorship of Denniston Chain 

that support without participation.

Grinder mountain bike event

Bathurst works with a range of 

mountain bike race in Southland

 — Sponsorship of the Gowan 

stakeholders and businesses to 

 — Sponsorship of the 

deliver benefits through its subsidiary 

Buller Rugby Union

operations. As work continues on 

 — support for Nightcaps 

the Escarpment Project, Bathurst is 

primary schools.

engaging openly and transparently 

with local communities to ensure 

all views are heard and that the 

company can continue to focus 

on being a good neighbour.

33

 Bathurst Resources (New Zealand) Limited Annual Report 2013The next year will be used to gather data and reflect on the 
health and safety, environment and community framework the 
company currently has in place. although Bathurst has existing 
policies and approaches, it’s always aware more can be done. 
as previously discussed, a number of changes to legislation 
are anticipated as part of the implementation of the Pike River 
inquiry process. The goal is a fresh hsEC management system 
that brings together Bathurst’s own learning and leading 
practice from around the world. Work on the Escarpment 
Project provides a natural template for any reform the company 
wishes to put in place. Change will come only after an intensive 
gap analysis which will take place over the next 12 months. 
The programme of work will include designing, planning 
and development of the hsEC system. This will include the 
implementation of an environmental management standard 
that is generally in accordance with iso 14001. as part of 
Bathurst’s obligations under its membership of the sustainable 
Business Council, the company will also publish a sustainability 
report, which will be enhanced over the next few years to 
meet the requirements of the global Reporting initiative.

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Section 0135

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Section 0137

 Bathurst Resources (New Zealand) Limited Annual Report 2013From top left: Richard Tacon, Simon Doig, Fiona Bartier, Sam Aarons, Marshall Maine, Alison Brown

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Section 01 
R i C h a R D   Ta C o N

chief operating officer

F i o N a   B a R T iE R  

M a R s h a L L   M a i N E

General manager — Projects & Planning

chief Financial officer and company secretary

Since starting his career in the 1970s, Richard has 

Fiona Bartier is an environmental and resource 

Marshall Maine was previously a senior manager with 

worked in almost every role in the coal mining industry. 

scientist who has worked for government, in 

KPMG Corporate Finance, London, before moving 

His first job in the industry was at Greymouth’s 

research and education, for industry groups, and 

to New Zealand where he has held the role of Chief 

Liverpool State Mine, owned by the New Zealand 

for a range of mining companies. Fiona began her 

Financial Officer for various New Zealand companies 

Government. He moved to Australia to further his 

career as a forestry planner, helping the New South 

including Icebreaker Limited, NPT Limited and the 

mining career. Following his work at the coalface, 

Wales government move to more transparent and 

Summerset Management Group Limited. Marshall 

he went on to hold several management roles 

sustainable native forestry. She then moved into 

has strong competencies in corporate governance, 

in mines around Australia, working his way from 

a research role at the University of Queensland at 

risk management, financial modelling and capital 

undermanager to General Manager. Richard has 

the Centre for Mined Land Rehabilitation, where 

structures. He brings a new dynamic to the team 

held senior leadership roles for the past decade. 

she visited and worked at over 40 sites from coal 

through his varied experience in areas beyond 

Richard holds first, second and third class coal mining 

to mineral sands, bauxite and gold. For the past 

the resources sector. Marshall holds a degree in 

qualifications and studied at the Otago School of 

nine years, Fiona has lived in mining communities 

Accounting and Finance and is a member of the 

Mining. He has also spent 15 years on a rescue crew, 

in the Hunter Valley and Western coalfields of New 

Chartered Institute of Management Accountants (UK).

making him familiar with the principles and practice 

South Wales, working first as a consultant, and then 

of mine safety. Richard is an ex secretary for the 

within industry in operations and projects. Fiona 

Australian Mine Managers Association. After living and 

holds a degree in Resource Science. She joined 

working in Australia for 32 years, Richard returned to 

Bathurst in 2012, based in the Wellington office.

a L i s oN   B R o W N

New Zealand to take up his current post with Bathurst. 

General counsel

sa M  a a R o Ns

Alison has had over 30 years’ legal experience in 

private law practices and as in-house counsel for 

commercial enterprises. She has specialised in 

si MoN   D o i g

General manager — corporate relations

mining, environmental and climate change law after a 

Executive General manager — business 

Sam’s background is advertising, marketing and 

solid grounding in commercial law.  She has worked 

development and marketing

commercial management. She worked with several 

variously for Simpson Grierson, Minter Ellison, the 

Simon’s career spans 15 years, encompassing 

major advertising agencies in Melbourne, before 

Minister of Foreign Affairs and Trade, taught legal 

business development, international marketing, 

spending 14 years as a Divisional General Manager for 

professionals, and was General Counsel for Solid 

business management, mining operations, managing 

Henry Walker Eltin, a large civil and mining contracting 

Energy New Zealand Limited from 2000 to 2011.  

joint ventures with global partners, as well as board 

company (now Leighton’s Contracting). During this 

appointments and directorships, working across 

period she also served with the Royal Australian Navy 

a range of industries and diverse international 

Reserves as Public Relations Officer for the Darwin 

cultures. Simon has gained extensive experience in 

Port Division. She joined Eastern Resources Group in 

the international marketing and business disciplines 

Brisbane as Manager, Corporate Relations & Business 

primarily in the mining industry, and downstream 

Development, a position she held for eight years. Her 

steel and energy sectors. He holds a Bachelor of 

role with Eastern focused on growing the company’s 

Commerce (Marketing), and has ongoing executive 

mining operations in New Zealand, developing existing 

development at the Melbourne Business School 

tenements and sourcing new projects. Sam joined 

(Advanced Management & MBA studies). Prior 

the Bathurst team following its acquisition of the 

to joining Bathurst Simon held various senior 

Eastern assets and relocated to Wellington in 2011.

executive roles at Solid Energy New Zealand and 

was previously a director of the Stockton Alliance, 

and the Coal Association of New Zealand. He 

is based in the company’s Wellington office.

39

 Bathurst Resources (New Zealand) Limited Annual Report 2013M i k E   C a M E R o N

General manager — buller operations

Mike has almost 20 years of international 

mining industry experience across a number 

of commodities, mining methods, and 

operating environments. He has been involved 

with the development of mining projects in 

Australia, Bulgaria, and South Africa, and 

has undertaken senior management roles 

at a number of mining operations. A proud 

South Islander, Mike returned home with 

his family in 2011 and worked as a Project 

Manager for Solid Energy, based in Nelson. 

He holds a Master’s of Science in Engineering 

Geology from the University of Auckland, 

supplemented by further post-graduate study 

at the Western Australian School of Mines.

C R a i g   P i L C h E R

General manager — domestic

Craig has extensive engineering experience with 

both coal-and oil-fired steam boiler installations 

and maintenance, as well as refrigeration, marine, 

plant maintenance and general engineering. 

Born in South Canterbury, Craig’s first career 

was as an A-grade fitter and welder, undertaking 

regular coal and oil steam boiler installations. 

After working as plant engineer and construction 

diver at the Port of Timaru, Craig became owner 

and director of a South Island coal supply 

business in 1997, distributing coal for Solid 

Energy in the area. The business was bought by 

Eastern Corporation in 2006, and Craig joined 

the company as marketing manager and then 

operations manager, playing a key role in the 

establishment and growth of the Takitimu and 

Cascade coal mines. Craig joined Bathurst in 

March 2011. He is based in Timaru at Bathurst’s 

coal handling and distribution centre. 

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Your directors present their report on 

the consolidated entity (“the group”) 

consisting of Bathurst Resources 

(New Zealand) Limited (“Bathurst” 

or “the company”) and the entities it 

controlled at the end of, or during, 

the year ended 30 June 2013.

D i R E C T oR s

The following persons were appointed 

directors of Bathurst Resources  

(New Zealand) Limited on 27 

March 2013 (date of incorporation) 

or as otherwise stated. 

Craig Munro 

Non-executive chair

Hamish Bohannan 

Managing director

Rob Lord  

Non-executive director

Malcolm Macpherson  

Non-executive director

Toko Kapea 

Non-executive director  

(appointed 29 May 2013)

Dave Frow 

Non-executive director  

(appointed 25 June 2013)

42

Section 01 
 
 
 
 
P R iN C iP a L   a C T i v i T iE s 

with New Zealand’s Department of 

on a regular basis and no instances of 

During the year, the principal continuing 

Conservation to enter and operate on 

non-compliance have been noted. 

activities of the group consisted of 

Crown land. The relevant authorities 

the production of coal in New Zealand 

are consulted throughout the 

Hazardous substances

and the exploration and development 

approvals process, and to the best of 

Mining activities involve the storage 

of coal mining assets in New Zealand.

the directors’ knowledge, all approval 

and use of hazardous substances, 

activities have been undertaken in 

including fuel. Bathurst must comply 

D i v iD E N D s

compliance with the requirements of 

with the Hazardous Substances and New 

No dividend was paid or declared 

the RMA, Crown Minerals Act 1991 

Organisms Act 1996 when handling 

during the current or prior financial year 

and Conservation Act 1987.

hazardous materials. To the best of the 

and the directors do not recommend 

directors’ knowledge, no instances of 

the payment of a dividend.

Exploration activities

non-compliance have been noted.

In order to enter Crown land and 

M aT T E R s   s u B s E q u E N T T o  T h E E N D  

engage in exploration activities, 

Emissions trading scheme

o F  T h E  F i Na N C i a L   y E a R

Bathurst must enter into an Access 

The New Zealand Emissions Trading 

On 16 August 2013 Bathurst 

Arrangement with New Zealand’s 

Scheme (“NZ ETS”) came into effect 

announced the acquisition of 

Department of Conservation, as 

from 1 July 2010 which essentially 

the Canterbury Coal mine.

required under the Crown Minerals 

makes Bathurst liable for greenhouse 

Act 1991. Bathurst has, to the best 

gas emissions associated with coal 

The acquisition is conditional on 

of the directors’ knowledge, entered 

sold in New Zealand and for the fugitive 

consent to assignments of various 

into all of the appropriate agreements 

emissions from coal seams exposed 

permissions, and the consent to the 

and acted in accordance with those 

in New Zealand. Bathurst’s liability 

transfer of the Mining Permit. 

agreements in regard to engaging in 

is based on the type and quantity of 

exploration activities on Crown land. 

coal sold, with the cost of such being 

E N v i R oN M E N T aL  R E g uL aT i oN

passed on to Bathurst’s customers. 

The Bathurst group’s exploration and 

mining activities

Bathurst’s Emissions Trading Policy can 

mining activities are subject to a range of 

The mining activities of the group are 

be found on the company’s website.

environmental regulations which govern 

regulated by the resource consents that 

how the group carries out its business. 

grant Bathurst the right to engage in the 

These regulations are set out below.

mining activity. The resource consents 

involve both the District and Regional 

mine development approvals

Councils. In addition to this, a mining 

Bathurst is required to obtain resource 

permit or licence is required to engage 

consents under the Resource 

in mining activities on Crown land. 

Management Act 1991 (“RMA”). 

These permits/licences are issued by 

A resource consent is required for 

the Minister of Energy under the Crown 

mining activities and the construction 

Minerals Act 1991. Conditions around 

and development of infrastructure 

water and air discharges that result from 

within the permit area. In addition to 

the mining operations are governed 

this, under the Crown Minerals Act 

by the resource consent that the 

1991 and the Conservation Act 1987, 

operation is operating under. The mining 

Bathurst must enter into concession 

operations of Bathurst are inspected 

agreements and access arrangements 

43

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Section 01 
 
From top left: Craig Munro, Hamish Bohannan, Rob Lord, Malcolm Macpherson, Dave Frow, Toko Kapea, Graham Anderson, Marshall Maine

M R   C R a i g   M uN R o 

FcPA, FAusimm, FAicd

Non-executive chair

of New Zealand and Minerals West Coast. 

interests in shares and options 

530,938 fully paid ordinary shares in Bathurst 

other current directorships of  

Resources Limited 

Craig Munro is a Certified Practising Accountant with 

listed companies 

3,500,000 unlisted options over ordinary shares in 

over 45 years’ experience in the mining industry. He 

Nil

Bathurst Resources Limited 

was previously Senior Vice President Corporate & 

Former directorships in last three years  

Finance, and Chief Financial Officer of Anvil Mining 

of listed companies 

Limited. He has been both an executive director 

Phillips River Mining Limited (previously Tectonic 

M R   M aL C oL M   M a C P h E R s oN  

and non-executive director of a number of listed 

Resources NL) — Non-executive chair

bsc, cert.Acctg, FAicd , FAusimm, FtsE 

companies since 1990 including Aquarius Platinum 

special responsibilities 

Non-executive director

Limited, Kroondal Platinum Mines Limited, and 

Managing director

Malcolm Macpherson is an experienced business 

Gallery Gold Limited. He was formerly a director 

interests in shares and options 

leader in the resources sector in Australia and 

of Energy Minerals Australia Limited, Humanis 

11,005,000 fully paid ordinary shares in  

overseas. Mr Macpherson held a successful seven 

Group Limited and Pegasus Metals Limited.

Bathurst Resources Limited 

year tenure as Managing Director and Chief Executive 

10,000,000 unlisted options over ordinary  

Officer of Iluka Resources Limited. Mr Macpherson 

other current directorships of  

shares in Bathurst Resources Limited 

has held board positions with other notable companies 

listed companies 

Nil

Former directorships in last three years  

of listed companies 

M R  R o B  L o R D 

Energy Minerals Australia Limited —  

bsc, mbA 

1,388,889 unlisted performance rights over shares

and organisations such as Portman Limited, Eltin 

Limited, and Western Power Corporation (as chair). Mr 

Macpherson has also had active roles in research and 

innovation, including an advisory role to the CSIRO.

Non-executive director 

Non-executive director

other current directorships of  

Humanis Group Limited — Non-executive director 

Rob Lord is currently Regional Director Oceania for 

listed companies 

Pegasus Metals Limited — Non-executive director

Wallenius Wilhelmsen Logistics AS, a global shipping 

Base Resources Limited  

special responsibilities 

Chairman of the Board 

and logistics company specialising in the movement 

– Non-executive chair  

of vehicles and heavy and specialised cargo such 

Titanium Corporation Limited  

Member of remuneration & nomination committee 

as mining, construction and resources equipment, 

– Non-executive director

Member of audit committee

interests in shares and options 

rail cars and power generators. Prior to this he 

Former directorships in last three years  

was the Managing Director and Chief Executive 

of listed companies 

2,462,526 fully paid ordinary shares in Bathurst 

Officer of Gloucester Coal Limited a successful 

Minara Resources Limited  

Resources Limited 

ASX 200 publicly listed company specialising in 

– Non-executive chair 

2,500,000 unlisted options over ordinary 

coal mining and marketing. Before his appointment 

Range River Gold Limited  

shares in Bathurst Resources Limited

at Gloucester Coal, Mr Lord worked in the pulp 

– Non-executive director 

and paper industry for 19 years, most recently 

Pluton Resources Limited 

as Executive Vice President responsible for the 

– Non-executive chair 

M R  ha M i s h   B o h a N Na N 

Australasian operations of Norwegian-based Norske 

special responsibilities 

bEngsc Hons m ining, mEngsc r ock mechanics, 

Skog. Mr Lord has also worked in a variety of senior 

Chair of remuneration and nomination committee 

mbA, FAusimm, cEng, mimm, mAicd  

international marketing and sales roles including 

Member of health, safety, environment 

Managing director

head of marketing and sales roles at Norske Skog 

and community committee

Hamish Bohannan is a mining engineer with 36 

Australasia, Fletcher Challenge Paper Australasia 

Member of the risk committee

years’ experience in the resources industry, starting 

and Tasman Pulp and Paper in New Zealand. Mr 

interests in shares and options 

as a miner with Gold Fields Limited in South Africa 

Lord is a director of Norske Skog Industries Australia 

100,000 fully paid ordinary shares in  

before completing a degree at the Royal School of 

Limited which is an unlisted public company.

Bathurst Resources Limited 

Mines. Whilst much of his experience has been in 

2,000,000 unlisted options over ordinary shares in 

underground mining, he has been actively involved 

other current directorships of  

Bathurst Resources Limited 

in many areas of the industry including dredging 

listed companies 

and open cut mining, processing and smelting, 

Nil

having worked around the globe in various metals 

Former directorships in last three years  

M R   D av E  F R o W 

from copper and gold to nickel and mineral sands. 

of listed companies 

Previously Chief Executive Officer of Braemore 

Nil

bscEng

Non-executive director

Resources, Mr Bohannan has also held executive 

special responsibilities 

Dave Frow is a widely experienced company director, 

positions with Cyprus Minerals, WMC Limited, 

Chair of audit committee 

chief executive officer and engineer who has played 

Iluka Resources and IAMGold. Mr Bohannan 

Member of risk committee

an extensive and successful role in a number of 

is a director of Straterra, the Coal Association 

industries. He has held directorships of a wide 

45

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range of organisations from listed companies to 

other current directorships of  

small entrepreneurial start ups. He has particular 

listed companies

expertise in the energy sector with experience in 

Nil

New Zealand, South Africa, England and Scotland. As 

Former directorships in last three years 

Chief Executive Officer of the Electricity Corporation 

of listed companies

of New Zealand he led the company through a 

Nil

period of major reform in the energy industry. Mr 

special responsibilities

Frow is currently a director of Aurora Energy Limited, 

Chair of risk committee

Delta Utility Services Limited, Holmes Fire LP, 

Member of health, safety, environment 

ETEL Limited, and ETEL Transformers Pty Limited 

and community committee

(Australia). He also provides energy consulting 

interests in shares and options

and executive mentoring services. Mr Frow has a 

Nil

mechanical engineering degree and is a graduate of 

the Harvard Business School Advanced Management 

Programme. He was honoured as a Fellow of the 

Institute of Professional Engineers of New Zealand 

and is a member of the Institute of Directors. 

C o M Pa N y   s E C R E Ta R y

g R a h a M  a N D E R s o N

Joint Company secretary

Graham Anderson was appointed Joint Company 

Secretary on 25 October 2012 and became sole 

Company Secretary for Bathurst Resources Limited 

upon the resignation of Timothy Manners on 6 

December 2012. From 1 July 2013 Mr Anderson 

was appointed Joint Company Secretary for Bathurst 

Resources (New Zealand) Limited. Mr Anderson is a 

chartered accountant who operates his own specialist 

accounting and management consultancy practice. 

He is currently a director and company secretary of a 

number of ASX listed companies. 

M a R s h a L L   M a i N E 

Joint Company secretary

Marshall Maine was appointed Joint Company 

Secretary for Bathurst Resources (New Zealand) 

Limited on 1 July 2013. Mr Maine was previously 

a senior manager with KPMG Corporate Finance, 

London, before moving to New Zealand where 

he has held the role of chief financial officer 

for various New Zealand companies including 

Icebreaker Limited, NPT Limited and the 

Summerset Management Group Limited.

other current directorships of  

listed companies 

Nil

Former directorships in last three years  

of listed companies 

Nil

special responsibilities 

Chair of health, safety, environment and community 

committee 

Member remuneration and nomination committee 

Member of audit committee

interests in shares and options 

Nil 

M R   T o ko  k a P E a

Ba, LLb,

Non-executive director

Mr Kapea is a Wellington based commercial lawyer, 

consultant and director, specialising in iwi and Māori 

development matters. Mr Kapea is a director of Tuia 

Group Limited and a partner in Tuia Legal. He has 

worked at Chapman Tripp, Meridian Energy, and in 

legal roles in-house at St. George Bank New Zealand 

Limited and Bank of New Zealand. Mr Kapea is a 

director of Parininihi ki Waitotara Incorporation (in 

Taranaki), Port Nicholson Fisheries Limited, and 

Board Chair for Ngāti Apa Developments Limited 

(Rangitikei). He is on the Government Review Panel 

relating to the Te Ture Whenua Māori Act 1993 

(Māori Land Act) and was also the lead negotiator 

for Ngāti Apa ki Rangitikei (North Island) for its direct 

negotiation Treaty of Waitangi claims with the Crown.

46

Section 01 
 
R E M uN E R a T i oN    

P R iN C iP L E s   u s E D  T o  D E T E R M iN E  

The following fees have applied:

R E P o R T

T h E N aT u R E  a N D  a M o u N T  o F 

R E MuN E R aT i oN

Base fees

Chair  

As a result of the group reorganisation 

non-executive directors

Aud $160,000

(see page 27), the Bathurst Resources 

The fees and payments the company 

other non-executive directors  

(New Zealand) Limited group 

makes to its non-executive directors 

Aud $80,000/nZd $100,000

financial statements include only the 

reflect the level of responsibility 

results of subsidiaries from 28 June 

attributed to board members and 

Executive remuneration

2013. Therefore remuneration for 

the demands which are made on the 

The objective of the group’s executive 

the period ended 30 June 2013 is 

directors’ time. Non-executive directors’ 

reward framework is to ensure reward 

negligible and not detailed below. 

fees and payments are reviewed annually 

for performance is competitive and 

by the board. The board has also 

appropriate for the results delivered. The 

R oL E   oF  T h E  R E MuN E R aT i oN  & 

considered the advice of independent 

framework aligns executive reward with 

NoM i N aT i oN  C oM M i T T E E 

remuneration consultants to ensure non-

achievement of strategic objectives and 

The remuneration & nomination 

executive directors’ fees and payments 

the creation of value for shareholders, 

committee (“R&N committee”) is a 

are appropriate and in line with industry 

and conforms to industry practice. 

sub-committee of the board. The 

standards. The fees paid to the chair are 

R&N committee is responsible for 

determined independently to the fees 

The R&N committee ensures that 

making recommendations to the 

of non-executive directors. The chair is 

executive pay is competitive and 

board on remuneration matters 

not present at any discussions relating to 

reasonable, as well as acceptable to 

such as non-executive director fees, 

determination of his own remuneration.

shareholders. The company ensures 

executive remuneration for directors 

that an executive’s remuneration is 

and other executives, and the over-

In previous years the company has 

linked to that executive’s performance to 

arching executive remuneration 

granted non-executive directors 

ensure that the interests of the company 

policy and incentive schemes.

unlisted options over ordinary shares 

and its executives are aligned. The 

in the company as a part of their 

R&N committee determines executive 

The objective of the R&N committee 

remuneration packages. The issue 

remuneration to ensure transparency 

is to ensure that the company’s 

of options was to align the interests 

and to effectively manage capital.

remuneration policies and structures 

of directors and shareholders and 

are fair and competitive and aligned 

compensate for reduced fees during 

In consultation with external 

with the long-term interests of the 

the company’s start-up phase. 

remuneration consultants, the 

company. The R&N committee draws 

However, in the 2011 financial year the 

company has structured an executive 

on its own experience in remuneration 

company ceased the practice of issuing 

remuneration framework that is market 

matters and seeks advice from 

options to non-executive directors. 

competitive and complementary to the 

independent remuneration consultants.

reward strategy of the organisation.

directors’ fees

The Corporate Governance Statement 

Non-executive directors’ fees are 

The company believes that the policy for 

provides further information on 

determined within an aggregate 

determining executives’ remuneration 

the role of the R&N committee.

directors’ fee pool limit, which is 

is aligned to shareholders’ interests 

periodically recommended for approval 

because it focuses on sustained growth 

by shareholders. The maximum currently 

in shareholder wealth by pushing growth 

stands at $1,000,000 per annum. 

in share price and delivering constant 

47

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return on assets, as well as focusing 

a comparable role. Base pay for 

the executive on key non-financial 

executives is reviewed annually to 

drivers of value. Most importantly, the 

ensure the executives’ remuneration 

company ensures that its remuneration 

is competitive with the market. 

policy attracts and retains high calibre 

An executive’s remuneration is 

executives, who in turn add value to the 

also reviewed on promotion.

company and to the shareholders.

There are no guaranteed base 

The company also believes that its 

pay increases included in any 

remuneration policy for executives is 

executives’ contract.

aligned to the interests of its executives. 

The executive remuneration policy 

Long-term incentives

rewards capability and experience 

Long-term incentives have been 

and reflects competitive reward for 

previously provided to certain employees 

contribution to growth in shareholder 

via the Bathurst Resources Limited 

wealth. The policy is transparent 

Employee Share Option Plan which was 

so it provides a clear structure 

approved by shareholders at the 2010 

for earning rewards and provides 

Annual General Meeting (“AGM”). Whilst 

recognition for contribution.

a number of options issued under this 

The framework provides a mix of 

replaced by the long term incentive plan.

plan remain on issue, this plan has been 

fixed and variable pay, and a blend 

of short and long-term incentives. 

The Bathurst Resources Limited Long 

As executives gain seniority with the 

Term Incentive Plan (LTIP) was approved 

group, the balance of this mix shifts to a 

by shareholders at the 2012 AGM 

higher proportion of “at risk” rewards.

and has been adopted by Bathurst 

Resources (New Zealand) Limited on 

The executive remuneration and reward 

reorganisation. The purpose of the 

framework has two components:

plan is to reinforce a performance 

 — base pay and benefits, including 

focused culture by providing a long 

superannuation, and

term performance based element to the 

 — long-term incentives.

total remuneration packages of certain 

The combination of these comprises 

rights), by aligning and linking the 

an executive’s total remuneration.

interests of Bathurst’s leadership team 

employees (in the form of performance 

and shareholders, and to attract and 

base pay and benefits

retain executives and key management. 

Executives are offered a competitive 

base pay that comprises the fixed 

The plan forms part of the company’s 

component and rewards. External 

remuneration policy and provides the 

remuneration consultants provide 

company with a mechanism for driving 

analysis and advice to ensure base 

long term performance for shareholders 

pay is set to reflect the market for 

and retention of executives.

48

Section 01 
 
Performance rights granted under 

the plan carry no dividend or voting 

rights. When exercised, each 

performance right converts into 

one fully paid ordinary share.

s E R v i C E  a g R E E M E N T s

On appointment to the board, all non-

executive directors enter into a service 

agreement with the company in the 

form of a letter of appointment. The 

letter summarises the board policies 

and terms, including compensation, 

relevant to the office of director.

Remuneration and other terms 

of employment for the managing 

director and other key management 

personnel are also formalised 

in service agreements. 

i N s uR aN C E   oF   oF F iC E R s

During the period, Bathurst insured 

members of the board and key 

management under a directors’ 

and officers’ liability policy.

This report is made in accordance 

with a resolution of directors.

Craig Munro, Chairman 

21 august 2013

Rob Lord, Non-executive director 

21 august 2013

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The board and management are 

principles adopted or followed by 

committed to ensuring that Bathurst 

Bathurst materially differ from the 

maintains best practice governance 

Corporate Governance Best Practice 

structures and adheres to the highest 

Code. Bathurst considers that its 

ethical standards. The board regularly 

corporate governance practices comply 

reviews and assesses Bathurst’s 

with the Code. Further information 

governance structures and processes to 

about the company’s corporate 

ensure that they are consistent with best 

governance practices may be found 

practice, both in form and substance. 

on the company’s website at www.

bathurstresources.co.nz, under the 

D u a L  L i s T i N g   F R a M E W o R k 

section marked “Corporate Governance”.

Bathurst has a dual listing of its shares 

on the NZX and on the ASX and is 

B o aR D   oF  Di R E C T oR s

required to comply with the listing 

board composition and expertise

rules of the NZX and ASX. Bathurst is 

The board has an extensive range 

subject to governance requirements in 

of relevant industry experience, and 

both New Zealand and Australia. This 

financial and other skills and expertise 

includes the NZX Listing Rules and 

to meet its objectives. The current board 

Corporate Governance Best Practice 

composition comprises five independent, 

Code; the Financial Markets Authority’s 

non-executive directors (including the 

report entitled ‘Corporate Governance in 

chair) and one executive director. The 

New Zealand Principles and Guidelines’; 

board considers that the non-executive 

the ASX Listing Rules; and the ASX 

directors collectively bring the range 

Corporate Governance Council’s 

of skills, knowledge and experience 

Principles and Recommendations. 

necessary to direct the company. A 

As is appropriate for an NZX and 

profile of each director, setting out their 

ASX dual listed company, Bathurst 

skills, experience, expertise and period 

has reviewed the requirements and 

of office, is set out in the directors’ 

adopted practices and policies during 

report. Bathurst’s constitution states that 

the financial period consistent with the 

at each AGM one third of its directors 

requirements across both jurisdictions 

(excluding the managing director) and 

and the Bathurst operations and culture. 

any director who has held office for three 

The Board will continue to monitor 

of more years since their last election 

developments in the governance 

must retire. Directors who retire under 

area and carry out regular reviews of 

this rotation mechanism are eligible 

governance policies and practices. 

to offer themselves for re-election by 

shareholders at the AGM subject only 

compliance with corporate 

to the point below. A director should, 

governance codes, principles and 

subject to circumstances prevailing 

recommendations.

at the time and the company’s ability 

 The NZX Listing Rules require Bathurst 

to find a suitable replacement, aim to 

to include a statement in this report 

retire from the board at the conclusion 

on whether the corporate governance 

of the AGM occurring after the tenth 

50

Section 01 
anniversary of the director’s first 

directors bring a fresh perspective to 

directors, and determining the size 

appointment or election to the board.

the board’s consideration of strategic, 

and composition of the board as well 

risk and performance matters.

as recommending to shareholders the 

board role and responsibilities

 — in recognition of the importance of 

appointment and removal of directors.

The central role of the board is to 

independent views and the board’s 

oversee and approve the company’s 

role in supervising the activities of 

Leadership selection — evaluating the 

strategic direction, to select and appoint 

management, the chair must be an 

performance of, and selection of, the 

a managing director, to oversee the 

independent non-executive director

chief executive officer and those key 

company’s management and business 

 — the majority of the board must be 

executives reporting directly to the CEO. 

activities, to report to shareholders.

independent of management and 

Review on a regular basis appropriate 

The relationship between the board 

all directors are required to exercise 

succession planning for the CEO.

and senior management is critical 

independent judgement and review, 

to the group’s long-term success. 

and constructively challenge the 

corporate responsibility — considering 

The directors are responsible to the 

performance of management

the social, safety, ethical and 

shareholders for the performance of the 

 — the chair is elected by the full board 

environmental impacts of the 

group in both the short and the longer 

and is required to meet regularly 

group’s activities, and setting 

term and seek to balance sometimes 

with the managing director, and

policy and monitoring compliance 

competing objectives in the best 

 — the chair of the board is responsible 

with safety, corporate and social 

interests of the group as a whole. The 

for determining the process for 

policies and practices.

roles and responsibilities of the board 

evaluating board performance. Such 

are formalised in the Board Charter, 

evaluations are to be conducted 

Financial performance — approving 

which defines in detail the matters 

at least annually and will focus on 

Bathurst’s annual operating plans and 

that are reserved for the board and its 

the effectiveness of the board 

budget and monitoring management, 

committees, and those that the board 

function and whether there 

financial and operational performance.

has delegated to management. The 

continues to exist an appropriate 

chair is responsible for leadership of 

mix of skills required by the board 

continuous disclosure — ensuring 

the board, for the efficient organisation 

to maximise its effectiveness and 

processes are established to capture 

and conduct of the board’s function and 

its contribution to the group.

issues for the purposes of continuous 

for the promotion of relations between 

disclosure to both the NZX and the ASX.

board members and between board and 

The Board Charter is available in 

management that are open, cordial and 

the corporate governance section 

Financial reports to shareholders   

conducive to productive cooperation. 

of Bathurst’s website. In addition to 

— approving annual and half year 

The managing director is responsible 

matters required by law to be approved 

reports and disclosures to the market 

for implementing group strategies and 

by the board, the following powers are 

that contain, or relate to, financial 

policies. The Board Charter specifies 

reserved to the board for decision:

projections, statements as to future 

that these are separate roles to be 

financial performance or changes to 

undertaken by separate people.

strategy — providing strategic 

the policy or strategy of the company.

oversight and approving strategic 

The Bathurst Board Charter states:

plans and initiatives.

 — the board is to be comprised of 

Establishing procedures —  

ensuring that the board is in a 

both executive and non-executive 

board performance and 

position to exercise its power and 

directors with a majority of non-

composition — evaluating the 

to discharge its responsibilities as 

executive directors. Non-executive 

performance of non-executive 

set out in the Board Charter.

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director independence

Criteria considered by the directors 

The independent directors of the 

when evaluating prospective candidates 

company during the reporting period 

are contained in the Board Charter.

were Craig Munro (chair), Rob Lord, 

Malcolm Macpherson and Toko 

The chair of the board is responsible 

Kapea. Dave Frow was appointed as 

for ensuring a regular review of the 

an independent director subsequent 

performance of the board, committees 

to period end. These directors are 

and individual directors occurs at 

independent as they are non-executive 

least annually. The chair is responsible 

directors who are not members of 

for determining the process under 

management and who are free of 

which this evaluation takes place.

any business or other relationship 

that could materially interfere with, 

The board reviews annually the size and 

or could reasonably be perceived to 

composition of the board and the mix 

materially interfere with, the independent 

of existing and desired competencies 

exercise of their judgement. 

across members. The board may 

engage an independent recruitment 

The roles of managing director / CEO 

firm to undertake a search for suitable 

and chair are filled by Hamish Bohannan 

candidates if and when an additional 

and Craig Munro respectively. They are 

member is considered appropriate.

not exercised by the same individual. 

The board is responsible for evaluating 

The board has approved a policy on 

the performance of senior executives. 

independence of directors, a copy 

The board evaluates the performance 

of which is available in the corporate 

of senior executives via an ongoing 

governance section of Bathurst’s website. 

process of assessment and a formal 

annual review in December. During the 

On appointment, each director is 

formal review, the senior executive’s 

required to provide information to 

performance is measured against 

the chair to assess and confirm 

their role’s assessment criteria. 

their independence as part of their 

consent to act as a director. At the 

nominations and appointment of new 

date of this report the chair considers 

directors and succession planning

that the five non-executive directors 

Recommendations for nomination of 

on the board are independent.

new directors are considered by the 

R&N committee and approved by the 

board and senior executive 

board as a whole. The R&N committee 

performance evaluation 

review director appointments having 

The board, in conjunction with the 

regard to the candidate’s commercial 

R&N committee, reviews the size and 

experience, skills and other qualities. 

composition of the board and the mix 

External consultants may be used 

of existing and desired competencies 

from time to time to access a wide 

across members from time to time. 

base of potential directors.

52

Section 01 
The board recognises the impact of 

A director with an actual or potential 

The charters of all board committees 

board tenure on succession planning 

conflict of interest in relation to a 

detailing the roles and duties of 

and that board renewal is critical to 

matter before the board does not 

each are available in the corporate 

performance. Each director other than 

receive the board papers relating to 

governance section of Bathurst’s 

the managing director, must not hold 

that matter and when the matter comes 

website. All board committee charters 

office (without re-election) past the 

before the board for discussion, the 

are reviewed at least annually.

third AGM of the company following the 

director withdraws from the meeting 

director’s appointment or three years 

for the period the matter is considered 

At the date of this report the membership 

following that director’s last election or 

and takes no part in the discussion 

of each board committee is shown 

appointment (whichever is the longer). 

or decision-making process.

in the relevant section below. The 

However, a director appointed to fill 

executive directors can attend the audit 

a casual vacancy or as an addition to 

board meetings

committee meetings by invitation. All 

the board must not hold office (without 

The chair sets the agenda for each 

papers considered by the committees 

re-election) past the next AGM of 

meeting in conjunction with the chief 

are available on request to directors 

the company. At each annual general 

executive officer and the company 

who are not on that committee.

meeting a minimum of one director or 

secretary. Any director may request 

a third of the total number of directors 

additional matters be added to the 

Following each committee meeting, 

must resign. A director who retires at 

agenda. Board and committee papers 

generally at the next board meeting, 

an AGM is eligible for re-election at 

are provided to directors, where 

the board is given a verbal update 

that meeting and the re-appointment 

possible, five (5) business days prior 

by the chair of each committee. In 

of directors is not automatic. 

to the relevant meeting. Copies of 

addition, minutes of all committee 

board papers are circulated in either 

meetings are available to all directors.

Professional advice

electronic or hard copy form. Directors 

Directors may, in carrying out their 

are entitled to request additional 

remuneration and nomination 

company related duties, seek external 

information where they consider the 

committee

professional advice. If external 

information is necessary to support 

The R&N committee consists 

professional advice is sought, a 

informed decision-making.

of the following non-executive 

director is entitled to reimbursement 

of all reasonable costs where such 

B o a R D  Co M M i T T E E s

independent directors:

 — M Macpherson (chair)

a request for advice is approved in 

board committees and membership

 — D Frow, and

writing by the chair. In the case of a 

The board has established four 

 — C Munro.

request by the chair, approval is required 

committees to assist in the discharge 

Details of these directors’ qualifications 

by at least two other directors.

of its responsibilities. These are:

are set out in the ”information on 

 — Remuneration & nomination 

directors” on pages 44 to 46.

conflicts of interest

committee (“R&N committee”) 

The board has approved directors’ 

 — Health, safety, environment 

The board has adopted an R&N 

Conflict of Interest Guidelines 

and community committee 

committee charter which describes 

(contained in the Board Code of 

(“HSEC committee”)

the role, composition, functions and 

Conduct) which applies if there is, or 

 — Risk committee, and

responsibilities of the R&N committee. 

may be, a conflict between the personal 

 — Audit committee.

A copy of the R&N committee charter 

or other interests of a director. 

is available on the company’s website. 

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Health, safety, environment and 

culture priorities, and

community committee

 — Bathurst’s compliance with 

The HSEC committee consists 

all relevant legal obligations 

of the following non-executive 

on the matters within the 

independent directors:

committee’s responsibilities.

 — D Frow (chair)

 — T Kapea, and

 — M Macpherson.

R i s k  C o M Mi T T E E

The Risk committee consists 

Details of these directors’ qualifications 

of the following non-executive 

are set out in the “information on 

independent directors:

directors” section on pages 44 to 46.

 — T Kapea (chair)

 — R Lord, and

The board has adopted an HSEC 

 — M Macpherson.

committee charter which describes 

Details of these directors’ qualifications 

the role, composition, functions and 

are set out in the “information on 

responsibilities of the HSEC committee. 

directors” section on pages 44 to 46.

A copy of the HSEC committee charter 

is available on the company’s website. 

The board has adopted a Risk 

committee charter which describes 

The primary function of the committee 

the role, composition, functions and 

is to assist the Board in enabling 

responsibilities of the Risk committee. 

Bathurst to operate its businesses 

A copy of the Risk committee charter 

safely, responsibly and sustainably. The 

is available on the company’s website. 

committee will oversee and monitor the 

promotion, establishment and integration 

The board, through the Risk committee 

across Bathurst of the principles 

and senior management, is responsible 

of health, safety, environment and 

for overseeing and implementing the 

community (HSEC) as the foundations of 

company’s Risk Management Policy.

good management and good business.

The company is committed to effective 

The committee will have 

risk management to achieve its business 

oversight of and review of:

objectives. The company aims to 

 — Bathurst’s actions to meet its 

continually improve the management 

duty to ensure the protection of 

of risk, to make better decisions to 

people and the environment

achieve its objectives and to reduce 

 — initiatives to enhance Bathurst’s 

the likelihood and consequences of 

sustainable business practices 

adverse effects to tolerable levels.

and reputation as a responsible 

corporate citizen

At all levels of the business, senior 

 — integration of HSEC in the  

management is responsible for 

formulation of Bathurst’s corporate 

the development, implementation 

strategy, risk management 

and maintenance of risk 

framework, and people and 

54

Section 01 
management systems that will 

members of the audit committee 

the board of the company employing 

effectively allow the group to:

are appointed by the board and may 

them to respond to such enquiries.

 — identify, assess and manage risks in 

be appointed for specified terms. 

an effective and efficient manner

Membership of the committee is 

The company has established 

 — use risk management to help 

reviewed annually by the board. 

procedures for the selection, 

make better decisions

appointment and rotation of its external 

 — reduce the risk of not meeting 

Details of these directors’ qualifications 

auditor. The board is responsible for 

business objectives

are set out in the “information on 

the initial appointment of the external 

 — meet relevant corporate 

directors” section on pages 44 to 46.

auditor and the appointment of a new 

governance requirements, and

external auditor when any vacancy 

 — identify and evaluate opportunities 

The external auditors, the chief financial 

arises, as recommended by the audit 

based on their risk/reward balance.

officer and the financial controller attend 

committee. Candidates for the position 

committee meetings by invitation.

of external auditor must demonstrate 

The goals of risk management 

complete independence from the 

are achieved by:

The role of the audit committee 

company through the engagement 

 — implementing a comprehensive 

is to assist the board to meet its 

period. The board may otherwise select 

and systematic risk assessment 

oversight responsibilities in relation 

an external auditor based on criteria 

and reporting system 

across the organisation

to the company’s financial reporting, 

relevant to the company’s business and 

internal control structure, corporate 

circumstances. The performance of the 

 — training employees in the use of 

governance policies and practices, 

external auditor is reviewed on an annual 

the system, and in suitable risk 

financial risk management procedures 

basis by the audit committee and any 

assessment methodologies for their 

and the external audit function. 

recommendations are made to the board. 

business and work applications

In doing so, it is the committee’s 

 — developing a risk profile for each 

responsibility to maintain free and open 

The company and audit committee 

business unit, and then providing risk 

communication between the audit 

policy is to appoint external auditors 

funding to reduce risk and maintain 

committee and the external auditors 

who demonstrate experience and 

a suitable risk/reward balance

and the management of Bathurst.

independence. The performance of the 

 — embedding risk management 

external auditor is reviewed annually 

into the way we work, and

The audit committee operates in 

and applications for tender of external 

 — auditing the system.

accordance with a charter which is 

audit services are requested as deemed 

available on the company’s website. 

appropriate, taking into consideration 

Audit committee

assessment of performance, 

The audit committee consists 

The audit committee may consult 

existing value and tender costs. 

of the following non-executive 

independent experts and institute 

independent directors:

 — R Lord (chair)

special investigations if it considers 

PricewaterhouseCoopers (“PwC” 

it necessary in order to fulfil its 

was appointed as the external auditor 

 — M Macpherson, and

responsibilities. Furthermore, the audit 

in 2013. It is PwC’s policy to rotate 

 — C Munro.

committee shall have the authority to 

audit engagement partners on listed 

The audit committee comprises three 

seek any information it requires from any 

companies at least every five years.

non-executive and independent 

officer or employee of the company or 

directors of the company. The 

its controlled entities and such officers 

An analysis of fees paid to the external 

chair of the board is not the chair 

or employees shall be instructed by 

auditors, including a break-down of 

of the committee. The chair and 

fees for non-audit services, is provided 

55

 Bathurst Resources (New Zealand) Limited Annual Report 2013E
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E
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R
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in the directors’ report and in note 

C oD E   oF   C oN D u C T, s h aR E   T R aDi Ng 

23 to the financial statements. It is 

P oL iC y   aN D   D i vE R s i T y   P oL iC y

the policy of the external auditors to 

provide an annual declaration of their 

code of conduct

independence to the audit committee.

The board has approved a Code of 

Conduct for directors and for employees, 

The external auditor will attend the 

which describes the standards of ethical 

AGM and be available to answer 

behaviour that directors and employees 

shareholder questions about the 

are required to maintain. The company 

conduct of the audit and the preparation 

promotes the open communication of 

and content of the audit report.

ethical behaviour within the organisation.

The board receives monthly reports 

Compliance with the Code of Conduct 

about the financial condition and 

assists Bathurst in effectively 

operational results of Bathurst and its 

managing its operating risks and 

controlled entities. The chief executive 

meeting its legal and compliance 

officer, chief financial officer and one 

obligations as well as enhancing the 

other director provide, at the end of 

company’s corporate reputation.

each six monthly period, a formal 

statement to the Board confirming 

The Code of Conduct describes the 

that the company’s financial reports 

company’s requirements on matters such 

present a true and fair view, in all material 

as confidentiality, conflicts of interest, 

respects, and that the group’s financial 

use of company information, sound 

condition and operational results have 

employment practices, compliance with 

been prepared in accordance with 

laws and regulations, and the protection 

the relevant accounting standards.

and safeguarding of company assets.

The statement also confirms the integrity 

A copy of the company’s 

of the company’s financial statements 

Code of Conduct is available 

and notes to the financial statements 

on Bathurst’s website.

is founded on a sound system of risk 

management and internal compliance 

share trading Policy

and control which implements the 

The company’s Share Trading Policy is 

policies approved by the board, and 

binding on all directors and employees. 

that Bathurst’s risk management and 

The policy provides a brief summary 

internal compliance and control systems, 

of the law on insider trading and other 

to the extent they relate to financial 

relevant laws, sets out the restrictions 

reporting, are operating efficiently and 

on dealing in securities by people who 

effectively in all material respects. 

work for, or are associated with, Bathurst 

and is intended to assist in maintaining 

market confidence in the integrity of 

dealings in the company’s securities.

56

Section 01 
The policy stipulates that the only 

The policy includes requirements for 

appropriate time for a director or 

the board to establish measurable 

employee to deal in the company’s 

objectives and appropriate strategies for 

securities is when he or she is not 

achieving diversity. The policy provides 

in possession of “price sensitive 

for the board to assess annually both 

information” that is not generally 

the objectives, and the company’s 

available to the share market. A director 

progress in achieving them. The Board 

wishing to deal in the company’s 

recognises that diversity offers a broad 

securities may only do so after first 

spectrum of benefits including:

having advised the chair of his or her 

 — access to a larger pool of 

intention. A senior executive wishing to 

quality employees

deal must first obtain the prior written 

 — improved employee retention

approval of the managing director 

 — insight into different ideas 

before doing so. If the chairman wishes 

and perspectives, fostering 

to buy, sell or exercise rights in relation 

innovation, and 

to the company’s securities, then 

 — benefiting from all available talent.

the chairman must obtain the prior 

written approval of the company’s 

The Board encourages diversity 

Board before doing so. Confirmation 

across the company and in senior 

of any dealing must also be given by 

leadership roles. The proportion 

the director or senior executive within 

of female employees in the whole 

two business days after the dealing. 

organisation is currently 26% 

Directors’ and senior executives’ 

and nil per cent at board level. 

with 38% at senior management 

dealings in the company’s securities 

are also subject to specified closed 

periods which are set out in the 

company’s Share Trading Policy 

or as otherwise determined by 

the board from time to time.

A copy of the company’s Share Trading 

Policy is available on Bathurst’s website.

diversity policy

The company values diversity and 

recognises the benefits it can bring 

to the organisation’s ability to achieve 

its goals. Accordingly the company 

has developed a diversity policy. This 

policy outlines the company’s diversity 

objectives in relation to gender, age, 

cultural background and ethnicity. 

57

 Bathurst Resources (New Zealand) Limited Annual Report 20132

n
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i
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58

Section 02 
59

Financial statements for the period ended 30 June 2013iNCoME sTaTEMENTs   
For  tHE PEriod  EndEd  30 JunE 2013

Revenue from operations

-

-

n o t E s

G r o uP  
2 0 1 3 
$ ’ 0 0 0

P A r E n t 
2 0 1 3 
$ ’ 0 0 0

Expenses

Other expenses

Loss before income tax

Income tax benefit

Loss for the period after income tax

(376)

(376)

(376)

(376)

4

75

75

(301)

(301)

Loss attributable to owners of the parent company

(301)

(301)

Earnings per share for loss attributable to the ordinary  
equity holders of the company:

Basic earnings per share

Diluted earnings per share

c En t s

(0.04)

(0.04)

28

28

The above income statements should be read in conjunction with the accompanying notes.

60

Section 02sTaTEMENTs  oF CoMPREhENsivE iNCoME 

For  tHE PEriod  EndEd  30 JunE 2013

Loss for the period

n o t E s

G r o uP  
2 0 1 3 
$ ’ 0 0 0

P A r E n t 
2 0 1 3 
$ ’ 0 0 0

(301)

(301)

Other comprehensive income for the period, net of tax

-

-

Total comprehensive income for the period

(301)

(301)

Total comprehensive income for the year attributable to the owners  
of Bathurst Resources (New Zealand) Limited

(301)

(301)

The above statements of comprehensive income should be read in conjunction with the  
accompanying notes.

61

Financial statements for the period ended 30 June 2013 
BaLaNCE shEETs   
As At 30 JunE 2013

assETs
Current assets

Cash and cash equivalents

Short term deposits

Trade and other receivables

Inventories

Financial assets

Other assets

Total current assets

Non-current assets

Property, plant and equipment

Mine licences, properties, exploration and evaluation assets

Investments in subsidiaries 

Financial assets

Deferred tax asset

Other assets

Total non-current assets

Total assets

LiaBiLiTiEs

Current liabilities

Trade and other payables

Borrowings

Deferred consideration

Provisions

Related party payables 

Total current liabilities

Non-current liabilities

Borrowings

Deferred consideration

Deferred tax liabilities

Provisions

Total non-current liabilities

Total liabilities

Net assets

EquiTy
Contributed equity

Reserves

Accumulated losses

Total equity

n o t E s

G r o uP  
2 0 1 3 
$ ’ 0 0 0

P A r E n t 
2 0 1 3 
$ ’ 0 0 0

5

5

6

7

8

9  

10

11

8

12

9

13

14

15

16

14

15

17

16

18

19

12,526

1,228

4,425

1,912

82

12,095

32,268

44,915

413,292

-

-

4

-

-

97

101

-

-

-

233,565

4,040

-

1,900

75

75

-

464,147

233,715

496,415

233,816

7,600

4,453

3,931

796

-

16,780

1,296

179,925

95,331

2,579

279,131

295,911

394

-

-

-

158

552

-

-

-

-

-

552

200,504

233,264

219,623

219,623

(18,818)

(301)

13,942

(301)

200,504

233,264

The directors of Bathurst Resources (New Zealand) Limited authorised these financial statements for issue. 
On behalf of the Board 

Craig Munro  
Chairman, 21 august 2013 

Rob Lord 
Director, 21 august 2013

The above balance sheets should be read in conjunction with the accompanying notes.

62

Section 02 
 
 
 
sTaTEMENTs  oF MovEMENTs iN  EquiTy   
For tHE  PEriod EndEd 30 JunE  2013

c o n t r i b u tE d
E q u i t y
$ ’ 0 0 0

n o t E s

s H A r E   b A sE d 
P A y mE n t  
r E s Er v E
$ ’ 0 0 0

F o r E iG n 
E x c H A n G E 
tr A n s L A t i o n 
r E s Er v E
$ ’ 0 0 0

A c c u m uL A t E d 
L o s s E s
$ ’ 0 0 0

r E -  
o r G A n i s A t i o n 
r E s Er v E
$ ’ 0 0 0

gRouP

Balance at 27 March 2013

Loss for the period

Total comprehensive  
income for the period

Transactions with owners in 
their capacity as owners:

Contribution to equity, via 
group reorganisation

-

-

-

-

-

-

19

219,623

13,942

Balance at 30 June 2013

219,623

13,942

-

(301)

(301)

-

-

-

t o t A L
E q u i t y
$ ’ 0 0 0

-

(301)

(301)

-

(32,760)

200,805

(301)

(32,760)

200,504

-

-

-

-

-

c o n t r i b u tE d
E q u i t y
$ ’ 0 0 0

n o t E s

s H A r E  
b A s E d  
P A y mE n t  
r E s Er v E
$ ’ 0 0 0

F o r E iG n 
E x c H A n G E 
tr A n s L A t i o n 
r E s Er v E
$ ’ 0 0 0

A c c u m uL A t E d 
L o s s E s
$ ’ 0 0 0

t o t A L 
E q u i t y
$ ’ 0 0 0

PaRENT

Balance at 27 March 2013

Loss for the period

Total comprehensive  
income for the period

Transactions with owners in 
their capacity as owners:

Contributions of equity, via 
group reorganisation 

-

-

-

-

-

-

19

219,623

13,942

Balance at 30 June 2013

219,623

13,942

-

-

-

-

-

-

-

(301)

(301)

(301)

(301)

-

233,565

(301)

233,264

The above statements of movements in equity should be read in conjunction with the accompanying notes.

63

Financial statements for the period ended 30 June 2013  G r o uP   
2 0 1 3  
$ ’ 0 0 0

P A r E n t  
2 0 1 3  
$ ’ 0 0 0

-

-

-

-

-

-

-

-

-

-

-

-

n o t E s

27

sTaTEMENTs  oF CashFLoWs 
For tHE  PEriod EndEd 30 JunE  2013

Cash flows from operating activities

Net cash outflow from operating activities

Cash flows from investing activities

Net cash outflow from investing activities

Cash flows from financing activities

Net cash inflow from financing activities

Net (decrease) / increase in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Cash and cash equivalents arising through group reorganisation

12,526

Cash and cash equivalents at the end of the period

5

12,526

The above statement of cashflow should be read in conjunction with the accompanying notes.

64

Section 02 
 
 NoTE  1 

 suMMaRy oF  aCCouNTiNg PoLiCiEs

Reporting entity and statutory base

Measurement basis 

Bathurst Resources (New Zealand) Limited 
is a profit-oriented company registered in 
New Zealand under the Companies Act 
1993 and is an issuer for the purposes of 
the Financial Reporting Act 1993. Bathurst 
Resources (New Zealand) Limited is listed 
on the New Zealand Securities Exchange 
(NZSX) and the Australian Securities 
Exchange (ASX).

Bathurst Resources (New Zealand) Limited 
was incorporated on 27 March 2013. A 
scheme of arrangement between Bathurst 
Resources Limited and its shareholders 
resulted in Bathurst Resources (New 
Zealand) Limited becoming the new 
ultimate parent company of Bathurst 
Resources Limited and its subsidiaries 
on 28 June 2013. In accordance with the 
Financial Reporting Act 1993, these group 
financial statements include the results 
of subsidiary companies from the date of 
reorganisation. The assets and liabilities 
of the consolidated Bathurst Resources 
(New Zealand) Limited group have been 
assumed at the predecessors carrying 
value at the date of reorganisation.

Bathurst Resources (New Zealand) Limited 
and its subsidiaries together are referred to 
in this financial report as the “group” or the 
“consolidated entity”.

The Group is principally engaged in 
the exploration for, development and 
production of coal.

Basis of preparation

These financial statements comply 
with International Financial Reporting 
Standards as issued by the International 
Accounting Standards Board. They have 
been prepared in accordance with the 
Financial Reporting Act 1993, which 
requires compliance with New Zealand 
generally accepted accounting practice. 
They comply with New Zealand equivalents 
to International Financial Reporting 
Standards as appropriate for profit-
oriented entities.

These financial statements are expressed 
in New Zealand dollars, which is the 
company’s functional currency. References 
in these financial statements to ‘$’ and 
‘NZ$’ are to New Zealand dollars.

All financial information has been  
rounded to the nearest thousand unless 
otherwise stated.

65

These financial statements have been 
prepared under the historical cost 
convention, as modified by the revaluation 
of available-for-sale financial assets and 
financial assets and liabilities (including 
derivative instruments) at fair value through 
profit or loss.

specific accounting policies 

As described below, these accounting 
policies have been applied consistently 
to all periods presented in these financial 
statements. 

The preparation of financial statements 
requires the use of certain critical 
accounting estimates. It also requires 
management to exercise its judgement 
in the process of applying the group’s 
accounting policies. The areas involving a 
higher degree of judgement or complexity, 
or areas where assumptions and estimates 
are significant to the consolidated financial 
statements are disclosed in note 2.

(a) 

Principles of consolidation

The consolidated financial statements 
incorporate the assets and liabilities of all 
subsidiaries of Bathurst Resources (New 
Zealand) Limited (”company” or ”parent 
entity”) as at 30 June 2013 and the  
results of all subsidiaries for the period 
then ended. 

Subsidiaries are all entities over which 
the group has the power to govern the 
financial and operating policies, generally 
accompanying a shareholding of more than 
one-half of the voting rights. The existence 
and effect of potential voting rights that 
are currently exercisable or convertible are 
considered when assessing whether the 
group controls another entity.

Subsidiaries are fully consolidated from the 
date on which control is transferred to the 
group. They are de-consolidated from the 
date that control ceases.

Intercompany transactions, balances 
and unrealised gains on transactions 
between group companies are eliminated. 
Unrealised losses are also eliminated 
unless the transaction provides evidence 
of the impairment of the asset transferred. 
Accounting policies of subsidiaries have 
been changed where necessary to ensure 
consistency with the policies adopted by 
the group.

Financial statements for the period ended 30 June 2013 
 
 
 
NoTE  1 

 suMMaRy oF  aCCouNTiNg PoLiCiEs ( CoNTiNuED )

(b) 

segment reporting

(iii)  

Group companies

(c) 

(i) 

Operating segments are reported in 
a manner consistent with the internal 
reporting provided to the chief operating 
decision maker. The chief operating 
decision maker, who is responsible for 
allocating resources and assessing 
performance of the operating  
segments, has been identified as  
the board of directors.

Foreign currency translation

Functional and presentation currency

Items included in the financial statements 
of each of the group’s entities are 
measured using the currency of the 
primary economic environment in which the 
entity operates (“the functional currency”). 
The consolidated financial statements are 
presented in New Zealand dollars, which 
is Bathurst Resources (New Zealand) 
Limited’s functional and presentation 
currency.

(ii)  

transactions and balances

Foreign currency transactions are 
translated into the functional currency 
using the exchange rates prevailing at 
the dates of the transactions. Foreign 
exchange gains and losses resulting from 
the settlement of such transactions and 
from the translation at year end exchange 
rates of monetary assets and liabilities 
denominated in foreign currencies are 
recognised in profit or loss, except when 
they are deferred in equity as qualifying 
cash flow hedges and qualifying net 
investment hedges or are attributable  
to part of the net investment in a  
foreign operation.

Foreign exchange gains and losses  
are presented on the face of the  
income statement.

Non-monetary items that are measured 
at fair value in a foreign currency are 
translated using the exchange rates at the 
date when the fair value was determined. 
Translation differences on assets and 
liabilities carried at fair value are reported 
as part of the fair value gain or loss. For 
example, translation differences on non-
monetary assets and liabilities such as 
equities held at fair value through profit or 
loss are recognised in profit or loss as part 
of the fair value gain or loss and translation 
differences on non-monetary assets such 
as equities classified as available-for-sale 
financial assets are recognised in other 
comprehensive income.

The results and financial position of foreign 
operations (none of which has the currency 
of a hyperinflationary economy) that have 
a functional currency different from the 
presentation currency are translated into 
the presentation currency as follows:

 —

 —

 assets and liabilities for each 
balance sheet presented are 
translated at the closing rate at the 
date of that balance sheet;

 income and expenses for each 
income statement and statement 
of comprehensive income are 
translated at monthly average 
exchange rates (unless this is not 
a reasonable approximation of 
the cumulative effect of the rates 
prevailing on the transaction dates, 
in which case income and expenses 
are translated at the dates of the 
transactions), and

 —

 all resulting exchange differences 
are recognised in other 
comprehensive income.

On consolidation, exchange differences 
arising from the translation of any net 
investment in foreign entities, and of 
borrowings and other financial instruments 
designated as hedges of such investments, 
are recognised in other comprehensive 
income. When a foreign operation is sold 
or any borrowings forming part of the net 
investment are repaid, a proportionate share 
of such exchange difference is reclassified 
to profit or loss, as part of the gain or loss 
on sale where applicable. Goodwill and fair 
value adjustments arising on the acquisition 
of a foreign operation are treated as assets 
and liabilities of the foreign operation and 
translated at the closing rate.

(d) 

Revenue recognition

Revenue is recognised and measured 
at the fair value of the consideration 
received or receivable to the extent it is 
probable that the economic benefits will 
flow to the group and the revenue can be 
reliably measured. The following specific 
recognition criteria must also be met 
before revenue is recognised:

(i)  

sale of goods

Revenue from the sale of goods is 
recognised when there is an executed 
sales agreement at the time of delivery 
of the goods to customer, indicating that 
there has been a transfer of risks and 
rewards to the customer, no further work 

66

Section 02or processing is required, the quantity and 
quality of the goods has been determined, 
the price is fixed and when title has passed.

(ii) 

Freight income

Revenue from freight services is 
recognised in the accounting period in 
which the services are provided. Revenue 
is not recognised until the service has  
been completed.

(iii)  

interest income

Interest income is recognised as interest 
accrues using the effective interest 
method. This is a method of calculating 
the amortised cost of a financial asset and 
allocating the interest income over the 
relevant period using the effective interest 
rate, which is the rate that exactly discounts 
estimated future cash receipts through the 
expected life of the financial asset to the 
net carrying amount of the financial asset.

(e) 

income tax

The income tax expense or benefit for 
the period is the tax payable on the 
current period’s taxable income based 
on the applicable income tax rate for 
each jurisdiction adjusted by changes 
in deferred tax assets and liabilities 
attributable to temporary differences  
and to unused tax losses.

The current income tax charge is calculated 
on the basis of the tax laws enacted or 
substantively enacted at the end of the 
reporting period in the countries where 
the company’s subsidiaries and associates 
operate and generate taxable income. 
Management periodically evaluates 
positions taken in tax returns with respect 
to situations in which applicable tax 
regulation is subject to interpretation. It 
establishes provisions where appropriate 
on the basis of amounts expected to be 
paid to the tax authorities.

Deferred income tax is provided in full, 
using the liability method, on temporary 
differences arising between the tax bases 
of assets and liabilities and their carrying 
amounts in the consolidated financial 
statements. However, deferred tax 
liabilities are not recognised if they arise 
from the initial recognition of goodwill. 
Deferred income tax is also not accounted 
for if it arises from initial recognition of an 
asset or liability in a transaction other than 
a business combination that at the time of 
the transaction affects neither accounting 
nor taxable profit or loss. Deferred income 

67

tax is determined using tax rates (and laws) 
that have been enacted or substantially 
enacted by the end of the reporting period 
and are expected to apply when the related 
deferred income tax asset is realised or the 
deferred income tax liability is settled.

Deferred tax assets are recognised for 
deductible temporary differences and 
unused tax losses only if it is probable that 
future taxable amounts will be available to 
utilise those temporary differences  
and losses.

Deferred tax liabilities and assets are not 
recognised for temporary differences 
between the carrying amount and tax 
bases of investments in foreign operations 
where the company is able to control the 
timing of the reversal of the temporary 
differences and it is probable that 
the differences will not reverse in the 
foreseeable future.

Deferred tax assets and liabilities are 
offset when there is a legally enforceable 
right to offset current tax assets and 
liabilities and when the deferred tax 
balances relate to the same taxation 
authority. Current tax assets and tax 
liabilities are offset where the entity has 
a legally enforceable right to offset and 
intends either to settle on a net basis, or 
to realise the asset and settle the liability 
simultaneously.

Current and deferred tax is recognised 
in profit or loss, except to the extent that 
it relates to items recognised in other 
comprehensive income or directly in equity. 
In this case, the tax is also recognised in 
other comprehensive income or directly in 
equity, respectively.

(f) 

Leases

The determination of whether an 
arrangement is, or contains, a lease is 
based on the substance of the arrangement 
and requires an assessment of whether the 
fulfilment of the arrangement is dependent 
on the use of a specific asset or assets and 
the arrangement conveys a right to use  
the asset.

Finance leases, those under which a 
significant portion of the risks and rewards 
of ownership are transferred to the 
company, are capitalised at the lease’s 
inception at the fair value of the leased 
property, or, if lower, the present value of 
the minimum lease payments. 

Financial statements for the period ended 30 June 2013NoTE  1 

 suMMaRy oF  aCCouNTiNg PoLiCiEs ( CoNTiNuED )

The corresponding rental obligations, net 
of finance charges, are included in other 
short-term and long-term payables. 

Capitalised leased assets are depreciated 
over the shorter of the estimated useful life 
of the asset and the lease term if there is 
no reasonable certainty that the group  
will obtain ownership by the end of the 
lease term.

Operating lease payments are recognised 
as an expense in the income statement 
on a straight-line basis over the lease 
term. Operating lease incentives are 
recognised as a liability when received and 
subsequently reduced by allocating lease 
payments between rental expense and 
reduction of the liability.

Where settlement of any part of cash 
consideration is deferred, the amounts 
payable in the future are discounted to their 
present value as at the date of exchange. 
The discount rate used is the risk free rate, 
being the long term government borrowing 
rate. This is then adjusted for an estimated 
risk premium to reflect the rate at which 
a similar borrowing could be obtained 
from an independent financier under 
comparable terms and conditions.

Contingent consideration is classified as a 
financial liability (deferred consideration). 
Amounts classified as a financial liability 
are subsequently remeasured to fair value 
with changes in fair value recognised 
on the face of the income statement as 
“revaluation of deferred consideration”.

(g) 

Business combinations

(h) 

impairment of non-financial assets

The acquisition method of accounting 
is used to account for all business 
combinations, regardless of whether equity 
instruments or other assets are acquired. 
The consideration transferred for the 
acquisition of a subsidiary comprises the 
fair values of the assets transferred, the 
liabilities incurred and the equity interests 
issued by the group. The consideration 
transferred also includes the fair value 
of any asset or liability resulting from a 
contingent consideration arrangement and 
the fair value of any pre-existing equity 
interest in the subsidiary. Acquisition-
related costs are expensed as incurred. 
Identifiable assets acquired and liabilities 
and contingent liabilities assumed in a 
business combination are, with limited 
exceptions, measured initially at their 
fair values at the acquisition date. On an 
acquisition-by-acquisition basis, the group 
recognises any non-controlling interest in 
the acquiree either at fair value or  
at the non-controlling interest’s 
proportionate share of the acquiree’s  
net identifiable assets.

The excess of the consideration 
transferred and the amount of any non-
controlling interest in the acquiree over the 
fair value of the group’s share of the net 
identifiable assets acquired is recorded 
as goodwill. If those amounts are less 
than the fair value of the net identifiable 
assets of the subsidiary acquired and the 
measurement of all amounts has  
been reviewed, the difference is 
recognised directly in profit or loss  
as a bargain purchase.

Goodwill and intangible assets that have 
an indefinite useful life are not subject to 
amortisation and are tested annually for 
impairment, or more frequently if events 
or changes in circumstances indicate that 
they might be impaired. Other assets are 
tested for impairment whenever events or 
changes in circumstances indicate that the 
carrying amount may not be recoverable. 
An impairment loss is recognised for the 
amount by which the asset’s carrying 
amount exceeds its recoverable amount. 
The recoverable amount is the higher 
of an asset’s fair value less costs to sell 
and value in use. For the purposes of 
assessing impairment, assets are grouped 
at the lowest levels for which there are 
separately identifiable cash inflows which 
are largely independent of the cash inflows 
from other assets or groups of assets 
(cash-generating units). Non-financial 
assets other than goodwill that suffered 
an impairment are reviewed for possible 
reversal of the impairment at the end of 
each reporting period.

(i) 

Cash and cash equivalents

Cash and short-term deposits in the 
balance sheet comprise cash at bank and 
on hand and short- term deposits with an 
original maturity of three months or less.

For the purposes of the Cash Flow 
Statement cash and cash equivalents 
consist of cash and cash equivalents  
as defined above, net of outstanding  
bank overdrafts.

68

Section 02(j) 

Trade receivables

Trade receivables are recognised initially 
at fair value plus transaction costs and 
subsequently measured at amortised cost 
using the effective interest method, less 
provision for impairment. Trade receivables 
are generally due for settlement within 30 
days. They are presented as current assets 
unless collection is not expected for more 
than 12 months after the reporting date.

Collectability of trade receivables is 
reviewed on an ongoing basis. Debts 
which are known to be uncollectible are 
written off by reducing the carrying amount 
directly. An allowance account (provision 
for impairment of trade receivables) is used 
when there is objective evidence that  
the group will not be able to collect all 
amounts due according to the original 
terms of the receivables. 

Significant financial difficulties of the 
debtor, probability that the debtor will enter 
bankruptcy or financial reorganisation, and 
default or delinquency in payments (more 
than 30 days overdue) are considered 
indicators that the trade receivable is 
impaired. The amount of the impairment 
allowance is the difference between the 
asset’s carrying amount and the present 
value of estimated future cash flows, 
discounted at the original effective interest 
rate. Cash flows relating to short-term 
receivables are not discounted if the effect 
of discounting is immaterial.

The amount of the impairment loss is 
recognised in profit or loss within other 
expenses. When a trade receivable for 
which an impairment allowance had been 
recognised becomes uncollectible in a 
subsequent period, it is written off against 
the allowance account. Subsequent 
recoveries of amounts previously written 
off are credited against other expenses in 
profit or loss.

relating to purchases of raw material 
but excludes borrowing costs. Costs are 
assigned to individual items of inventory on 
the basis of weighted average costs. Costs 
of purchased inventory are determined 
after deducting rebates and discounts. Net 
realisable value is the estimated selling 
price in the ordinary course of business 
less the estimated costs of completion  
and the estimated costs necessary to  
make the sale.

(l) 

Waste in advance

Waste removed in advance (overburden) 
costs incurred in the development of a 
mine are capitalised as parts of the costs 
of constructing the mine and subsequently 
amortised over the life of the mine.

Waste removal normally continues through 
the life of the mine. The company defers 
waste removal costs incurred during the 
production stage of its operations and 
discloses it within “other current assets”.

The amount of waste removal costs 
deferred is based on the ratio obtained by 
dividing the volume of waste removed by 
the tonnage of coal mined. Waste removal 
costs incurred in the period are deferred 
to the extent that the current period 
ratio exceeds the life of mine ratio. Such 
deferred costs are then charged against 
the income statement to the extent that, in 
subsequent periods, the ratio falls short of 
the life of mine ratio. The life of mine ratio is 
based on proven and probable reserves of 
the operation.

Waste moved in advance costs form part 
of the total investment in the relevant 
cash generating unit, which is reviewed 
for impairment if events or changes in 
circumstances indicate that the carrying 
value may not be recoverable.

Changes to the life of mine stripping ratio 
are accounted for prospectively.

(k) 

inventories

(m) 

   investments and other financial assets

Raw materials and stores, work in progress 
and finished goods are stated at the lower 
of cost and net realisable value. Cost 
comprises direct materials, direct labour 
and an appropriate proportion of variable 
and fixed overhead expenditure, the latter 
being allocated on the basis of normal 
operating capacity. Cost includes the 
reclassification from equity of any gains 
or losses on qualifying cash flow hedges 

69

Classification

The group classifies its financial assets as 
loans and receivables. The classification 
depends on the purpose for which the 
investments were acquired.

Management determines the classification 
of its investments at initial recognition.

Financial statements for the period ended 30 June 2013 
 
NoTE  1 

 suMMaRy oF  aCCouNTiNg PoLiCiEs ( CoNTiNuED )

Loans and receivables

Loans and receivables are non-derivative 
financial assets with fixed or determinable 
payments that are not quoted in an active 
market. They are included in current 
assets, except for those with maturities 
greater than 12 months after the reporting 
period which are classified as non-current 
assets. Loans and receivables are included 
in trade and other receivables (note 6) in 
the balance sheet.

recognition and derecognition

Regular way purchases and sales of 
financial assets are recognised on 
trade-date – the date on which the group 
commits to purchase or sell the asset. 
Financial assets are derecognised when 
the rights to receive cash flows from the 
financial assets have expired or have been 
transferred and the group has transferred 
substantially all the risks and rewards of 
ownership.

measurement

At initial recognition, the group measures 
a financial asset at its fair value plus 
transaction costs that are directly 
attributable to the acquisition of the 
financial asset.

Loans and receivables are subsequently 
carried at amortised cost using the 
effective interest rate method.

impairment

The group assesses at the end of each 
reporting period whether there is objective 
evidence that a financial asset or group 
of financial assets is impaired. A financial 
asset or a group of financial assets is 
impaired and impairment losses are 
incurred only if there is objective evidence 
of impairment as a result of one or more 
events that occurred after the initial 
recognition of the asset (a ‘loss event’) and 
that loss event (or events) has an impact 
on the estimated future cash flows of the 
financial asset or group of financial assets 
that can be reliably estimated. 

Financial assets carried at amortised cost

For loans and receivables, the amount 
of the loss is measured as the difference 
between the asset’s carrying amount and 
the present value of estimated future cash 
flows (excluding future credit losses that 
have not been incurred) discounted at the 
financial asset’s original effective interest 
rate. The carrying amount of the asset 

is reduced and the amount of the loss is 
recognised in profit or loss. If a loan has 
a variable interest rate, the discount rate 
for measuring any impairment loss is the 
current effective interest rate determined 
under the contract. As a practical 
expedient, the group may measure 
impairment on the basis of an instrument’s 
fair value using an observable market price.

If, in a subsequent period, the amount of 
the impairment loss decreases and the 
decrease can be related objectively to an 
event occurring after the impairment was 
recognised (such as an improvement in the 
debtor’s credit rating), the reversal of the 
previously recognised impairment loss is 
recognised in profit or loss.

Impairment testing of trade receivables is 
described in note 1(j).

(n) 

Property, plant and equipment

All property, plant and equipment is 
stated at historical cost less depreciation. 
Historical cost includes expenditure that 
is directly attributable to the acquisition of 
the items. Cost may also include transfers 
from equity of any gains or losses on 
qualifying cash flow hedges of foreign 
currency purchases of property, plant and 
equipment.

Subsequent costs are included in the 
asset’s carrying amount or recognised 
as a separate asset, as appropriate, only 
when it is probable that future economic 
benefits associated with the item will 
flow to the group and the cost of the item 
can be measured reliably. The carrying 
amount of any component accounted 
for as a separate asset is derecognised 
when replaced. All other repairs and 
maintenance are charged to profit or loss 
during the reporting period in which they 
are incurred.

Land is not depreciated. Depreciation 
on other assets is calculated using the 
straight-line method to allocate their 
cost, net of their residual values, over 
their estimated useful lives or, in the case 
of leasehold improvements and certain 
leased plant and equipment, the shorter 
lease term as follows:

Buildings 25 years

 Mine infrastructure  
3 – 8 years 

 Plant & machinery  
2 – 25 years

 —

 —

 —

70

Section 02 
 —

 —

 Plant & machinery leased  
– units of use

 Furniture, fittings and equipment  
3 – 8 years

The assets’ residual values and useful lives 
are reviewed, and adjusted if appropriate, 
at the end of each reporting period.

An asset’s carrying amount is written down 
immediately to its recoverable amount if 
the asset’s carrying amount is greater than 
its estimated recoverable amount (note 
1(h)).

Gains and losses on disposals are 
determined by comparing proceeds with 
carrying amount. These are included in 
profit or loss. 

(o) 

 Exploration and evaluation expenditure

Exploration and evaluation expenditure 
incurred is capitalised to the extent that the 
expenditure is expected to be recovered 
through the successful development and 
exploitation of the area of interest, or the 
exploration and evaluation activities in 
the area of interest have not yet reached 
a point where such an assessment can be 
made. All other exploration and evaluation 
expenditure is expensed as incurred.

Capitalised costs are accumulated in 
respect of each identifiable area of 
interest. Costs are only carried forward to 
the extent that tenure is current and they 
are expected to be recouped through the 
successful development of the area (or, 
alternatively by its sale) or where activities 
in the area have not yet reached a stage 
which permits reasonable assessment of 
the existence of economically recoverable 
reserves and operations in relation to the 
area are continuing.

Accumulated costs in relation to an 
abandoned area are written off in full 
against profit in the period in which the 
decision to abandon the area is made.

When production commences, the 
accumulated costs for the relevant area of 
interest are amortised over the life of the 
area according to the rate of depletion of 
the economically recoverable reserves.

A regular review is undertaken of 
each area of interest to determine the 
appropriateness of continuing to carry 
forward costs in relation to that area  
of interest.

71

(p) 

Mining and development properties

Mining and development properties include 
the cost of acquiring and developing mining 
properties, licenses, mineral rights and 
exploration, evaluation and development 
expenditure carried forward relating to 
areas where production has commenced. 
These assets are amortised using the unit 
of production basis over the proven and 
probable reserves. Amortisation  
starts from the date when commercial 
production commences.

An asset’s carrying amount is written down 
immediately to its recoverable amount if 
the asset’s carrying amount is greater than 
its estimated recoverable amount.

(q) 

Trade and other payables

These amounts represent liabilities for 
goods and services provided to the group 
prior to the end of financial year which 
are unpaid. The amounts are unsecured 
and are usually paid within 30 days of 
recognition. Trade and other payables 
are presented as current liabilities unless 
payment is not due within 12 months from 
the reporting date. They are recognised 
initially at their fair value less transaction 
costs and subsequently measured at 
amortised cost using the effective  
interest method.

(r) 

Borrowings

Borrowings are initially recognised at fair 
value, net of transaction costs incurred. 
Borrowings are subsequently measured at 
amortised cost. Any difference between 
the proceeds (net of transaction costs) 
and the redemption amount is recognised 
in profit or loss over the period of the 
borrowings using the effective interest 
method. Fees paid on the establishment of 
loan facilities are recognised as transaction 
costs of the loan to the extent that it is 
probable that some or all of the facility 
will be drawn down. In this case, the fee 
is deferred until the draw down occurs. 
To the extent there is no evidence that it 
is probable that some or all of the facility 
will be drawn down, the fee is capitalised 
as a prepayment for liquidity services and 
amortised over the period of the facility to 
which it relates.

Borrowings are removed from the balance 
sheet when the obligation specified in 
the contract is discharged, cancelled 

Financial statements for the period ended 30 June 2013NoTE  1 

 suMMaRy oF  aCCouNTiNg PoLiCiEs ( CoNTiNuED )

or expired. The difference between the 
carrying amount of a financial liability that 
has been extinguished or transferred to 
another party and the consideration paid, 
including any non-cash assets transferred 
or liabilities assumed, is recognised in profit 
or loss as other income or finance costs.

Where the terms of a financial liability are 
renegotiated and the entity issues equity 
instruments to a creditor to extinguish all 
or part of the liability (debt for equity swap), 
a gain or loss is recognised in profit or 
loss, which is measured as the difference 
between the carrying amount of the 
financial liability and the fair value of the 
equity instruments issued.

Borrowings are classified as current 
liabilities unless the group has an 
unconditional right to defer settlement of 
the liability for at least 12 months after the 
reporting period.

(s) 

Provisions

Provision for rehabilitation

Provisions are made for site rehabilitation 
costs relating to areas disturbed during 
the mine’s operation up to reporting date 
but not yet rehabilitated. The provision is 
based on management’s best estimate of 
future costs of rehabilitation. When the 
provision is recognised, the corresponding 
rehabilitation costs are recognised as 
part of mining property and development 
assets. At each reporting date, the 
rehabilitation liability is re-measured in 
line with changes in the timing or amount 
of the costs to be incurred. Changes in the 
liability relating to rehabilitation of mine 
infrastructure and dismantling obligations 
are added to or deducted from the  
related asset.

If the change in the liability results in a 
decrease in the liability that exceeds the 
carrying amount of the asset, the asset 
is written down to nil and the excess is 
recognised immediately in the income 
statement. If the change in the liability 
results in an addition to the cost of the 
asset, the recoverability of the new 
carrying value is considered. Where there 
is an indication that the new carrying 
amount is not fully recoverable, an 
impairment test is performed with the write 
down recognised in the income statement 
in the period in which it occurs.

The net present value of the provision is 
calculated using an appropriate discount 

rate, the unwinding of the discount applied 
in calculating the net present value of 
the provision is charged to the income 
statement in each reporting period and is 
classified as a finance cost.

(t) 

(i) 

Employee benefits

short-term obligations

Liabilities for wages and salaries, including 
non-monetary benefits, and annual leave 
expected to be settled within 12 months 
after the end of the period in which the 
employees render the related service 
are recognised in respect of employees’ 
services up to the end of the reporting 
period and are measured at the amounts 
expected to be paid when the liabilities 
are settled. The liability for annual leave 
and accumulating sick leave is recognised 
in the provision for employee benefits. 
All other short-term employee benefit 
obligations are presented as payables.

(ii) 

 other long-term employee  
benefit obligations

The liability for long service leave and 
annual leave which is not expected to be 
settled within 12 months after the end 
of the period in which the employees 
render the related service is recognised 
in the provision for employee benefits 
and measured as the present value of 
expected future payments to be made in 
respect of services provided by employees 
up to the end of the reporting period 
using the projected unit credit method. 
Consideration is given to expected future 
wage and salary levels, experience of 
employee departures and periods of 
service. Expected future payments are 
discounted using market yields at the 
end of the reporting period on national 
government bonds with terms to maturity 
and currency that match, as closely  
as possible, the estimated future  
cash outflows.

(iii) 

share-based payments

Share-based compensation benefits are 
provided to employees via the Bathurst 
Resources (New Zealand) Limited Long 
Term Incentive Plan and Employee Share 
Option Plan. Information relating to these 
schemes is set out in note 29.

The fair value of performance rights 
and options granted under the Bathurst 
Resources (New Zealand) Limited Long 
Term Incentive Plan and Employee Share 
Option Plan is recognised as an employee 

72

Section 02 
benefits expense with a corresponding 
increase in equity. The total amount to 
be expensed is determined by reference 
to the fair value of the options granted, 
which includes any market performance 
conditions and the impact of any non-
vesting conditions but excludes the 
impact of any service and non-market 
performance vesting conditions. 

Non-market vesting conditions are 
included in assumptions about the number 
of options that are expected to vest. The 
total expense is recognised over the 
vesting period, which is the period over 
which all of the specified vesting conditions 
are to be satisfied. At the end of each 
period, the entity revises its estimates of 
the number of options that are expected to 
vest based on the non-marketing vesting 
conditions. It recognises the impact of the 
revision to original estimates, if any, in  
profit or loss, with a corresponding 
adjustment to equity.

(u) 

Contributed equity

Ordinary shares are classified as equity. 
Issued and paid up capital is recognised at 
the fair value of the consideration received 
by the company. Any transaction costs 
arising on the issue of ordinary shares are 
recognised directly in equity as a reduction 
of the share proceeds received.

(v) 

(i)  

Earnings per share

basic earnings per share

Basic earnings per share is calculated by 
dividing:

 —

 —

 the profit attributable to owners of 
the company, excluding any costs of 
servicing equity other than ordinary 
shares

 by the weighted average number of 
ordinary shares outstanding during 
the financial year, adjusted for bonus 
elements in ordinary shares issued 
during the year.

(ii) 

diluted earnings per share

Diluted earnings per share adjusts the 
figures used in the determination of basic 
earnings per share to take into account:

 —

 the after income tax effect of 
interest and other financing costs 
associated with dilutive potential 
ordinary shares, and

73

 —

 the weighted average number of 
additional ordinary shares that would 
have been outstanding assuming the 
conversion of all dilutive potential 
ordinary shares.

(w) 

Deferred Consideration

The fair value of deferred consideration 
payments are calculated periodically with 
adjustments through profit or loss. The 
portion of the fair value adjustment due 
to the time value of money (unwinding 
of discount) is recognised as a finance 
cost.  For further information on deferred 
consideration refer to note 15.

(x) 

goods and services Tax 

Revenues, expenses and assets are 
recognised net of the amount of goods 
and services tax (“GST”), except where 
the GST incurred on a purchase of goods 
and services is not recoverable from the 
taxation authorities, in which case the 
GST is recognised as part of the cost of 
acquisition of the asset or as part of an 
item of the expense item as applicable. 
Receivables and payables in the balance 
sheet are shown inclusive of GST.

The net amount of GST recoverable from, 
or payable to, the taxation authority is 
included as part of receivables or payables 
in the balance sheet. Cash flows are 
included in the Cash Flow Statement on 
a gross basis and the GST component 
of cash flows arising from investing and 
financing activities, which is recoverable 
from, or payable to, the taxation authority 
are classified as operating cash flows.

(y) 

investments in subsidiaries 

The parent company holds its investments 
in subsidiaries at cost, less any impairment.

 New accounting standards and 
interpretations

Certain new accounting standards and 
interpretations have been published that 
are not mandatory for 30 June 2013 
reporting periods. The group’s assessment 
of the impact of these new standards and 
interpretations is set out below.

(i) 

 nZ iFrs 10 consolidated Financial 
statements

Effective for periods beginning on or after  
1 January 2013

Financial statements for the period ended 30 June 2013 
NoTE  1 

 suMMaRy oF  aCCouNTiNg PoLiCiEs ( CoNTiNuED )

The standard builds on existing principles 
by identifying the concept of control as 
the determining factor in whether an entity 
should be included within the consolidated 
financial statements of the parent company 
and provides additional guidance to assist 
in the determination of control where this  
is difficult to assess. 

The group does not expect the new 
standard to have a significant impact on its 
financial statements. 

(ii) 

 Amendments to iAs 28 investments  
in associates and joint ventures 

Effective for periods beginning on or after 
1 January 2013

These amendments incorporate joint 
ventures into the standard. It prescribes 
the accounting for investments in 
associates and sets out the requirements 
for the application of the equity method 
when accounting for investments in 
associates and joint ventures.

The group does not expect the new 
standard to have a significant impact on its 
financial statements. 

(iii) 

 nZ iFrs 12 disclosure of interests in 
other entities

Effective for periods beginning on or after 
1 January 2013

The standard applies to entities 
that have an interest in subsidiaries, 
joint arrangements, associates or 
unconsolidated structured entities.  
It establishes disclosures objectives  
and specifies minimum disclosures  
that an entity must provide to meet  
those objectives. 

The group does not expect the new 
standard to have a significant impact on its 
financial statements.

(iv) 

 Amendments to nZ iAs 27 separate 
financial statements

Effective for periods beginning on or after 
1 January 2013

These amendments remove the 
accounting and disclosures requirements 
for consolidated financial statements 
as a result of the issue of NZ IFRS 10 
Consolidated financial statements and  
NZ IFRS 12 Disclosure of interests in  
other entities 

(v) 

 nZ iFrs 13 Fair value measurement

Effective for periods beginning on or after 
1 January 2013

The standard establishes a single 
framework for measuring fair value where 
that is required by other standards and is 
applicable to both financial and non-
financial items. 

The group does not expect the new 
standard to have a significant impact on  
its financial statements. 

(vi) 

 nZ iFric 20 stripping costs in the 
Production Phase of a surface mine 

Effective for periods beginning on or after 
1 January 2013

Interpretation 20 sets out the accounting 
for overburden waste removal (stripping) 
costs in the production phase of a surface 
mine. It states that these costs can only 
be recognised as an asset if they can be 
attributed to an identifiable component 
of the ore body, the costs relating to the 
improved access to that component can 
be measured reliably and it is probable that 
future economic benefits associated with 
the stripping activity (improved access to 
the ore body) will flow to the entity. The 
costs will be amortised over the life of the 
identified component of the ore body. 

This is different to the consolidated 
entity’s current accounting policy which 
is to capitalise stripping costs based on 
a general waste-to-ore stripping ratio 
and amortise the costs over the life of the 
mine. The interpretation must be applied 
retrospectively and the group will have 
to write off existing stripping cost asset 
balances to retained earnings on the date 
of transition, to the extent they do not 
relate to an identifiable component of  
the ore body.

The total carrying amount of deferred 
waste capitalised as at 30 June 2013 was 
$11.7m. The full extent of any transitional 
adjustment has not yet been quantified. 
The group will adopt this interpretation 
from 1 July 2013. 

74

Section 02NoTE  2  

 CRiTiCaL  aCCouNTiNg EsTiMaTEs aND  JuDgEMENTs

Estimates and judgements are continually 
evaluated and are based on historical 
experience and other factors, including 
expectations of future events that may 
have a financial impact on the entity and 
that are believed to be reasonable under 
the circumstances.

The group makes estimates and 
assumptions concerning the future. The 
resulting accounting estimates will, by 
definition, seldom equal the related actual 
results. The estimates and assumptions 
that have a significant risk of causing 
a material adjustment to the carrying 
amounts of assets and liabilities within the 
next financial year are discussed below.

(i) 

impairment 

The future recoverability of the assets 
recorded by the group is dependent upon 
a number of factors, including whether the 
group decides to exploit its mine property 
itself or, if not, whether it successfully 
recovers the related asset through sale.

Factors that could impact future 
recoverability include the level of reserves 
and resources, future technological 
changes, costs of drilling and production, 
production rates, future legal changes, and 
changes to commodity prices and foreign 
exchange rates.

prices of commodities, exchange rates, 
production costs or recovery rates may 
change the economic status and may, 
ultimately, result in the reserves being 
restated. Such changes in reserves could 
impact on depreciation and amortisation 
rates, asset carrying values and provisions 
for rehabilitation. 

(iv) 

Provision for rehabilitation

In calculating the estimated future costs of 
rehabilitating and restoring areas disturbed 
in the mining process certain estimates 
and assumptions have been made. (Refer 
to Note 1(s)). The amount the group is 
expected to incur to settle these future 
obligations includes estimates in relation 
to the appropriate discount rate to apply 
to the cash flow profile, expected mine life, 
application of the relevant requirements 
for rehabilitation, and the future expected 
costs of rehabilitation.

Changes in the estimates and assumptions 
used could have a material impact on 
the carrying value of the rehabilitation 
provision and related asset. The provision 
is reviewed at each reporting date and 
updated based on the best available 
estimates and assumptions at that time. 

The carrying amount of the rehabilitation 
provision is set out in Note 16.

(ii) 

valuation of deferred consideration

(v) 

Waste in advance

In valuing the deferred consideration 
payable under business acquisitions 
management uses estimates and 
assumptions. This includes future coal 
prices, discount rates, coal production, 
and the timing of payments. The amounts 
of deferred consideration are reviewed at 
each balance date and updated based on 
best available estimates and assumptions 
at that time.

The carrying amount of deferred 
consideration is set out in note 15.

Waste moved in advance is calculated 
with reference to the stripping ratio (waste 
moved over coal extracted) of the area of 
interest and the excess of this ratio over 
the estimated stripping ratio for the area 
of interest expected to incur over its life. 
Management estimates this life of mine 
ratio based on geological and survey 
models as well as reserve information for 
the areas of interest.

The carrying amount of the waste moved in 
advance is set out in Note 9.

(iii) 

reserves and resources

(vi) 

taxation

Reserves and resources are based on 
information compiled by a Competent 
Person as defined in accordance with the 
Australasian Code of Mineral Resources 
and Ore Reserves of December 2004 
(the JORC code). There are numerous 
uncertainties inherent in estimating 
reserves and assumptions that are valid 
at the time of estimation but that may 
change significantly when new information 
becomes available. Changes in forecast 

75

The group’s accounting policy for taxation 
requires management judgement in 
relation to the application of income tax 
legislation. There are many transactions 
and calculations undertaken during the 
ordinary course of business where the 
ultimate tax determination is uncertain. 
The group recognises liabilities for tax, 
and if appropriate taxation investigation 
or audit issues, based on whether taxation 
will be due and payable. Where the taxation 

Financial statements for the period ended 30 June 2013NoTE  2  

 CRiTiCaL  aCCouNTiNg EsTiMaTEs aND  JuDgEMENTs (CoNTiNuED)

outcome of such matters is different 
from the amount initially recorded, such 
difference will impact the current and 
deferred tax position in the period in which 
the assessment is made.

In addition, certain deferred tax assets 
for deductible temporary differences and 
carried forward taxation losses have been 
recognised. In recognising these deferred 
tax assets assumptions have been made 
regarding the group’s ability to generate 
future taxable profits. Utilisation of the tax 
losses also depends on the ability of the 
tax entities to satisfy certain tests at the 
time the losses are recouped. If the entities 
fail to satisfy the tests, the carried forward 
losses that are currently recognised as 
deferred tax assets would have to be 
written off to income tax expense. There 
is an inherent uncertainty in applying 
these judgements and a possibility that 
changes in legislation will impact upon the 
carrying amount of deferred tax assets and 
deferred tax liabilities recognised on the 
balance sheet.

76

Section 02NoTE  3 

sEgMENT  iNFoRMaTioN

Management has determined operating 
segments based on the reports reviewed 
by the board of directors that are used to 
make strategic decisions.

The board reviews the business from both 
a mine and geographic perspective and 
has identified two reportable segments. 
The Buller Coal segment relates to 
the mining, development and ultimate 
exploitation of permits under the Buller 
Coal management team in the Buller region 
of New Zealand. The Eastern Coal segment 

refers to the Takitimu mine and Timaru 
coal handling and distribution centre 
under the Eastern management team. The 
financial performance of these segments 
is monitored and operated separately from 
each other.

All other operations of the group are 
classified within “Corporate” section of 
the segment note which encompasses the 
administration and treasury management 
of the group. 

segment information provided to the board

The segment information provided to the board for the reportable segments for the year ended  
30 June 2013 is as follows:

2013

b u L L E r  c o A L 
$ ’ 0 0 0

E A s t E r n   c o A L 
$ ’ 0 0 0

c o r P o r A t E 
$ ’ 0 0 0

t o t A L 
$ ’ 0 0 0

Loss before tax

-

-

(376)

(376)

Total segment assets

464,776

27,618

4,021

496,415

Total assets per the balance sheet

496,415

Total segment liabilities

287,057

7,050

1,804

295,911

Total liabilities per the balance sheet

295,911

other segment information

(i) 

Segment revenue

Interest income between the segments is 
carried out at arm’s length and is eliminated 
on consolidation. The revenue from 
external parties reported to the board is 
measured in a manner consistent with that 
in the income statement.

Revenues from external customers are 
derived from the sale of coal and freight 
services. Interest income from external 
parties is earned on cash deposits.

(ii)  Segment assets

The amounts reported to the board with 
respect to total assets are measured in a 
manner consistent with that of the financial 

77

statements. These assets are allocated 
based on the operations of the segment 
and the physical location of the asset.

The total of non-current assets other 
than financial instruments and deferred 
tax assets located in Australia is $250k, 
and the total of these non-current assets 
located in New Zealand is $463,898k. 
Segment assets are allocated to countries 
based on where the assets are located.

(iii)  Segment liabilities

The amounts reported to the board with 
respect to total liabilities are measured in a 
manner consistent with that of the financial 
statements. These liabilities are allocated 
based on the operations of the segment.

Financial statements for the period ended 30 June 2013 
 
NoTE  4 

iNCoME  Tax BENEFiT

income tax benefit

Current tax

Deferred tax

Income tax benefit 

G r o uP  
2 0 1 3 
$ ’ 0 0 0

P A r E n t 
  2 0 1 3 
$ ’ 0 0 0

-

75

75

-

75

75

G r o uP  
2 0 1 3 
$ ’ 0 0 0

P A r E n t 
2 0 1 3 
$ ’ 0 0 0

Numerical reconciliation of income tax benefit to prima facie tax payable

Loss from continuing operations before income tax benefit

(376)

(376)

Tax at the standard New Zealand rate of 28%

(105)

(105)

Tax effect of amounts that are not deductible / (assessable) in calculating 
taxable income:

Non-deductible expenses

Income tax benefit

NoTE  5 

Cash aND  shoRT  TERM  DEPosiTs  

Cash at bank and on hand

Deposits at call

Cash and cash equivalents 

Short term deposits 

Cash and short term deposits

30

30

75

12,451

75

12,526

1,228

13,754

30

30

75

-

-

-

-

-

(a) 

Risk exposure

The group’s exposure to interest rate risk 
is discussed in note 21. The maximum 
exposure to credit risk at the end of the 

reporting period is the carrying amount of 
each class of cash and short term deposits 
mentioned above.

78

Section 02NoTE  6 

TRaDE  aND  oThER  RECEivaBLEs

Trade receivables

Provision for impairment of receivables

Loans to key management personnel *

GST Receivable

Interest receivable

Other receivables

G r o uP  
2 0 1 3 
$ ’ 0 0 0

3,249

(37)

3,212

451

196

268

298

1,213

4,425

P A r E n t 
2 0 1 3 
$ ’ 0 0 0

-

-

-

-

-

-

4

4

4

* Further information relating to loans to key management personnel is set out in note 22.

(a) 

 impaired trade receivables and  
past due but not impaired

Ageing information on impaired trade 
receivables and trade receivables that are 
past due but not impaired has not been 
provided as the amounts are not material 
to the group. Impaired receivables at 30 
June 2013 totalled $36,949 and trade 
receivables past due but not impaired at 30 
June 2013 totalled $400,168.

b) 

Foreign exchange and interest rate risk

Information about the group’s exposure to 
foreign currency risk and interest rate risk 
in relation to trade and other receivables is 
provided in note 21.

(c) 

Fair value and credit risk

Due to the short term nature of these 
receivables, their carrying amount is 
assumed to approximate their fair value.

The maximum exposure to credit risk at the 
end of the reporting period is the carrying 
amount of each class of receivables 
mentioned above. Refer to note 21 for 
more information on the risk management 
policy of the group and the credit quality of 
the entity’s trade receivables.

NoTE  7 

iNvENToRiEs

Raw materials and stores

Finished goods *

G r o uP   
2 0 1 3  
$ ’ 0 0 0

68

1,844

1,912

P A r E n t  
2 0 1 3  
$ ’ 0 0 0

-

-

-

* Finished goods are recorded at the lower of cost and net realisable value as per note 1(k).

79

Financial statements for the period ended 30 June 2013NoTE  8 

FiNaNCiaL  assETs

 Current

Advances to third parties 

Non-current

Security bonds and deposits

Advances to third parties

G r o uP   
2 0 1 3  
$ ’ 0 0 0

P A r E n t  
2 0 1 3  
$ ’ 0 0 0

82

82

214

3,826

4,040

-

-

75

-

75

Security bonds and deposits have been 
provided to third parties in relation to 
rental properties and mine / permit access 
arrangements.

An advance to a third party has been made 
under a construction contract to provide 

working capital assistance to the engaged 
contractor. The advance made attracts an 
interest rate of 5.75% and is secured by 
a bank guarantee in favour of Buller Coal 
Limited.

G r o uP   
2 0 1 3  
$ ’ 0 0 0

P A r E n t  
2 0 1 3  
$ ’ 0 0 0

11,721

374

12,095

1,900

1,900

-

97

97

-

-

NoTE  9 

oThER  assETs

Current

Waste moved in advance

Prepayments

Non-current

Deposits paid

Deposits paid relate to the acquisition of mining permits.

80

Section 02 
NoTE  10 

PRoPERTy, PLaNT  aND  EquiPMENT

F r E E H o L d  
L A n d  
$ ’ 0 0 0

b u i Ld i n G s 
$ ’ 0 0 0

mi nE   
i nF r A s t r u c-
t u r E  
$ ’ 0 0 0

P L A n t   &  
m A c Hi nE r y 
$ ’ 0 0 0

P L A n t   &  
m A c Hi nE r y 
u n dE r 
F i n A n cE  
 L E A sE   
$ ’ 0 0 0

F u r n i t u rE , 
F i t t i n G s 
A n d  
E q u i P mE n t 
$ ’ 0 0 0

t o t A L  
$ ’ 0 0 0

Period ended 
30 June 2013

Opening net 
book amount

Group 
reorganisation 
(note 30)

Closing net 
book amount

-

-

-

-

-

-

-

15,985

6,220

12,824

8,325

282

1,279

44,915

15,985

6,220

12,824

8,325

282

1,279

44,915

(a) 

 assets in the course of construction

The carrying amounts of the assets disclosed above include the following expenditure recognised in 
relation to property, plant and equipment which is in the course of construction:

Furniture, fittings and equipment

Mine infrastructure 

2 0 1 3  
$ ’ 0 0 0

140

10,048

10,188

(b) 

 Non-current assets pledged as security

Refer to note 14 for information on non-current assets pledged as security by the group.

NoTE  11 

 MiNiNg LiCENCEs, PRoPERTiEs, ExPLoRaTioN

, aND  EvaLuaTioN  assETs

30 June 2013

Opening net book amount

Group reorganisation  
(note 30)

E x P L o r A t i o n   &  
E v A L u A t i o n  
E x P E n d i t u rE  
$ ’ 0 0 0

m i n i n G 
Li c E n c E s   & 
Pr o P E r t iE s  
$ ’ 0 0 0

t o t A L  
$ ’ 0 0 0

-

-

-

31,377

381,915

413,292

Closing net book amount

31,377

381,915

413,292

81

Financial statements for the period ended 30 June 2013NoTE  12  DEFERRED  Tax assETs

The balance comprises temporary  
differences attributable to:

Tax losses

Accruals

Employee benefits

Provisions

G r o uP   
2 0 1 3  
$ ’ 0 0 0

P A r E n t  
2 0 1 3  
$ ’ 0 0 0

8,613

445

158

504

-

75

-

-

Total deferred tax assets

9,720

75

Set-off of deferred tax liabilities pursuant to set-off provisions (see note 17)

(9,720)

Deferred tax assets 

-

-

75

MovEMENTs gRouP

t A x  L o s s E s 
$ ’ 0 0 0

A c c r uA L s  
$ ’ 0 0 0

E m P L o y E E  
b En E F i t s  
$ ’ 0 0 0

P r o v i s i o n s 
$ ’ 0 0 0

t o t A L  
$ ’ 0 0 0

at 27 March 2013

Group reorganisation  
(note 30)

at 30 June 2013

-

8,613

8,613

-

445

445

-

158

158

-

504

504

-

9,720

9,720

The group has recognised a deferred tax 
asset in relation to the tax losses of the 
New Zealand entities on the basis that 
these losses can be utilised by future 

profit generating New Zealand operations. 
These deferred tax losses have been offset 
against the group’s deferred tax liabilities, 
see note 17.

82

Section 02 
NoTE  13 

TRaDE  aND  oThER  PayaBLEs

Trade payables

Other payables

G r o uP   
2 0 1 3  
$ ’ 0 0 0

4,347

3,253

7,600

P A r E n t  
2 0 1 3  
$ ’ 0 0 0

52

342

394

(a) 

Risk exposure

Information on the group’s exposure to foreign exchange risk is provided in note 21.

NoTE  14 

BoRRoWiNgs

Current

Secured

Bank loans

Lease liabilities (note 24)

Non-current

Secured

Bank loans

Lease liabilities (note 24)

G r o uP   
2 0 1 3  
$ ’ 0 0 0

P A r E n t  
2 0 1 3  
$ ’ 0 0 0

4,331

122

4,453

1,088

208

1,296

-

-

-

-

-

-

(a) 

security

The bank loans are secured by an all 
obligations General Security Agreement 
given by Eastern Coal Limited and its 
subsidiaries (“Eastern”) under which each 
member of Eastern grants to the bank 
a first ranking security interest over all 
its present and future acquired property 
(including proceeds) and a first ranking 
security interest over any of the Eastern 

assets. In addition to this, the bank has a 
registered first and exclusive mortgage 
over the property at Timaru owned by a 
subsidiary company, Eastern Coal  
Supplies Limited.

Lease liabilities are effectively secured as 
the rights to the leased assets recognised 
in the financial statements revert to the 
lessor in the event of default.

83

Financial statements for the period ended 30 June 2013NoTE  14 

BoRRoWiNgs ( CoNTiNuED )

Current

General Security Agreement

Cash and cash equivalents

Receivables

Inventories

Total current assets pledged as security

Non-current

First and exclusive mortgage

Freehold land and buildings

Finance lease

Plant and equipment

General Security Agreement

Plant and equipment

Total non-current assets pledged as security

Total assets pledged as security

2 0 1 3  
$ ’ 0 0 0

1,453

3,219

1,912

6,584

1,097

283

24,072

25,452

32,036

(b) 

Fair value  

Bank loans

Lease liabilities

2 0 1 3  
G r o uP

2 0 1 3  
G r o uP

2 0 1 3 
P A r E n t

2 0 1 3 
P A r E n t

c A r r y i n G 
A m o u n t  
$ ’ 0 0 0

F Ai r   v A L u E  
$ ’ 0 0 0

c A r r y i n G 
A m o u n t  
$ ’ 0 0 0

FA i r 
  v A L u E  
$ ’ 0 0 0

5,419

5,419

33 0

330

5,749

5,749

-

-

-

-

-

-

(c) 

Risk exposures

Details of the group’s exposure to risks arising from current and non-current borrowings are set  
out in note 21.

84

Section 02NoTE  15  DEFERRED  CoNsiDERaTioN

Current

Acquisition of subsidiary deferred consideration

Non-current

Acquisition of subsidiary deferred consideration

Total deferred consideration

Movements

Balance as at 27 March 2013

Group reorganisation (note 30)

at 30 June 2013

2 0 1 3  
$ ’ 0 0 0

3,931

3,931

179,925

179,925

183,856

d E F Er r Ed  
c o n s i dE r A t i o n  
$ ’ 0 0 0

-

183,856

183,856

85

Financial statements for the period ended 30 June 2013 
 
NoTE  15  DEFERRED  CoNsiDERaTioN  (CoNTiNuED )

Details of deferred consideration

Foreign exchange 

discount rate

Deferred consideration has been 
discounted to reflect the time value of 
money. The long term US Government 
Bond rate has been used to reflect the 
nature of the underlying future cash flows.

deferred consideration

The acquisition of Buller Coal Limited 
(formerly L&M Coal Limited) in November 
2010 contained two components of 
deferred consideration, cash and royalties.

deferred cash consideration

The deferred cash consideration is made 
up of two payments of US$40,000,000, 
the first being payable upon 25,000 
tonnes of coal being shipped from the 
Buller Coal Project and the second payable 
upon 1 million tonnes of coal being shipped 
from the Buller Coal Project.

The potential undiscounted amount of 
all future cash payments that the group 
could be required to make under these 
arrangements is between US$nil and 
US$80,000,000. The deferred cash 
consideration is valued at each reporting 
date based on expected timing of the cash 
payment and an appropriate discount rate. 
Revaluations are recognised in the  
income statement. 

royalties

As part of the consideration Bathurst was 
party to a royalty agreement with L&M 
Coal Holdings Limited. The amounts that 
are payable in the future under this royalty 
agreement are recognised as part of the 
consideration paid for Buller Coal Limited.

The fair value of the future royalty 
payments is estimated using an 
appropriate discount rate, production 
profile, and forecasted US dollar coal 
prices (estimated using forecasts from 
leading investment banks). Revaluations 
are recognised in the income statement. 

Both elements of the deferred 
consideration are denominated in US 
dollars and as such are exposed to 
movements in foreign exchange rates 
(notably New Zealand dollar / US dollar 
rates) with the effect of changes in the 
foreign exchange rates being recognised 
in the income statement in the period 
the change occurs. Refer to note 21 for 
discussion on the sensitivity of the income 
statement to fluctuations in the New 
Zealand dollar / US dollar exchange rate.

The deferred consideration only becomes 
payable upon sales targets and as such is 
considered to be naturally hedged against 
US dollar sales receipts expected at the 
time the deferred consideration falls due.

Payment timing

The production targets that trigger the 
performance payments and royalties are 
expected to be partially met within the 
next 12 months, as such a component of 
deferred consideration is classified as 
current at 30 June 2013.

security

Pursuant to a deed of guarantee and 
security the two performance payments 
of US$40 million included in the deferred 
consideration above are secured by way 
of a first-ranking security interest in all of 
Buller’s present and future assets (and 
present and future rights, title and interest 
in any assets). In addition to this, Buller 
Coal Limited has guaranteed the payment 
of all amounts under the Sale and  
Purchase Agreement with L&M Coal 
Holdings Limited.

The performance payments are due on 
the production targets discussed above; 
until these production targets are met no 
amounts are due or payable under the Sale 
and Purchase Agreement with L&M Coal 
Holdings Limited.

86

Section 02 
 
 
 
 
 
 
 
 
NoTE  16 

PRovisioNs

Current

Employee benefits

Rehabilitation

Non-current

Rehabilitation

Total provisions

G r o uP   
2 0 1 3  
$ ’ 0 0 0

P A r E n t  
2 0 1 3  
$ ’ 0 0 0

591

205

796

2,579

2,579

3,375

-

-

-

-

-

-

(a) 

Rehabilitation

(b)  

Movements in provisions

Provision is made for the future 
rehabilitation of areas disturbed in the 
mining process. Management estimates 
the provision based on expected levels 
of rehabilitation, areas disturbed and an 
appropriate discount rate. Refer to  
note 1(s) for the group’s accounting  
policy on rehabilitation.

Movements in each class of provision 
during the financial year, other than 
employee benefits, are set out below:

Carrying amount at start of period

Group reorganisation

Carrying amount at the end of the period

r E H A b i L i t A t i o n  
P r o v i s i o n
$ ’ 0 0 0

-

2,784

2,784

87

Financial statements for the period ended 30 June 2013NoTE  17  DEFERRED  Tax LiaBiLiTiEs

The balance comprises temporary differences  
attributable to:

Mining licences

Waste moved in advance

Exploration and evaluation expenditure

Property, plant and equipment

Total deferred tax liabilities

Set-off of deferred tax assets pursuant to set-off provisions (see note 12)

Net deferred tax liabilities

G r o uP   
2 0 1 3  
$ ’ 0 0 0

P A r E n t  
2 0 1 3  
$ ’ 0 0 0

97,635

3,355

3,070

991

105,051

(9,720)

95,331

-

-

-

-

-

-

-

Movements group

at 27 March 2013

Group reorganisation  
(note 30)

m i n i n G  
Li c E n c E s  
$ ’ 0 0 0

W A s t E   i n  
Ad v An c E  
$ ’ 0 0 0

E x P L o r A t i o n 
&   E v A L u A t i o n 
$ ’ 0 0 0

P r o P E r t y , 
P L A n t  A n d 
E q u i P mE n t 
$ ’ 0 0 0

t o t A L  
$ ’ 0 0 0

-

-

-

-

-

97,635

3,355

3,070

991

105,051

at 30 June 2013

97,635

3,355

3,070

991

105,051

88

Section 02NoTE  18 

CoNTRiBuTED  EquiTy

(a) share capital

group

Ordinary fully paid shares

Parent 

Ordinary fully paid shares

2 0 1 3  
s H Ar Es

2 0 1 3  
$ ’ 0 0 0

699,247,997

219,623

699,247,997

219,623

699,247,997

219,623

699,247,997

219,623

Share capital represents the ordinary paid up capital and reserves (excluding share based payment 
reserve) of the Group’s predecessor parent company (note 30). 

(b) Movements in ordinary share capital

Details

opening balance 27 March 2013

Group reorganisation (note 30)

Balance 30 June 2013

n u m b E r   oF  
s H Ar Es

-

699,247,997

699,247,997

(c) ordinary shares

(d) Capital risk management

Ordinary shares entitle the holder to 
participate in dividends and the proceeds 
on winding up of the company in proportion 
to the number of shares held. Every 
ordinary share is entitled to one vote.

The board’s policy is to maintain a strong 
capital base so as to maintain investor, 
creditor, and market confidence and to 
sustain the future development of the 
business. Given the stage of the company’s 
development there are no formal targets 
set for return on capital. There were no 
changes to the company’s approach to 
capital management during the year. 
The company is not subject to externally 
imposed capital requirements.

89

Financial statements for the period ended 30 June 2013 
 
 
NoTE  19 

REsERvEs

Share based payment reserve

Reorganisation reserve

The movements in the reserves for the year 
are shown in the statement of movements 
in equity.

Nature and purpose of reserves

share based payment reserve

The share based payment reserve is 
 used to recognise the fair value of  
options and performance rights issued.

reorganisation reserve

Bathurst Resources (New Zealand)  
Limited was incorporated on 27 March 
2013. A scheme of arrangement 
between Bathurst Resources Limited 
and its shareholders resulted in Bathurst 

G r o uP  
2 0 1 3  
$ ’ 0 0 0

P A r E n t  
2 0 1 3  
$ ’ 0 0 0

13,942

13,942

(32,760)

-

(18,818)

13,942

Resources (New Zealand) Limited becoming 
the new ultimate parent company of the 
group on 28th June 2013. In accordance 
with the Financial Reporting Act 1993, 
these group financial statements can only 
include subsidiary companies results from 
the date of reorganisation, and therefore in 
arriving at a closing consolidated Balance 
Sheet, a reorganisation reserve has been 
created which reflects the previous retained 
losses of subsidiaries. 

NoTE  20  DiviDENDs

NoTE  21 

FiNaNCiaL  Risk MaNagEMENT

No dividend was paid or declared during 
the financial year and the directors do not 
recommend the payment of a dividend.

The group’s activities expose it to a variety 
of financial risks: market risk (including 
currency risk, and interest rate risk), credit 
risk and liquidity risk. The group’s overall 
risk management programme focuses on 
the unpredictability of financial markets  
and seeks to minimise potential adverse 
effects on the financial performance  
of the group.

The group uses different methods to 
measure different types of risk to which it is 
exposed. These methods include sensitivity 
analysis in the case of interest rate, foreign 
exchange and other price risks and aging 
analysis for credit risk.

Risk management is carried out by the 
management team under policies approved 
by the board of directors. Management 
identifies and evaluates financial risks on  
a regular basis. 

90

Section 02 
 
 
NoTE  21 

FiNaNCiaL  Risk MaNagEMENT  CoNTiNuED  

The group holds the following financial instruments:

Financial assets

Loans and receivables 

Cash and short term deposits

Trade and other receivables 

Other financial assets 

Financial liabilities

Amortised cost

Trade and other payables

Related party payables

Borrowings

Fair value 

Deferred consideration

G r o uP  
2 0 1 3  
$ ’ 0 0 0

P A r E n t  
2 0 1 3  
$ ’ 0 0 0

13,754

4,425

4,122

22,301

7,600

-

5,749

183,856

-

4

75

79

394

158

-

-

197,205

552

(a) 

(i) 

Market risk

Foreign exchange risk

Foreign exchange risk arises from future 
commercial transactions and recognised 
assets and liabilities denominated 
in a currency that is not the entity’s 
functional currency. The risk is measured 
using sensitivity analysis and cash flow 
forecasting.

The group’s exposure to foreign exchange 
movements primarily relates to deferred 
consideration which is denominated in USD. 

With the export business not yet 
operational, the group has not adopted 
formal foreign exchange risk policies.

As cash flows required and generated by 
the Buller Coal project become clearer 
an appropriate foreign exchange risk 
management policy will be adopted.

The group’s exposure to foreign currency risk at the end of the reporting period, expressed  
in New Zealand dollars, was as follows:

Deferred consideration

91

3 0   J u n E   2 0 1 3 
u s d  E xPo s u r E 
$ ’ 0 0 0

183,856

Financial statements for the period ended 30 June 2013 
 
NoTE  21  

FiNaNCiaL  Risk  MaNagEMENT  (CoNTiNuED )

(ii) 

 cash flow and fair value  
interest rate risk

The group’s main interest rate risk arises 
from long term borrowings. Borrowings 
that are issued at variable interest rates 

expose the group to cash flow interest 
rate risk. The group has limited debt and 
as such there is no formal policy around 
levels of fixed and variable borrowings to 
be maintained.

As at the end of the reporting period, the group had the following variable rate borrowings:

Bank loans

Finance Leases

An analysis by maturities is provided in (c) below.

The group’s fixed rate borrowings and 
receivables are carried at amortised cost. 
They are therefore not subject to interest 
rate risk as defined in NZ IFRS 7.

Due to the relatively low borrowings of the 
group the group does not regularly analyse 
its interest rate exposure and cash flow 
interest rate risk. As the group matures and 
the borrowings increase management will 
develop appropriate polices and manage 
the risk accordingly. 

As a result of the capital reorganisation, 
sensitivities to market risk have no impact 
on profit or loss for the period ended 30 
June 2013.

3 0   J u n E   2 0 1 3

WE i G HtE d  A v G 
i n tE r E s t   r A tE  
%

b A L An c E  
$ ’ 0 0 0

5.72

5,419

9.46

330

(b) 

Credit risk

Credit risk is managed on a group basis. 
Credit risk arises from cash and cash 
equivalents as well as credit exposures 
to our customers, including outstanding 
receivables. For banks and financial 
institutions, only S&P rated parties with a 
minimum rating of ‘A-1+’ are accepted. If 
wholesale customers are independently 
rated, these ratings are used. Otherwise, if 
there is no independent rating, risk control 
assesses the credit quality of the customer, 
taking into account its financial position, 
past experience and other factors. 

The compliance with credit limits by 
corporate customers is regularly monitored 
by management. Sales to retail customers 
are required to be settled in cash or using 
major credit cards, mitigating credit risk.

92

Section 02The credit quality of financial assets that 
are neither past due nor impaired can 
be assessed by reference to external 

credit ratings (if available) or to historical 
information about counterparty default 
rates:

Trade receivables

Counterparties with an external credit rating (S&P)

A-1

A-2

Counterparties without external credit rating

Group 1*

Total trade receivables

Cash at bank and short-term deposits

A-1+

2 0 1 3  
$ ’ 0 0 0

65

1,642

1,707

1,104

2,811

13,754

*Group 1 – existing customers (more than 6 months) with no defaults in the past.

(c) 

Liquidity risk

Prudent liquidity risk management implies 
maintaining sufficient cash and the 
availability of funding through an adequate 
amount of committed credit facilities to 
meet obligations when they fall due. At the 
end of the reporting period the group held 
deposits at call of $1,302,804 that are 
expected to readily generate cash inflows 
for managing liquidity risk. Due to the 

dynamic nature of the project, the group 
maintains flexibility in liquidity through the 
use of rolling deposit maturity cycles and 
by maintaining availability under committed 
credit lines. 

Financing arrangements 

The group had access to the following 
undrawn borrowing facilities at the end of 
the reporting period:

Floating rate

Bank overdraft (expiring within one year)

2 0 1 3  
$ ’ 0 0 0

593

The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice. 

93

Financial statements for the period ended 30 June 2013 
NoTE  21  

FiNaNCiaL  Risk  MaNagEMENT  (CoNTiNuED )

maturities of financial liabilities 

The tables below analyse the group’s 
financial liabilities into relevant maturity 
groupings based on their contractual 
maturities. The amounts disclosed in the 

table are the contractual undiscounted 
cash flows. Balances due within 12 months 
equal their carrying balances as the impact 
of discounting is not significant.

Contractual maturities of  
financial liabilities  
at 30 June 2013

L Es s   t H An  
6   m o n tH s  
$ ’ 0 0 0

6   –   1 2  
m o n tH s  
$ ’ 0 0 0

b E t W E En  
1   A n d 
2   y E A r s  
$ ’ 0 0 0

b E t W E En  
2  A n d
  5   y E A r s  
$ ’ 0 0 0

o v E r  
5   y E A r s  
$ ’ 0 0 0

t o t A L  
c o n t r Ac t uA L  
c A s H  F L o Ws 
$ ’ 0 0 0

c A r r y i n G 
A m o u n t  
$ ’ 0 0 0

Trade payables

Borrowings  
(exc. finance leases)

Deferred consideration

Finance leases 

Total

7,600

4,154

-

74

-

208

-

401

-

775

-

-

7,600

7,600

5,538

5,419

3,060

10,206

101,399

89,978

204,643

183,856

74

149

75

-

372

330

11,828

3,342

10,756

102,249

89,978

218,153

197,205

(d)  

Fair value measurements

The fair value of financial assets and 
financial liabilities must be estimated 
for recognition and measurement or for 
disclosure purposes.

NZ IFRS 7 Financial Instruments: 
Disclosures requires disclosure of fair value 
measurements by level of the following fair 
value measurement hierarchy:

(a) 

(b) 

 Quoted prices (unadjusted) in active 
markets for identical assets or 
liabilities (level 1)

 Inputs other than quoted prices 
included within level 1 that are 
observable for the asset or liability, 
either directly (as prices) or indirectly 
(derived from prices) (level 2), and

(c) 

 Inputs for the asset or liability that are 
not based on observable market data 
(unobservable inputs) (level 3).

The following table presents the groups assets and liabilities measured and recognised at fair value  
at 30 June 2013:

at 30 June 2013

Liabilities

L E v E L   3  
$ ’ 0 0 0

t o t A L  
$ ’ 0 0 0

Deferred consideration (see note 15)

183,856

183,856

The fair value of the deferred consideration 
is calculated as the present value of the 
expected cash flows using a discount 
rate that reflects the specific risk to the 
expected payment profile. If the risk 
adjusted discount rate was 10% higher 
or lower, the fair value of the deferred 
consideration would decrease by 

$5,323,233 or increase by $5,670,684 
respectively. If the expected cash flows 
from the royalty component of the deferred 
consideration were 10% higher or lower, 
the fair value of the deferred consideration 
would increase by $9,269,321 or decrease 
by $9,269,321 respectively. 

94

Section 02NoTE  22 

kEy MaNagEMENT  PERsoNNEL  DisCLosuREs

As a result of the capital reorganisation 
(note 30) no key management personnel 
related costs have been included in these 
financial statements. 

(a) 

Loans to key management personnel

Details of loans made to directors of 
Bathurst Resources Limited and other 
key management personnel of the group, 
including their personally related parties 
are set out below.

(i) 

Aggregates for loans to key management personnel

b A L A n c E  A t   tH E  
s t A r t   o F  t H E 
P E r i o d  
$

G r o uP   r E o r -
G A n i s A t i o n  
$

b A L An c E  A t 
tH E  E n d   o F   tH E  
P E r i o d  
$

n u m b E r   i n 
t H E G r o u P A t 
tH E  E n d   o F 
tH E  P E r i o d

2013

-

451,098

451,098

1

(ii) 

individuals with loans above $100,000 during the financial year

b A L A n c E  A t   tH E  
s t A r t   o F  t H E 
P Er i o d

G r o uP   
r E o r G A n i s At i o n

b A L An c E  A t 
tH E  E n d   o F   tH E  
P Er i o d

n u m b E r   i n 
t H E G r o u P A t 
tH E  E n d   o F 
tH E  P E r i o d

$

-

$

$

451,098

451,098

1

H Bohannan

The loan outstanding at the end of the year to Mr Bohannan is an unsecured loan repayable within  
12 months of period end. Interest is payable on the loan at a rate of 12.5%.

NoTE  23 

REMuNERaTioN  oF  auDiToRs

During the period, the following fees were paid or payable for services provided by the auditor of the 
parent entity:

PwC 

audit and other assurance services

Audit and review of financial statements

Total remuneration for audit and other assurance services

2 0 1 3  
$ ’ 0 0 0

265

265

95

Financial statements for the period ended 30 June 2013 
 
 
NoTE  24 

CoMMiTMENTs

(a) 

Capital commitments

Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows:

Property, plant & equipment

Within one year

Later than one year but not later than five years

Mining licences and properties

Within one year

Later than one year but not later than five years

G r o uP  
2 0 1 3  
$ ’ 0 0 0

P A r E n t  
2 0 1 3  
$ ’ 0 0 0

8,420

430

8,850

4,500

11,450

15,950

-

-

-

-

-

-

(b) 

Lease commitments

Non-cancellable operating leases

The group leases various offices, 
accommodations, and equipment under 

non-cancellable operating leases expiring 
within one to six years. The leases have 
varying terms, escalation clauses and 
renewal rights.

G r o uP   
2 0 1 3  
$ ’ 0 0 0

P A r E n t  
2 0 1 3  
$ ’ 0 0 0

476

785

120

1,381

-

-

-

-

Commitments for minimum lease payments in relation to  
non-cancellable operating leases are payable as follows:

Within one year

Later than one year but not later than five years

Later than five years

(ii) 

Finance leases

The group leases various plant and 
equipment with a carrying amount of 
$282k under finance leases expiring 
within one to four years.

96

Section 02 
Commitments in relation to finance leases are payable as follows:

Within one year

Later than one year but not later than five years

Later than five years

Minimum lease payments

Future finance charges

Recognised as a liability

The present value of finance lease liabilities is as follows:

Within one year

Later than one year but not later than five years

Later than five years

Minimum lease payments

G r o uP   
2 0 1 3  
$ ’ 0 0 0

P A r E n t  
2 0 1 3  
$ ’ 0 0 0

149

223

-

372 

(42)

330

123

207

-

330 

-

-

-

-

-

-

-

-

-

-

(c) 

Exploration expenditure commitments

The group holds various exploration permits which have as part of their conditions minimum work 
programs. 

Commitments in relation to exploration permits are payable as follows:

Within one year

Later than one year but not later than five years

Later than five years

G r o uP   
2 0 1 3  
$ ’ 0 0 0

P A r E n t  
2 0 1 3  
$ ’ 0 0 0

1,652

9,401

-

11,053

-

-

-

-

97

Financial statements for the period ended 30 June 2013NoTE  25 

RELaTED  PaRTy TRaNsaCTioNs

(a) 

Parent entity

(b) 

subsidiaries

The ultimate parent entity within the group 
is Bathurst Resources (New Zealand) 
Limited.

The consolidated financial statements 
incorporate the assets, liabilities and 
results of the following subsidiaries in 
accordance with the accounting policy 
described in note 1(a).

Name of entity

c o u n t r y   oF   
i n c o r P o r A t i o n

c L A s s   o F 
s H Ar Es

E q u i t y  
H oL d i nG   
2 0 1 3

Bathurst Resources Limited

Australia

Ordinary

Bathurst New Zealand Limited

New Zealand

Ordinary

Bathurst Coal Limited

Buller Coal Limited

Eastern Coal Limited

Cascade Coal Limited

New Zealand

Ordinary

New Zealand

Ordinary

New Zealand

Ordinary

New Zealand

Ordinary

Somervilles Land Holdings Limited

New Zealand

Ordinary

Canterbury Coal Limited*

New Zealand

Ordinary

Cascade East Limited

Takitimu Coal Limited

Rochfort Coal Limited

New Zealand

Ordinary

New Zealand

Ordinary

New Zealand

Ordinary

Eastern Coal Supplies Limited

New Zealand

Ordinary

* Cascade West Limited changed its name to Canterbury Coal Limited on the 9th January 2013

%

100

100

100

100

100

100

100

100

100

100

100

100

(c) 

key management personnel

Disclosures relating to key management personnel are set out in note 22.

98

Section 02NoTE  26 

EvENTs oCCuRRiNg aFTER  ThE  REPoRTiNg PERioD

There are no material events that occurred 
subsequent to reporting date, that require 
recognition of, or additional disclosure in 
these financial statements.

NoTE  27 

 RECoNCiLiaTioN  oF  Loss aFTER  iNCoME  Tax To   
NET Cash ouTFLoW  FRoM  oPERaTiNg aCTiviTiEs

Loss for the year

Changes in operating assets and liabilities:

Increase in trade debtors

Increase in other operating assets

Increase / (decrease) in trade and other payables

Increase in deferred tax assets

Net cash outflow from operating activities

NoTE  28 

EaRNiNgs PER  shaRE

(a) Basic earnings per share

Total basic earnings per share attributable to the ordinary equity holders  
of the company

(b) Diluted earnings per share

Total diluted earnings per share attributable to the ordinary equity holders  
of the company

(c) Reconciliation of earnings used in calculating earnings per share

Earnings used in the calculation of basic and dilutive Earnings per share:

Earnings from continued operations

Total earnings

(d) Weighted average number of shares used as the denominator

Weighted average number of ordinary shares during the period used  
in the calculation of basic and dilutive earnings per share

Adjustments for calculation of diluted earnings per share:

Options and performance rights

Weighted average number of ordinary shares and potential ordinary shares 
used as the denominator in calculating diluted earnings per share

99

G r o uP   
2 0 1 3  
$ ’ 0 0 0

P A r E n t  
2 0 1 3  
$ ’ 0 0 0

(301)

(301)

 (4)

(4)

(172)

(172)

552

(75)

-

552

(75)

-

2 0 1 3  
c En t s

(.04)

(.04)

$’000

(301)

(301)

697,141,148

18,238,255

715,379,403

Financial statements for the period ended 30 June 2013NoTE  29 

shaRE -BasED  PayMENTs 

As a result of the capital reorganisation 
(note 30), share options and performance 
rights held in Bathurst Resources Limited 
were swapped on a one-for-one basis for 
options and performance rights in Bathurst 
Resources (New Zealand) Limited. No 
income statement charge has been 
recorded in these financial statements. 

(a) 

Employee share option plan

The Bathurst Resources Limited 
Employee Share Option Plan (“ESOP”) was 
approved by shareholders at the 2010 
AGM. The ESOP is designed to provide 
directors, senior executives, employees, 
and consultants with an opportunity to 
participate in the company’s future growth 
and gives them an incentive to contribute 

options (EsoP) 30 June 2013

to that growth. The ESOP was established 
to enable the company to attract and retain 
skilled and experienced directors, senior 
executives, employees, and consultants 
and to provide them with the motivation to 
make the company more successful and 
deliver long-term shareholder returns.

Under the plan, participants are granted 
units in the ESOP Trust, some of which only 
vest upon the shipment of the first 25,000 
tonnes from the Buller Coal Project. 
Participation in the ESOP is at the  
board’s discretion.

Options granted under the plan carry no 
dividend or voting rights. When exercised 
each option coverts into one fully paid 
ordinary share.

issue

G r A n t   d A tE

E x P i r y   d At E

E x E r c i s E 
P r i c E  ( A $ ) *

b A L An c E  A t 
tH E  E n d   o F 
tH E   y E A r

v E s tE d  A n d  
 E x E r c i s AbL E  
A t   t H E E n d   o F 
tH E   y E A r

A

B

C

D

E

F

H

I

J

K

18 Aug 10

30 Sept 13

10.8 cents

7,500,000

7,500,000

20 Aug 10

30 Sept 13

16.8 cents

1,000,000

1,000,000

20 Aug 10

30 Sept 13

10.8 cents

5,500,000

5,500,000

29 Nov 10

30 Sept 13

21 cents

1,000,000

1,000,000

29 Nov 10

31 Dec 13

40 cents

10,750,000

3,750,000

6 Dec 10 

31 Dec 13

40 cents

11,450,000

3,950,000

18 Apr 11

31 Dec 13

85 cents

2,000,000

2,000,000

26 Aug 12

29 Aug 14

38 cents

1,000,000

1 Sept 12

29 Aug 14

38 cents

1,000,000

20 Dec 12

19 Dec 14

38 cents

2,000,000

-

-

-

Weighted average  
exercise price (a$)

* share options were issued with an Australian dollar exercise price.

43,200,000

24,700,000

32.1 cents

26.6 cents

The weighted average remaining contractual life of share options outstanding at the end of the 
reporting period was 180 days (2012 – 1.41 years).

100

Section 02 
The plan forms part of the Company’s 
remuneration policy and provides the 
Company with a mechanism for driving long 
term performance for Shareholders and 
retention of executives.

Performance rights granted under the plan 
carry no dividend or voting rights. When 
exercised each performance right coverts 
into one fully paid ordinary share.

(b) 

Employee long term incentive plan 

The Bathurst Resources Limited Long 
Term Incentive Plan (LTIP) was approved 
by Shareholders at the 2012 AGM. The 
purpose of the plan is to reinforce a 
performance focused culture by providing 
a long term performance based element 
to the total remuneration packages of 
certain employees, by aligning and linking 
the interests of Bathurst’s leadership team 
and Shareholders, and to attract and retain 
executives and key management. 

Performance Rights (LTiP)

Issue

2013

2013

2013

2013

G r A n t   d A tE

E x P i r y   d At E

E x E r c i s E   P r i c E

b A L An c E  A t 
tH E  E n d   o F   tH E  
y E Ar

v E s tE d  A n d 
E x E r c i s AbL E   
A t   tH E  E n d 
o F  t H E  y E A r

8 Feb 13

30 June 15

27 Mar 13

30 June 15

31 Mar 13

30 June 15

13 Jun 13

30 June 15

-

-

-

-

352,733

925,925

440,917

1,388,889

3,108,464

-

-

-

-

-

(c) 

other option issues

As at 30 June 2013 there were 
14,844,109 options on issue outside 
the ESOP which have an expiry date 
of between 31 October 2013 and 15 
November 2013 along with an exercise 
price of between 15.5 cents (A$) and 37.8 
cents (A$).

101

Financial statements for the period ended 30 June 2013 
The pro forma consolidated financial 
statements comprise the results of 
Bathurst Resources (New Zealand) Limited 
and its subsidiaries as at and for the 12 
months ended 30 June 2013. 

The accounting policies applied in these 
financial statements are consistent with 
those adopted and applied in notes 1 and 2 
of these accounts. 

Comparative balances have been 
presented in New Zealand dollars 
consistent with the current year 
presentation. Assets, liabilities and 
equity balances have been translated at 
closing rates. Items of profit or loss and 
carried forward retained earnings have 
been translated at average rates in the 
respective periods earned or incurred. 

NoTE  30 

CaPiTaL  REoRgaNisaTioN

On 2 April 2013, Bathurst Resources 
Limited announced it’s intention 
to redomicile to New Zealand by 
incorporating a new company, Bathurst 
Resources (New Zealand) Limited. 
Bathurst Resources (New Zealand) Limited 
would be the ultimate parent company of 
the Bathurst Resources Group comprising 
Bathurst Resources Limited and its 
subsidiaries. 

The redomicile was enacted by a scheme 
of arrangement (the “scheme”) between 
Bathurst Resources Limited and its 
shareholders, whereby shareholders 
exchanged shares in Bathurst Resources 
Limited for shares in Bathurst Resources 
(New Zealand) Limited on a one-for-one 
basis, and for which shareholder approval 
was granted on 13 June 2013. The scheme 
was implemented on 28 June 2013. 

In accordance with the New Zealand 
Financial Reporting Act 1993, the Group 
financial statements of Bathurst Resources 
(New Zealand) Limited include only the 
results and balances of subsidiaries 
from the day on which they were subject 
to the scheme reorganisation. Assets 
and liabilities were assumed at the 
predecessors carrying values. 

The scheme does not represent an 
acquisition or business combination 
as defined in NZ IFRS as it is merely a 
reorganisation of the existing Bathurst 
Group. The pro forma information in this 
note is presented to show the consolidated 
financial position and performance of 
Bathurst Resources (New Zealand) 
Limited and its subsidiaries as if this was 
a continuation of the existing Bathurst 
Resources Limited group and as though 
the specific requirements of the Financial 
Reporting Act 1993 had not been applied. 

Basis of preparation 

102

Section 02 
group consolidated income statement

Revenue from operations

Expenses

Changes in inventories of finished goods

Raw materials, mining costs, and consumables used

Freight expense

Employee benefits expense

Depreciation and amortisation expense

Restructuring and acquisition related costs

Other expenses

Finance costs

Foreign exchange (loss) / gain

Share based payments

Impairment reversal/(loss)

Fair value adjustment – deferred consideration

Loss before income tax

Income tax (expense)/benefit

Loss for the year after income tax

group consolidated statement of other comprehensive income

Loss for the year

Other comprehensive income

Exchange differences on translation of foreign operations

other comprehensive income for the year, net of tax

P r o  F o r m A  
2 0 1 3  
$ ’ 0 0 0

P r o  F o r m A  
2 0 1 2  
$ ’ 0 0 0

41,024

38,214

(792)

1,186

(17,688)

(18,507)

(9,883)

(9,608)

(13,640)

(11,064)

(3,218)

(3,135)

(1,632)

(1,470)

(7,491)

(8,977)

(8,121)

(5,275)

(1,813)

(9,074)

(1,766)

122

6,618

(8,161)

2,448

2,448

(15,954)

(33,301)

(4,485)

5,637

(20,439)

(27,664)

P r o  F o r m A 
  2 0 1 3  
$ ’ 0 0 0

P r o  F o r m A  
2 0 1 2  
$ ’ 0 0 0

(20,439)

(27,664)

1,365

3,748

1,365

3,748

Total comprehensive income for the year

(19,074)

(23,916)

Total comprehensive income for the year attributable to the  
owners of Bathurst Resources Limited

(19,074) 

(23,916)

103

Financial statements for the period ended 30 June 2013NoTE  30 

CaPiTaL  REoRgaNisaTioN  (CoNTiNuED )

group consolidated Balance sheet

assETs

Current assets

Cash and cash equivalents

Short term deposits

Trade and other receivables

Inventories

Financial assets

Other assets

Total current assets

Non-current assets

Property, plant and equipment

Mine licences, properties, exploration and evaluation assets

Financial assets

Other assets

Total non-current assets

Total assets

LiaBiLiTiE s

Current liabilities

Trade and other payables

Borrowings

Deferred consideration

Provisions

Total current liabilities

Non-current liabilities

Borrowings

Deferred consideration

Deferred tax liabilities

Provisions

Total non-current liabilities

Total liabilities

Net assets

EquiTy

Contributed equity

Reserves

Total equity

104

2 0 1 3  
$ ’ 0 0 0

2 0 1 2  
$ ’ 0 0 0

12,526

68,737

1,228

4,425

1,912

82

12,095

-

3,340

2,572

174

231

32,268

75,054

44,915

16,542

413,292

401,541

4,040

1,900

4,221

2,246

464,147

424,550

496,415

499,604

7,600

4,453

3,931

796

7,102

2,571

-

814

16,780

10,487

1,296

-

179,925

176,984

95,331

90,159

2,579

2,229

279,131

269,372

295,911

279,859

200,504

219,745

251,153

269,549

(50,649)

(49,804)

200,504

219,745

Section 02group consolidated statement of cash flows

Cash flows from operating activities

Receipts from customers (inclusive of GST)

Payments to suppliers and employees (inclusive of GST)

Interest received

Interest and other finance costs paid

Taxes paid

Net cash outflow from operating activities

Cash flows from investing activities

Payments for property, plant and equipment

Payments for exploration assets

Payments for acquisition of mining permits

Proceeds from the sale of property, plant & equipment

Advances to third parties

Other

Net cash outflow from investing activities

Cash flows from financing activities

Proceeds from the issue of shares

Proceeds from borrowings

Repayment of borrowings

Payments for share issue costs

Net cash inflow from financing activities

2 0 1 3  
$ ’ 0 0 0

2 0 1 2  
$ ’ 0 0 0

38,203

40,222

(61,228)

(52,453)

1,860

5,000

(432)

(239)

(149)

(1,387)

(21,746)

(8,857)

(24,802)

(10,942)

(9,760)

(10,548)

-

(9,472)

165

119

11

(4,000)

(3,078)

(2,246)

(37,464)

(37,089)

634

3,854

4,833

-

(1,656)

(1,080)

(11)

(82)

3,800

2,692

Net (decrease) / increase in cash and cash equivalents

(55,410)

(43,254)

Cash and cash equivalents at the beginning of the year

Effects of exchange rate changes on cash and cash equivalents

Cash and cash equivalents at the end of the year

68,737

113,233

(801)

(1,242)

12,526

68,737

105

Financial statements for the period ended 30 June 2013Independent Auditors’ Report  
to the shareholders of Bathurst Resources (New Zealand) Limited 

Report on the Financial Statements 
We have audited the financial statements of Bathurst Resources (New Zealand) Limited (“the 
Company”) on pages 60 to 105, which comprise the balance sheets as at 30 June 2013, the income 
statements, statements of comprehensive income, statements of movements in equity and statements 
of cash flows for the period then ended, and the notes to the financial statements that include a 
summary of significant accounting policies and other explanatory information for both the Company 
and the Group. The Group comprises the Company and the entities it controlled at 30 June 2013 or 
from time to time during the financial period. 

Directors’ Responsibility for the Financial Statements 
The Directors are responsible for the preparation of these financial statements in accordance with 
generally accepted accounting practice in New Zealand and that give a true and fair view of the matters 
to which they relate and for such internal controls as the Directors determine are necessary to enable 
the preparation of financial statements that are free from material misstatement, whether due to fraud 
or error. 

Auditors’ Responsibility 
Our responsibility is to express an opinion on these financial statements based on our audit. We 
conducted our audit in accordance with International Standards on Auditing (New Zealand) and 
International Standards on Auditing. These standards require that we comply with relevant ethical 
requirements and plan and perform the audit to obtain reasonable assurance about whether the 
financial statements are free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures 
in the financial statements. The procedures selected depend on the auditors’ judgement, including the 
assessment of the risks of material misstatement of the financial statements, whether due to fraud or 
error. In making those risk assessments, the auditors consider the internal controls relevant to the 
Company and the Group’s preparation of financial statements that give a true and fair view of the 
matters to which they relate, in order to design audit procedures that are appropriate in the 
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company 
and the Group’s internal control. An audit also includes evaluating the appropriateness of accounting 
policies used and the reasonableness of accounting estimates, as well as evaluating the overall 
presentation of the financial statements. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for 
our audit opinion. 

We have no relationship with, or interests in, Bathurst Resources (New Zealand) Limited or any of its 
subsidiaries other than in our capacity as auditor.  

PricewaterhouseCoopers, 113 – 119 The Terrace, PO Box 243, Wellington 6140, New Zealand 
T: +64 (4) 462 7000, F: +64 (4) 462 7001, www.pwc.com/nz 

106

Section 02	
  
 
 
	
  
 
 
Independent Auditors’ Report  
Bathurst Resources (New Zealand) Limited 

Opinion 
In our opinion, the financial statements on pages 60 to 105: 

i. 

ii. 

iii. 

comply with generally accepted accounting practice in New Zealand;  

comply with International Financial Reporting Standards; and 

give a true and fair view of the financial position of the Company and the Group as at 30 June 
2013, and their financial performance and cash flows for the period then ended. 

Report on Other Legal and Regulatory Requirements 
We also report in accordance with Sections 16(1)(d) and 16(1)(e) of the Financial Reporting Act 1993. 
In relation to our audit of the financial statements for the period ended 30 June 2013: 

i. 

ii. 

we have obtained all the information and explanations that we have required; and 

in our opinion, proper accounting records have been kept by the Company as far as appears 
from an examination of those records. 

Restriction on Distribution or Use 
This report is made solely to the Company’s shareholders, as a body, in accordance with Section 205(1) 
of the Companies Act 1993. Our audit work has been undertaken so that we might state to the 
Company’s shareholders those matters which we are required to state to them in an auditors’ report 
and for no other purpose. To the fullest extent permitted by law, we do not accept or assume 
responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our 
audit work, for this report or for the opinions we have formed. 

Chartered Accountants 
21 August 2013 

Wellington  

107

Financial statements for the period ended 30 June 2013	
  
 
 
 
 
 
 
 
 
	
  
3

n
o

i
t
C
e
S

108

Section 03 
 Bathurst Resources (New Zealand) Limited annual Report 2013 – shareholder information

109

shaREhoLDER  iNFoRMaTioN

The shareholder information set out below was applicable as at 21 August 2013.

a. DisTRiBuTioN  oF  EquiTy sECuRiTiEs

Analysis of numbers of equity security holders by size of holding: 

H oL d i nG

1 – 1,000

1,001 – 5,000

5,001 – 10,000

10,001 – 100,000

100,001 and over

There were 775 holders of less than a marketable parcel of ordinary shares.

B. EquiTy sECuRiTy hoLDERs

Twenty largest quoted equity security holders

The names of the twenty largest holders of quoted equity securities are listed below: 

n A mE

JP Morgan Nominees Australia Limited

JP Morgan Nominees Australia Limited

HSBC Custody Nominees (Australia) Limited

National Nominees Limited

Bell Potter Nominees Limited

Berne No 132 Nominees Pty Ltd

Citicorp Nominees Pty Limited

Mr RJ Griffiths & Mrs JD Griffiths

Merrill Lynch (Australia) Nominees Pty Limited

Passio Pty Ltd

HSBC Custody Nominees (Australia) Limited

Mr H Bohannan & Ms J Bohannan 

Brispot Nominees Pty Limited

UBS Wealth Management Australia Nominees Pty Limited

CTS Funds Pty Ltd 

Broderick-Hall Pty Ltd 

ABN Amro Clearing Sydney Nominees Pty Limited

Mr M Clark, Ms H Anderson & Mr R Gillespie 

Mr M Kable

Navigator Australia Limited 

Total

t o t A L   H o L d E r s

338

804

678

o r d i n A r y 
s H Ar Es

69,377

2,114,144

4,502,597

2,270

68,485,446

684

624,076,433

4,774 699,247,997

o r d i n Ar y  s H Ar Es

n u m b Er  H E L d

P Er c En t A G E  
o F   i s s u E d 
s H Ar Es

103,174,542

14.76%

63,844,431

53,721,055

40,785,833

34,553,255

27,888,773

15,540,331

15,000,000

10,966,411

7,500,000

6,882,856

6,700,000

5,612,877

3,180,710

3,146,000

3,000,000

2,940,589

2,757,613

2,700,000

2,690,762

9.13%

7.68%

5.83%

4.94%

3.99%

2.22%

2.15%

1.57%

1.07%

0.98%

0.96%

0.80%

0.45%

0.45%

0.43%

0.42%

0.39%

0.39%

0.38%

412,586,038

59.00%

110

Section 03B. EquiTy sECuRiTy hoLDERs (CoNTiNuED)

unquoted equity securities

Unquoted options on issue

Unquoted performance rights on issue

C. suBsTaNTiaL  hoLDERs

Substantial holder notices have been lodged by the holders below: 

L1 Capital Pty Ltd 

Coupland Cardiff Asset Management

D. voTiNg RighTs 

Waivers

n u m b E r   o n 
i s s u E

n u m b E r   oF  
H oL dE r s

58,044,109

3,108,464

25

5

n u m b Er   H E L d

P Er c En t A G E 
o F   i s s u E d 
s H Ar Es

99,416,898

14.22%

67,476,305

9.65%

The voting rights attached to each class of 
equity securities are set out below:

(a)   Ordinary shares

 On a show of hands every member 
present at a meeting in person or by 
proxy shall have one vote and upon a 
poll each share shall have one vote.

(b)   Options

No voting rights.

As a result of the Bathurst Group 
reorganisation and redomicile from 
Australia to New Zealand, Bathurst 
Resources (New Zealand) Limited has 
been granted the following full or partial 
waivers from the NZX and ASX listing rules 
respectively. 

NZX

Rule 3.5.1; Rule 5.1.1; Rule 5.2.1; Rule 5.2.2 
(b); Rule 5.2.2 (c); Rule 7.1.1; Rule 7.1.11; 
Rule 7.3.6; Rule 7.3.1 (a); Rule 7.3.1; Rule 
7.3.5 (a)(i); Rule 7.3.6 (c)(i); Rule 7.3.11 (b)
(ii); Rule 7.6.1; Rule 9.1.1; Rule 9.2.1

ASX

Rule 1.4.1; Rule 1.4.7; Rule 1.4.8; Rule 1.1 
condition 7; Rule 1.1 condition 8; Rule 1.1 
condition 11; Rule 2.1 condition 2; Rule 
6.10.3; Rule 7.1; Rule 10.14; Rule 15.7

111

 Bathurst Resources (New Zealand) Limited Annual Report 2013 – Shareholder Information 
 
 
TENEMENT  sChEDuLE

n u m b Er

EP51078

EP51260

MP51279

PP52484

EP40591

EP40628

MP41274

MP41332

MP41455

MP41456

EP54389

EP54505

EP54507

EP54512

EP54846

PP54896

EP54933

EP53047

MP53614

EP53756

EP54031

L o c At i o n

o WnE r

b A tH u r s t   
i n tE r E s t

West Coast

Southland

West Coast

Canterbury

West Coast

West Coast

West Coast

West Coast

West Coast

West Coast

Waikato

West Coast

West Coast

Tasman

Canterbury

West Coast

Otago

West Coast

Southland

West Coast

West Coast

Buller Coal Limited

Rochfort Coal Limited

Buller Coal Limited

Rochfort Coal Limited

Rochfort Coal Limited

Buller Coal Limited

Buller Coal Limited

Buller Coal Limited

Cascade Coal Limited

Buller Coal Limited

Buller Coal Limited

Buller Coal Limited

Buller Coal Limited

Buller Coal Limited

Rochfort Coal Limited

Buller Coal Limited

Rochfort Coal Limited

Buller Coal Limited

Takitimu Coal Limited

Buller Coal Limited

Buller Coal Limited

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

112

Section 03PERMiTs gRaNTED  PasT  12 MoNThs

Extension of Land

PE r m i t

PE r m i t  t y P E

o P E r A t o r

E x t E n d  A r E A  b y

54031

54031

41455

Exploration Permit

10 Mile Creek

Buller Coal Limited

10.4 hectares

Exploration Permit

10 Mile Creek

Buller Coal Limited

19.86 hectares

Mining Permit

Cascade Creek

Cascade Coal Limited

110.776 hectares

Partial surrender

PE r m i t

PE r m i t  t y P E

Prospecting Permit

Prospecting Permit

Albury

Albury

o P E r A t o r

r E d u c E   A r E A  b y

Rochfort Coal Limited

36.18 sq kms

Rochfort Coal Limited

472.3 sq kms

Exploration Permit

Cascade permit expansion

Buller Coal Limited

86.47 hectares

Mining Permit

Cascade permit expansion

Buller Coal Limited

25.06 hectares

Exploration Permit

Cascade permit expansion

Rochfort Coal Limited

10.54 hectares

Permit granted

PE r m i t

PE r m i t  t y P E

52484

52484

40628

41456

51260

54512

54933

54389

54846

54505

54507

54031

54896

Exploration Permit

Exploration Permit

Exploration Permit

Exploration Permit

Flat Creek

Home Hills

Tihiroa

Albury

o P E r A t o r

Buller Coal Limited

Rochfort Coal Limited

Buller Coal Limited

Rochfort Coal Limited

Exploration Permit

Denniston West

Buller Coal Limited

Exploration Permit

Rocklands

Buller Coal Limited

Exploration Permit

10 Mile Creek

Buller Coal Limited

Prospecting  Permit

Buller Metals

Buller Coal Limited

113

 Bathurst Resources (New Zealand) Limited Annual Report 2013 – Shareholder InformationCoaL  REsouRCEs aND  REsERvEs

Table 1 – Resources

A rE A

Export

south Buller

Escarpment

Deep Creek

Whareatea West

Coalbrookdale

Total

North Buller

Millerton North

North Buller

Blackburn

Total

Total Export

Domestic

Cascade

Coaldale

New Brighton

Canterbury Coal

Black Diamond

Total Domestic

Total

Note

m E A s u r Ed
r E s o u r c E   ( m t )

i n d i c A tE d 
r E s o u r c E   ( m t )

i n F Er r Ed
r E s o u r c E   ( m t )

t o t A L
r E s o u r c E 
(m t )

2.8

6.2

5.0

 -

14.0

 -

 -

 -

 -

14.0

0.5

1.2

 -

 -

0.3

2.0

2.1

3.1

12.4

2.3

19.9

1.9

4.9

5.8

12.6

32.5

0.3

1.2

0.7

0.9

0.5

3.6

0.9

1.6

8.1

4.9

15.5

3.6

10.2

14.1

27.9

43.4

0.7

0.7

3.5

2.4

1.2

8.5

16.0

36.1

51.9

5.8

10.9

25.5

7.2

49.4

5.5

15.1

19.9

40.5

89.9

1.5

3.1

4.2

3.3

2.0

14.1

104.0

1. Resources are inclusive of reserves.

2. Resource tonnes have been reported using an appropriate in situ moisture basis for each deposit, 
ranging from 2% to 8% in situ moisture in Buller and 18% in situ moisture at Coaldale, Canterbury Coal, 
New Brighton and Ohai.

3. All resources and reserves quoted in this release are reported in terms as defined in the 2004 
edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore 
Reserves” as published by the Joint Ore Reserves Committee of the Australasian Institute of Mining 
and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (“JORC”).

114

Section 03Escarpment

Deep Creek

Coalbrookdale

Whareatea West

Millerton North

North Buller

Blackburn

Cascade

Coaldale

Canterbury

New Brighton

Ohai

Total

MC

MC

MC

MC

MC

MC

MC

MC

TC

TC

TC

TC

Table 2 – average Coal quality – Measured Resource

A rE A

c o A L  t y P E *

m E A s u r Ed  
rE s o u r c E  ( m t ) 

F i xE d  c A r b o n 
%   ( A d )

v o L A t i L E  
m At t E r   %   ( A d )

i nH E r E n t  
mo i s t u r E

A s H %  
( A d )

15.5

11.0

s uL P H u r   % 
( A d )

c A L o r i F i c 
v A L u E   ( Ad )

0.6

2.5

29.5

29.7

c s n

7.5

2.8

6.2

50.8

52.8

32.9

32.9

5

22.7

0.8

27.5

7.5

51.6

25.1

0.9

2.2

0.6

0.5

1.2

4.1

10.4

1.8

0.9

31.3

21.3

4.5

N/A

52.2

36.0

38.8

36.6

2.4

17.0

0.3

8.3

0.4

22.3

N/A

42.8

34.7

14.3

16.0  

c s n

7.0

5.0

6.0

9.5

4.0

6.0

4.0

N/A

N/A

N/A

N/A

F i xE d  c A r b o n 
%   ( A d )

v o L A t i L E  
m At t E r   %   ( A d )

i nH E r E n t  
mo i s t u r E

50.6

52.9

50.2

48.9

52.5

48.2

51.8

50.7

37.3

39.2

33.5

42.4

34.4

34.7

36.1

22.5

36.9

42.6

42.1

38.4

36.4

35.9

39.5

34.8

1.1

2.0

1.7

0.7

1.0

2.6

2.2

2.4

16.5

18.0

16.8

13.9

MC – Metallurgical Coal TC – Thermal Coal

Table 3 – average Coal quality – indicated Resource

A rE A

c o A L  t y P E *

i n d i c At E d 
rE s o u r c E  ( m t ) 

A s H %  
( A d )

s uL P H u r   % 
( A d )

c A L o r i F i c 
v A L u E   ( Ad )

Escarpment

Deep Creek

Coalbrookdale

Whareatea West

Millerton North

North Buller

Blackburn

Cascade

Coaldale

Canterbury

New Brighton

Ohai

Total

MC

MC

MC

MC

MC

MC

MC

MC

TC

TC

TC

TC

2.1

3.1

2.3

12.4

1.9

4.9

5.8

0.3

1.2

0.9

0.7

0.5

36.1  

14.0

9.7

12.0

28.0

9.7

5.6

3.9

8.4

9.8

7.3

10.1

8.9

MC – Metallurgical Coal TC – Thermal Coal

29.7

30.3

30.4

25.9

31.1

30.9

30.4

30.6

22.2

24.1

23.0

22.4

0.8

2.7

1.8

0.8

4.9

5.0

4.3

1.9

0.7

0.7

0.5

0.4

115

 Bathurst Resources (New Zealand) Limited Annual Report 2013 – Shareholder Information 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table 4 – average Coal quality inferred Resource

A rE A

c o A L  t y P E *

i n F Er r Ed  
rE s o u r c E   ( m t )

A s H %  
( A d )

s uL P H u r   % 
( A d )

c A L o r i F i c 
v A L u E   ( Ad )

Escarpment

Deep Creek

Coalbrookdale

Whareatea West

Millerton North

North Buller

Blackburn

Cascade

Coaldale

Canterbury

New Brighton

Ohai

Total

MC

MC

MC

MC

MC

MC

MC

MC

TC

TC

TC

TC

0.9

1.6

4.9 

8.1

 3.6

10.2 

14.1 

0.7

0.7

2.4 

3.5 

1.2

51.9  

13.1

10.1

13.7

26.6

12.0

7.6

6.4

8.4

11.7

8.9

8.9

9.1

MC – Metallurgical Coal TC – Thermal Coal

1.0

2.4

1.6

0.8

5.5

4.7

4.8

1.8

0.4

0.7

0.4

0.5

29.8

29.7

29.7

24.6

30.2

31.5

30.1

30.6

21.8

23.4

23.2

22.3

c s n

7.0

5.0

8.0

9.0

5.0

6.0

4.5

N/A

N/A

N/A

N/A

F i xE d  c A r b o n 
%   ( A d )

v o L A t i L E  
m At t E r   %   ( A d )

i nH E r E n t  
mo i s t u r E

50.7

52.5

49.5

48.3

51.6

48.3

49.4

50.9

34.1

38.7

34.9

46.5

35.0

29.7

35.2

25.3

35.3

41.2

41.8

38.3

36.2

35.6

40.0

31.8

1.2

2.4

1.6

0.7

1.1

2.9

2.3

2.4

18.0

17.2

16.2

12.7

Table 5 – Reserves

P r o d u c t  c o A L   ( m t )

Export

Escarpment

Deep Creek

Whareatea West

Coalbrookdale

Total Export

Domestic

Cascade

Total Domestic

Total

Note

P r o v E d

P r o b A b L E

t o t A L

2.2

5.1

3.6

 -

1.6

2.4

6.7

1.6

10.9

12.3

3.8

7.5

10.3

1.6

23.2

0.2

0.2

0.4

11.1

12.5

23.6

1. Resources are inclusive of reserves.

2. All resources and reserves quoted in this release are reported in terms as defined in the 2004 edition 
of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” as 
published by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, 
Australian Institute of Geoscientists and Minerals Council of Australia (“JORC”).

116

Section 03 
 
 
 
 
 
 
 
 
Table 6 – Reserves quality – Product Coal (at 15% moisture)

a R E a

a s h %   ( a D )

C sN

v o L aT i L E   M aT T E R   %

s uL P h uR   %

A v E r A G E

r A nG E

A v E r A G E

r A nG E

A v E r A G E

r A nG E

A v E r A G E

r A nG E

Escarpment

Deep Creek (coking)

Deep Creek (thermal)

Whareatea West

Coalbrookdale

Cascade

8.2

5.0

11.8

10.5

7.9

2.0

2.1 – 11.4

4.9 – 5.2

6.4 – 16.5

3.2 – 11.8

2.1 – 11.2

0.3 – 2.1

8

>9

9

5.5

4.5

6 – 9+

 5 – 9++

0 – 5

 8 – 9++

5 – 8

2 –5

28.4

37.0

29.7

32

25.9 – 31.3

18.0 – 38.0

23.9 – 31.7

29.1 – 32.1

34.9

31.3 – 34.9

0.6

2.5

1.7

0.8

1.0

1.5

0.4 – 0.8

2.0 – 3.1

0.9 – 2.0

0.8 – 0.9

0.3 – 1.4

0.3 – 1.9

Further resource and reserve information can be found on the company’s website at www.bathurstresources.co.nz.

the “Australasian Code for Reporting of 
Exploration Results, Mineral Resources 
and Ore Reserves”. Ms Ferrier consents to 
the inclusion in this report of the matters 
based on her information in the form and 
context in which it appears above.

The information in this report that 
relates to exploration results and mineral 
resources for Millerton North, North 
Buller, Blackburn, Coaldale, Canterbury 
Coal, New Brighton and Ohai is based 
on information compiled by Hamish 
McLauchlan who is a full time employee 
of Buller Coal Limited and is a member of 
the Australasian Institute of Mining and 
Metallurgy. Mr McLauchlan has sufficient 
experience which is relevant to the style of 
mineralisation and type of deposit under 
consideration and to the activity which he 
is undertaking to qualify as a Competent 
Person as defined in the 2004 edition of 
the “Australasian Code for Reporting of 
Exploration Results, Mineral Resources 
and Ore Reserves”. Mr McLauchlan 
consents to the inclusion in this report of 
the matters based on his information in the 
form and context in which it appears above.

 CoMPETENT  PERsoN   
sTaTEMENTs

The information in this report that relates to 
mineral resources and reserves for Deep 
Creek is based on information compiled 
by Adam Bonham-Carter who is a full 
time employee of Golder Associates (NZ) 
Ltd and is a member of the Australasian 
Institute of Mining and Metallurgy. 
Mr Bonham-Carter has sufficient 
experience which is relevant to the style of 
mineralisation and type of deposit under 
consideration and to the activity which he 
is undertaking to qualify as a Competent 
Person as defined in the 2004 edition of 
the “Australasian Code for Reporting of 
Exploration Results, Mineral Resources 
and Ore Reserves”. Mr Bonham-Carter 
consents to the inclusion in this report of 
the matters based on his information in the 
form and context in which it appears above.

The information in this report that relates 
to mineral reserves for Escarpment, 
Cascade, Coalbrookdale and Whareatea 
West is based on information compiled by 
Ainsley Ferrier who is a full time employee 
of Buller Coal Limited and is a member 
of the Australasian Institute of Mining 
and Metallurgy. Ms Ferrier has sufficient 
experience which is relevant to the style of 
mineralisation and type of deposit under 
consideration and to the activity which she 
is undertaking to qualify as a Competent 
Person as defined in the 2004 edition of 

117

 Bathurst Resources (New Zealand) Limited Annual Report 2013 – Shareholder Information  
y

R
o
T
C
E
R

i

D

E
T
a

R
o

P
R
o
C

D i R E C T oR s  

B a N k E R  

Craig Munro, non-executive chair

Westpac Banking Corporation

Hamish Bohannan, managing director

Rob Lord, non-executive director

s T oC k  E x C h aNg E  L i s T i Ng s

Malcolm Macpherson, non-executive director

Bathurst Resources (New Zealand) Limited shares 

Dave Frow, non-executive director

are listed on the New Zealand Exchange (NZX),  

Toko Kapea, non-executive director

and the Australian Securities Exchange (ASX)  

under the code BRL.

WE B s iT E

www.bathurstresources.co.nz 

s E C R E Ta Ri E s  

Marshall Maine

Graham Anderson

R E g i s T E R E D o F F i C E  

Level 12, 1 Willeston Street

Wellington 6011

New Zealand

+64 4 499 6830

s h a R E R E g i s T R y 

Computershare Investor Services Pty Limited

159 Hurstmere Rd 

Takapuna Central 0622 

New Zealand

a uDi T oR  

PricewaterhouseCoopers

113-119 The Terrace

Wellington 6011

New Zealand

s oL iC i T oR s  

Chapman Tripp 

245 Blenheim Road

PO Box 2510 

Christchurch 8041

New Zealand

Allion Legal

Level 2, 50 Kings Park Road

West Perth, WA 6005

118

Section 03 
 
 
di R e C t oR s  

B A n k e R  

Craig Munro, non-executive chair

Westpac Banking Corporation

Hamish Bohannan, managing director

Rob Lord, non-executive director

s t oC k   e x C h An g e   l i s t i n g s

Malcolm Macpherson, non-executive director

Bathurst Resources (New Zealand) Limited shares 

Dave Frow, non-executive director

are listed on the New Zealand Exchange (NZX),  

Toko Kapea, non-executive director

and the Australian Securities Exchange (ASX)  

under the code BRL.

we B s i t e

www.bathurstresources.co.nz 

s e C Re t A Ri e s  

Marshall Maine

Graham Anderson

R e g i s t e R e d  o f f i C e 

Level 12, 1 Willeston Street

Wellington 6011

New Zealand

+64 4 499 6830

s h A R e  R e g i s t R y 

Computershare Investor Services Pty Limited

159 Hurstmere Rd 

Takapuna Central 0622 

New Zealand

A u d i t oR  

PricewaterhouseCoopers

113-119 The Terrace

Wellington 6011

New Zealand

s o l iC i t oR s  

Chapman Tripp 

245 Blenheim Road

PO Box 2510 

Christchurch 8041

New Zealand

Allion Legal

Level 2, 50 Kings Park Road

West Perth, WA 6005

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119

 Bathurst Resources (New Zealand) Limited Annual Report 2013Section 03 
 
 
 
 
 
 
Bathurst Resources (New Zealand) Limited 

Level 12, 1 Willeston Street 

Wellington 6011 

New Zealand 

+64 4 499 6830

www.bathurstresources.co.nz

120

Section 01