2024 Annual Report Bathurst Resources Level 12, 1 Willeston Street, Wellington 6011 PO Box 5963, Lambton Quay, Wellington 6145, New Zealand Tel: +64 4 499 6830 Fax: +64 4 974 5218 General enquiries: wellington@bathurst.co.nz Investor enquiries: investor.relations@bathurst.co.nz 3 bathurst.co.nz Annual Report 2024 Message from the Chair 8 Message from the CEO 9 About Bathurst 12 Bathurst at a Glance 13 Key Statistics 14 How Coal is Used 19 Our People 20 Value Chain 22 SECTION 1 Overview Financial Statements 81 Notes to Financial Statements 86 Additional Information 116 Independent Auditor’s Report 119 SECTION 3 Financial Statements 5 bathurst.co.nz Annual Report 2024 Bathurst Resources Limited Financial and Operating Overview 26 British Columbia Steelmaking Coal Projects 34 People and Culture 37 Remuneration 38 Sustainability Overview 42 Health & Safety 44 Socio-economic 50 Environmental 56 Governance 70 SECTION 2 Our Year Shareholder Information 124 SECTION 4 Shareholder Information Tenement Schedule 128 Coal Resources and Reserves 130 Competent Person Statement 136 Tenas Resource Statement 137 SECTION 5 Resources and Reserves Corporate Directory 138 6 Bathurst Resources Limited Section 1: Overview Annual Report 2024 7 bathurst.co.nz Annual Report 2024 Section 1: Overview SECTION 1 Overview 8 Bathurst Resources Limited Section 1: Overview Annual Report 2024 Message from the Chair Despite facing difficult conditions, Bathurst reported another year of good earnings for shareholders with our export segment performing well again. Within FY24, we experienced periods of global supply constraints for high-quality steelmaking coal which saw the HCC benchmark prices peak through the third quarter of the year. Prices stabilised in the final quarter as demand weakened and production out of Australia recovered due to improved weather conditions. Our coal products continue to remain highly sought after, particularly for use in steelmaking in New Zealand and across markets in Asia. In FY24, 33% of our export volumes were delivered to China, 24% to Japan and South Korea, 16% to India and 3% to Australia. This means our coal has helped produce steel across the globe for use in infrastructure and construction projects as well as the construction of renewable energy products. Domestically, 63% was sold for steelmaking in New Zealand, meaning that 85% of our coal sold in FY24 was used specifically for steelmaking. Steelmaking coal is our focus market, and this percentage is expected to grow as New Zealand continues to transition to renewable energy sources. Bathurst’s coal is unique and is one of the highest quality metallurgical coals available in the Asian market. Testament to this is that the use of Stockton coal by overseas steelmakers enables the steel production industry to avoid emitting 315,000 tonnes of CO2 per year because of the distinctive properties of our coal. This factor has meant we have had long held customers who continue to consider Bathurst as a crucial element in their steelmaking process. In what is a competitive labour market, we are continuing to work hard to attract and retain talented people in our business. Our New Zealand mines are growing, and we are increasing our workforce to consistently deliver our high-quality products to our valued customers. This in turn strengthens our significant contribution to the communities in which we operate. Bathurst’s strategy is to grow our metallurgical steelmaking coal business when attractive opportunities arise. Evidence of this is the investment made in the Tenas Project in Telkwa, British Columbia. The project is currently working towards a production start date in FY27 and will complement the Crown Mountain joint-venture project, which is expected to enter production in FY28, and is also located in British Columbia. As always, the Bathurst board is committed to growing the company and generating value and returns for shareholders. This includes ongoing work with our partners in the BT Mining joint-venture to create outcomes and structures that benefit all shareholders. Following what was at times a challenging, yet successful year, on behalf of shareholders and the board, I would like to thank Richard Tacon, the executive leadership team and the entire Bathurst workforce for another great year. I would also like to thank our shareholders and the communities in which we operate for their continued support. Peter Westerhuis Chairman 9 bathurst.co.nz Annual Report 2024 Section 1: Overview As we reflect on FY24, I want to acknowledge that the year presented several challenges across our projects and some of the markets we service, which impacted the company’s financial performance. Our export segment encountered major challenges with slips and a tunnel failure closing the rail route from the Stockton mine, leading to a reduction in the amount of coal we could rail to port and enter the market. The HCC benchmark price that our export sales are derived from also experienced significant market movements throughout the year. Despite the challenges faced, we are pleased to have delivered a consolidated EBITDA of $91 million, ending the period with $141 million of consolidated cash (including restricted deposits) on the balance sheet, of which $12 million was held directly by Bathurst and $129 million in the BT Mining joint-venture company. Looking at some of the key non-financial metrics, in September the Takitimu mine celebrated 3,000 days without a lost-time injury. A significant achievement and testament to the importance of health and safety at the mine. The Takitimu team should be commended for their efforts leading to this fantastic milestone. FY24 was a significant year in terms of increased overburden removal at our North Island mines as they strip the new mining areas. Again, this is going to be a large focus for our North Island segment in FY25 with an increased target of 15 million bcm planned to be stripped across Rotowaro and Maramarua. Our people and their communities remain a key focus of our business, and we take pride in the support we can offer back to the communities in which we operate. In FY24, we were proud to assist our Westport community by contributing to the establishment of a new medical centre. The medical centre was set up to extend medical and health facilities in the Buller District. We are also thrilled to continue supporting many other local charities and sporting organisations. Looking ahead, strong operating cash flow will allow us to continue to optimise operations, maintain balance sheet strength and support the development of our exciting growth projects in New Zealand and British Columbia. Our New Zealand projects include extensions of both our export segment via the Stockton mine as well as the fully Bathurst-owned Buller Plateau Project, as well as the extensions to the North Island segment. The Tenas Project in British Columbia is fully owned by Bathurst and alongside the Crown Mountain joint-venture project makes up our British Columbia projects. Bathurst will continue to play an important role in supplying high quality products to key steelmaking customers in New Zealand as well as countries across Asia. We expect that strong demand for metallurgical coal will continue over the coming decades. This is due to demand for steel globally increasing and international investment in operational steelmaking coal mines diminishing, both causing supply constraints. In FY25, although our export segment will be impacted by the Tawhai Tunnel outage while repairs are completed and a safe return to usual operations is implemented, we expect another strong year with total production across our NZ mines of around 1.7 million tonnes and total sales of 1.9 million tonnes. With export prices stabilising over the last two years following the record highs experienced after the global pandemic, we continue to pursue opportunities to improve operational performance and reliability. This remains a key focus during the year ahead, together with ongoing cost controls and management. However, with this in mind, we do anticipate our production costs to increase in FY25 due to higher fuel costs, increased machine hours, labour and other inputs as we increase our stripping volumes in new mining areas. Bathurst continues to present itself as an attractive investment, and we are excited about our future, particularly as we grow and take steps closer to entering production at the British Columbia mines and we look to extend the lifetime of the New Zealand assets. These growth projects will enable Bathurst to produce high-quality steelmaking coal for an estimated, additional 20 years. As we look forward to the year ahead, I want to thank all of Bathurst’s people and our Board of Directors for their contribution and support in FY24. I am also grateful to our shareholders, customers, suppliers and joint-venture partners for their continued support, as well as our local communities where we operate. Richard Tacon Chief Executive Officer Message from the CEO Our purpose, mission and vision To provide responsible access to natural resources To engage in the identification, assessment and recovery of valued natural resources Our people, communities and businesses make informed decisions about the recovery and use of their natural resources 10 Bathurst Resources Limited Section 1: Overview Annual Report 2024 11 bathurst.co.nz Annual Report 2024 Section 1: Overview 12 Bathurst Resources Limited Section 1: Overview Annual Report 2024 About Bathurst We are committed to responsible mineral extraction and supply, from our existing and developing assets in New Zealand and Canada. Bathurst Resources Limited (the ‘Company’ or ‘Bathurst’) is New Zealand’s largest coal mining company, producing more than 2 million tonnes of coal each year for export and domestic markets. We focus on fulfilling the maximum potential of our mining and exploration operations, ensuring we use the resources entrusted to us with care, while delivering strong economic returns for our stakeholders. We operate in a way that respects the environment, our host communities and all our stakeholders, while making a positive contribution to broader society. We have over 600 employees, and they are at the core of our business. Their safety, health and wellbeing are vital to us. A New Zealand registered company listed on the Australian Securities Exchange (ASX:BRL), we began operations in 2011. We have operating mine sites located in Southland, the West Coast of the South Island, and in the Waikato region of the North Island. Today more than 80% of our production is used for steelmaking, including by a New Zealand steel mill. Our resources on the West Coast of the South Island are well known for their excellent quality. Having low ash and high fluidity in a blast furnace, our coal is highly sought after by international steelmakers. Domestically, our high-quality thermal-grade coal helps fuel many iconic New Zealand food and dairy businesses. We are focussed on providing responsible access to natural resources that are essential for building a better future for people around the world. Growth in Canada The world is constantly changing, and we are too. We are ready for the challenges the future brings, and an important step for Bathurst has been to invest in two steelmaking coal projects in British Columbia, Canada. We acquired full ownership of a developing mine, the Tenas Project, in December 2023. Additionally, we have a 22% stake in the Crown Mountain Project, located in the established coking coal province Elk Valley. We are currently working through the regulatory approval processes for both projects. These projects will complement the planned development and extensions of our current New Zealand assets, meaning that we can increase our production profile, both in terms of annual volume and longevity. Our future These exciting developments will bring us closer to our climate change strategy goal of making 90% of our annual earnings from steelmaking coal. We support a just transition to a lower-emissions global economy and recognise that steel is critical to assisting in the global challenge of decarbonisation. To that end, and in light of the steel transition taking decades, we work closely with our customers to supply them with coal for as long as they need it. Due to its unique qualities, our export coal from the Stockton mine is blended with other coals to reduce fuel costs for overseas steelmakers, thereby also leading to reduced emissions from steelmaking. Bathurst at a glance New Zealand British Columbia Joint-venture Sites Offices Bathurst Resources Sites 13 bathurst.co.nz Annual Report 2024 Section 1: Overview Section 1: Overview Annual Report 2024 14 Bathurst Resources Limited Operational (BRL & 100% BT Mining) 1.9Mt Total coal sales 9% decrease 1.6Mt Coal use for steelmaking 4% decrease 14.9m Bcm Overburden removal 34% increase 0.3Mt Coal used for food production and other local industry 18% decrease Annual Report 2024 Section 1: Overview 15 bathurst.co.nz 16 Bathurst Resources Limited Section 1: Overview Annual Report 2024 Other (BRL & 100% BT Mining) ~675 Employees $388m Contributed to New Zealand economy 8% growth 0.047 t CO2e Scope 1 & 2 emissions / per tonne of coal produced 22.41 TRIFR / per million hours worked 6.3 LTIFR / per million hours worked 17 bathurst.co.nz Annual Report 2024 Section 1: Overview Financial (BRL & 65% BT Mining) $315m Revenue 19% decrease $102m Revenue from domestic sales 3% decrease $213m Revenue from export sales 25% decrease $39m Net profit 57% decrease $28m Operating cash flows 77% decrease $91m EBITDA 45% decrease 19 bathurst.co.nz Annual Report 2024 Section 1: Overview How coal is used: Electricity generation Construction Transport Semi-conductors Infrastructure Advanced composite materials Fuelling of local industries 20 Bathurst Resources Limited Section 1: Overview Annual Report 2024 Peter Westerhuis Non-Executive Chairman Richard Tacon Executive Director & Chief Executive Officer Russell Middleton Executive Director & Chief Financial Officer Francois Tumahai Non-Executive Director Board members Our people 21 bathurst.co.nz Annual Report 2024 Section 1: Overview Senior leadership Fiona Bartier General Manager, Health, Safety, Environment and Community Carmen Dunick General Manager, People and Culture Ian Harvey General Manager, Export Operations Sam Johnstone General Manager, Marketing and Logistics Craig Pilcher General Manager, Domestic Operations Terry Moynihan General Manager, Resource Development For more information about our people visit: www.bathurst.co.nz/our-company/our-people/ 22 Bathurst Resources Limited Section 1: Overview Annual Report 2024 How is our domestic coal used in steelmaking? Hot gasses from this stage produce steam and electricity for the remaining production process Hot iron sand and char Reduction starts in the rotary kiln, achieving 70-80% metallisation Reduced product added to arc furnace to complete metallisation Melters Slag Bowl Iron Ladle Electrical energy Coal, limestone and iron sand are base ingredients Liquid iron is produced. Liquid iron is added to basic oxygen furnace to produce crude steel Coal, limestone and iron sand heated together in multi hearth furnace 23 bathurst.co.nz Annual Report 2024 Section 1: Overview Coking coal is the base ingredient Coking coal is heated to make coke Coke is added to blast furnace with limestone, coal, natural gas, oil and iron ore Liquid iron is produced Liquid iron is added to basic oxygen furnace to produce crude steel How is our export coal used in steelmaking? 24 Bathurst Resources Limited Section 2: Our Year Annual Report 2024 25 bathurst.co.nz Annual Report 2024 Section 2: Our Year SECTION 2 Our Year 26 Bathurst Resources Limited Section 2: Our Year Annual Report 2024 Financial and operating overview Consolidated1 EBITDA2 1. Consolidated in this report represents 100% of Bathurst operations, and 65% of BT Mining operations. This presentation does not reflect reporting under NZ GAAP or NZ IFRS but is intended to show a combined operating view of the two businesses for information purposes only. 2. EBITDA is a non-GAAP measure and reflects earnings before net finance costs (including interest), tax, depreciation, amortisation, impairment, non-cash movements on deferred consideration and rehabilitation provisions. Reduced operating surplus driven by lower export pricing $m 180 160 140 120 100 80 60 40 20 0 FY23 EBITDA Export NID SID Corporate overheads Telkwa FY24 EBITDA 166.4 (74.2) (4.0) 4.3 1.0 91.0 (0.5) 27 bathurst.co.nz Annual Report 2024 Section 2: Our Year Note 2024 2023 Underlying profit (non-GAAP) 44.6 90.1 Add back: Impairment 8 (6.1) (0.3) Statutory profit (non-GAAP) 38.5 90.1 Add back: Equity share of joint-venture results 13 (42.3) (98.7) Depreciation and amortisation 5.2 6.4 Net finance income/(costs) 6 0.5 0.5 Movement in deferred consideration 15 (c) (2.2) 1.7 Impairment 6.1 0.1 Non-cash movement in rehabilitation provision 16 0.3 1.7 Bathurst EBITDA (non-GAAP) 6.1 1.5 Add back: Equity share of BT Mining EBITDA 84.9 164.9 Consolidated EBITDA (non-GAAP) 91.0 166.4 Reconciliation of underlying profit to consolidated EBITDA Export segment Stockton is an opencast mine producing low-ash metallurgical coal that is exported overseas for use in steelmaking. Our equity share is 65% via joint-venture BT Mining. Operational metrics (100% basis) Unit Export 2024 Export 2023 Production kt 963 1,042 Sales kt 1,106 1,197 Overburden bcm 000 5,418 4,996 Financial metrics (65% equity share) EBITDA $’000 79,910 154,097 Other metrics Average HCC benchmark USD/t 286 291 Financial performance Following the record high pricing levels experienced through FY22 and FY23, our export business experienced a reduction in revenue as coal pricing reduced through FY24. Throughout FY24, coal benchmark prices fluctuated considerably. In March, supply out of Queensland was restricted due to low production and congestion at the ports, which was coupled with a period of demand from Chinese buyers; this saw the HCC benchmark price rise above USD $300. However, this period of high pricing was short-lived, and prices corrected over the last quarter as demand weakened from both China and India, closing at USD $234 at the end of June. The average price received per tonne in FY24 was NZD $297, which was a considerable drop from FY23 when we benefited from an average price of NZD $365. This drop in pricing directly impacted our earnings for our export segment. The reduction in export revenue was forecast and expected, and with that in mind a substantial effort was made across the business to effectively manage costs. While inflationary pressures remain and continue to put financial pressure on operations worldwide, a significant reduction in the record high fuel prices experienced in FY23 helped to offset the increase in cost base. 28 Bathurst Resources Limited Section 2: Our Year Annual Report 2024 Operational summary Operationally, it has been a difficult year, however it is pleasing to note we were able to achieve all forecast shipments. The shipping plan was amended to accommodate multiple rail outages throughout the year due to slips and a tunnel failure. The slip occurred during October in the Buller Gorge and meant that the rail line to Lyttelton port was out of action for a total of seven weeks while debris was cleared and remedial work undertaken. In June, the Tawhai Tunnel experienced several partial collapses during routine maintenance. As quickly as possible, our team was able to implement a road freight plan from the rail loadout facility at Ngakawau through to a rail loadout facility in Ikamatua. This enabled us to continue operations and ensured that the final shipment of the financial year was able to be fully loaded on time, safeguarding vital revenue. Production was also impacted by the rail unavailability throughout the year. When the rail line was not operational, coal was not able to be sent down the aerial system to the rail loadout facility. This meant the mine saw less coal production than originally planned. Production and sales volumes in FY25 are also forecast to be impacted while the tunnel is repaired and a safe resumption of normal operations is achieved. In the meantime, the road freight plan continues, and the shipping plan is aligned to the maximum volumes possible. As with last year, attracting and retaining labour continues to be a challenge. We are proactively recruiting for specialised positions, both from within New Zealand as well as internationally. Rehabilitation remains a focus for Bathurst, and we are pleased to have exceeded the planned rehabilitation hectares (ha) at Stockton during FY24, where we completed 25 ha. HCC benchmark outlook In June, HCC prices spiked to USD $250/t due to potential supply concerns following a fire at the Anglo American’s mine in Grosvenor. However, since then it has slowly tracked downward in recent months towards USD $200/t with demand out of India and China remaining weak, which has offset any supply concerns. Buyers have remained reluctant to re-enter the market while the pricing continues to fall, however it is likely that Indian buyers will again show some interest as the monsoon season comes to an end and construction activity in India begins to lift. The lower HCC prices will start to create some interest from Indian buyers which will bring activity to the market as buyers look to restock post monsoon season. The Chinese economy remains in a depressed state which has further reduced demand within their steel and coal markets and as such several steel mills have continued to cut their production. This lower buying activity is likely to remain a drag on the seaborne HCC coal price, especially with the Chinese government providing no short-term stimulus for the steel and construction industries. At the time of finalising this report, pricing was averaging USD $205/t, with the 30 September 2024 S&P Global Platts Premium Hard Coking Coal forward curve showing average pricing levels around USD $250/t through to June 2025. USD/tonne 400 350 300 250 200 150 100 50 0 July 2023 Sep 2023 Nov 2023 Jan 2024 Mar 2024 May 2024 July 2024 Sep 2024 Nov 2024 Jan 2025 Mar 2025 May 2025 Monthly USD HCC pricing Actual Forward curve Monthly actual export pricing based on a monthly average of the S&P Global Platts Premium Low Val daily spot rate. Forward curve based on 30 September 2024 S&P Global Platts derivative assessment. 29 bathurst.co.nz Annual Report 2024 Section 2: Our Year Growth projects Buller (100% equity share) The Buller Project encompasses mining and exploration permits as well as a coal mining licence (Sullivan) on the Denniston Plateau which is located on the West Coast of the South Island of New Zealand. The project is located close to the Stockton mine and benefits from the use of Stockton’s infrastructure assets which include a coal handling and preparation plant, coal transport infrastructure and rail loadout facilities. The project will utilise existing contracts and facilities such as rail and port services. The permits include the Escarpment mine, which has been in care-and- maintenance. This mine is intended to return to operation as part of our Fast-Track Approval application. Bathurst sees the development of Escarpment as a significant component of its wider Buller projects strategy. In FY23, the Escarpment access arrangement with the landowner was extended to 2032. We updated an options analysis into the optimal blend of coal between the different Buller projects, including integration with coal resources in the Stockton life-of-mine plan. A focus for FY25 is the submission of the Fast-Track Approval application and the renewal of the Escarpment consents that are beginning to expire over the next few years, as well as completion of mine planning for an extension to the Escarpment Project (Escarpment Extension), as part of the wider Buller Project study. Conceptual design options for the Upper Waimangaroa haul road have been completed, including assessment of a slurry pipeline option. The haul road would connect the Denniston Plateau to the Stockton mine which will enable the joint use of the existing infrastructure at the Stockton mine. Stockton organic growth projects (65% equity share) A key focus for FY25 is to advance the development of the Cypress South pit, including vegetation stripping, overburden removal and road access construction. Key project focus areas for FY25 are: • Mine planning and access road design for the Mount Frederick South resource area (formerly Deep Creek) as part of the wider Stockton Extension Project. • Continued drilling and development of the Rockies North pit. This pit is an extension of the currently mined area. • Further drilling on the periphery of the Millerton and Hope Lyons pits to quantify reserves, define final pit limits and allow detailed final landform design. 30 Bathurst Resources Limited Section 2: Our Year Annual Report 2024 Domestic segment North Island Domestic North Island Domestic (NID) consists of the Rotowaro and Maramarua mines. Both produce a low-ash, low-sulphur sub-bituminous coal for local steelmaking, energy generation, and other food and agricultural industries. Our equity share is 65% via joint-venture BT Mining. Operational metrics (100% basis) Unit NID 2024 NID 2023 Production kt 509 568 Sales kt 548 627 Overburden bcm 000 8,689 5,136 Financial metrics (65% equity share) EBITDA $’000 14,212 18,241 Financial performance The decrease in EBITDA year-on-year is due to a planned reduction in sales and operational delays, and an increase in some direct mining costs. Sales volumes reduced due to a planned step down in sales to food processing customers as they continue to transition to biomass fuel. Costs of mining increased due to a combination of: • Inflation driven mining cost increases similar to that in the export segment. • Labour costs that increased in line with contractual and CPI adjustments. • Fuel costs decreasing at rates similar to export following record high prices experienced in FY23. • Operational delays due to unplanned machinery downtime and operator recruitment vacancies significantly impacted the stripping in new pits at both mines. • Reduced sales tonnes leading to lower production, which given that the high proportion of fixed costs, notably labour and repairs and maintenance, meant the cost per tonne increased, particularly at the Rotowaro mine. Operational highlights There were unplanned mechanical disruptions during the year, particularly at the Rotowaro mine, which directly impacted the ability to fulfil the planned stripping in the new Waipuna West Extension pit. It is pleasing however, that faced with these delays and following concentrated efforts from our workforce the mine continued to meet the annual contracted sales obligations. Recruitment of operators at both the Rotowaro and Maramarua mines is still a challenge, particularly as we progress the stripping phase of the new pits at both mines, which requires increased headcount. This coupled with the earlier mentioned mechanical disruptions meant that the increased overburden targets at both mines were not able to be achieved. It is satisfying to note that the stripping levels significantly increased through the last quarter of FY24, and that has continued into FY25 where stripping targets have been achieved on higher target volumes, particularly at the Rotowaro mine. Growth projects Waipuna West Extension (Rotowaro mine) Overburden stripping operations continue as we near full production on a three-year extension (based on current production/sales volumes) to Rotowaro mining operations. The coal is destined for the same customer base as existing Rotowaro sales (predominantly for steelmaking), with coal supply contracts in place. M1 pit (Maramarua mine) Following enactment of the Resource Management (National Environmental Standards for Freshwater) Regulations 2020, we modified the pit design to preserve identified areas as inland natural wetlands. New resource consents were received following constructive iwi and stakeholder consultation. Stripping on the project started in FY24 following the approval of consents, with the coal destined for the same customers as current operations. The pit is expected to enter full production in FY25. Rotowaro North (Rotowaro mine) The Rotowaro Extension (North) Project is a potential extension project to the current Rotowaro mine operation, located 4 kilometres northwest of the current mine site. The project is in the prefeasibility phase, through which we have confirmed a resource. We have received customer interest for this coal, providing a basis to continue to assess development options. Infill drilling to improve resource confidence and baseline studies to advance project feasibility studies were undertaken in FY24. Project work continues to complete prefeasibility studies as we move to resource consent application through the Fast-Track Approvals process. M2 pit (Maramarua mine) The Maramarua M2 pit is an extension project to the current Maramarua mine operation and was part of the M1 pit. The project is in the resource consent planning phase, where we have a confirmed resource. Customer interest for this coal has been received, providing a basis to continue into development and production. 31 bathurst.co.nz Annual Report 2024 Section 2: Our Year Domestic segment South Island Domestic South Island Domestic (SID) consists of the Takitimu mine which produces a low-sulphur sub-bituminous energy coal for local agricultural, health and other food manufacturing industries. Operational metrics Unit SID 2024 SID 2023 Production kt 235 224 Sales kt 235 251 Overburden bcm 000 789 1,025 Financial metrics EBITDA $’000 16,085 11,182 Financial performance The increase in earnings for SID was driven by: • Lower direct mining costs due to the later life of the mine stage. • Reduced levels of overburden resulting in lower fuel volumes and repair costs on machinery. • Lower sales volumes partially offset by a higher contracted sales price. There was an increase in earnings at the Takitimu mine year-on-year. Although sales volumes decreased slightly, the reduction was partially offset by contractual increases in pricing. The decrease in revenue was offset by a reduction in the direct costs of mining, such as fuel volumes and repairs and maintenance costs due to reduced overburden removal volumes as the mine enters the later years of life. Operational highlights Takitimu mine had another successful year, both operationally and financially in FY24. Production levels were aligned to contracted sales volumes, which were able to be achieved with lower overburden removal. Corporate Corporate overhead costs included in the total group consolidated EBITDA increased year-on-year, $18.7 million versus $17.7 million. This was due to: • Increased overhead and salary costs due to contracted and inflationary increases. • Increased consultant costs incurred in project planning and development on extension projects for both Bathurst and BT Mining. • Increased costs associated with health and safety consultants and compliance. • Increased recruitment costs as we look to grow our workforce across our mines in development. Telkwa – Tenas Project Operational costs at the Tenas Project, as the mine progresses with the required permit applications, included in the total group consolidated EBITDA were $0.5 million. 32 Bathurst Resources Limited Section 2: Our Year Annual Report 2024 Consolidated cash flows 2024 2023 Opening cash 163.1m 76.0m Operating EBITDA 90.8 166.4 Working capital (10.2) (17.1) Canterbury rehabilitation (0.5) (1.6) Corporation tax paid (51.5) (26.3) Investing Deferred consideration (1.3) (1.2) Crown Mountain Project (0.9) (0.7) PPE net of disposals (16.9) (16.0) Mining of assets including capitalised stripping (34.1) (15.1) Financing Finance leases (4.8) (4.1) Financing income/(costs) 7.0 2.7 Closing cash 140.7m 163.1m Consolidated EBITDA EBITDA decreased from FY23, driven by a lower average export coal price on export sales and reduced sales volumes due to the multiple rail outages from the Stockton mine to Lyttelton port. Working capital The timing of sales, and in particular the number of export shipments in June 2023 compared to this year has resulted in a decrease in trade debtors. Corporation tax paid Increase in corporation tax paid which reflects the timing of tax obligations on increased taxable operating profits from FY23 as well as FY24 income tax obligations. Deferred consideration Payments for the year consisted of royalties on Takitimu mine sales. Represent 100% of Bathurst operations, and 65% of BT Mining operations. This presentation does not reflect reporting under NZ GAAP or NZ IFRS but is intended to show a combined operating view of the two businesses for information purposes only. Crown Mountain Funds paid were on a proportional project equity ownership basis and were used to progress the environmental application. Mining development including capitalised stripping Spend has increased from the previous year comparative period due to the increased mine development costs and capitalised stripping in the Waipuna West extension at the Rotowaro mine as well as the purchase of the Tenas Project assets in British Columbia. Financing income Increased interest received on cash balances and deposits held. 34 Bathurst Resources Limited Section 2: Our Year Annual Report 2024 British Columbia steelmaking coal projects Bathurst has interests in two exciting steelmaking coal projects in British Columbia, Canada. They represent the acceleration of the company’s growth strategy and an increased exposure to steelmaking coal. The British Columbia projects will complement the planned extensions of the New Zealand assets and will increase both annual production and longevity of operations under management. The strategy for the Canadian assets is to: 1. Identify and invest in projects with excellent financial metrics. 2. Manage the consenting, permitting and development risks in a tier one jurisdiction. 3. Provide additional steelmaking coal production capacity. 4. Provide long-life assets aligned with current international customer requirements. 5. Deliver low-cost production that will endure the forecast price volatility of the international coal market. Crown Mountain Project, British Columbia, Canada (22%) Located in a mature mining region of the Elk Valley, with well-established transport infrastructure, Crown Mountain is a joint-venture project with Jameson Resources Limited (JAL). Project earn-in is over three stages (worth CAD $121.5 million) to achieve 50:50 ownership, with future investment at Bathurst’s sole discretion. Key findings of the bankable feasibility study on the project released in July 2020 reaffirmed the project as a high-quality coking coal opportunity with a competitive operating and capital cost structure, with access to existing common user rail and port infrastructure. Results of a yield optimisation study released in August 2021 have confirmed the potential for increased production and considerably improved economic outcomes of the project by increasing product ash levels which enables an increased processing yield. Our equity share of the project is 22.1%. This includes 20% from completion of the first two funding tranches of CAD $11.5 million, and 2.1% from the advance of CAD $4.0 million on the final tranche in exchange for a mix of preference and ordinary shares. Highlights • A consent agreement was executed with key First Nations groups in 2023. The agreement includes innovative accelerated reclamation initiatives, best practice environmental design, management and monitoring to ensure protection of the flora, fauna and water quality in the Elk Valley. • In 2024, the project’s Environmental Impact Statement (EIS) and Environmental Assessment Application (EAC) passed the Impact Assessment Agency of Canada’s conformity review process. This allows the project to proceed to the next regulatory phase, which is the EIS review phase. The project is expected to produce 1.7Mt of saleable coking coal per annum over a 16-year mine life, with first production planned for FY28. 35 bathurst.co.nz Annual Report 2024 Section 2: Our Year Tenas Project, British Columbia, Canada (100%) The Tenas Project is located just outside the small town of Telkwa, with easy access to road and rail infrastructure already developed by the forestry industry, and is within close proximity to the deep-water port of Trigon Pacific Terminal, near Prince Rupert. Bathurst completed the purchase of the project in December 2023 for USD $10.3 million; upfront payments totalling USD $3.33 million have been made, and deferred payments of USD $4.0 million payable when all final permits to operate are received, and USD $3.0 million on the first anniversary of receipt of the final permits to operate. Highlights • The BC EAO EAC application was submitted in 2022. • There is no requirement for Federal EIS approval by the Impact Assessment Agency of Canada due to the dimensions of the project. • Responding to Information Requests now required from the EAO to move to the Effects Assessment and Recommendation phase of the consenting process with BC EAO, this is expected to commence by the end of 2024. • A Project Assessment Agreement (PAA) with First Nations was executed in 2024. This is a significant milestone and will help us advance our Environmental Application and move a step closer to receiving the required permits. The Definitive Study Results (DFS) for the project were published in March 2019 and reinforce the potential of the Telkwa metallurgical coal complex. The project is expected to produce 750kt of saleable steelmaking coal per annum over a 22-year mine life, with first production planned for FY27. Along with being well located to rail and port, the low stripping ratio (3.6:1 bcm/t) of the project means that it will also be developed as one of the lowest cost producers of steelmaking coal on the seaborne market. The Tenas Project is in the pre-application phase of permitting. In 2022, the Application for an Environmental Assessment Certificate in relation to the Tenas Project was filed with the Environmental Assessment Office of British Columbia. While the 2002 Act was amended by the BC Environmental Assessment Act 2018 (2018 Act), which amongst other things introduced a new process for the review of such applications, the transitional provisions of the 2018 Act allowed the Tenas Project to be reviewed under the 2002 Act. Bathurst is working with the Indigenous Peoples to establish strong and lasting relationships. 37 bathurst.co.nz Annual Report 2024 Section 2: Our Year People and Culture Bathurst’s workforce challenges continued to mirror most countries and industries over this year, with the headline focus centred around three key areas: • Talent recruitment. • Talent retention. • Developing leadership strengths through all levels. Talent recruitment and retention Talent recruitment and retention has again been a key focus area throughout the year. Taking up the challenge, we researched and planned for new approaches to find and attract talent for our hard-to-fill technical roles. Our non- negotiable baseline requirement was for highly experienced new recruits who met the core values of Bathurst. Recognising that there was still a need to engage offshore talent, we embarked on a project to recruit heavy diesel mechanics from the Philippines. We established an in-depth interview process, including partnering with a local mechanical trade testing facility to ensure candidates have the practical skills we require. This process has been hugely successful, with two trips completed and plans for a third trip in the first quarter of FY25. The process has allowed us to use our own employees rather than rely on contractor labour and has resulted in significant savings for the business. We continue to receive favourable feedback from the business on the success of this recruitment project. Leadership development Engaging our people to build our culture of choice sits at the centre of everything we do. This year, we have focussed on building capability across our leaders, aimed at improving consistency around handling of teams, individual staff performance, communication and developing better understanding around how to retain and recognise the contribution of our experienced staff. International recruitment prompted the need for us to support the awareness of cultural needs and differences, and to establish more maturity in handling those differences in the way we work. Our people managers are being equipped with more tools to enable them to make better decisions and to support their team more fully. Encouraging managers to take more ownership and responsibility for their team performance was a priority. We have initiated a programme aimed at increasing leadership capability across all sites and levels to build our own leadership pipeline and succession plan. A Developing Leadership programme for early-in-career people leaders up to supervisors was kicked off with two cohorts from Stockton and two from Rotowaro and Maramarua. This programme will continue over the remainder of 2024, with the addition of a cultural programme to support the next level of learning. Diversity and inclusion We’ve improved the speed with which we’re upskilling our people leaders around fostering new cultures. We’re hiring people with a focus on learning and development, educating them on how we need to work as a team. After a continued focus on attracting and supporting female employees, we are also pleased to report that we have had a 2% increase in our female workforce in 2024. We are proud to announce that this year we partnered with Dignity to provide free feminine hygiene products across all of our sites, as well as offering ongoing support for women’s health. Data management This year, in response to the level of data we hold about our employees, we looked at how we could synthesise this into intelligence. At the core of all good reporting is sensible and reliable system-generated data. This year, we have kicked off our data review project and commenced changes to our people data management. These are in line with the changes to the Privacy Law, and ensure our data capture is useful and comprehensive, and stored in a secure and confidential manner. Audits across our payroll system and our ways of working with data within that system, gave us great examples of how to establish better efficiency, improve performance and enhance our security features. This work has already enabled better performance and it will be ongoing over the remainder of 2024. Ageing workforce We keep a keen eye on the impact of our ageing workforce and have commenced proactive management of this part of our talent pool. Key to transitioning each generation through this new era, we have placed real value on diverse perspectives, regardless of age or experience. We have commenced action on engaging with and supporting our older workers to find solutions for a move into retirement over time. We recognise the wisdom and benefit of the past knowledge they have, which has often included dealing with periods of instability, so they can support their colleagues, and sometimes the business, more generally. They are a valued part of our talent pool. We are proud to announce that this year we partnered with Dignity to provide free feminine hygiene products across all of our sites, as well as offering ongoing support for women’s health. 38 Bathurst Resources Limited Section 2: Our Year Annual Report 2024 Directors’ remuneration The total remuneration and other benefits paid to directors for services in all capacities during the year ended 30 June 2024 was: Fixed remuneration and STI for both Richard Tacon and Russell Middleton are in their capacity as CEO and Chief Financial Officer (CFO) respectively. LTI performance rights is the share-based payment expense of the performance rights. The payment of the 2020 LTI performance rights was suspended at the time of the COVID-19 pandemic. This delayed payment, representative of the 2020 vested LTI performance rights, was made to Executive Directors in 2023. Director Director fees Fixed remuneration Short term incentive Long term incentive LTI performance rights FY24 total Peter Westerhuis 182,108 - - - 17,060 199,168 Francois Tumahai 110,000 - - - - 110,000 Richard Tacon - 602,058 258,753 245,071 275,768 1,381,650 Russell Middleton - 555,223 164,991 147,043 203,459 1,070,716 Total 292,108 1,157,281 423,744 392,114 496,287 2,761,534 Role of the Remuneration and Nomination committee The Remuneration and Nomination committee (R&N committee) is a subcommittee of the Bathurst Board of Directors (Board). The R&N committee is responsible for making recommendations to the Board on remuneration matters such as non-executive director (NED) fees, remuneration for executive directors and the senior leadership team (SLT), and the over-arching remuneration policy. All its members are NEDs. The objective of the R&N committee is to ensure that Bathurst’s remuneration policies are fair and competitive, and aligned with the long- term interests of Bathurst and its shareholders. The R&N committee draws on its own experience in remuneration matters and seeks advice from independent remuneration consultants where appropriate. The corporate governance section of our website provides further information on the role of the R&N committee. There have been no material changes to the remuneration framework during the year. Remuneration philosophy The objective of our remuneration framework is to ensure reward for performance is competitive, appropriate, promotes retention of employees, and aligns with Bathurst’s strategic objectives and shareholder interests. Non-executive director fees Remuneration is paid to NEDs in the form of directors’ fees, which cover the demands made on their time in their capacity as a director as well as a member of any committees. Bathurst also meets reasonable travel and other costs associated with NEDs performing their role. NED fees are reviewed periodically. Independent remuneration consultants are used in this process to ensure impartiality in setting NED fees, and to ensure fees are in line with market expectations for an Australian Stock Exchange listed company of a similar size and complexity. Executive director and employee remuneration The remuneration framework provides for a mix of fixed and variable (short- and long-term) incentives. This enables the ability to recognise individual achievements and results, attract and retain high calibre people, and with the focus on the long term, align with shareholders’ interests of sustainable growth. The framework has three components: • Fixed remuneration, including the KiwiSaver superannuation scheme. • Short-term incentives. • Long-term incentives. Remuneration 39 bathurst.co.nz Annual Report 2024 Section 2: Our Year Fixed remuneration Bathurst offers competitive fixed remuneration that is based on the responsibilities of the role, individual performance and experience, and current market data. External consultants are engaged to ensure the fixed remuneration component for executive directors and SLT is set within market benchmarks for a comparable role. The R&N committee reviews executive director and SLT fixed remuneration periodically. External benchmarking reports and labour market conditions are used as a guide when setting salaries for all other employees. Fixed remuneration on an individual basis is reviewed periodically, and on promotion. Fixed remuneration on a collective basis is reviewed annually by People and Culture, with increases in the consumer price index used as a benchmark, with any recommended changes submitted to the R&N committee for approval. There are no guaranteed increases to fixed remuneration. Salaried and waged staff were provided an increase to their base salaries during the year as part of the annual remuneration review and collective negotiations. Short-term incentives Short-term incentives (STIs) are an at-risk component of remuneration. STIs are a contractual component of executive director and SLT pay packages and can be up to a maximum of between 25% to 50% of fixed remuneration. These are payable in cash on achievement of key performance targets that align with Bathurst’s strategic pillars, with performance measures in areas of: • Environment, social and governance (24% weighting). • People, including their health and safety (26% weighting). • Markets (10% weighting). • Financial performance (20% weighting). • Sustainable development (20% weighting). The R&N committee is responsible for reviewing and approving any STI payments to executive directors and the SLT. Discretionary one-off payments may also be made for other select employees up to 10% of their fixed annual remuneration. The Chief Executive Officer (CEO) in conjunction with People and Culture recommend discretionary one-off payments to the Board for approval. These are dependent on the financial performance of Bathurst. Long-term incentives Bathurst’s long-term incentive plan (LTIP) was updated and approved by shareholders at the 2018 AGM, the details of which can be found on our website in the governance section. The purpose of the plan is to encourage senior executives and executive directors to share in the ownership of Bathurst, promoting its long-term success and alignment with shareholder interests. A number of awards may be made under the plan, consisting of: • Performance rights: these are rights to acquire shares in Bathurst, subject to satisfying performance and service conditions. The rights are issued for a nil exercise price. • Options: options are a right to acquire shares in Bathurst for the payment of an exercise price determined at the grant date and subject to performance and service conditions. • Service rights: these rights to acquire shares in Bathurst are subject to satisfying service conditions only. The rights are issued for a nil exercise price. • Deferred share awards: these are shares in Bathurst granted in lieu of remuneration or incentives and may be subject to performance and/or service conditions. • Cash rights: these are rights to receive a cash payment on achievement of performance and/or service conditions. • Stock appreciation rights: these are rights to receive shares in Bathurst to the value of any share price appreciation from the grant date to the vesting date, subject to satisfying performance and/or service conditions. One issue of performance rights to the non-executive directors occurred during FY24. Further information can be found in note 18 of the financial statements. Health and other insurance Bathurst provides health insurance to all permanent employees. Insurance is currently supplied by UniMed. Superannuation All employees are eligible to participate in the KiwiSaver superannuation scheme. The company contributes 3% of each employee’s paid remuneration. Employee remuneration During the year ended 30 June 2024, 25 Bathurst (and its subsidiaries) employees, excluding the CEO and CFO, received individual remuneration over $100,000. Range No of employees 100,001 - 110,000 9 130,001 - 140,000 3 140,001 - 150,000 1 150,001 - 160,000 2 160,001 - 170,000 1 170,001 - 180,000 2 180,001 - 190,000 1 200,001 - 210,000 1 240,001 - 250,000 1 330,001 - 340,000 1 430,001 - 440,000 1 470,001 - 480,000 1 490,001 - 500,000 1 We were invited to participate in an iwi and organisation-led mining industry awareness, training and recruitment programme. Te Waharoa – gateway to the trades – is the name of an initiative to raise awareness amongst young Māori of a trade career. This year, the focus industry was mining and quarrying, which saw eight young adults being trained in work readiness for an extractives site. Lasting 10 weeks, the programme saw us onboard four individuals at our sites to explore work opportunities at Bathurst. Of the four trainees, two transferred into full-time employment, one at the Rotowaro mine, and one at Maramarua, both of Waikato-Tainui iwi. Maramarua Mine Manager Ben Biddle says Te Waharoa is an effective programme for introducing young people to the industry. “Get young people into a working routine by having something structured, like the coaching and support of people.” Machine operator training Bathurst starts Te Waharoa trainees like any new entrant. An induction runs through the theory of operating a truck which is then followed by three days in a simulator. Next comes 100 hours of driving a truck with a trainer, followed by a further 100 hours of the trainee driving solo under close supervision. On site, each trainee is allocated an experienced mentor who catches up with them most days to discuss progress, answer questions and review how they are applying their newly learned knowledge to their work. The programme enables people to learn about the discipline of the job, such as consistently turning up to work and on time, packing food to bring to a rural site, and being fit and well for a 10-hour working day. Individuals also need to consider how they will travel to work every day. Te Waharoa requires each trainee to have a personal support person (often from their whānau/ family) to be on hand to help the trainee take on the responsibility of day-to-day employment. This includes getting up consistently at 5am or earlier to get to work on time, which can be a big change of lifestyle for any young person. “Once a trainee is competent to drive a truck, and follow the rules, and do so safely, we can commence discussions on their interest in gaining permanent employment,” Biddle says. The career path for junior operators starts with trucks, and over time they can move to other machinery, dozers, graders and excavators. Pathway to success Stu Lawrence is a director of Whatukura Limited which provides vocational training for rangatahi (young Māori). He says of Te Waharoa, “The success of the programme is a result of the village approach. That village is MITO, Waikato-Tainui, the Ministry for Social Development and Whatukura”. MITO is a business division of Te Pūkenga – the New Zealand Institute of Skills and Technology – charged with arranging and facilitating the delivery of on-the-job training at workplaces across New Zealand. In the Waikato region, Te Waharoa saw eight participants spend the first three weeks visiting numerous industrial sites within the region including a site visit at both Rotowaro and Maramarua mines. MinEx (the National Health and Safety Council for the New Zealand Mining and Quarry Industry) CEO Wayne Scott provided support on workplace health and safety induction content. Bathurst donated the time of an experienced trainer (Peter Arthur from Cost Effective Training) to provide training on risk control management at an extractives site. Ardi Tawha who is Kaikōkiri Ōritetanga at MITO explains, “(participants) saw and witnessed what happens in quarries and mines, how the machinery operates. We wanted them to see the whole supply chain. They now have that understanding.” Bathurst appreciated being invited to participate in Te Waharoa, and we would like to thank Waikato- Tainui, Ministry of Social Development, MITO, Whatukura Tauira and Whānau for the opportunity. We look forward to participating again in FY25. Case study – Gateway to jobs at Bathurst 40 Bathurst Resources Limited Section 2: Our Year - Case Study Annual Report 2024 Top: Tutuki Dixon (left) is presented with his Te Waharoa programme certificate of completion by Ben Biddle Maramarua Mine Manager (centre). Lorraine Dixon, Tutuki’s mother, was presented with a thank you gift for being Tutuki’s personal support person. Bottom: Mazden Thompson-Tawhiao (left) is presented with his Te Waharoa programme certificate of completion North Island Operations Manager Senior Site Executive Francois Baker (right). 41 bathurst.co.nz Annual Report 2024 Section 2: Our Year - Case Study 42 Bathurst Resources Limited Section 2: Our Year Annual Report 2024 Our sustainability commitments are developed in collaboration with our stakeholders and aim to create value for our investors, ensure the health and safety of our employees, protect the environment and support the communities in which we operate. We have reviewed the last five years of sustainability performance data collected against changes to the global mining industry’s preferred set of reporting standards. On 1 January 2024, the Global Reporting Initiative’s coal sector standard entered into force and we completed our annual assessment process of the material topics on which we report against this new standard, GRI 12. The assessment largely confirmed our choice of topics, and we have added a new one, air emissions. Where it occurs, airborne dust from mining operations can potentially affect neighbours, e.g. at sites near areas of habitation in the Waikato region and in Southland. We already have plans and management controls in place to prevent dust events, and if they occur, to deal with them appropriately. From FY25, we intend to add additional data on air emissions to our annual reporting. We have been developing a new website, which has a section on sustainability. This describes our approach to managing environmental, social and governance (ESG) aspects. The organisational boundary of our reporting under this sustainability heading is New Zealand operations and corporate functions. We have excluded performance data from our assets in Canada this year because we are not the operator for the Crown Mountain Project, and our acquisition of the Tenas Project is recent, and, therefore, the collection of data from this site is incipient and will be included in FY25. Socio-economic benefits We endeavour to have effective engagement with stakeholders, respect for cultural heritage and diversity, create economic opportunities, invest in community projects and foster a strong residential workforce. Fundamental to the ongoing success of any resources company is the economic limb of sustainability. In the last year, we updated an FY20 project on the socio-economic impacts of our business on the West Coast region (South Island). This work shows that Bathurst, and the broader mining and quarrying industries make an important contribution to Buller District and the wider region, in terms of jobs, investment in real estate and spending in the local economy. Among other indicators (refer to the case study in this report), the West Coast study highlights the contribution our workforce continues to make as part of the social fabric of their communities via participating in community activities. We sponsor initiatives and programmes that support and address the challenges facing our host communities. This includes a wide range of organisations and activities in the regions in which we work, including in emergency services, health capacity building, health and wellness education, sports, heritage restoration, and nature conservation. Health and safety We recognise that our activities have the potential to expose our employees, contractors and communities to health and safety risks. We work to identify these risks and ensure suitable controls are in place to mitigate them. Every year, we introduce new programmes as needed for improving worker health, safety and wellbeing. This year, we brought in a learning management system to better coordinate and deliver on our training needs throughout our organisation. The change from manual record keeping, to a cloud-based system which can be accessed remotely, has made it easier to identify training needs and deliver training to staff. A case study is presented in this report. We also reviewed our Critical Risk Management System to incorporate lessons learned from our internal investigations of incidents, and from wider industry. This work is aimed at improving our verification and validation of the critical controls we have in place to manage our critical risks. We strive to safeguard the wellbeing of our team members by actively monitoring their health. Our health surveillance programme is tailored to the specific risks associated with operational roles – i.e. noise, vibration, fumes, dust - for detecting early signs of potential occupational hazards and where we can improve work environments. Our contract management, field leadership programme and our emergency preparedness were also the subject of reviews in FY24, to continuously improve the company’s workplace health and safety management. Ultimately, people are our most important asset, and our commitment is to ensure that our workers return home safe every day. Environmental management The early identification and assessment of sustainability matters alerts us to potential risks and opportunities, and enables the planning of mitigation and optimisation strategies. These assessments may result in amendments to a project or avoidance of an area if the risk of proceeding is found to be too high. We continue to manage impacts at sites on freshwater and biodiversity, and to carefully manage waste rock and overburden placement. As noted above, this year, we have added information on air emissions management, in particular, airborne dust. During mining operations, we use various methods of dust suppression (e.g. water trucks on roads) and complete dust monitoring at certain locations to record atmospheric particulates. This is also relevant to worker occupational health and hygiene (refer to a case study in the FY21 annual report). Biodiversity conservation remains a focus and is managed under resource consents and biodiversity management plans. In this report, we include a case study on our ecological restoration at subalpine tarns at the Stockton mine. This shows the ecological values at constructed tarns, over time, resemble that of natural tarns; a success story. Our research and development on enhancing wetlands at the former Canterbury mine and mines in the Waikato region, have further pointed the way to successful wetland rehabilitation techniques. Sustainability overview 43 bathurst.co.nz Annual Report 2024 Section 2: Our Year Site rehabilitation goes together with planting of eco-sourced indigenous seedlings. A milestone has been passed at the Stockton mine where 3 million seedlings have now been planted in the rehabilitated areas. We have been increasing the annual production of locally sourced seeds and cuttings at our nursery to meet future requirements for the planting of a further 6 million plants to complete the closure requirements of this large site. This year, we report an increase in energy use, and thereby, increased Scope 1 greenhouse gas emissions compared with FY23. This related to more overburden removal per unit of coal produced to access coal resources, particularly at the Stockton and Rotowaro mines. To reduce fuel consumption, we introduced a more efficient diesel fuel for the Ngakawau coal loadout facility, and are replacing specific mining machinery at the Rotowaro and Stockton mines with higher-efficiency equipment. We are working with an equipment supplier to improve the sustainability of our fleet across operations. Governance Regulatory compliance is fundamental to good governance. Delivery on our compliance management plan this year included introducing tyre management plans for mobile plant at sites and completing dam safety management assessments. Our legal compliance focus was also on compliance with biodiversity and wetland regulations, and on our cyber security and privacy controls. Managing environmental effects in the mine closure and post-closure stages is as important as during operations. We have been applying our Decommissioning and Mine Closure Management Standard to returning the Canterbury mine site to its former land uses of pastoral farming and commercial forestry, and also a freshwater lake. We are actively participating in a programme of government environmental legislative reform. This includes the development of a one-stop shop decision-making process to facilitate the delivery of infrastructure and development projects with significant regional or national benefits such as large mining projects, avoiding unnecessary regulatory duplication. This new process will streamline the multiple approvals required under several pieces of environmental legislation into one whole-of-project assessment, to allow for a comprehensive effects assessment in a timelier manner. As an exciting development, our research into the suitability of some coals at the Stockton mine for making an advanced material, carbon foam, could allow us to bring a byproduct to market. A case study is presented in this report, and the Our Products section outlines how our coals are used, including in multiple renewable energy technologies. Our material topics The material topics reported on for FY24 reporting are drawn from the Global Reporting Initiative’s GRI 12: Coal Sector Standard, which entered into force on 1 January 2024, and from core standards in the GRI reporting system. Health and safety Socio-economic Environmental Governance - Local communites - Air - Water - Land rehabilitation - Land use and biodiversity - Overburden management - Energy and GHG emissions - Mine closure planning - Economic performance - Occupational health and safety - Legal compliance 44 Bathurst Resources Limited Section 2: Our Year Annual Report 2024 Our workforce’s health, safety and wellbeing are at the forefront of our operations. We believe a safe and healthy work environment is essential for achieving economic, social and environmental sustainability. Our commitment to fostering a company-wide health and safety culture is reflected in our leadership, behaviours and processes across every aspect of our business. Strong foundations are created by achieving our compliance obligations and meeting the standards to which we commit. FY24 workplace health and safety initiatives During FY24, we implemented a series of workplace health and safety initiatives designed to enhance our safety practices and minimise risks to our workers: • Cloud-based learning management system (LMS): To strengthen our training management and compliance efforts, we have introduced a cloud-based LMS, which provides real-time access to essential training information across our business to better support our teams to deliver operational excellence and continuous improvement in training performance. • Contractor Management Review: We conducted a thorough review of contractor management processes to ensure alignment with our health and safety standards and culture. This initiative aims to foster a collaborative approach to health and safety with our contractors, enhancing overall workplace health and safety performance. • Emergency Management Capability Review: Recognising the importance of capacity and preparedness, we have evaluated our emergency management capabilities at all operational sites. This review ensures that we can respond swiftly and effectively to potential emergencies, safeguarding our people and assets. • Occupational Health Exposure Monitoring: We are committed to protecting our employees from exposure to occupational health risks. The nature of our business means that our workers can be exposed to risks that can impact their health, safety and long-term wellbeing. Through comprehensive monitoring programmes, we assess and control exposure to potential hazards, promoting a healthier workplace environment. • Field Leadership Review: Strengthening our field leadership practices is essential for creating a safer work environment. This review focuses on empowering our workers with the skills and knowledge needed to lead safety initiatives effectively. Regular communication between management and workers is crucial to keeping health and safety top of mind at workplaces. We encourage people to stop any work if they do not feel it is safe. We are thankful for the transparent reporting that we are receiving from our workforce when incident and injury occur. This year, our total injury rate has increased as compared to last year. An analysis of our FY24 injuries is showing that with a small workforce (just over 1 million man hours per year) an injury stays within our frequency rate statistics for nearly 12 months. Our workforce is ageing and we have found that musculoskeletal injuries, such as back and knee sprains and strains, are the most common injuries across all sites. We have been focusing on our critical risk management efforts. Of our 23 recordable injuries, two had the potential to be fatal. So, our efforts and priorities remain on eliminating high-potential injuries, which could result in fatalities from our business through strengthening and verifying the effectiveness of our critical controls and enhancing field leadership activities. In addition, we are committed to learning from high-potential incident events by sharing our learnings across all our operations. An example of taking action in this area related to a repeat event at separate sites. As a result, we retrofitted retractable stairs on all older-model graders across the group, replacing the original ladders to engineer out the risk of falling from the ladders. In FY24, we recorded the following health and safety statistics: • TRIFR (total recordable injury frequency rate) – 22.41 per million hours (FY23: 18.12) • LTIFR (lost-time injury frequency rate) – 6.3 per million hours (FY23: 5.51) Cloud-based learning management system Implementing a cloud-based learning management system (LMS) is increasingly important for modern organisations, particularly in industries like mining, where safety, compliance, and ongoing learning and development are critical to health and safety performance. The introduction of our learning management system offers numerous advantages that significantly enhance the effectiveness, accessibility and efficiency of our training system. A primary benefit is accessibility, in which workers can access training materials from anywhere, at any time, using any device with internet connectivity. The LMS allows us to quickly update training resources, ensuring all workers are continually upskilled promptly. Moreover, the system provides valuable data and analytics that help us track progress, identify knowledge gaps, and measure the effectiveness of our training and development strategy. This data-driven approach allows for continuous improvement, ensuring that training remains relevant and effective. The LMS is a strategic investment that has, and will continue to enhance workforce learning and development, provide transparency of our training system compliance, and foster a culture of continuous learning which is essential for maintaining operational excellence. Refer to the case study in this annual report. Material topic: Health and safety 45 bathurst.co.nz Annual Report 2024 Section 2: Our Year Contractor management review Our commitment to health and safety extends to our entire workforce, including our valued contract partners. To ensure the highest standards of health and safety for contractors working with us, we implemented the Contractor Management System (CMS) in 2020. This system is not simply a regulatory response, but a comprehensive approach aimed at long-term business relationships, integrating essential systems, and cultivating an inclusive and respectful workplace culture. The CMS is built on a foundation of standardised roles and responsibilities for contract owners, ensuring clarity and consistency across all levels of engagement. This structure supports enhanced health and safety outcomes by promoting a deeper understanding of our business requirements and expectations among contractors. In 2024, we undertook a thorough review of the CMS, informed by feedback and survey data collected from key stakeholders. This review has enabled us to refine our processes for optimisation of system utilisation, further strengthening our commitment to the wellbeing of all workers across all of our operations. Assessing our emergency management capability review The inherent risks associated with coal mining, such as geotechnical failure, roads and other vehicle operations and historical underground mining (voids), necessitate a robust and well-coordinated emergency response system. A comprehensive review has allowed our mine sites to assess their preparedness for potential emergencies, and to identify any gaps in existing protocols, equipment, and training. Regular reviews are crucial for ensuring the safety and security of our workers and assets. A well-prepared emergency response plan can significantly reduce the severity of incidents, minimising harm to workers and preventing asset or environmental damage. The review process involved evaluating the effectiveness of current emergency procedures, the adequacy of equipment such as fire suppression systems and personal protective gear, and the readiness of emergency response team members through drills and training programmes. It also examined communication systems, both within the mine and with external emergency services, to ensure rapid and coordinated responses. In the context of our operational sites, the work environment can change rapidly and hazards can escalate quickly. By completing a review of emergency response capabilities, we can proactively implement improvements that enhance the safety of our operations, protect lives, and ensure that any incident is managed swiftly and effectively, thereby minimising its impact. This proactive approach underscores our ongoing commitment to the sustainable operation of mining and support activities within the Bathurst Group. Paul Matheson Site Senior Executive and Mine Manager, led his Takitimu mine team to achieve 3,000 lost time injury free days. 46 Bathurst Resources Limited Section 2: Our Year Annual Report 2024 Occupational health exposure monitoring Completing occupational health exposure monitoring at our operational sites is critical to ensuring the health and safety of workers by systematically identifying, assessing and controlling exposure to various occupational hazards associated with working in a coal mining environment, e.g. exposure to respirable dust which can lead to lung diseases like pneumoconiosis or silicosis, excessive noise levels that can cause hearing loss, as well as vibration and exposure to harmful chemicals or fumes. Personal sampling devices worn by workers during their shifts and area sampling in various parts of the mine, allow us to collect data on these hazards and exposures. The collected data is analysed at a certified laboratory where exposure levels are determined to identify if there are any exceedances of regulatory or industry standards. The FY24 occupational health exposure monitoring results along with previously collected baseline data has assisted us in implementing appropriate control measures to reduce or eliminate risks to our workers such as engineering controls (e.g. mobile fume extraction systems), administrative controls such as rotating job assignments to limit exposure time, or the use of personal protective equipment (PPE) such as respirators and hearing protection. This important programme ensures that occupational health risks are continuously managed, and that the health and safety of mine workers are protected over the long term. Field leadership review Completing a review of our Field Leadership activities will improve our understanding of Work as Planned versus Work as Done. The review has involved learning how leaders in the field can better understand the impacts of human factors on the safety of work, encourage learning at all levels of the organisation, and address understanding of high-risk activities and critical controls with support from the principles of Human and Organisational Performance (HOP), Learning Teams, and the 4Ds methodology (Dumb, Dangerous, Difficult or Different). The review has allowed us to explore how leaders influence safety and operational outcomes, with a focus on areas where tasks might fit the 4Ds typology. This aligns with HOP principles, which emphasise understanding human error and developing a capacity for variability. Implementation of these principles includes forming Learning Teams to dive deeper into the above areas. Teams will consist of workers, supervisors and management who together analyse specific tasks or incidents that fall into the 4D categories. Learning Teams facilitate open dialogue, encourage workers to share their experiences and insights on what works and what doesn’t in the field. This approach will ensure that the solutions developed are grounded in real work experience and practical knowledge. By integrating HOP, the 4D methodology and Learning Teams, this review process aims to enhance field leadership activities and foster a culture of continuous learning and improvement, ultimately, leading to safer and more resilient health and safety systems. Evaluation of extractives vocation education Our company subject matter experts are actively participating in a significant vocational education review led by our workplace development council, Hanga-Aro-Rau. This comprehensive review covers all extractive industry qualifications, including mining and quarrying operations, blasting, surveying and emergency management. The unit standards review is focussed on identifying legislative, good-practice and technological changes necessary to modernise these standards. We take great pride in our in-house experts contributing their time and expertise to this crucial industry initiative. This foundational review is instrumental in shaping the future of vocational education in the New Zealand extractives sector, ensuring the next generation of learners is well prepared to meeting the evolving demands of the industry. FY25 health and safety strategy Our health and safety strategy for FY25 emphasises proactive health and safety measures in the key areas of embedding new and improved field leadership strategies, prioritising hazard identification and risk management knowledge and competency, reducing the potential for injury by major events and incidents through the verification of critical control effectiveness, and assurance auditing to drive continuous improvement of our health and safety management systems. As we move forward, we remain dedicated to cultivating a culture of caring throughout the organisation. This is reflected in our ongoing initiatives and commitment to improvement in the health, safety and wellbeing of our workforce and the sustainability of our operations. We are confident that our focus on innovation, leadership and continuous improvement will drive meaningful progress in FY25 and beyond. Implementing a cloud-based learning management system for enhanced training management We are always looking to improve the efficiency and effectiveness of our workplace health and safety management. In 2023, we recognised the need for a more efficient and reliable method to plan training for workers (relevant to their role), and to manage evidence of competency. Internal audits had flagged limitations with our existing manual system, posing risks for compliance with our Health and Safety Management System, legal obligations and overall training effectiveness. The audits examined over 10,780 records for both employees and contractors, targeting document compliance for each step in the training system in detail. In response, we implemented a cloud-based learning management system (LMS) to standardise training records management and enhance compliance. Challenges with a manual training records management system The previous system presented several challenges such as inconsistent record keeping and time-consuming administrative tasks, reducing our capability to focus on strategic tasks such as mandatory training requirements for the individual worker’s role based on a Training Needs Analysis at sites. Training records were stored in various physical locations, making them difficult for supervisors, managers and workers to access. These challenges could have led to potential gaps in the training records, which in turn may have posed a compliance risk. Implementation of the LMS To address these challenges, we implemented a modern dynamic cloud-based LMS in phases: • Needs assessment and vendor selection: We conducted a thorough needs assessment to identify the specific requirements of our training management system. We evaluated several LMS providers over a six-month period, and selected a vendor known for its programme’s robust compliance features, user-friendly interface, scalability to meet workforce needs and client support. • System design and customisation: The provider of our selected LMS customised it to align with our health and safety management system and training system. This customisation ensures effective tracking and management of training records, certifications and compliance to mining industry statutory requirements. A key factor for success was the engagement of a Project and Change Manager to lead and drive project delivery. In the early stages of the project, we conducted a baseline survey to establish a reference point for measuring the impact six months after go-live. The survey revealed that 66% of our people understood the need for the LMS, while 77% strongly desired a more systematic organisation of training records. At the deployment stage a survey found an outstanding result: 100% of participants understood the necessity for an LMS and were motivated to adopt the new system. “Looking ahead, we are eager to see the final survey results once the system is fully embedded organisationally,” (Project and Change Manager, Karen Nye) Case study – Cloud-Based Learning Management System 48 Bathurst Resources Limited Section 2: Our Year - Case Study Annual Report 2024 66% 77% 100% of our people understood the need for the LMS strongly desired a more systematic organisation of training records understood the necessity for an LMS and were motivated to adopt the new system 49 bathurst.co.nz Annual Report 2024 Section 2: Our Year - Case Study • Data migration and integration: A critical step in the implementation has been the migration of existing training records. This included a review and validation of existing data to ensure that all documentation uploaded meets the requirements of our Bathurst Training Standard. We are now able to integrate the LMS with other internal systems to enhance user accessibility and utilise data analytics capabilities. • Training and rollout: To ensure a smooth transition, we carried out training for workers at all levels of the company from the CEO to administrators based on their roles and expected future interactions within the system. This included training on the capability and functionalities of the LMS, how to access records and track progress. The rollout was phased, starting with the Maramarua mine as a pilot site, to identify any teething problems and adjust accordingly ahead of full-scale implementation, to be completed in Q2 FY25. Outcomes and benefits The implementation of the cloud-based LMS has already delivered significant improvements, such as: • Compliance transparency: Accurate tracking of training records and certifications provides transparency in the level of compliance with our internal Training Standard and legal obligations, allowing us to reduce the risk of future non-conformances. • Increased efficiency: The system has streamlined training management processes, allowing staff to focus on strategic initiatives. • Enhanced accessibility: The system allows workers and contractors to access training materials and records from any location, promoting continuous learning and development. • Real-time reporting: The system has streamlined training management processes, allowing staff to focus on data-driven decision making. • Scalability and flexibility: The LMS is scalable to accommodate workforce changes and is easily customised to meet changes to company standards or legal obligations, as well as catering for future company acquisitions. Conclusion The transition to a cloud-based LMS has been a pivotal step for our company in strengthening our training management and compliance efforts. By addressing the shortcomings of the previous manual system, we are now better equipped to systematically support our commitment to operational good practice and continuous improvement for health and safety performance. 50 Bathurst Resources Limited Section 2: Our Year Annual Report 2024 Material topic: Socio-economic Economic Value FY24 $m FY23 $m FY22 $m FY21 $m FY20 $m Generated Coal sales, realised hedging and other revenue 444.2 557.4 417.1 287.5 322.1 Disbursed Wages and salaries paid to employees 85.0 77.7 66.9 63.5 65.8 Taxes, royalties, and fees to government 65.7 67.4 37.7 12.3 18.4 Local procurement of goods and services 237.6 216.0 208.8 153.5 180.1 Capital purchases including leases 33.2 25.7 20.1 13.4 22.5 Support of local community initiatives 0.8 0.6 0.2 0.5 0.2 Net economic value retained 22.6 170.4 83.6 44.8 35.4 Economic performance We aim to create positive social and economic benefits, while delivering products that match our customer’s needs. We favour practical initiatives that drive economic and employment opportunities. Despite a reduction in revenue in FY24 compared with the year prior, following a reduction in the hard coking coal benchmark price in which our export revenue is aligned, we increased our spending on wages and salaries, local procurement of goods and services, and support of local community initiatives. The New Zealand economy has been under significant pressure over the last 18 months, however economic forecasts suggest a turnaround beginning in 2025, as interest rates, headline inflation and other market indicators improve. During this period, we have been future-proofing our operations by working closely with our customers in our mine planning, also taking into account likely future changes in demand from different types of customers. One effect of increased local spending is a positive contribution to economic activity in the communities where we live and work, and, therefore, to regional economic development and resilience. This is particularly relevant during periods of economic downturn. To quantify our socio-economic impacts on regions, in the last year, we updated a survey for the West Coast which was initially reported in our FY20 annual report. The case study below reinforces the results of the initial FY20 survey with our FY24 survey showing that mining is a significant and stable employer in the Buller District and wider afield, and that mining households contribute to the region in terms of local spending and property investment. They also engage in community activities such as sport, volunteering, especially in civil defence and emergency management. All of this strengthens the community fabric of where our people work and live. Reduction in net profits Our FY24 results show a decrease in our consolidated net profit from the record high results achieved last year. As previously mentioned, our export market experienced a reduction in global coal prices following the record high prices we were able to achieve across the previous two years. While anticipated and expected, this drop in pricing has directly impacted the FY24 financial result. Although, when faced with the reduction in revenue, the company’s overall success is supported by its strong operational performance, which in FY24 faced extremely challenging conditions, particularly the significant operational delays caused by natural events such as slips and challenging labour market conditions across our operations. We have focussed on successfully managing our costs during a period of reduced revenue and at a time where continued inflationary pressures remain. 51 bathurst.co.nz Annual Report 2024 Section 2: Our Year Local communities We care about our impact and strive to deliver positive benefits to our host communities from our growth and development through strategic social investment and engagement. At Bathurst, we are committed to being part of our host communities. One way of doing this is to sponsor local organisations and events. For many years, we have been making contributions towards the people and activities that greatly benefit the regions where we operate. In FY24, Bathurst and its joint-venture BT Mining contributed over $800,000 to sponsorships and donations, covering a wide range of activities. Supporting a cornerstone community health project Our recent West Coast socio-economic workforce survey showed that 96% of survey respondents live in the Buller District (see below case study), and we have listened to our local workforce’s concerns about their ability to access local health resources by providing funding to a community health project. During FY24, we assisted with the funding of a new primary care and integrated health centre in Westport which provides medical, health and dental facilities in the Buller District. The new Kawatiri Health facility was set up by the Buller Health Trust (a Buller District Council charitable trust), after the region was faced with the possibility of having no independent GP practice to serve the local community. The 731 sq m combined medical facility houses a comprehensive array of healthcare services and includes five doctor’s rooms, four dental rooms, a pharmacy, physiotherapist/ gym rooms, ambulance emergency rooms and a multi-purpose room for other health services. The new facility is a testament to the power of community collaboration and the dedication of the trust and its partners. We are proud to be a partner to help deliver this cornerstone community healthcare service. Supporting waka ama We supported waka ama (outrigger canoes) at Raahui Pookeka Waka Sports Club in Huntly ahead of the 2024 world championships in Hawaii. Waka ama is steeped in the powerful history and traditions of waka sailing and voyaging throughout the Pacific. Waka ama is, therefore, not just a sport but also a vehicle for identity, pride and community. Under the eye of coaches Patrick Takoko, Mark Salu and Hakopa Ngapo, each team of six takes to the water for training six times a week, starting at 5.45 am. Teams of U16 boys, and U16 and U19 girls competed in the 500m and 1000m races. Important to the Raahui Pookeka club is the dimension of Māori cultural identity as Māori customs and traditions are entrenched into the sport not just on the water, but in all that occurs at events from the language to the protocols followed. Waka ama teaches its practitioners to be consciously ready to compete and for life in general. Growing community resilience In FY24, $200,000 was provided to the Buller Resilience Trust. The trust aims to grow a strong, sustainable and cohesive community within the Buller District. We are proud to support a trust that promotes Buller District as a desirable place to live and invest. The trust’s priority areas are: self-reliance and self-sufficiency, economic diversification, transition to a low-carbon economy, climate adaptation and protection, capability development and education (supporting resilience), and infrastructure development (supporting resilience). 52 Bathurst Resources Limited Section 2: Our Year Annual Report 2024 Restoring an historic powerhouse in Reefton We contributed to the restoration of the historic Reefton powerhouse that started operating in 1888. This will significantly enhance the heritage site, and that in turn will create a unique tourism experience as visitors learn about where electricity was first made publicly available in the southern hemisphere. Interaction with the redeveloped powerhouse itself is expected to attract more visitors to Reefton and to the West Coast. Healthy Harold programme We have continued to be a major supporter of the Life Education Trust West Coast, which provides the health and wellbeing education needs of more than 3000 West Coast children from Karamea to Haast. Specialist health teachers work with schools through a shared planning approach to support the individual needs of tamariki/children in their communities. We were invited to sponsor and participate in a Healthy Harold fundraiser in Greymouth, where Life Education Trust West Coast partnered with LEGO® user groups in New Zealand to put on a two-day LEGO® Show. Company volunteers attended all shifts over the weekend where more than 2000 people visited the LEGO® user groups’ displays as well as innovative creations by local children. What do you do when Healthy Harold calls and says his truck needs repairs, taking it out of service for months? Without it, he cannot travel up and down the West Coast to provide health education. We supported Healthy Harold with a truck on loan for six months. Thanks to the generous TDX Greymouth team for donating their time to complete the complex gearbox rebuild, and to Bruce Bonner from IMG for helping drive a loaned truck from the Takitimu mine to Greymouth. Other sponsorships in FY24 include: • Stockton mine sponsored underprivileged children to participate in the William Pike Challenge. In this challenge, children undertook outdoor activities, community service and passion projects to develop resilience and positive wellbeing, and strengthen life skills. • A range of sports in local communities across our sites including waka ama, rugby league, rugby union, basketball, cricket, running and fishing. We also supported the Buller Gorge Marathon. • The Christchurch Westpac Rescue Helicopter and the ROA Mining Rescue Helicopter based in Greymouth are on permanent standby, and cover the South Island from Kaikoura to Waitaki, and from Karamea to Haast. • Community indigenous planting events were supplied plants from Bathurst’s nursery, and Stockton mine staff assisted in planting areas around Westport. • A $12,000 university scholarship programme with Buller High School. • High-visibility safety vests for St Patrick’s primary school in Nightcaps. • Takitimu mine sponsored the Children’s Community Christmas Party and Whānau Evening for the Nightcaps and Ohai communities. • Supporting the Lyric Theatre, which is a community hub in Granity. • Repairs to the old Survey Heritage House in Granity. • The Waikato region 2024 Kids Day Out Variety Show for Heart Kids New Zealand. • The Ngāti Naho Trust to support participation of school children in the National Secondary School Basketball Tournament. Participating in the New Zealand extractives industry As a member of industry associations and groups, we participate in a coordinated way in the development of effective policy frameworks, sharing of best-practice, and accessing of information and insights on sectoral challenges and opportunities. Our support of the New Zealand minerals industry includes Minerals West Coast, of which our CEO is chair. He is also a board member of mining industry peak body, Straterra. Our people are also represented on the: • New Zealand Mines Rescue Service. • MinEx (the national health and safety council for New Zealand’s extractives sector). • New Zealand Mining Board of Examiners. • New Zealand Mining Panel of Examiners. • Hanga-Aro-Rau Workplace Development Council Extractives National Industry Advisory Group. We continue to be very much part of the mining and quarrying scene within New Zealand at a time of significant change in the policy settings applying to our sector. A critical time for us to be working with the wider industry. We updated an earlier socio-economic study of our impacts on the West Coast of the South Island from five years ago. The results show our ongoing importance to the community in the region. The data from successive Aigis Group surveys carried out in August 2018 and December 2023 show a stable workforce at Bathurst, and long-term residence on the West Coast. Working families with children are an important part of workforce households, and the workforce also participates in the community by spending locally and joining community activities. The majority own their own homes. For the most recent survey, study lead Dr Mark Sargent says: “Employment, qualification and industry of employment data for the West Coast indicate that the composition of the regional workforce is strongly influenced by the presence of the mining industry as a key economic and employment driver. Our 2023 research programme also included extensive interviews with community representatives in Buller and the West Coast. These engagements very clearly demonstrated that the community recognises the importance of Bathurst’s operations and generally supports their continuation.” Socio-economic data for West Coast mining generally and its impact on the region show an ongoing and significant contribution to regional GDP, and high labour productivity relative to that of other industries or New Zealand in general. Data from Bathurst survey respondents reflect the above results, partly because our company’s workforce provided the majority of survey responses. Our workforce consists of 317 direct employees and 72 full-time equivalent (FTE) contractor workers, a workforce of 389 people on the West Coast. Of this number, 73% provided survey responses. The average time working in the industry for this group was 12 years. Respondents are generally long-term resident in the region, on average, 22 years, of whom 96% live in the Buller District, and 84% live in Westport and the township’s immediate surroundings. Around 80% of workforce respondents either own or are purchasing their principal home which, based on 2024 average regional house prices, represents an investment of $87 million. 112 respondents provided 170 responses across all categories of community involvement and reported that their households participated in 271 activities in the region. These activities ranged from sports to community services and general recreational groups. “These social contributions have a tangible, although generally unquantified value to the community in terms of volunteering and the like,” Sargent says. “The company’s employees also make valuable contributions through volunteering activity. This is particularly the case with regard to emergency response situations, with recent major flooding events being an example of the adaptability of the workforce for the district’s response capabilities.” For the year ending 31 March 2024, the company spent $75.8 million in direct transactions with 127 West Coast businesses. Case study – Our contribution to the West Coast region 54 Bathurst Resources Limited Section 2: Our Year - Case Study Annual Report 2024 “Employment, qualification and industry of employment data for the West Coast indicate that the composition of the regional workforce is strongly influenced by the presence of the mining industry as a key economic and employment driver.” 55 bathurst.co.nz Annual Report 2024 Section 2: Our Year - Case Study West Coast socio-economic indicators FY24 75% response of 232 employees and 51 contractors; 775 in respondents’ households. 12 years Average time in the industry A stable and experienced workforce Workforce investing in the region 22 years Average residence time in the region 96% Live in Buller District 84% Live is Westport and township’s immediate surrounding 79% Own or are buying own home $87m Housing investment $1.1m Renting expenditure 26% In education Households involved in the community Wages and contractor expenditure 84% In employment $8.7m Discretionary spending locally 271 activities Community participation in a variety of local activities $75.8m West Coast procurement - 127 suppliers $28m West Coast wages 56 Bathurst Resources Limited Section 2: Our Year Annual Report 2024 Energy and GHG emissions We acknowledge that while our products play a critical role in achieving a low-carbon future and supporting a just transition, our operations also have impacts on the environment. Below, we present our energy and emissions data. Energy-saving projects We are consistently working to enhance energy efficiency across our operations and are refining our methods for measurement and reporting these improvements. As in past years, energy consumption remains a significant operational input, and we are focussed on identifying further reduction opportunities. The introduction in FY24 of using Esso Diesel Efficient™ fuel at the Ngakawau coal loadout complex and the continued use of this fuel at our BT Mining sites has resulted in 652,390 litres less diesel used, compared with standard diesel during FY24, and a corresponding reduction in annual CO2e emissions of 1,769 tonnes. Our procurement team undertook an assessment of our mine fleet in FY24 and identified machinery changes that will improve efficiency and save on fuel. One example is replacing an R994 excavator at Rotowaro with a new PC2000-11R excavator. This will result in significant fuel savings as the R994 uses around 178 litres/hr, while the new PC2000-11R uses only 111 litres/hr. This will reduce annual fuel use and CO2e emissions by approximately 201,000 litres of diesel and 545 CO2e tonnes of emissions for one piece of equipment. We continue to identify other ways we can play a part in being a solution to the challenge of climate change, including working with others to maximise our collective effort. A significant proportion of our mining fleet is supplied by Caterpillar Inc. In 2024, we signed up to participate in Caterpillar Inc’s Pathways to Sustainability programme. This four-year programme will provide Bathurst with holistic learning opportunities, energy transition project advisement and additional benefits related to sustainable product access. The emphasis of the programme is on understanding each participating company’s sustainability objectives. Providing participants with information and tools that will help them understand where they are on their own unique journeys and where energy transition strategies may need to be customised to support individual actions. The programme includes in-person and virtual training opportunities centered on six strategic areas impacted by the energy transition: strategy, people, product, process, technology and infrastructure. The programme will explore opportunities to advance our emissions reduction objectives through multiple avenues, including the use of technology, reducing machine lifecycle waste, fleet-bridging strategies, and finding solutions that can be applied today to improve efficiency. Energy use Total energy use1 in FY24 amounted to 957,080 gigajoules (GJ) at our four operational sites, as well as the Cascade mine rehabilitation project, Escarpment mine maintenance project and our corporate offices. This is approximately a 25% increase on energy use reported in FY23, driven chiefly by a 34% increase in waste rock removal (overburden stripping) across all sites, which dominates energy consumption. Primary drivers were the increased overburden disturbance volumes at the Stockton mine, and stripping related to the M1 Extension project at the Maramarua mine and the Waipuna West Extension project at the Rotowaro mine. In total, we moved 14.9 million banked cubic metres (M bcm) of waste rock in FY24, compared with 11.2 M bcm in FY23. Fuel and lubricants at operations make up 95% of the energy we consume. The remaining 5% is purchased electricity. When comparing energy consumption by operation, there are significant differences accounted for by the scale of each operation and the mine life-cycle stage. The Stockton mine was the largest consumer of energy this year at 399,203 GJ, which is consistent with producing and washing the most coal of the four sites. It also reflects the electricity used in the coal handling and preparation plant and the Ngakawau coal rail loadout facility. The Rotowaro mine was the second largest energy consumer at 328,098 GJ, reflecting the movement of 6.33 M bcm of waste rock during FY24. Material topic: Environmental The above graph excludes care and maintenance of Sullivan mine where energy consumption was zero. Canterbury Mine is also excluded as it is in post closure monitoring phase and only has minimal Scope 1 emissions which are included in Corporate. 1. Total energy use is reported in terms of energy consumed (fuel and electricity) by employees and contractors. Comparison of energy consumption by operation FY24 Electricity Fuel Energy consumption (GJ) 500k 450k 400k 350k 300k 250k 200k 150k 100k 50k 0 Stockton Rotowaro Maramarua Takitimu Escarpement- Cascade Corporate 57 bathurst.co.nz Annual Report 2024 Section 2: Our Year Site FY24 Scope 1 emissions (t/CO2e) FY23 Scope 1 emissions (t/CO2e) FY24 Scope 2 emissions (t/CO2e) FY23 Scope 2 emissions (t/CO2e) Stockton 56,277 48,734 662 703 Rotowaro 30,525 22,634 237 300 Maramarua 12,535 9,943 100 133 Takitimu 9,262 9,829 23 24 Escarpment/Cascade 23 32 0 0 Corporate 23 25 5 6 Total 108,645 91,197 1,027 1,166 The above table excludes care and maintenance of Sullivan mine where energy consumption was zero. Canterbury Mine is in post closure monitoring phase and only has minimal Scope 1 emissions which are included in Corporate. Scope 1 includes emissions from fuel, and fugitive emissions from coal; Scope 2 are emissions related to national grid electricity usage. The emissions are calculated following the procedures in a Ministry for the Environment (July 2024) report titled “Measuring emissions: A guide for organisations”. (Conversions factors used are updated from NZ MFE 2024 https://environment.govt.nz/publications/measuring-emissions-a-guide-for-organisations-2024-detailed-guide/). Reporting methodology draws on the Global Reporting Initiative (GRI). Greenhouse gas emissions Our greenhouse gas (GHG) emissions stem from three sources: diesel to extract coal at our sites as well as road and rail freight to customers; electricity for coal processing, water treatment plants and mine management systems; and coal seams produce small amounts of fugitive emissions (e.g. CO2) which are released into the air during mining. To illustrate the relative contributions from different GHG emissions streams, of the 108,682 tonnes of CO2e emitted in FY24: • 58.8% related to fuel consumption, blast emissions and gas emissions from transformers (Scope 1 direct emissions) • 40.2% related to fugitive emissions from coal production (Scope 1) • 1% related to electricity use (Scope 2 indirect emissions) Emissions in FY24 were around 18% higher than that in FY23. This reflected 34% more waste rock removal, leading to increased fugitive emissions. In FY24, the highest GHG emissions intensity was at the Rotowaro mine, with 0.093 CO2e per tonne of coal produced. This is due to coal production being 10.4% lower at Rotowaro in FY24 than in FY23, and priority placed on waste rock stripping at the Waipuna West Extension in which volumes of rock stripped increased by 68% on FY23, due to the higher strip ratio. This trend places an increasing onus on us to find new ways of reducing diesel fuel emissions. For example, our mine closure team at Huntly West arranged a contract with a local supplier to bring in soil from a local source and remove on-site waste material as a backload, a significant fuel saving. Other emissions reduction initiatives include reducing blasting requirements for overburden removal by improving mine planning. Electricity is a minor source of emissions because more than 80% of national grid generation is from renewable sources, e.g. hydroelectricity and geothermal. New Zealand ranks among the world’s top four countries in terms of renewable generation. We report Scope 1 and Scope 2 emissions at each of our sites below: 58 Bathurst Resources Limited Section 2: Our Year Annual Report 2024 We participate in the New Zealand Emissions Trading Scheme (ETS) in which we pass on carbon pricing to our customers. Through our key industry bodies, we submitted a government proposal to update the ETS. The changes aim to alter the annual price control settings to support New Zealand to meet its emission reduction goals. Against a backdrop of volatility in the price of New Zealand ETS units in 2024, our position on climate policy remains a framework for a ‘just transition’ absent of any market shocks to business and consumers. We support shared responsibility across all industries to reduce emissions, to enable our process heat customers to avoid unplanned impacts to the economic sustainability of their businesses. In this way, they can minimise negative monetary and societal effects on their upstream supply chain, employees and host communities. In light of strong demand for steelmaking coal and a transitional demand for industrial-process coal in New Zealand, we highlight the emissions reduction benefits for our domestic customers in buying local coal close to market. In FY24, we were granted approvals to mine 0.4 million tonnes of coal from the M1 pit at the Maramarua mine over a period of 10 years. We have estimated that with most M1 coal replacing imported coal from Indonesia (to be used in steelmaking), CO2e emissions would reduce by more than 12,000 tonnes over the life of the M1 project. This is in addition to the more than 40,000 tonnes of savings in CO2e emissions from the 1.3 million tonnes of coal to come from the Waipuna West extension pit at Rotowaro that will also replace imported Indonesian coal in New Zealand steelmaking. At 0.054 t/CO2e per tonne of coal produced, the total GHG emissions intensity across all operations was 8.5% greater than the prior year, as the below table shows, broken down by site: Overburden management A primary objective in developing mine plans is to create stable, rehabilitated landforms. The emphasis is on controls such as assessing the characteristics of mineral waste and managing their placement to reduce environmental effects for optimal post closure outcomes. Mineral waste may contain material that, unmanaged, can be a hazard to the health and safety of the workforce, community and the environment. Some of these hazards include acid and/or metalliferous drainage (AMD). We use geochemistry to characterise mineral waste from the exploration phase through to, and during, mining operations to identify potential hazards and develop management strategies to mitigate them. These investigations focus on determining the geochemical properties, locations and potential risks of mineral waste that could arise from mining activities, as well as any necessary mitigation measures throughout the mine’s lifespan. We segregate potentially hazardous materials and actively manage them to minimise the risk of harm. In FY24, the only mine site that disturbed potentially acid forming (PAF) waste rock was Stockton where PAF waste rock is managed in carefully placed engineered landforms. Disturbance of this rock category was up by 8.4% on FY23. The cause was a higher rate of overburden removal per unit of coal produced in FY24. *PAF = Potential Acid Forming waste rock; NAF = Non-Acid Forming waste rock. GHG emissions intensity FY24 FY23 Tonners of CO2 e/tonne of coal produced 1.0 0.09 0.08 0.07 0.06 0.05 0.04 0.03 0.02 0.01 0 Stockton Rotowaro Maramarua Takitimu Waste rock (bcm) disturbed in FY2 PAF NAF Waste rock disturbed (bcm) 8M 6M 2M 0 Stockton Rotowaro Maramarua Takitimu 5,294,482 PAF NAF 0 0 0 124,000 6,330,823 2,358,132 788,503 59 bathurst.co.nz Annual Report 2024 Section 2: Our Year Ongoing AMD management at the Stockton mine is undertaken in partnership with Te Tai Ōhanga New Zealand Treasury to treat acid on behalf of the Crown. This entails dosing more than 6000 tonnes of acid a year with calcium oxide to neutralise the acid. We then store the resulting sludge in sumps and pump that into drying/settling beds to solidify before placing the material in encapsulated waste rock dumps. In FY24, we worked with expert geochemists to analyse the relative performance of magnesium oxide compared with calcium oxide. Results of laboratory trials indicate sludge volumes reduce by over eight times using magnesium oxide. We are planning a full-scale field trial in FY25. In FY24, geochemical experts reviewed and sampled three mussel shell reactors (MSR) that have been treating acid mine drainage at the Stockton, Escarpment and Canterbury mines. The Stockton MSR has been operating successfully for over 12 years. Results have provided improvements for construction of new-generation MSRs to increase retention time and introduce more organic carbon to increase metal removal efficiencies. Our mine closure planning process, with live global positional system (GPS) tracking truckloads, assists us to manage PAF waste rock for optimal post- closure. Careful material selection is completed and recorded on where this material is being encapsulated in waste dumps in accordance with the site’s AMD Management Plan. We cap waste rock dumps with 0.4 metres of compacted weathered granite to reduce infiltration into them of oxygen and water, minimising acid production. Total waste rock disturbance across all sites was 3.75m bcm more than in the previous year. The total amount of waste rock per tonne of saleable coal across all sites was 7.5 bcm per tonne, 22% higher than in FY23, which reflects higher stripping ratios when mining the remaining coal. 60 Bathurst Resources Limited Section 2: Our Year Annual Report 2024 Cumulative seedlings planted 3,500,000 Cumulative ha’s completed 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 FY 91-98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY22 FY 23 FY 24 Land use and biodiversity From project design to operation closure, our focus is on reducing our physical footprint on land by identifying and managing our actual and potential impacts on biodiversity, and by applying the principles of the effects management hierarchy (avoid, remedy, mitigate). Over the life of our operations, we actively manage land holdings to control invasive flora and fauna species, restore degraded ecosystems, translocate endangered plants, and support the breeding and habitat requirements of vulnerable animals. Our goal is to restore mine sites to support the development or redevelopment of self-sustaining native ecosystems. When a landowner prefers to use the land for pasture after mining, we improve the soil’s chemical, physical and biological properties before choosing pasture species suited to the climate. We monitor restored pasture to assess livestock grazing at viable commercial stocking rates, including periodic evaluations of soil chemistry and pasture species composition. We have planted more than 710,000 indigenous plants across 97 hectares of rehabilitated land at the Stockton mine since taking over operations in a joint- venture in 2017. Since rehabilitation works at this site began in 1991 there have been 3,123,000 indigenous plants planted over 402 ha. All plant species are eco-sourced from the Ngakawau ecological district surrounding both the Stockton and Denniston plateaus, and species such as rātā, mānuka and koromiko are grown along with others commonly found in this subalpine region. Depending on growth factors, plants are propagated from either seeds or cuttings collected at our sites and grown for 12-24 months until forming a well-established root ball. This method is the key to ensuring plant survival in the relatively harsh, elevated plateau environment. At Stockton, we have previously made numerous plant density trials, which have informed a strategy of planting at a density of 6000-9000 seedlings per hectare, along with a slow-release fertiliser tab which also assists with plant establishment, survival and growth. Plant survival and succession rates are very high at the Stockton mine drawing on the lessons learnt from more than 30 years of rehabilitation activities. Stockton plant numbers and rehabilitation completed 1991 - 2024 Cumulative ha’s completed Cumulative seedlings planted 150 300 500 450 400 350 250 200 100 50 0 61 bathurst.co.nz Annual Report 2024 Section 2: Our Year We provide the Stockton mine with the vast majority of eco-sourced plants required for rehabilitation until end-of-mine life from our own nursery, for which we are planning to increase supply volumes. We have invested significantly in our nursery facility located near Westport, which in the upcoming year will provide around 150,000 seedlings to Stockton mine. We expect this number to grow to support ongoing and increasing rehabilitation activity at this site, which will need in total more than 6 million nursery seedlings. Given that just over 3 million seedlings have been planted already, this represents a significant commitment to ecological rehabilitation across a footprint of 1,250 ha. Our nursery will also continue to provide eco-sourced plants for the Cascade and Canterbury mine rehabilitation. At the Canterbury mine, we have undertaken wetland trials to understand the ecotoxicity of wetland plant species, and their ability to adsorb metals and improve final mine water discharge from mine pit lakes and ponds. Six species of wetland plants - Juncus edgariae, Phormium tenax, Carex secta, Schoenoplectus tabernaemontani, Typha orientalis and Carex geminata - were established in a 16-week trial where we ran historic mine water with elevated boron of >2.7 mg/l through planted hydroponic channels (see photograph top right) and determined adsorption of boron in plants and roots. All species of plants flourished and grew, and the mean adsorption of boron during the period was 1.3mg/l. Following on from the success of the channel trial, we have established floating wetlands on a rehabilitated mine pond at Canterbury mine. A trial of its efficacy is ongoing. Boron adsorption channel trials of six wetland plant species. Floating wetland in operation on the pit lake at the rehabilitated Canterbury mine. Boron adsorption rates in six wetland plant species in trial channels Channel: A B C D E F Mean mg 2.5 2 1.5 1 0.5 4 weeks 12 weeks 16 weeks 0 62 Bathurst Resources Limited Section 2: Our Year Annual Report 2024 3 2.5 2 1.5 1 0.5 0 We have been working with lake experts at The University of Waikato to optimise final mine pit lake design to ensure the lakes will be sustainable in terms of water quality and ecology at our Rotowaro and Maramarua mine sites. Ten Waikato lakes have been studied for their water quality, ecology, geology and morphology characteristics, of which seven were historic coal mine pit lakes, and three were natural. Because natural lakes in the Waikato region are much larger and shallower, and located in predominantly agricultural watersheds, pit lakes offer improved water quality because they are deeper and have relatively small surface areas. In addition, due to the historic pit lakes tending to have received less agricultural runoff, their water quality is lower in contaminants such as E. coli, nitrates and sediment compared with the natural lakes. They also have minimal algal bloom issues. On this basis, we are confident that new pit lakes from mine closure activities will enhance lacustrine environments in the Waikato region. Final lake designs for our mine pits will: • Maximise the depth to surface area ratio. • Create nearshore littoral habitat by decreasing the slope of the lake shore to increase habitat for aquatic organisms and provide safer human access in and out of lakes. • Incorporate lake water quality and hydrology model results into optimal designs. • Include positive research findings of introducing into lakes native phytoplankton, zooplankton, fish and sediment to develop natural ecosystem biodiversity. • Optimise final morphology based on findings of continuous monitoring of water quality through all seasons in historic pit lakes and through the water column to better understand stratification dynamics and subsequent effects on water quality. • Plant native vegetation to protect the mine lakes from prevailing winds to prevent wind-driven mixing and protect the shoreline from erosion. • Maximise wetland planting on lake edges and wetland plant colonisation. • Rehabilitated areas surrounding pit lakes will be returned to pasture, having a soil thickness to ensure runoff into lakes is low in dissolved metals such as boron and zinc. • Lake inlets and outlets will be designed to reduce ability of pest fish species to enter the lakes. Our recent monitoring shows that a nearby pit lake (Lake Puketirini) experiences whole-water column mixing in the winter, implying that the proposed Rotowaro and Maramarua mine lakes will likely experience seasonal mixing as well. As an example, in Lake Puketirini, boron concentrations in the top 20 metres of the water column were between 0.28-0.31 mg/l, compared with the ANZECC maximum safe concentration of 0.94 mg/l. The figure below shows the progressive reduction in boron from an active coal mine sump in Weavers pit (1986-1994) to final Lake Puketirini water quality. We have collected water samples and tested eDNA data from the historic pit lakes, to advise us on indigenous species that will support a diverse ecosystem and note the pest species to be managed or eliminated. Lake Puketirini water quality showing reduction on boron over time (former Weavers open cast coal mine pit). 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Active Mining Lake Filling Lake Boron (mg/L) 63 bathurst.co.nz Annual Report 2024 Section 2: Our Year Photograph of hydrologists sampling water quality through the water column at Lake Puketirini (former Weavers open cast coal mine pit), June 2024 For example, eDNA from Lake Puketirini indicates natural fish in two species of indigenous bully, and four introduced pest species, including carp and perch. The water quality monitoring results at an ex-opencast Waikato coal mine pit lake show that discharges are low in E. coli, total suspended sediment (TSS) and nitrates, compared with farm-impacted lakes in the surrounding catchments. This result is important for meeting key objectives in the vision and strategy (Te Ture Whaimana o Te Awa o Waikato) for the 80-year (three generations) improvement of the Waikato River driven by iwi (Waikato-Tainui). Fresh water bodies formed from well-designed and constructed opencast mine lakes will provide habitat suitable for native flora and fauna in perpetuity post mining. At the Rotowaro mine, as part of the Waipuna West Extention project, the site engaged experts to perform intensive field surveys in an area of 1.6 ha that mostly comprised old underground workings, and a mix of exotic and native bush and exposed farm land, to address potential adverse effects on protected native lizards that potentially occupy the area. Techniques to identify and monitor lizards included pitfall traps, artificial cover objects, tracking tunnels, diurnal visual encounter searches and nocturnal visual searches. The site followed a Lizard Management Plan that provided for safe translocation of any native lizards found. No native lizards were detected during the surveys, however we erected a lizard-proof fence at the edge of the area planned to be cleared, to prevent any lizards entering the mine footprint from the surrounding area. eDNA sample result from Lake Puketirini outlet, June 2024 64 Bathurst Resources Limited Section 2: Our Year Annual Report 2024 Water management We are committed to continual improvement of water use promoting efficiency initiatives during mining and by our people at sites. We mitigate impacts by complying with all regulatory requirements and implement sustainable, adaptive water management practices across all our sites. We monitor water quality and quantity at our operations, along with the health of key local water-dependent ecosystems and habitats. This monitoring allows us to ensure impacts are minimised and that we are operating in compliance with regulatory requirements. Water management aspects are considered in each site’s environment broad brush risk assessment so that operational and environmental risks, constraints and challenges about water are proactively identified. In FY24, we recorded no adverse impacts from our water use on downstream receiving environments. We had an overall increase of 7.5% in water use to 1,114 million litres (ML), compared with the previous year. Much of this increase stemmed from a 65% rise in overburden stripping at Rotowaro mine, and a corresponding increase in dust suppression activities using water. Land rehabilitation Following our acquisition of the Stockton, Rotowaro and Maramarua mines in 2017, we took on a legacy of historical land disturbance requiring rehabilitation over large areas. We have allocated Crown indemnities to cover the costs of this rehabilitation. We acknowledge this work needs to be progressive and integrated with our current operations for cost-effectiveness. In FY24, we rehabilitated 8 ha across ex-government mined areas, and 40 ha across all sites. For 2025, we have targeted more than 88 ha for rehabilitation, approximately 5.5% of the current total disturbed area across all mentioned sites of 1,589 ha. Average annual rehabilitation will increase to more than 150 ha over the next five years, as larger areas are no longer required for mining activities and become available for rehabilitation. Planned rehabilitation across sites for FY25 FY24 consumptive water use by site Operational Sites FY24 Consumptive water use (ML/yr) FY23 Consumptive water use (ML/yr) Stockton 715 782 Rotowaro 295 162 Maramarua 55 36 Canterbury 0 7 Takitimu 47 47 Escarpment/Cascade 0 0 Sullivan 0 0 Corporate 2 2 TOTAL 1,114 1,036 Sites Rehabilitation budget FY24 (ha) Stockton 32 Rotowaro 28 Maramarua 7 Takitimu 21 Total 88 Land disturbed and rehabilitated Disturbed land remaining to be rehabilitated Land rehabilitated in FY24 Land status (hectares) 900 800 700 600 500 400 300 200 100 0 Stockton Rotowaro Maramarua Takitimu Escaprment- Cascade Huntly West 65 bathurst.co.nz Annual Report 2024 Section 2: Our Year Water use intensity Based on estimates of consumption, water use intensity (measured as litres of water used per tonne of coal (l/t) produced) is shown below. Sites that were actively winning coal in FY23 used between 201 to 901 litres of water to produce a tonne of salable coal. Average water usage across all sites to produce a tonne of coal decreased by approximately 1.3%, from 565 l/t in FY23 to 557 l/t in FY24. Rotowaro has the highest intensity of water use (901 l/t coal), reflecting the more than 235 million litres of water used in dust suppression as per our site dust management plan. No dust complaints were received at our Rotowaro mine during FY24. Our water balance models use site-specific water inputs and outputs to inform our management of water-related risks, seeking to minimise the impact to other water users and the environment. Stockton mine has completed a full revision of its water model in FY24, which allows water quality and quantity estimates to be made over a 100-year forecast period. The water balance is used to quantify supply and demand, and identify opportunities to improve water use and treatment efficiency. Water use intensity by mine site FY24 FY23 Litres/tonne of coal produced 900 800 700 600 500 400 300 200 100 0 Stockton Rotowaro Maramarua Takitimu 67 bathurst.co.nz Annual Report 2024 Section 2: Our Year Air emissions We are committed to continuous improvement and applying innovative solutions in achieving and maintaining air quality compliance. Compliance with air quality consents is an essential component of our environmental risk management strategy. In FY24, we reviewed and revised our site air quality management plans. The plans include numerous techniques and controls such as: • Enforce speed limits on haul roads and restrict vehicle movements beyond specified wind speeds. • Automated water sprinklers in stockpiles and mine infrastructure areas that are linked to site weather station wind readings. • Water tanker procedures for haul roads. • Progressive rehabilitation to minimise dust-producing areas. • Vegetative screens where possible to form physical barriers. • Scheduling blast activities during favourable weather conditions (e.g. low wind speeds, stable atmospheric conditions) to minimise dispersion of dust. • Site traffic plans allocate gravel to high-traffic areas. • Using controlled blasting techniques to reduce volume of airborne particulates and gases. • Standard operational procedures to reduce/minimise risk of spontaneous combustion of coal. • Regular maintenance schedules of mining equipment and vehicles to ensure optimal engine performance to reduce exhaust emissions. • Mining out historic workings to reduce fugitive emissions. • Fire management of historic underground fires to reduce emissions. • Workforce training sessions on the importance of air quality management. We have been fully compliant with all air quality criteria in our resource consents at all sites in FY24. By proactively managing air quality as listed above, we significantly reduce effects on our workforce and our communities. This proactive approach strengthens our social licence to operate as local communities see evidence of our commitment to protecting their local environment. We recently purchased two AQMesh automatic air quality monitors to assess the PM10 and PM2.5 fractions of dust at our Rotowaro operations, to monitor and safeguard impacts to workers and the environment. This project will track trends, detect exceedances and trigger immediate mitigation responses. We have recently completed a review following 12 months of operating two new Sandvik New Zealand Leopard DI650i drills at the Stockton mine (pictured left). The drills are reducing our carbon footprint, and improving the health and safety of operators, contributing significantly towards our commitment to sustainability. Our previous drills used 90 litres of diesel per hour, while the Sandvik drills operate at 65 litres per hour, reducing emissions by more than 67 kilograms of CO2e every hour of operation. The positive air pressure in the cabs of the new drills effectively reduces respirable and inhalable airborne dust for our operators, leading to a healthier work environment. In terms of coal use, our specialists work with our customers to supply quality coal to optimise consumption and reduce air emissions in the process as well as transportation. For example, our coal supply to a local New Zealand steel mill is delivered via rail, saving more than 43kgCO2e/t compared with imported Indonesian coal in terms of transport emissions. We report annual fugitive emissions from stockpiled coal under the ETS, included in Scope 1 emissions in the Energy and Emissions section. The fugitive emissions are calculated following the procedures in Ministry for the Environment (July 2024) report titled “Measuring emissions: A guide for organisations”. (Conversions factors used are updated from NZ MFE 2024 https://environment.govt.nz/ publications/measuring-emissions-a-guide-for-organisations-2024-detailed-guide/). Sites Fugitive Emissions from produced coal (CO2e tonnes) Stockton 27,504 Rotowaro 7,205 Maramarua 4,003 Takitimu 5,161 Total 43,873 Fugitive Emissions from Produced Coal in FY24 As part of our mine rehabilitation and closure planning, we reviewed our rehabilitation at the Stockton mine to determine our effectiveness in recreating aquatic habitats post-mining. Recreating tarns (alpine or subalpine ponds) has been occurring since the early 2000s at Stockton, which have shown success using suitable overburden placement and capping materials. This work overturns previous misconceptions that mining and wetlands are incompatible. We commissioned freshwater ecologists from the National Institute of Water and Atmospheric (NIWA) Research in FY24 to investigate the terrestrial and aquatic ecologies around these tarns. Until now, there has been little research on this topic. Field surveys conducted in January and April 2024 assessed environmental conditions and large invertebrate communities at 19 tarns within and adjacent to the Stockton mine. Constructed tarns were compared with natural tarns on measures of aquatic health, e.g. water quality, habitat and aquatic life. The study separated the constructed tarns into two types: (i) planted, and (ii) vegetation direct transfer (VDT) - moving a large sod of intact vegetation to the tarn location to determine any differences to inform future planning. Key findings Across all tarns, pH ranged from highly acidic to near neutral (3.3–6.4). Most tarns had slightly elevated dissolved metal concentrations (e.g. aluminium) and low electrical conductivity. The high rainfall environment of the Stockton plateau may have caused the lower conductivity observed, whereas the tarn floor substrate (e.g. coal, weathered granite or sediment) was also likely to influence tarn water quality, water permanence and macroinvertebrate community metrics. Water in both natural and constructed tarns across the Stockton mine was calcium and magnesium dominated. Calcium-dominated lakes in New Zealand are predominantly found on the West Coast, largely due to degradation of calcium-rich alluvial soils. Interestingly, the diversity in macroinvertebrates showed no decrease with increasing altitude, despite constructed tarns being at significantly higher altitudes than the natural tarns surveyed across the Stockton mine. Nor was there any significant difference in species richness between constructed and natural tarns. Oligochaete worms and midges were the most common species found at all tarns. The number of species present in kicknet samples from each site ranged from 6-18 in constructed tarns, compared with 8-19 for natural tarns. Constructed tarns TM3 and TM1 had water conductivity values within the range of that observed for natural tarns, most likely related to these tarns having a similar floor substrate (sediment, mud and rock). Case study – Wetland rehabilitation at Stockton mine 68 Bathurst Resources Limited Section 2: Our Year - Case Study Annual Report 2024 Recreating tarns (alpine or subalpine ponds) has been occurring since the early 2000s at Stockton, which have shown success using suitable overburden placement and capping materials. This work overturns previous misconceptions that mining and wetlands are incompatible. Constructed Tarn TM3 (Mount Augustus gardens, Downers Dump) has the highest species richness (18) of any constructed tarns. 69 bathurst.co.nz Annual Report 2024 Section 2: Our Year - Case Study Recommendations from an earlier study for supporting diverse plant communities at constructed tarns include gently sloping banks, suitable substrates, semi-natural hydrology and limited nutrient inputs (Johnson and Rogers 2003). Despite variances in tarn construction methods employed to date, the macroinvertebrate communities surveyed between tarn types across the Stockton mine were not significantly different. This is an encouraging result, because it suggests that distance between constructed and natural tarns is not a barrier to the dispersal of aquatic invertebrates. Take-away messages In conclusion, to enhance the ecological values of constructed tarns on the Stockton plateau and other mining areas, we should seek to mimic the floor substrate of natural tarns, and revegetate areas surrounding tarns as soon as possible to reduce erosion, limit nutrient inputs and promote habitat restoration for native species. We already do much of these works at Stockton as part of our site rehabilitation. NIWA’s latest research provides new scientific data to help measure the relative ecological success of methods for tarn construction at Stockton. We intend to build on this research as mine rehabilitation progresses. Stockton mine is targeting the creation of over 8 ha of wetlands in mine site rehabilitation in FY25 and FY26. 70 Bathurst Resources Limited Section 2: Our Year Annual Report 2024 Governance Our corporate governance statement, issued in line with the 4th edition of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, provides an in-depth overview of our corporate governance framework and is available on our website at https://www.bathurst.co.nz/our-company/corporate-governance/ Environmental regulation Our exploration and mining activities are subject to a range of environmental controls which govern how we carry out our business. These are set out below. Mine development/mining activities Mining activities are regulated by the following: • Resource consents granted by the relevant district and regional territorial authorities, after following the processes set out in the Resource Management Act 1991. • Mining licences granted originally under the Coal Mines Act 1979 and now regulated under the Crown Minerals Act 1991. • Mining permits issued under the Crown Minerals Act 1991 by the Minister of Energy and Resources, required to mine Crown coal. • Access arrangements or profit à prendre granted by owners of private (i.e. non-Crown owned) coal. • Access arrangements granted by relevant landowners and occupiers granted under the Crown Minerals Act 1991. For Crown-owned land managed by the Department of Conservation, these access arrangements are granted either by the Minister of Conservation or, for significant projects, jointly by the Minister of Conservation and the Minister of Energy and Resources. • Concession agreements under the Conservation Act 1987 for land outside a permit area but owned by the Crown and managed by the Department of Conservation. • Wildlife authorities issued under the Wildlife Act 1953 granted by the Minister of Conservation. Controls around water and air discharges that result from mining operations are governed by the conditions of the resource consents that the particular mining operation is operating under. Our mining operations are inspected on a regular basis. To the best of the directors’ knowledge, all mining activities have been undertaken in compliance with the requirements of the Resource Management Act 1991, Crown Minerals Act 1991, Conservation Act 1987 and Wildlife Act 1953. Exploration activities To carry out exploration, we need to hold: • a relevant exploration permit (where the coal is Crown owned) or consent from the mineral owner where the coal is privately owned; • relevant resource consents to permit exploration; and • access arrangements with the relevant landowner and occupier and where wildlife is impacted, a wildlife authority. To the best of the directors’ knowledge, all exploration activities have been undertaken in compliance with the requirements of the Resource Management Act 1991, Crown Minerals Act 1991, Conservation Act 1987 and Wildlife Act 1953. Hazardous substances Mining activities involve the storage and use of hazardous substances, including fuel. We must comply with the Hazardous Substances and New Organisms Act 1996 and Health and Safety at Work (Hazardous Substances) Regulations 2017 when handling hazardous materials. To the best of the directors’ knowledge, no instances of non-compliance have been noted. Emissions Trading Scheme The New Zealand Emissions Trading Scheme came into effect from 1 July 2010, which essentially makes us liable for greenhouse gas emissions associated with the coal we mine and sell in New Zealand and for the fugitive emissions of methane associated with that mined coal. Liability is based on the type and quantity of coal tonnes sold, with the cost of such being passed on to customers. Our Emissions Trading Policy can be found on our website. Environmental and social risks We recognise the importance of identifying and managing material exposure to environmental and social risks to ensure the long-term sustainability of our business. 71 bathurst.co.nz Annual Report 2024 Section 2: Our Year As part of our commitment to transparency on these issues we have selected ten material topics that we believe represent the greatest areas of environmental and social risk to us, as included in the sustainability section of this annual report. These disclosures are made on a voluntary basis, and primarily reflect the unique complexities that arise from being a mining company. The topics revolve around the importance of maintaining our licence to operate, and fall into four key areas: • Health and Safety: ensuring our people are safe. • Socio-economic: ensuring we operate responsibly when it comes to our shareholders, people, and the local communities we operate in. • Governance: ensuring that we comply with regulations and achieve best practice mine rehabilitation standards and emergency preparedness plans. • Environment: ensuring we are aware of our environmental impacts and that we reduce these as much as possible. The other material risk to the long-term outlook of our business is the global move towards a low carbon emissions future. We acknowledge that the production and consumption of coal contributes to greenhouse gas emissions. We also understand the conflict between emission reduction aspirations, and the requirement for steel and energy to achieve global economic and social development ambitions, and provide the infrastructure needed for a lower carbon economy. The greatest risk to the longevity of our current business model sits within our domestic segment, which provides coal domestically in New Zealand for steelmaking, electricity generation, and energy processing heat purposes. New Zealand has a net zero emissions by 2050 goal enshrined in law, and pressure is building to move to a fully renewable source energy generation model. To mitigate our risk of over-capitalisation in redundant assets that hold coal not destined for steelmaking, we only commit to entering new mine areas with binding commercial partnerships in place. We view the risk of significant regulatory change and a decrease in demand with regards to coal for steelmaking as less likely in the medium term. We are increasingly focused on being a resource company specialising in coal primarily for steelmaking, and other resource commodities crucial to the global economy. To the best of the directors’ knowledge, no instances of major environment and community non-compliance have been noted. Please see our sustainability section of this report for further information on our environmental management and community engagement practices. Donations Bathurst made donations totalling $43,980 to several local groups during the year including scholarships. Further information of recipients as well as total donations made, including those made by joint venture BT Mining Limited, can be found within the socio-economic part of the sustainability section of this annual report. Directors’ and officers’ liability insurance In accordance with section 162 of the Companies Act 1993 and the constitution of Bathurst, Bathurst has provided insurance for, and indemnities to, directors and officers of the Group and its subsidiaries for losses from actions undertaken in the course of their legitimate duties. The insurance includes indemnity costs and expenses incurred to defend an action. Directors The following persons were directors of Bathurst as at 30 June 2024: Peter Westerhuis Non-executive chairman Francois Tumahai Non-executive director Richard Tacon Executive director Russell Middleton Executive director Directors’ securities interests Director Ordinary shares Performance rights Peter Westerhuis 351,863 77,905 Francois Tumahai - - Richard Tacon 1,600,302 1,226,112 Russell Middleton 1,252,830 893,310 For details of changes in performance rights refer to note 18 of the financial statements. Other current directorships of listed companies Richard Tacon was appointed as a non-executive director of New Tailsman Gold Mines Limited in September 2023. No other directors hold current directorships in other listed companies or have done so in the last three years. Other entries in the interests register Other changes to the interest register during the year was the issue of performance rights to Richard Tacon and Russell Middleton. Audit fees Other than as disclosed in note 5, there were no additional fees payable to Bathurst’s independent external auditors. 74 Bathurst Resources Limited Section 2: Our Year Annual Report 2024 Material topic: Governance Compliance Compliance protects our business from legal risks, and also reinforces our commitment to operating responsibly and ethically within all legal frameworks. Effective management directly contributes to our operational resilience and long-term profitability. Compliance in FY24 We report no material compliance events relating to environment, community, or health and safety during the year. In FY24, key aspects of our compliance management programme to deliver on our social licence commitments included: • Validating compliance with legislation and codes of practice. • Submitting our consent applications in FY24 for our Waikato mines to have betterment objectives for mine water discharge that will enhance the Waikato River water quality and adhere to and meet Te Ture Whaimana o Te Awa o Waikato (Vision & Strategy), which is to restore and protect the health and wellbeing of the Waikato River for future generations. • Establishing tyre management plans at our sites to adhere to the Resource Management (National Environmental Standards for Storing Tyres Outdoors) Regulations 2021. • Participating in Caterpillar’s Pathways to Sustainability programme to assist in reducing CO2 emissions, as per the Climate Change Response (Zero Carbon) Amendment Act 2019. • Ensuring compliance with the National Policy Statement for Indigenous Biodiversity 2023 by demarcating significant natural areas on our mine site survey plans to protect them from disturbance and impacts. • Assessing wetlands at our sites to ensure compliance with the Resource Management (National Environmental Standards for Freshwater) Amendment Regulations (No2) 2022. • Completing dam safety management assessments for site water structures using recognised dam engineers and applying for any required classification certificates under the Building (Dam Safety) Regulations 2022. • Actioning a benchmarking audit of our mobile plant operator competency training packages, to compare our existing training packages with any updates from New Zealand Qualifications Authority and Australian Resources and Infrastructure Industry packages to verify that we are keeping with industry best practice. • Continuing our vigilance on training and control measures for privacy and cyber security as they are fundamental to a stable and continuous operation with protections for our people, shareholders, customers and contractors. • Implementation of privacy training for personnel who handle personal data as part of their role under the Privacy Act 2020. • Diligently managing business-wide risks by protecting our online technology and systems infrastructure from potential threats through continued training and control measures. We had one reportable environment incident this year during construction of the Cypress South access road. Self-reported by Stockton mine, this related to a minor slope failure of incompetent material, which moved vegetation and slash over the Cypress boundary into the area of the Stockton mining permit. An engineering design change and installation of a temporary sump with dedicated pump and pipeline have reduced the risk of further slope failure in this area. Legislative reform Bathurst participates actively in public policy development in New Zealand that affect our activities, directly, and also through our memberships of industry associations. A change of government in late 2023 has brought in an intensive legislative reform programme, starting with the repeal of the previous government’s changes to resource management law and regulation. Revised environment national policy statements Proposed law to remove provisions that were averse to coal mining from secondary instruments to the Resource Management Act 1991 (RMA) is well advanced. We support this initiative. It will remove discrimination against coal mining as compared with all other types of mining and quarrying in or near wetlands. This change will allow us to pursue project development strategies using the effects hierarchy (avoid, remedy, mitigate), and if required, to apply offsets and compensation principles. We also submitted a proposal to change the exposure tolerance for copper in freshwater, which is part of an ongoing review of the Australian and New Zealand Environment and Conservation Council (ANZECC) guidelines concerning ecotoxicity of hazardous substances. Part of our work is to explore sharing ecotoxicity data and related ecological monitoring at our operations as a public good. At issue is the need to improve the science base in New Zealand on ecotoxicity and ecological tolerance levels for different substances. 75 bathurst.co.nz Annual Report 2024 Section 2: Our Year One-stop shop for environmental approvals The government introduced the Fast-Track Approvals Bill into Parliament in March 2024, and referred it to a parliamentary select committee process. Enactment is expected by the end of 2024. The key benefit for eligible project applicants is faster and more certain processes to obtain environmental approvals, including bringing in one process applications for approvals under the RMA, access arrangements under the Crown Minerals Act 1991, Conservation Act 1987, Wildlife Act 1953 and the Heritage New Zealand Pouhere Taonga Act 2014. This will usher in a ‘one-stop shop’ for infrastructure and mining/quarrying projects of regional or national significance. This is an important initiative for streamlining the continuation of our operations, in particular, in the Waikato region and in the Buller District on the West Coast. Proactive risk oversight We operate under a multi-layered enterprise risk management framework to identify and assess hazards, including those with potentially major or catastrophic consequences, and to develop plans to address and eliminate, or mitigate the related risks. During FY24, we reviewed all sites’ HSEC broad brush risk assessments together with completing mine closure risk assessment revisions, and Stockton and Rotowaro business continuity plans. For each of the identified major or catastrophic hazards, we have standardised our approach to identifying and understanding their causes and controls, including development of critical control verifications. We undertook gap assessments against the revised HSEC standards and completed audits of principal hazard management plans, and principal control plans. Where we identified gaps, we developed improvement actions, which are being progressively completed. We review progress against our Group HSEC targets on a monthly or quarterly basis, depending on the target. Management of community complaints During FY24, we received four community complaints. A dust complaint was reported by a neighbour at the Maramarua mine. Whilst our dust monitoring results were within compliance, we reviewed and updated our air quality management plan and procedures to minimise offsite dust. Maramarua mine also received two complaints of noise by a neighbour. We initiated active noise monitoring of our operations and provided results to our neighbour, and to district council noise compliance officers who advised compliance with our consents. We reviewed our noise management procedures and site management to ensure we remain in compliance. Supervisors have received additional training regarding operating equipment use and placement during evenings with low cloud and fog. We continue to regularly provide updates to our neighbour on our noise management improvements. The fourth complaint was from a resident in Reefton related to noise from our Stockton trucking campaign. This was necessary to manage disruption to rail freighting following a rail tunnel collapse at Tawhai near Reefton on 15 June 2024. We are aware of concerns from residents over the truck movements required to transport coal from the mine via the communities of Ngakawau, Granity, Westport and Reefton to a rail loading facility at Ikamatua on the other side of the damaged tunnel. We acknowledge the impact on residents. We are working closely with KiwiRail to obtain frequent updates who are working to make the tunnel safe and reopen the line as soon as possible. We have set up and advertised a transport email that is monitored daily to acknowledge and respond to emails promptly. We are holding regular briefings with the trucking contractor and drivers to ensure that road impacts and road safety (including speeding) are not compromised. We would like to thank WestReef Services, a Buller District Council-owned roading and utilities entity, for supporting us with timely and attentive road maintenance. 76 Bathurst Resources Limited Section 2: Our Year Annual Report 2024 Mine closure planning We recognise we are temporary custodians of the land on which we operate and are committed to responsible land ownership and meeting agreed objectives and criteria with key stakeholders. A structured and integrated closure planning and execution process is an essential part of our sustainability policy and financial reporting. We are conscious of the impacts mine closure can have on long-term land use as well as local communities. To minimise the potential financial, social and environmental risks of mine closure, we review strategies over the life of each operation to ensure maximum effectiveness of rehabilitation activities and future uses. Achieving this balance is imperative to building and fostering trust with our stakeholders and contributing to our future growth. Integrating closure planning throughout the life of the mine is aimed at safe and stable landforms and sustainable outcomes that consider beneficial reuse and value principles. Where opportunities for reuse and repurposing cannot be realised, we remove infrastructure and rehabilitate mining-related landforms and disturbances to ensure they are safe, stable, non-polluting, integrated with the surrounding landscape and able to support self-sustaining, functional ecosystems. Our closure planning includes adaptive management and monitoring to promote sustainable land-use practices that support human wellbeing and ecological health over the long term. Annually, an independent international bond expert reviews rehabilitation tasks and costs to end-of-mine life, including post-closure monitoring, and provides an updated bond quantum. These reviews detail the required FY24 rehabilitated pasture at Stockpile B, former Huntly West mine. activities and costs to rehabilitate sites in the event of sudden closure and are subject to regulatory review and approval. At the Stockton mine, we also have a separate bond to manage and treat acid mine drainage (AMD) which we update annually, and a quantum is paid to Te Tai Ōhanga - the Treasury. Note, the Treasury has liability on behalf of the Crown for the acid generated from waste rock disturbed at Stockton mine prior to 2017, while BT Mining provides a bond under the same heading post-2017. In FY24, an independent audit of the AMD bond process on behalf of the Treasury found the process is robust. We have been working from FY22-FY24 with the Treasury and local iwi Te Rūnanga o Ngāti Waewae on the Stockton Mine Acid Drainage Management project and developing optimal options for long-term treatment. This has been supported by an Expert Advisory Group, to bring in local and international knowledge and best practice on mining and mine drainage, freshwater ecology and environmental toxicology. As well as the submission on copper criteria noted in the legislative reform section above, we have also been undertaking site-specific ecotoxicology testing on other metals (including boron and zinc) and information gathering on ecology and metals at historic mine sites to ensure our final mine closure discharges will sustain a diverse aquatic ecological system. Our internal Decommissioning and Mine Closure Management Standard was used in FY24 at the Huntly West mine. Closure of this site entered final rehabilitation in FY24, and a further 5.4 hectares was rehabilitated back into pasture. Huntly West is a former underground coal mine and coal stockpile area. The rehabilitation has involved removal of significant infrastructure, fill above stabilised mine portals, removal of 3,600 cubic metres of concrete and recontouring landforms to prevent erosion and return land to pasture with imported soil. We have captured lessons learnt from infrastructure decommissioning and translated that into our mine closure plans at our active mine sites. 77 bathurst.co.nz Annual Report 2024 Section 2: Our Year Our coal mine licences will expire at our Stockton and Rotowaro mines in 2027, and we will require new consents for land-use and mining activities. Consent applications will require mine closure plans to be submitted and approved. Closure pre-feasibility level studies have commenced in FY24 for the Stockton and Rotowaro mines which, when complete, will allow an evaluation of all credible closure scenarios to select the best option(s), in consultation with the landowners, local iwi, the community and other external stakeholders. These studies will bring us more definitive information to support closure planning and cost estimation, as well as informing community and government stakeholder discussions. Improving closure outcomes We continue to collaborate with technical experts and industry peers to better understand and improve our closure planning and land use transition practices. We seek to improve closure outcomes and reduce closure costs through continuous improvement and innovation. In FY24, we completed further projects such as: • Updated mine closure risk assessments at three operating sites. • Completed a review of rehabilitation practices at Stockton mine including constructed tarns (see case study in Environment section). • Trialled a natural mineral-based soil conditioner that improves natural microbial activity and the soil’s ability to hold water, which encourages thriving subsoils to better support long-term growth. • Research into presence of rare earth elements in acid mine drainage neutralisation by-products. • Relocated a red tussock wetland community from a temporary vegetation direct transfer storage area onto final land form overburden at the Cypress mine. • Set up a monitoring regime for riparian vegetation planted along a 1 km length of a diverted stream at the Rotowaro mine. • Annual fish surveys of the Ngakawau River to determine that downstream water quality is being maintained within ecological thresholds. • Studies on improved prediction, remediation and closure of acid mine and metalliferous drainage sites. • Reviewed the practices and techniques that are currently employed to quantify mine closure costs and benefits, and associated mine closure risk. We updated an earlier socio-economic study of our impacts on the West Coast of the South Island from five years ago. The results show our ongoing importance to the community in the region. The data from successive Aigis Group surveys carried out in August 2018 and December 2023 show a stable workforce at Bathurst, and long-term residence on the West Coast. Working families with children are an important part of workforce households, and the workforce also participates in the community by spending locally and joining community activities. The majority own their own homes. For the most recent survey, study lead Dr Mark Sargent says: “Employment, qualification and industry of employment data for the West Coast indicate that the composition of the regional workforce is strongly influenced by the presence of the mining industry as a key economic and employment driver. Our 2023 research programme also included extensive interviews with community representatives in Buller and the West Coast. These engagements very clearly demonstrated that the community recognises the importance of Bathurst’s operations and generally supports their continuation.” Socio-economic data for West Coast mining generally and its impact on the region show an ongoing and significant contribution to regional GDP, and high labour productivity relative to that of other industries or New Zealand in general. Data from Bathurst survey respondents reflect the above results, partly because our company’s workforce provided the majority of survey responses. Our workforce consists of 317 direct employees and 72 full-time equivalent (FTE) contractor workers, a workforce of 389 people on the West Coast. Of this number, 73% provided survey responses. The average time working in the industry for this group was 12 years. Respondents are generally long-term resident in the region, on average, 22 years, of whom 96% live in the Buller District, and 84% live in Westport and the township’s immediate surroundings. Around 80% of workforce respondents either own or are purchasing their principal home which, based on 2024 average regional house prices, represents an investment of $87 million. 112 respondents provided 170 responses across all categories of community involvement and reported that their households participated in 271 activities in the region. These activities ranged from sports to community services and general recreational groups. “These social contributions have a tangible, although generally unquantified value to the community in terms of volunteering and the like,” Sargent says. “The company’s employees also make valuable contributions through volunteering activity. This is particularly the case with regard to emergency response situations, with recent major flooding events being an example of the adaptability of the workforce for the district’s response capabilities.” For the year ending 31 March 2024, the company spent $75.8 million in direct transactions with 127 West Coast businesses. “Employment, qualification and industry of employment data for the West Coast indicate that the composition of the regional workforce is strongly influenced by the presence of the mining industry as a key economic and employment driver.” Case study – Adding value to Stockton coal by making carbon foam 78 Bathurst Resources Limited Section 2: Our Year - Case Study Annual Report 2024 Carbon foam is an advanced material with many high-tech applications. Initial research has shown that Stockton coals that are less suited for steelmaking have ideal properties for making foam blocks. We have been working with Strata Geoscience and the Verum Group to develop a bespoke process to create carbon foams with greater strength than existing commercial products. We are now working to characterise the foam blocks for novel environmental and industrial applications at specialist laboratories at the University of Canterbury, GNS Science, Cardiff University and Callaghan Innovation. What is carbon foam, and what is it used for? Carbon foam is a sponge-like porous material with an interconnected open cell structure, first developed by Walter Ford in 1964. Depending on the specific properties of the foam, applications include thermal, mechanical and electrical. For example, structural moulds for making carbon fibre products and rocket nozzles, as well as in high thermal insulation, fuel cell electrodes, catalyst supports, filters and more. The opportunity Higher-sulphur coal at the top of seams on the Stockton plateau can be challenging to commercialise, and still must be removed to reach the higher-quality coal for overseas steelmaking. We asked the question, could we do anything with these coals to commercialise them? Earlier internal research identified that coals containing a high organic sulphur content have exceptional thermoplastic properties, due to the combined plasticising effect of the sulphur and hydrogen present. In 2017 and 2018, CRL Energy (now Verum Group) carried out a literature review into carbon foams, and identified thermoplastic properties as a fundamental requirement, making Stockton coals a potential candidate. We then built a research team including Dr James Pope (Strata Geoscience), Dr Nigel Newman (Verum Group) and Dr Rob Boyd (Technical Marketing Manager, BT Mining) to scope staged research to test Stockton’s high-sulphur coals for making carbon foams, with the developed IP owned by the contributors. The team has now successfully established the optimal coal blend and production conditions, and upscaled the size of foam blocks we can produce. Future work We are planning the next stage of research. This will continue to target the best potential commercial opportunities for the unusual byproduct coals at the Stockton mine, drawing on the skills and expertise of the research team. Carbon foam is an advanced material with many high-tech applications. Initial research has shown that Stockton coals that are less suited for steelmaking have ideal properties for making foam blocks. SECTION 3 Financial Statements 81 bathurst.co.nz For the year ended 30 June 2024 Section 3: Financial Statements Income statement 82 Statement of comprehensive income 82 Statement of financial position 83 Statement of changes in equity 84 Statement of cash flows 85 Notes to the financial statements 86 Additional information 116 Independent auditor’s report 119 82 Bathurst Resources Limited Section 3: Financial Statements For the year ended 30 June 2024 Income statement Notes $’000 2024 $’000 2023 $’000 Revenue from contract with customers 3 43,369 43,748 Cost of sales 4 (33,302) (37,766) Gross Profit 10,067 5,982 Equity accounted profit 13 42,179 98,753 Other income 122 51 Depreciation 10 (1,757) (1,839) Administrative and other expenses 5 (8,140) (10,422) Movement in deferred consideration 15 (c) 2,179 (1,677) (Loss)/gain on disposal of fixed assets 435 217 Impairment losses 8 (6,055) (89) Operating profit before tax 39,030 90,976 Finance cost 6 (724) (514) Finance income 6 241 24 Profit before income tax 38,547 90,486 Income tax benefit 7 - - Profit after tax 38,547 90,486 Earnings per share: Cents Cents Basic profit per share 19 20.14 47.29 Diluted profit per share 19 19.84 46.70 Profit after tax 38,547 90,468 Other comprehensive income (“OCI”) items that may be reclassified to profit or loss: Exchange differences on translation of foreign operations (1,527) (821) Share of BT Mining hedging through OCI 13 (1,029) (1,589) Comprehensive income 35,991 88,076 Statement of comprehensive income 83 bathurst.co.nz For the year ended 30 June 2024 Section 3: Financial Statements Statement of financial position Notes $’000 2024 $’000 2023 $’000 Cash and cash equivalents 7,777 12,812 Restricted short-term deposits 4,576 4,384 Trade and other receivables 9 2,819 2,613 Inventories 1,612 910 New Zealand emission units 1,008 284 Crown indemnity 53 51 Total current assets 17,845 21,054 Property, plant and equipment 10 12,963 10,085 Mining assets 11 25,256 12,461 Interest in joint-ventures 13 287,625 253,622 Crown indemnity 651 649 Other financial assets 230 220 Total non-current assets 326,725 277,037 TOTAL ASSETS 344,570 298,091 Trade and other payables 15 (a) 4,825 6,368 Borrowings 15 (b) 785 447 Deferred consideration 15 (c) 1,004 1,034 Rehabilitation provisions 16 1,360 996 Total current liabilities 7,974 8,845 Borrowings 15 (b) 1,139 834 Deferred consideration 15 (c) 10,613 2,172 Rehabilitation provisions 16 6,165 4,280 Total non-current liabilities 17,917 7,286 TOTAL LIABILITIES 25,891 16,131 NET ASSETS 318,679 281,960 Contributed equity 17 316,970 316,970 Reserves 18 (29,810) (27,982) Accumulated Earnings 31,519 (7,028) EQUITY 318,679 281,960 For and on behalf of the Board of Directors: Peter Westerhuis Chairman 23 August 2024 Russell Middleton Executive Director 23 August 2024 84 Bathurst Resources Limited Section 3: Financial Statements For the year ended 30 June 2024 Statement of changes in equity Contributed equity $’000 Share-based payments $’000 Foreign exchange/ hedging $’000 Retained earnings $’000 Re-organisation reserve $’000 Total equity $’000 1 July 2022 316,970 247 6,390 (97,514) (32,760) 193,333 Income - - (2,410) 90,486 - 88,076 Share-based payments - 551 - - - 551 30 June 2023 316,970 798 3,980 (7,028) (32,760) 281,960 Income - - (2,556) 38,547 - 35,991 Share-based payments - 728 - - - 728 30 June 2024 316,970 1,526 1,424 31,519 (32,760) 318,679 85 bathurst.co.nz For the year ended 30 June 2024 Section 3: Financial Statements Statement of cash flows Notes $’000 2024 $’000 2023 $’000 Cash flows from operating activities Receipts from customers 42,919 45,834 Payments to suppliers and employees (38,542) (45,411) Net cash inflow from operating activities 21 4,377 423 Cash flows from investing activities Exploration and consenting expenditure (1,620) (1,126) Mining assets (including capitalised waste and moved in advance) (9,410) (1,014) Dividend from BT Mining 6,500 13,000 Property, plant and equipment purchases net of disposals (3,152) (1,988) Deferred consideration (1,202) (1,158) NWP Coal Canada Limited 13 (b) (850) (714) Other - 79 Net cash inflow/(outflow) from investing activities (9,734) 7,079 Cash flows from financing activities Interest received 47 25 Other finance costs paid (81) (47) Interest on leases (95) (70) Drawdown/(Repayment) of leases 643 513 Net cash inflow/(outflow) from financing activities 514 421 Net increase/(decrease) in cash (4,843) 7,923 Cash and cash equivalents at the beginning of the year 12,812 4,765 Restricted short-term deposits at the beginning of the year 4,384 4,508 Total cash at the end of the year 12,353 17,196 86 Bathurst Resources Limited Section 3: Financial Statements For the year ended 30 June 2024 General information Bathurst Resources Limited (“Company” or “Parent” or “BRL” or “Bathurst”) is a company incorporated and domiciled in New Zealand, registered under the Companies Act 1993 and listed on the Australian Securities Exchange (“ASX”). These financial statements have been prepared in accordance with the ASX listing rules. The financial statements presented as at and for the year ended 30 June 2024 comprise the Company and its subsidiaries (together referred to as the “Group”). The Group is principally engaged in the exploration, development and production of coal. These financial statements have been approved for issue by the Board of Directors on 23 August 2024. Basis of preparation These Group financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (“NZ GAAP”). The Group is a for-profit entity for the purposes of complying with NZ GAAP. The consolidated financial statements comply with New Zealand Equivalents to International Financial Reporting Standards (“NZ IFRS”), other New Zealand accounting standards and authoritative notices that are applicable to entities that apply NZ IFRS. The financial statements also comply with International Financial Reporting Standards (“IFRS”). These financial statements have been prepared on the going concern basis, and are presented in New Zealand dollars, which is the Company’s functional and presentation 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. Measurement basis These financial statements have been prepared under the historical cost convention, except for certain financial assets and liabilities which are measured at fair value through profit or loss. 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 statement of cash flows 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. Foreign currency translation 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. Group companies 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. 1. About our financial statements Notes to the financial statements 87 bathurst.co.nz For the year ended 30 June 2024 Section 3: Financial Statements Intangible assets – New Zealand emissions units Emissions trading units are acquired to satisfy its obligations under the New Zealand Emissions Trading Scheme. These units have a finite useful life but are not amortised because they are expected to be utilised to offset the Group’s obligation under the Emissions Trading Scheme within 12 months of balance date. The units are recognised at cost. Key judgements and estimates In the process of applying the Group’s accounting policies, management have made a number of judgements and applied estimates and assumptions about future events. These are noted below and/or detailed within the following relevant notes to the financial statements: • Note 8 Impairment • Note 11 Mining assets • Note 15 (c) Deferred consideration • Note 16 Rehabilitation provisions Reserves and resources 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 2012 (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 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, provisions for rehabilitation, and deferred consideration. Standards and interpretations adopted during the year The financial information presented for the year ended 30 June 2024 has been prepared using accounting policies consistent with those applied in the 30 June 2023 financial statements. There are no new accounting standards issued but not yet effective, that will have an impact on the Group. 1. About our financial statements continued Notes to the financial statements 88 Bathurst Resources Limited Section 3: Financial Statements For the year ended 30 June 2024 Year ended 30 June 2024 Export $’000 Domestic $’000 Corporate $’000 Total $’000 Eliminate BT Mining $’000 Total BRL $’000 Revenue from contracts with customers 340,548 133,376 - 473,924 (430,555) 43,369 Operating profit before tax2 100,452 (2,519) (17,092) 80,841 (84,097) 39,030 Net finance costs (1,542) (200) 8,086 6,344 (6,827) (483) Income tax - - (25,868) (25,868) 25,868 - Movements in OCI - - (3,110) (3,110) 554 (2,556) Comprehensive income after tax5 98,910 (2,719) (37,984) 58,207 64,502) 35,991 Depreciation, amortisation & impairment (23,848) (23,489) (5,048) (52,385) 47,026 (5,359) EBITDA3 122,939 37,950 (23,675) 137,214 (130,657) 6,557 Year ended 30 June 2023 Revenue from contracts with customers 421,817 137,604 - 559,421 (515,673) 43,748 Operating profit before tax 213,984 3,897 (19,912) 197,969 (205,816) 90,976 Net finance income (1,582) 799 5,519 4,736 (5,226) (490) Income tax - - (59,007) (59,007) 59,077 - Movements in OCI - - (3,265) (3,265) 855 (2,410) Comprehensive income after tax 212,402 4,696 (76,665) 140,433 (151,180) 88,076 Depreciation, ammortisation & impairment (18,533) (23,586) (6,617) (48,736) 42,817 (5,919) EBITDA 237,073 39,875 (21,699) 255,249 (253,769) 1,480 The operating segments reported on are: • Export – 100 percent of BT Mining’s export mine (Stockton). • Domestic - BRL’s eastern South Island domestic operations and 100 percent of the BT Mining North Island domestic mines. • Corporate – BRL corporate overheads, Buller Coal Project and Tenas Project, and 100 percent of BT Mining corporate overheads. A reconciliation to profit after tax per BRL’s Income Statement is provided via the elimination of BT Mining column. Total assets and total liabilities are reported on a group basis, as with tax expense. Two BRL customers met the reporting threshold of 10 percent of BRL’s operating revenue in the year to 30 June 2024, contributing $33.6m (2023: $26.5m). 2. Segment information Accounting policy 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. Notes to the financial statements 89 bathurst.co.nz For the year ended 30 June 2024 Section 3: Financial Statements 2024 $’000 2023 $’000 Coal sales 26,583 27,333 Freight and ash disposal revenue 16,786 16,415 Sales revenue from contracts with customers 43,369 43,748 Accounting policy Revenue from contracts with customers is recognised at a point in time, when satisfaction of the performance obligation(s) in a signed customer contract is achieved, signifying when control has passed to the customer. Performance obligations The Group has one key performance obligation across all customer contracts – that to supply (and deliver where relevant) coal. Because of when control transfers to the customer (on delivery if freight is included as a service, on arrival at the collection point if not), freight forms part of the same performance obligation as the supply of coal. Satisfaction of the performance obligation is assumed at the time of delivery or arrival at the collection point, whichever is relevant. There are no unsatisfied performance obligations. Determination of the transaction price The value at which revenue is recorded is the stand alone selling price for the good/service provided. Each contract notes a separate price for coal, and freight delivery/ash disposal where relevant. Some customer contracts allow for limited remediations in the instance of the Company providing non-specification coal (either at the option of the customer or BRL). These instances are very rare and in almost all cases are rectified in the month that the non-specification occurs. As such the best estimate of the final consideration to be received is the invoiced amount as based on the transaction prices in the customer contract. 3. Revenue from contracts with customers Notes to the financial statements 90 Bathurst Resources Limited Section 3: Financial Statements For the year ended 30 June 2024 Notes 2024 $’000 2023 $’000 Raw materials, mining costs and consumables used 9,458 11,853 Freight costs 14,155 14,249 Mine labour costs 6,646 7,021 Amortisation expenses 3,602 4,080 Changes in inventories of finished goods and work in progress (559) 563 Total cost of sales 33,302 37,766 5. Administrative and other expenses Administrative and other expenses include the following items: Remuneration of auditors 257 219 Directors’ fees 403 510 Legal fees 887 3,318 Consultants 647 1,063 Employee benefit expense 2,807 2,625 Rent 142 32 Share-based payments 18 728 551 Included in remuneration of auditors is $48 relating to the half year review with the remainder for end of year audit fees. 6. Net finance costs Interest income 240 24 Realised foreign exchange 1 - Total finance income 241 24 Interest expense on finance leases (103) (77) Interest expense on debt instruments - - Unrealised foreign exchange loss (97) (14) Rehabilitation provisions unwinding of discount 16 (214) (179) Deferred consideration unwinding of discount 15 (c) (289) (222) Other finance costs (21) (22) Total finance costs (724) (514) Total net finance (cost)/income (483) (490) 4. Cost of sales Notes to the financial statements 91 bathurst.co.nz For the year ended 30 June 2024 Section 3: Financial Statements 7. Income tax benefit (a) Income tax benefit 2024 $’000 2023 $’000 Current tax - - Deferred tax - - Income tax benefit - - Reconciliation of income tax benefit to tax payable Profit before income tax 38,547 90,486 Tax at the standard New Zealand rate of 28 percent 10,793 25,336 Tax effects of amounts not assessable in calculating taxable income: Share of joint-venture equity profit (12,082) (27,651) Taxable temporary differences not recognised (1,149) (3,332) Non-taxable adjustments including movement on deferred consideration (90) 591 Current year losses not recognised as a deferred tax asset 2,528 5,056 Income tax benefit - - b) Imputation credits Opening balance imputation credit account 24,426 19,370 Imputation credits attached to dividends received and other items 2,528 5,056 Imputation credits available for use in future periods 26,954 24,426 Accounting policy 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 New Zealand 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 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. 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. Notes to the financial statements 92 Bathurst Resources Limited Section 3: Financial Statements For the year ended 30 June 2024 Notes 2024 $’000 2023 $’000 Impairment of Bathurst domestic coal 11 6,055 - Impairment of work in progress expenditure - 89 Impairment losses 6,055 89 Management has assessed the cash-generating units (“CGU”) for the Group as follows: • Bathurst domestic coal, as the Timaru coal yard cannot generate its own cash flows independent of the mines. This includes the Takitimu mine and the Timaru coal yard. • Buller Coal project, as there is a large amount of shared infrastructure between the proposed mines, necessary blending of the pit products at the same site, and the similar geographical location of the pits. There is a third CGU that is assessed for impairment in note 13. The assets that this CGU represents are only 65 percent owned and due to a joint-venture ownership structure not consolidated in the Group results. Bathurst domestic coal In assessing the recoverability of the Bathurst domestic coal CGU the value in use future cash flows were calculated with reference to: • the sale of the estimated recoverable reserves (346kt) over the current life of the mine • assumption that future coal prices are consistent with current contracted prices; and • a post-tax discount rate of 12.0 percent, pre-tax 15.7 percent. An impairment has been recognised on assets relating to the Takitimu mine, which although remains profitable and provides positive cashflows, is planned to cease operating in FY26. The impairment relating to the Takitimu mine forms part of the domestic segment, as reported in note 2. Mining assets of $6.1m have been impaired. The amounts impaired include capitalised mine development and exploration costs. The remaining carrying value of the Bathurst domestic coal CGU at 30 June 2024 was $10.0m and is based on the forecast cashflows from the mine for the remaining mining period to FY26 based on the current customer contracts and production of 361kt. Buller Coal project The Buller Coal project was previously fully impaired in the year ended 30 June 2015. The Buller Coal project has remained on care and maintenance and management have no immediate plans to reinstate the project. There was $0.7m in capitalised exploration and evaluation expenditure relating to this CGU at 30 June 2021. During the 2022 $0.3m was written back as these balances related to historical items that could no longer be supported. Apart from $0.4m of capitalised exploration and evaluation expenditure, the CGU remains impaired at 30 June 2024. Accounting policy For non-financial assets, 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). Exploration and evaluation and mining assets, as well as property, plant and equipment are assessed for impairment collectively as part of their respective cash-generating units. 8. Impairment Notes to the financial statements 93 bathurst.co.nz For the year ended 30 June 2024 Section 3: Financial Statements 9. Financial assets Trade and other receivables 2024 $’000 2023 $’000 Trade receivables from contracts with customers 1,098 2,085 Receivable from BT Mining 13 790 214 Other receivables and prepayments 937 314 Total trade and other receivables 2,819 2,613 Accounting policy Initial recognition and measurement The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. The Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. A financial asset is recognised when the Group becomes party to the contractual provisions of the instrument. Subsequent measurement Financial assets under NZ IFRS 9 are subsequently classified to reflect the business model in which assets are managed and their contractual cash flow characteristics, as follows: • Amortised cost: where the business model is to hold the financial assets in order to collect contractual cash flows and those cash flows represent solely payments of principal and interest. • Fair value through other comprehensive income: where the business model is to both collect contractual cash flows and sell financial assets and the cash flows represent solely payments of principal and interest. • Fair value through profit or loss: if the asset is held for trading or if the cash flows of the asset do not solely represent payments of principal and interest. Financial assets at amortised cost This is the only relevant financial asset category for the Group. The Group’s financial assets subsequently measured at amortised cost consist of: • Cash and cash equivalents and restricted short-term deposits. • Trade receivables from contracts with customers and related party receivables (within trade and other receivables). • Other financial assets. • Crown indemnity. Financial assets at amortised cost are subsequently measured using the effective interest method and are subject to impairment. For information on credit risk and impairment, refer to note 20. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired. The crown indemnity receivable is carried at the lower of the indemnity escrow limit and the rehabilitation provision limit on a ‘mine by mine’ basis. The net present value of the receivable is calculated using a risk-free 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. Derecognition Financial assets are derecognised if the Group’s contractual rights to the cash flows from the financial asset expire or if the Group transfers the financial asset to another party without retaining control of the asset. Cash and cash equivalents and restricted short-term deposits • Cash and cash equivalents comprise cash at bank and on hand and short-term deposits with an original maturity of three months or less. Restricted cash deposits are sureties held backing provisions for rehabilitation. Trade receivables from contracts with customers (“trade receivables”) are amounts due from customers for goods sold or services performed in the ordinary course of business. Trade receivables are generally due for settlement within 20 to 30 days and as such classified as current. There are no contract assets (accrued revenue) relating to contracts with customers. Notes to the financial statements 94 Bathurst Resources Limited Section 3: Financial Statements For the year ended 30 June 2024 10. Property, plant and equipment Year ended 30 June 2024 Freehold land $’000 Buildings $’000 Mine infrastructure $’000 Plant & machinery $’000 Furniture & fittings $’000 Work in progress $’000 Total $’000 Opening net book value 1,972 1,320 66 5,809 89 829 10,085 Additions including NZ IFRS 16 2,608 280 - 1,107 149 2,157 6,301 Transfers (3) 18 - 1,433 136 (2,561) (977) Disposals - - (2) (674) (12) - (688) Depreciation including NZ IFRS 16 (30) (265) (8) (1,352) (103) - (1,758) Closing net book value 4,547 1,353 56 6,323 259 425 12,963 Cost 18,127 8,371 2,894 27,243 2,720 13,673 73,028 Accumulated write-downs (13,580) (7,018) (2,838) (20,920) (2,461) (13,248) (60,066) Closing net book value 4,547 1,353 56 6,323 259 425 12,963 Year ended 30 June 2023 Opening net book value 1,999 974 75 6,021 60 591 9,720 Additions including NZ IFRS 16 - - - 144 578 2,050 2,772 Transfers - 443 - 1,537 (309) (1,671) - Disposals - (38) - (388) - (141) (567) Depreciation including NZ IFRS 16 (27) (59) (9) (1,505) (240) - (1,840) Closing net book value 1,972 1,320 66 5,809 89 829 10,085 Cost 15,522 7,198 2,899 27,784 3,359 14,077 70,839 Accumulated write-downs (13,550) (5,878) (2,833) (21,975) (3,270) (13,248) (60,754) Closing net book value 1,972 1,320 66 5,809 89 829 10,085 The value of right-of-use (leased) assets included in property, plant and equipment are noted below: Year ended 30 June 2024 Freehold land $’000 Buildings $’000 Plant & machinery $’000 Furniture & fittings $’000 Total $’000 Opening net book value 90 444 761 12 1,307 Additions 11 280 1,235 59 1,584 Disposals - - (290) (12) (302) Depreciation (30) (202) (127) (28) (387) Closing net book value 71 522 1,579 31 2,202 Notes to the financial statements 95 bathurst.co.nz For the year ended 30 June 2024 Section 3: Financial Statements Accounting policy Leases The Group assess whether a contract is or contains a lease at inception of a contract. The Group recognises a right-of-use (“ROU”) asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases (lease terms of 12 months or less) and leases valued at less than $10k. Lease payments associated with these leases are recognised as an expense on a straight-line basis. ROU assets for the Group primarily consist of corporate property and yellow goods hire and have an average term of 2.1 years. The determination of whether an arrangement is, or contains, a lease is based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Group must also have the right to obtain substantially all of the economic benefits from use of the asset and have the right to direct the use of the asset. The Group recognises a right-of-use (“ROU”) asset and a lease liability at the lease commencement date. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability plus any initial direct costs incurred and an estimate of costs to dismantle or remove or restore the asset. ROU assets are subsequently measured at cost less accumulated depreciation and impairment losses, being depreciated over the shorter of the estimated useful life of the asset or the lease term. The corresponding lease liability is initially measured at the present value of the future lease payments, discounted using the interest rate implicit in the lease, or if that rate cannot be readily determined, the Group’s incremental borrowing rate which ranges from 3.6 percent to 8.54 percent dependent on what type of asset the lease relates to and the life of the asset. Subsequently, the lease liability is adjusted to reflect interest on the lease liability (using the effective interest method) and lease payments made. The Group applies IAS 36 Impairment of Assets to determine whether a ROU asset is impaired. Estimated useful lives for ROU assets are the same as other assets noted below, unless noted otherwise. Property, plant and equipment All property, plant and equipment are measured at cost less depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. 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 expenditure will flow to the Group. 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. Depreciation is recognised in profit or loss over the estimated useful lives of each item of property, plant and equipment. Leasehold improvements and certain leased plant and equipment are depreciated over the shorter of the lease term and their useful lives. The estimated useful lives for significant items of property, plant and equipment are as follows: • Buildings 6 - 50 years (3 – 5 years for ROU assets) • Mine infrastructure 3 – 20 years • Plant and machinery 2 – 20 years • Leased land 7 – 8 years • Furniture, fittings and equipment 2 – 12 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. Any gain or loss on disposals of an item of property, plant and equipment (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in profit or loss. 10. Property, plant and equipment continued Notes to the financial statements 96 Bathurst Resources Limited Section 3: Financial Statements For the year ended 30 June 2024 11. Mining assets Exploration and evaluation assets Notes 2024 $’000 2023 $’000 Opening balance 3,304 2,178 Expenditure capitalised 1,620 1,126 Impairment of Takitimu mining assets 8 (4,924) - Total exploration and evaluation assets - 3,304 Mining licenses/permits and capitalised waste moved in advance Opening balance 9,157 12,312 Expenditure capitalised 2,169 183 Tenas Coal project acquisition 18,612 - Amortisation (3,602) (4,080) Waste moved in advanced capitalised 51 742 Impairment of Takitimu mining assets 8 (1,131) - Total mining licenses/permits and capitalised waste moved in advance 25,256 9,157 Total mining assets 25,256 12,461 Accounting policy Exploration and evaluation 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. Mining licences/permits Mining licences/permits include the cost of acquiring and developing mining properties, licences, 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. Notes to the financial statements 97 bathurst.co.nz For the year ended 30 June 2024 Section 3: Financial Statements Accounting policy continued 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 asset will flow to the Group and the cost of the item can be measured reliably. Waste moved in advance Waste removed in advance costs incurred in the development of a mine are capitalised as parts of the costs of constructing the mine and subsequently amortised over life of the relevant area of interest or life of mine if appropriate. Waste removal normally continues through the life of the mine. The Group defers waste removal costs incurred during the production stage of its operations and discloses them within the cost of constructing the mine. 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. Costs above the life of ore component strip ratio are deferred to waste removed in advance. The stripping activity asset is amortised on a units of production basis. 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. Key judgements and estimates Waste moved in advance 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. Recoverability of mining assets/impairment The future recoverability of the non-financial 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 and regulatory changes, and changes to commodity prices and foreign exchange rates. These factors impact both an assessment of whether impairment should be recognised, as well as if there are indicators that previously recognised impairment should be reversed. 11. Mining assets continued Notes to the financial statements 98 Bathurst Resources Limited Section 3: Financial Statements For the year ended 30 June 2024 12. Investment in subsidiaries Name of entity Country of incorporation Class of shares 2024 % 2023 % BR Coal Pty Limited Australia Ordinary 100 100 Bathurst New Zealand Limited New Zealand Ordinary 100 100 Bathurst Coal Holdings Limited New Zealand Ordinary 100 100 Buller Coal Limited New Zealand Ordinary 100 100 Bathurst Coal Limited New Zealand Ordinary 100 100 New Brighton Colleries Limited New Zealand Ordinary 100 100 Bathurst Minerals Limited New Zealand Ordinary 100 100 Bathurst Resources (NWP) Limited Canada Ordinary 100 100 Bathurst Resources Canada (Holdings) Limited Canada Ordinary 100 - Bathurst Resources (Telkwa) Limited Canada Ordinary 100 - Telkwa Mining Limited Canada Ordinary 100 - Accounting policy Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the Company and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest’s proportionate share of the recognised amounts of acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred. Contingent consideration (deferred consideration) to be transferred by the Group is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be a financial asset or financial liability are recognised in accordance with NZ IAS 39 in profit or loss as ‘fair value (loss)/gain on deferred consideration’. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. If the total of consideration transferred, non-controlling interest recognised and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognised directly in the income statement. Inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated. The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries: All subsidiary companies have a balance date of 30 June and are in the coal industry. All subsidiaries have a functional currency of New Zealand dollars except for BR Coal Pty Limited (Australian dollars) and Bathurst Resources (NWP) Limited, Bathurst Resources Canada (Holdings) Limited, Bathurst Resources (Telkwa) Limited and Telkwa Mining Limited (Canadian dollars). Bathurst Minerals Limited which was incorporated in 2022 is at present a dormant entity. Notes to the financial statements 99 bathurst.co.nz For the year ended 30 June 2024 Section 3: Financial Statements 13. Interest in joint-ventures 2024 $’000 2023 $’000 Interest in BT Mining Limited (“BT Mining”) 268,953 234,196 Interest in NWP Coal Canada Limited (“NWP”) 18,672 19,426 Total interest in joint-ventures 287,625 253,622 (a) BT Mining (a) Balances held in BT Mining Equity investment 16,250 16,250 Share of retained earnings net of dividends received 252,703 217,946 Total interest in BT Mining 268,954 234,196 Opening balance 234,196 149,962 Receipt of dividend (6,500) (13,000) Share of BT Mining profit 42,286 98,823 Share of BT Mining FX hedging through OCI (1,029) (1,589) Closing balance 268,953 234,196 Bathurst holds a 65 percent shareholding in BT Mining, which owns the mining permits and licences as well as the mining assets at the following mine sites: • Buller Plateau operating assets of the Stockton mine in the South Island; and • Rotowaro mine, Maramarua mine and certain assets at Huntly West mine located in the North Island. Bathurst considers BT Mining to be a joint-venture. This is because unanimous approval is required on activities that significantly affect BT Mining’s operations. As such the investment in BT Mining is accounted for using the equity method. BT Mining’s statement of financial position is shown in note 13 (a) (b), and a summarised income statement for BT Mining is shown in note 2 in the eliminate BT Mining column, of which Bathurst’s interest is 65 percent. An unaudited proportionate consolidation of Bathurst and BT Mining is located after the notes to the financial statements. Impairment assessment BT Mining is viewed as a two CGU for impairment assessment purposes, Buller Plateau and North Island. In assessing the recoverability of the Stockton mine (Buller Plateau) CGU the value in use future cash flows were calculated with reference to: • forecast sales of estimated recoverable reserves (5,016kt) over the life of the current individual mining permits which expire by 2029; • forecast hard coking coal prices USD $250 per tonne, and the long-term relativity of soft coking coal prices to be 68 percent of hard coking coal prices adjusted by management to reflect a price consistent with the historical blended coal quality; • NZD/USD foreign exchange rate of 0.62. • a post-tax discount rate of 10.0 percent, pre-tax 12.9 percent. In assessing the recoverability of the North Island CGU the value in use future cash flows were calculated with reference to: • the sale of the estimated recoverable reserves (2,075kt) over the life of the individual mining permits between three to six years; • assumption that future coal prices are consistent with current contracted prices; and • a post-tax discount rate of 11.3 percent, pre-tax 14.7 percent. Notes to the financial statements 100 Bathurst Resources Limited Section 3: Financial Statements For the year ended 30 June 2024 13. Interest in joint-ventures continued (a) BT Mining continued Related party transactions Salaries for employees who work across both Bathurst and BT Mining are recharged so that staff costs are recorded appropriately. For the year ended 30 June 2024 $2.5m of salaries were recharged from Bathurst to BT Mining (2023: $3.1m) and $0.8m recharged from BT Mining to Bathurst (2023: $0.7m). There was a receivable balance due from BT Mining to Bathurst of $0.8m (2023: $0.2m). Coal sales are made to Bathurst’s BT Mining joint-venture partner Talleys Energy Limited and/or associated companies of Talleys Energy Limited for the year ended 30 June 2024 were $4.3m (2023: $4.2m). (b) Statement of financial position 2024 $’000 2023 $’000 Cash 169,733 203,438 Restricted short-term deposits 28,000 21,077 Trade and other receivables 70,132 62,090 Crown indemnity 6,645 746 Inventories 46,770 51,333 New Zealand emission units 417 396 Income tax 2,334 - Derivative assets 5,257 8,809 Current assets 329,288 347,889 Property, plant and equipment 94,557 94,604 Mining assets 79,500 52,846 Crown indemnity 49,110 47,820 Other financial assets 90 685 Deferred tax asset 9,913 9,521 Non-current assets 233,170 205,476 TOTAL ASSETS 562,458 553,365 Trade and other payables 37,942 33,579 Income tax - 53,272 Finance leases 7,591 8,050 Derivative liabilities - 1,353 Provisions 8,588 6,951 Current liabilities 54,121 103,205 Finance leases 8,302 14,911 Provisions 86,260 74,948 Non-current liabilities 94,562 89,859 TOTAL LIABILITIES 148,683 193,064 NET ASSETS 413,775 360,301 Notes to the financial statements 101 bathurst.co.nz For the year ended 30 June 2024 Section 3: Financial Statements 13. Interest in joint-ventures continued The investment in NWP is via a wholly owned subsidiary Bathurst Resources (Canada) Limited. NWP’s key asset is the Crown Mountain coking coal project (“Crown Mountain”). The Crown Mountain project consists of coal tenure licences located in the Elk Valley coal field in south-eastern British Columbia, Canada. The joint-venture agreement structures BRL’s investment in NWP into three tranches. Further investments are at the sole discretion of BRL. (b) Statement of financial position continued Share capital 25,000 25,000 Reserves 3,564 5,147 Retained earnings net of dividends paid 385,211 330,154 EQUITY 413,775 360,301 Balances held in NWP 2024 $’000 2023 $’000 Equity investment 18,623 19,265 Equitable share of profit 49 161 Total interest in NWP 18,672 19,426 Opening balance 19,426 19,598 Unrealised FX movement (647) (102) Equitable share of loss (107) (70) Closing balance 18,672 19,426 Investment Amount Ownership Use of proceeds Status Initial investment CAD $4.0m 8% Exploration programme Complete Tranche one CAD $7.5m 12% Bankable feasibility study Complete Tranche two CAD $110m 30% Construction In progress Total CAD $121.5m 50% As above Equity funds invested to date equal the NZD equivalent of the initial investment (CAD $4.0m) and tranche one (CAD $7.5m) issued in exchange for common ordinary shares in NWP, as well as an advance of CAD $4.0m as part of tranche two. The advance to tranche two consists of $2.6m issued in exchange for preference shares, and $1.4m issued in exchange for ordinary shares. BRL holds a 22.1 percent equity holding in NWP including the preference shares. Payment of the balance of tranche two is not expected in the next twelve months. The investment in exchange for preference shares is done on a cash call basis at the request of NWP. If BRL exercises the tranche two option, further investment required will equal CAD $110.0m minus funds invested in the preference shares, at which point the preference shares will automatically convert to ordinary shares on a 1:1 basis. Preference shares have the same rights and are issued at the same value as ordinary shares, with the key difference that they have a liquidity preference ranking above ordinary shares. Because the preference shares are in substance the same as ordinary shares, giving BRL access to the returns associated with the joint-venture, these have been accounted for in the same way as ordinary shares. An assessment on the investment has been done, and there is nothing to suggest or warrant any impairment. BRL considers NWP to be a joint-venture. This is because unanimous approval is required on activities that significantly affect NWP’s operations. As such the investment in NWP is accounted for using the equity method. (b) NWP Notes to the financial statements 102 Bathurst Resources Limited Section 3: Financial Statements For the year ended 30 June 2024 13. Interest in joint-ventures continued (b) NWP continued NWP unaudited financials of which Bathurst holds 22.1 percent 2024 $’000 2023 $’000 Cash 334 271 Other current assets 111 168 Exploration and evaluation assets 47,313 45,171 Other non-current assets 1,347 1,365 TOTAL ASSETS 49,105 46,975 Current liabilities 638 231 Non-current financial liabilities 1,250 4,921 TOTAL LIABILITIES 1,888 5,152 NET ASSETS 47,217 41,823 Accounting policy Joint arrangements are classified as either joint operations or joint-ventures depending on the contractual rights and obligations of each investor. The Company has assessed the nature of its joint arrangements and determined them to be joint-ventures. Joint-ventures are accounted for using the equity method. Under the equity method of accounting, interests in joint-ventures are initially recognised at cost and adjusted thereafter to recognise the Group’s share of the post-acquisition profits or losses and movements in other comprehensive income. When the Group’s share of losses in a joint-venture equal or exceeds its interest in the joint-venture (which includes any long-term interests that, in substance, form part of the Group’s net investment in the joint-venture), the Group does not recognise further losses, except to the extent that the Group has an obligation or has made payments on behalf of the investee. Notes to the financial statements 103 bathurst.co.nz For the year ended 30 June 2024 Section 3: Financial Statements 14. Deferred tax Temporary differences attributable to: 2024 $’000 2023 $’000 Tax losses 20,589 21,143 Employee benefits 258 289 Provisions 1,337 1,285 Mining licenses 20,167 20,054 Exploration and evaluation expenditure 1,655 812 Property, plant and equipment 3,648 3,654 Waste moved in advance 204 - Other 427 224 Total deferred tax assets 48,285 47,460 Total deferred tax liabilities - - Net deferred tax asset not recognised (48,285) (47,460) Net deferred tax asset - - The Group has not recognised a net deferred tax asset on the basis that it is not probable these losses will be utilised in the near future. Included in the tax losses balance above is an amount of $36k in relation to a prior period adjustment which was made to reflect the available tax losses as per the final tax return. Accounting policy 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 financial statements. 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 or taxable profit or loss. Deferred income 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. Notes to the financial statements 104 Bathurst Resources Limited Section 3: Financial Statements For the year ended 30 June 2024 15. Financial liabilities (a) Trade and other payables 2024 $’000 2023 $’000 Trade payables 1,895 1,017 Accruals 1,722 3,984 Employee benefit payable 1,208 1,367 Total trade and other payables 4,825 6,368 Trade payables are unsecured and are usually paid within 30 days of recognition. The carrying amounts of trade and other payables are considered to be the same as their fair values, due to their short-term nature. (b) Borrowings Current Secured Lease liabilities 785 447 Total current borrowings 785 447 Non-current Secured Lease liabilities 1,139 834 Total non-current borrowings 1,139 834 Total borrowings 1,924 1,281 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. (c) Deferred consideration Current Acquisiton of subsidiary 1,004 1,034 Non-current Acquisiton of subsidiary 691 2,172 Acquisition of asset 9,922 - Total deferred consideration 11,617 3,206 Opening balance 3,206 2,464 Unwinding of discount 289 222 Acquisition of Tenas project 9,922 - Fair value adjustment (2,179) 1,677 Consideration paid net of movements in accurals during the year 379 (1,157) Closing balance 11,617 3,206 Notes to the financial statements 105 bathurst.co.nz For the year ended 30 June 2024 Section 3: Financial Statements 15. Financial liabilities continued Buller Coal project Bathurst acquired Buller Coal Limited (formerly L&M Coal Limited) (“Buller Coal”) from L&M Coal Holdings Limited (“L&M”) in November 2010. The agreement for sale and purchase (“ASP”), which primarily concerned the purchase of the Escarpment mine through the acquisition of Buller Coal, contained an element of deferred consideration. The deferred consideration comprised royalties on coal sold, two contingent “performance payments” of USD $40m each, and the contingent issue of performance shares. The first performance payment is prima facie payable upon 25,000 tonnes of coal being shipped from the Buller Coal project area, and the second payable upon 1 million tonnes of coal being shipped from the Buller Coal project area or where a change in control of Bathurst is deemed to have occurred both payments are triggered. Bathurst has the option to defer cash payment of the performance payments and elect to submit a higher royalty on coal sold from the respective permit areas until such time the performance payments are made. The option to pay a higher royalty rate has been assumed in the valuation and recognition of deferred consideration. Bathurst has and will continue to remit royalty payments to L&M on all Escarpment coal sold as required by the Royalty Deed and this includes ongoing sales from stockpiles. Further information is included in note 23. New Brighton Collieries Limited Acquisition was completed on 10 March 2015. The balance due on settlement is satisfied by an ongoing royalty based on sales revenue. The fair value of the future royalty payments is estimated using a discount rate based upon the Group’s WACC (9.7%), projected production profile based on activity at the Takitimu mine (346kt) and forecast domestic coal prices ($111 per tonne, inflation adjusted). These are based on the Group’s forecasts which are approved by the Board of Directors. Sensitivity analysis on impact to profit based on changes to key inputs to the estimation of the deferrred consideration liability is as follows: Tenas Coal project The Company completed the acquisition of Tenas project on 22 December 2023 via a new subsidiary, Telkwa Mining Limited, which is incorporated in Canada. The Tenas Project is located in the Bulkley Nechako region, 7 km southwest of Telkwa, British Columbia, Canada. The acquisition included the purchase of coal mining licenses, freehold coal rights, land and some existing plant and equipment. The project is currently undergoing the Environmental Assessment process and is expected to enter production in FY27. The mine is anticipated to produce 750k tonnes of saleable steelmaking coal per year for over 20 years. The balance due is USD $4.0m upon receiving all final permits to develop, construct and operate the Tenas project mine and USD $3.0m on the first anniversary or receiving all final permits. 2024 2023 Key input Change in input Increase in estimate $’m Decrease in estimate $’m Increase in estimate $’m Decrease in estimate $’m Discount rate 2 percent 0.0 (0.0) 0.1 (0.1) Production levels 5 percent (0.1) 0.1 (0.2) 0.2 Coal prices $5 per tonne (0.1) 0.0 (0.1) 0.1 New Brighton Collieries Limited continued Security Pursuant to a deed of guarantee and security the deferred consideration is secured by way of a first-ranking security interest in all of New Brighton Collieries Limited’s present and future assets (and present and future rights, title and interest in any assets). Notes to the financial statements 106 Bathurst Resources Limited Section 3: Financial Statements For the year ended 30 June 2024 15. Financial liabilities continued (d) Fair value measurements All financial assets and liabilities (except where specifically noted) have a carrying value that is equivalent to their fair value. Accounting policy Initial recognition and measurement All financial liabilities are recognised initially at fair value and, in the case of borrowings and trade and other payables, net of directly attributable transaction costs. Subsequent measurement Subsequent measurement of financial liabilities under NZ IFRS 9 is at amortised cost, unless eligible to opt to designate a financial liability at fair value through profit or loss, or other specific exceptions apply. The Group’s financial liabilities fall within two measurement categories: trade and other payables and borrowings at amortised cost, and deferred consideration at fair value through profit or loss. Financial liabilities 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. Financial liabilities at amortised cost Trade and other payables and borrowings are subsequently measured at amortised cost using the effective interest rate method (“EIR”). Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit or loss. The fair value of the liability portion of the convertible bonds recognised on issue date was the difference between cash received and the fair value of the conversion option. The liability is amortised to its face value on maturity through the EIR method. Fair value through profit or loss Deferred consideration is subsequently measured at fair value through profit or loss, as IFRS 9 denotes the measurement requirements of IFRS 3 Business combinations applies. The fair value of deferred consideration payments is determined at acquisition date. Subsequent changes to the fair value of the deferred consideration are recognised through the income statement. The portion of the fair value adjustment due to the time value of money (unwinding of discount) is recognised as a finance cost. The convertible bond derivative is the conversion option of the convertible bonds and is measured at fair value through profit or loss at each reporting date. The value recognised is determined using a Black Scholes Model for the convertible bonds that includes the exercise price, the term of the conversion option, the current share price and expected price volatility of the underlying share, the expected dividend yield, and the risk-free interest rate for the term of the conversion option. Derecognition A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss. Notes to the financial statements 107 bathurst.co.nz For the year ended 30 June 2024 Section 3: Financial Statements 15. Financial liabilities continued Accounting policy continued Fair value Fair value is the price that would be received from the sale of an asset or paid to transfer a liability in a transaction between active market participants or in its absence, the most advantageous market to which the Group has access to at the reporting date. The fair value of a financial liability reflects its non-performance risk. When available, fair value is measured using the quoted price in an active market. A market is active if transactions take place with sufficient frequency and volume to provide pricing information on an ongoing basis. If there is no quoted price in an active market, then the Group uses valuation techniques that maximise the use of relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation technique incorporates all of the factors that market participants would take into account in pricing a transaction. The following fair value hierarchy, as set out in NZ IFRS 13: Fair Value Measurement, has been used to categorise the inputs to valuation techniques used to measure the financial assets and financial liabilities which are carried at fair value: a) Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1) b) 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). Deferred consideration is valued at a fair value hierarchy of level 3. The fair value of debt instruments disclosed has been valued at a fair value hierarchy of level 2. Key judgements and estimates Deferred consideration In valuing the deferred consideration payable under business acquisitions management uses estimates and assumptions. These include 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. Notes to the financial statements 108 Bathurst Resources Limited Section 3: Financial Statements For the year ended 30 June 2024 16. Rehabilitation provisions 2024 $’000 2023 $’000 Current 1,360 996 Non-current 6,165 4,280 Total provisions 7,525 5,276 Rehabilitation provision movement Opening balance 5,276 5,272 Unwinding of discount 214 179 Movement in Crown indeminity on acid mine drainage for Sullivan permit 3 (80) Movement in provision of expenditure incurred 2,032 (95) Closing balance 7,525 5,276 Bonds totalling $4.6m as shown on the face of the statement of financial position (30 June 2023: $4.4m) are provided to various local councils in respect to future rehabilitation obligations. Accounting policy 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 obligation to rehabilitate arises at the commencement of the mining project; at this point a provision is recognised as a liability with a corresponding asset 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 with a corresponding change in the cost of the associated 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 amount of the provision relating to rehabilitation of environmental disturbance caused by on-going production and extraction activities is recognised in the income statement as incurred. The net present value of the provision is calculated using an appropriate discount rate, based on management’s best estimate of future costs of rehabilitation. 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. A reasonable change in discount rate assumptions would not have a material impact on the provision. Key judgements and estimates In calculating the estimated future costs of rehabilitating and restoring areas disturbed in the mining process certain estimates and assumptions have been made. 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. The provision is reviewed at each reporting date and updated based on the best available estimates and assumptions at that time. Notes to the financial statements 109 bathurst.co.nz For the year ended 30 June 2024 Section 3: Financial Statements 17. Equity (a) Ordinary fully paid shares 2024 Number of shares ’000 2023 Number of shares ’000 Ordinary fully paid shares 191,360 191,360 Ordinary shares 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. Dividends There were no dividends paid or declared during the year. (b) Contributed equity $’000 $’000 Contributed equity 316,970 316,970 The value recognised in equity from the conversion of the convertible bonds equals the fair value of the conversion option and the amortised balance of the underlying principal debt value at maturity date. Refer note 15 (b) for further information. Accounting policy 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. 18. Reserves 2024 $’000 2023 $’000 Share-based payment reserve 1,526 798 Foreign exchange translation reserve (892) 635 Share of BT Mining FX hedging through OCI 2,316 3,345 Reorganisation reserve (32,760) (32,760) Total reserves (29,810) (27,982) Nature and purpose of reserves Share-based payment reserve The share-based payment reserve is used to recognise the fair value of performance rights issued. Fair value for the rights on issue was calculated using the Barrier Pricing Model valuation method as they contain market performance conditions (as detailed below). The fair value for the executive director performance rights was determined to be AU $0.8504 (2023: AU $0.5935, 2022: Exec: AU $0.6982, SLT: AU $0.7642). Key inputs used for the valuations were exercise price (nil) (2023:nil, 2022: nil), risk free rate 3.67% (2023: 3.06%, 2022: Exec: 0.92%, SLT: 1.48%) weighted average share price AU $0.96 (2023: AU $0.74, 2022: Exec: AU$0.72, SLT: AU $0.79), dividend yield (nil) (2023: nil, 2022: nil), as well as expected volatility in the share price which is based on historical actual volatility 83.23% (2023: 83.23%, 2022: Exec: 80.47%, SLT: 80.39%). Notes to the financial statements 110 Bathurst Resources Limited Section 3: Financial Statements For the year ended 30 June 2024 18. Reserves continued Nature and purpose of reserves continued Foreign exchange translation reserve Exchange differences arising on translation of companies within the Group with a different functional currency to New Zealand dollars are taken to the foreign currency translation reserve. The reserve is recognised in the income statement when the investment is disposed of. Share of BT Mining FX and coal price hedging through OCI The value booked represents 65 percent equity share of the fair value movement on FX and coal price hedging in BT Mining that is put through other comprehensive income. Reorganisation reserve Bathurst Resources 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 the Group on 28 June 2013. A reorganisation reserve was created, which reflects the previous retained losses of subsidiaries. Details on share-based payments Grant date Vesting date Opening balance 000s Issued 000s Lapsed 000s Closing balance 000s Executive director performance rights (2022) 1 December 2024 1,046 - - 1,046 SLT performance rights (2022) 1 December 2024 772 - - 772 Executive director performance rights (2023) 1 December 2025 502 - - 502 Non-executive director performance rights (2023) 1 December 2025 78 - - 78 Executive director performance rights (2024) 1 December 2026 - 571 - 571 2,397 571 - 2,969 Performance rights LTIP performance rights are issued to executive directors and members of the senior leadership team (“SLT”) as part of the LTIP which was approved at the 2018 AGM. These rights were issued as an incentive for the future performance. Rights granted to directors during the year were approved at the 2023 annual general meeting. Rights have a nil issue and exercise price and are convertible into fully paid ordinary shares on a 1:1 basis. Performance requirements include continuous employment with BRL until 1 December 2025 for the performance rights issued during the year (2022: 1 December 2024). BRL also has to achieve a minimum total shareholder return compound annual growth rate for the period 1 July 2022 to and including 30 June 2025 for the performance rights issued during the year (2022: 1 July 2021 to 30 June 2024) Accounting policy Share-based compensation benefits are provided to employees via the Bathurst Resources Limited LTIP. The fair value of performance rights granted under the Bathurst Resources Limited LTIP is recognised as an employee benefits expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the rights 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 rights 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 Company revises its estimates of the number of rights that are expected to vest based on the non-market vesting conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity. Notes to the financial statements 111 bathurst.co.nz For the year ended 30 June 2024 Section 3: Financial Statements 19. Earnings per share Accounting policy 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. 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 • the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. (a) Earning per share (“EPS”) 2024 Cents 2023 Cents Basic EPS 20.14 47.29 Diluted EPS 19.84 46.70 (b) Reconciliation of earnings used in calculation $’000 $’000 Earnings used to calculate basic and diluted EPS 38,547 90,486 (c) Weighted average number of shares Shares 000s Shares 000s Weighted average shares used in calculation of basic EPS 191,360 191,360 Dilutive potential ordinary shares (performance rights) 2,969 2,397 Weighted average shares used in calculation of diluted EPS 194,329 193,757 Notes to the financial statements 112 Bathurst Resources Limited Section 3: Financial Statements For the year ended 30 June 2024 20. Financial risk management 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 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 and other price risks and ageing 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. Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. A material risk of credit risk arises from cash and cash equivalents, restricted short-term deposits, trade receivables from contracts with customers, and related party receivables. Risk management The Group has adopted a policy of only dealing with credit worthy counterparties and obtaining sufficient collateral where appropriate as a means of minimising the risk of financial defaults. The credit risk on cash and cash equivalents and restricted short-term deposits is limited because the Group only banks with counterparties that have credit ratings of AA- or higher. The Group’s maximum exposure to credit risk for trade receivables from contracts with customers and loans to related parties is their carrying value. The Group has long standing relationships with all its key customers and historically has experienced very low to nil defaults on its trade receivables. Impairment The Group’s financial assets are subject to having their impairment assessed against the IFRS 9 forward looking expected credit loss model. The measurement of expected credit losses is a function of the probability of default, loss given default (i.e. the magnitude of the loss if there is a default) and the exposure at default. The group applies the NZ IFRS 9 simplified approach to measuring expected credit losses for trade receivables on contracts with customers, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The assessment of the probability of default and loss given default is based on historical data adjusted by forward- looking information. The Group considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. The assessed impairment loss for all financial assets was immaterial at 30 June 2023. There were no indicators that credit risk on financial assets had increased significantly since initial recognition, nor does the Group hold any financial assets that are considered to be credit-impaired. Liquidity risk Liquidity risk represents the Group’s ability to meet its contractual obligations. The Group evaluates its liquidity requirements on an ongoing basis. Maturities of financial liabilities The tables below analyse the Group’s non-derivative 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. 30 June 2024 Less than 6 months $’000 6-12 months $’000 Between 1-2 years $’000 Between 2-5 years $’000 Over 5 years $’000 Total contractual flows $’000 Trade and other payables 3,705 - - - - 3,705 Leases 440 440 775 407 - 2,062 Deferred consideration 551 551 7,403 4,930 - 13,435 Total 4,696 991 8,178 5,337 - 19,214 Notes to the financial statements 113 bathurst.co.nz For the year ended 30 June 2024 Section 3: Financial Statements 20. Financial risk management continued 30 June 2023 Less than 6 months $’000 6-12 months $’000 Between 1-2 years $’000 Between 2-5 years $’000 Over 5 years $’000 Total contractual flows $’000 Trade and other payables 5,335 - - - - 5,335 Leases 227 227 433 470 - 1,357 Deferred consideration 539 539 1,078 1,609 - 3,765 Total 6,101 766 1,511 2,079 - 10,457 Total contractual cash flows on leases equal minimum lease payments plus interest. Capital management The Group’s capital includes contributed equity, reserves, and retained earnings. The Board’s policy is to maintain a strong capital base to maintain investor, creditor, and market confidence and to sustain the future development of the business. There were no changes to the Company’s approach to capital management during the year. Financial instruments by category Financial assets 2024 $’000 2023 $’000 Amortised cost Cash and cash equivalents 7,777 12,812 Restricted short-term deposits 4,576 4,384 Trade and other receivables 2,819 2,613 Other financial assets 230 220 Crown indemnity 704 700 Total financial assets 16,106 20,729 Liquidity risk continued Financial liabilities Amortised cost Trade and other payables 4,825 6,368 Borrowings 1,924 1,281 Fair value Deferred consideration 11,617 3,206 Total financial liabilities 18,366 10,855 Notes to the financial statements 114 Bathurst Resources Limited Section 3: Financial Statements For the year ended 30 June 2024 21. Reconciliation of profit to operating cash flows 2024 $’000 2023 $’000 Profit before income tax 38,547 90,486 Non-cash items: Depreciation and amortisation 5,359 5,919 Share-based payments 728 551 Share of joint venutre equity share of profit (42,179) (98,753) Non-operating: Movement on rehabilitation provision & discount unwind 153 119 Movement on deferred consideration & discount unwind (1,890) 1,899 Interest on debt instruments and finance leases 103 90 Other (240) (24) Unrealised FX including movement on deferred consideration 97 14 Impairments 6,055 89 Loss/(gain) on sale of PPE (435) (217) Movement in convertible instrument derivatives - - Movement in working capital (1,920) 250 Cash flow from operating activities 4,377 423 22. Key management personnel compensation 30 June 2024 Short-term benefits $’000 Share-based payments $’000 Total $’000 Management 3,237 711 3,948 Non-executive directors 292 17 309 Total 3,529 728 4,257 Key management personnel are the senior leadership team and directors (executive and non-executive) of the Group. 30 June 2023 Management 4,034 559 4,593 Non-executive directors 510 9 519 Total 4,544 568 5,112 Notes to the financial statements 115 bathurst.co.nz For the year ended 30 June 2024 Section 3: Financial Statements 23. Contingent liabilities Performance Payment Claims by LMCHB Limited On 23 December 2016 Bathurst announced that L&M Coal Holdings Limited, now LMCHB Limited, (“L&M”) had filed legal proceedings in the High Court of New Zealand in relation to an alleged breach of the first USD $40m Performance Payment described in note 15 (c). After pursuit of this matter through the courts of New Zealand, on 14 July 2021 the Supreme Court upheld Bathurst and Buller Coal’s appeal, setting aside earlier unfavourable judgments given against them by the High Court and Court of Appeal. The Supreme Court held that, under the terms of the Agreement for Sale and Purchase of Shares (SPA), while the performance payment had been triggered Bathurst can defer payment of that sum (relying on clause 3.10 of the SPA) for so long as the relevant royalty payments under the associated Deed of Royalty continue to be paid even if that royalty sum is zero. On 22 September 2021 L&M served Bathurst and its subsidiary Buller Coal, with further proceedings. Despite the Supreme Court decision, L&M’s new action sought declarations from the High Court that it was entitled to enforce a guarantee given by Buller Coal under the Deed of Guarantee and Security for payment of the first performance payment as Guaranteed Money under that deed. A hearing was held in June 2022. The judgment was released on 28 March 2023 dismissing the claim, holding that as the first performance payment is not currently due under the terms of the SPA then the payment is not Guaranteed Money for the purpose of the guarantee. The High Court also held that L&M should have brought this claim as part of the first proceedings and that raising it in a subsequent proceeding was an abuse of process. In April 2023, L&M lodged a notice of appeal against the High Court’s judgment. Bathurst and Buller, based on legal advice, consider this legal action by L&M to be without merit. The appeal was heard in May 2024 and a judgment is expected by the end of 2024. On 18 February 2023, Bathurst successfully defended a claim by L&M in an arbitration proceeding that a change of control had occurred and that the second performance payment of USD $40 million and performance shares (being 5% of Bathurst’s post issue share capital) due under the SPA plus interests and costs, were payable. While the arbitrator declared that a change in control had occurred under the terms of the SPA, he dismissed the claim on the basis that, as interpreted by the Supreme Court, clause 3.10 of the SPA provides a defence to the claim. Neither party has appealed against this award. 24. Events after the reporting period There are no other material events that occurred subsequent to reporting date, that require recognition of, or additional disclosure in these financial statements. Notes to the financial statements 116 Bathurst Resources Limited Section 3: Financial Statements For the year ended 30 June 2024 Additional information Unaudited proportionate consolidation of Bathurst and BT Mining operations 2024 $’000 2023 $’000 Revenue from contracts with customers 323,230 378,935 Realised FX and coal price hedging (8,143) 10,110 Less: cost of sales (218,530) (218,368) Gross profit 96,557 170,677 Other income 294 240 Equity accounted loss (107) (70) Depreciation (15,772) (15,722) Administrative and other expenses (26,133) (26,258) Fair value movement on deferred consideration 2,179 (1,677) (Loss)/gain on diposal of fixed assets 443 217 Impairment losses (6,055) (1,474) Operating profit before tax 51,406 125,933 Fair value movement on convertible bond derivative - - Finance cost (2,409) (1,607) Finance income 6,364 4,514 Profit before income tax 55,361 128,840 Income tax expense (16,814) (38,355) Profit after income tax 38,547 90,485 The following income statement, balance sheet and cash flow represent 100 percent of Bathurst operations, and 65 percent of BT Mining operations. This presentation does not reflect reporting under NZ GAAP or NZ IFRS, but is intended to show a combined operating view of the two businesses for information purposes only. Consolidated income statement 117 bathurst.co.nz For the year ended 30 June 2024 Section 3: Financial Statements Additional information 2024 $’000 2023 $’000 Cash and cash equivalents 118,103 145,047 Restricted short-term deposits 22,776 18,084 Trade and other receivables 48,403 42,972 Crown indemnity 4,372 536 Inventories 32,013 34,276 Income tax 1,517 - New Zealand emission units 1,279 541 Derivative assets 3,417 4,846 Total current assets 231,880 246,302 Property, plant and equipment (“PPE”) 74,425 71,578 Mining assets 76,931 46,811 Crown indemnity 32,573 31,732 Interest in joint-ventures 18,672 19,426 Deferred tax asset 6,443 6,189 Other financial assets 289 665 Total non-current assets 209,333 176,401 TOTAL ASSETS 441,213 422,703 Trade and other payables 29,487 28,194 Income tax - 34,627 Finance leases 5,719 5,680 Deferred consideration 1,004 1,034 Provisions 6,942 5,514 Total current liabilities 43,152 75,049 Finance leases 6,535 10,526 Deferred consideration 10,613 2,172 Provisions 62,234 52,996 Total non-current liabilities 79,382 65,694 TOTAL LIABILITIES 122,534 140,743 NET ASSETS 318,679 281,960 Contributed equity 316,970 316,970 Reserves (29,810) (27,982) Retained earnings net of dividends 31,519 (7,028) EQUITY 318,679 281,960 Consolidated statement of financial position For the year ended 30 June 2024 118 Bathurst Resources Limited Section 3: Financial Statements For the year ended 30 June 2024 Additional information Consolidated cash flow 2024 $’000 2023 $’000 Cash flows from operating activities Receipts from customers 306,696 378,437 Payments to suppliers and employees (226,420) (230,169) Taxes paid (51,508) (26,327) Net inflow from operating activities 28,768 121,940 Cash flows from investing activities Exploration and evaluation expenditure (3,969) (1,392) Mining assets (incl. elevated stripping) (30,297) (13,716) PPE purchases net of disposals (16,904) (15,969) Payment of deferred consideration (1,255) (1,158) Investment in NWP (850) (714) Other 2 78 Net outflow from investing activities (53,277) (32,871) Cash flows from financing activities Repayment of leases net of drawdowns (3,951) (2,991) Interest on leases (851) (976) Repayment of borrowings net of drawdowns - (181) Interest received 7,491 2,682 Other finance costs (432) (432) Net outflow from financing activities 2,257 (1,898) Net increase/(decrease) in cash and cash equivalents (22,251) 87,171 Opening cash and cash equivalents including restricted short-term deposits 163,131 75,960 Closing cash and cash equivalents 140,879 163,131 119 bathurst.co.nz For the year ended 30 June 2024 Section 3: Financial Statements Independent auditor’s report To the shareholders of Bathurst Resources Limited Report on the audit of the company and group financial statements Opinion In our opinion, the consolidated financial statements of Bathurst Resources Limited (the ’company’) and its subsidiaries (the ‘group’) on pages 78 to 111 present fairly, in all material respects: i. the company’s and group’s financial position as at 30 June 2024 and its financial performance and cash flows for the year ended on that date; in accordance with New Zealand Equivalents to International Financial Reporting Standards issued by the New Zealand Accounting Standards Board and International Financial Reporting Standards issued by the International Accounting Standards Board. We have audited the accompanying company and group financial statements which comprise: • the company and group statement of financial position as at 30 June 2024; • the company and group statements of comprehensive income, changes in equity and cash flows for the year then ended; and • notes, including material accounting policy information. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. We are independent of the company and group in accordance with Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners (Including International Independence Standards) (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (‘IESBA Code’), and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. Our responsibilities under ISAs (NZ) are further described in the Auditor’s responsibilities for the audit of the company and group financial statements section of our report. Other than in our capacity as auditor we have no relationship with, or interests in, the group. 120 Bathurst Resources Limited Section 3: Financial Statements For the year ended 30 June 2024 Independent auditor’s report The key audit matter Assessment of recoverability of mining assets Refer to Note 8 and Note 13 to the Financial Statements. The recoverability of mining assets is a key audit matter due to the judgement involved in assessing the recoverable value. Key judgements include: • future coal prices; • available coal reserves supporting future production levels; • mining permit and resource consent conditions; • future operating and capital costs; and • discount rate. As a present impairment indicator, the Group’s net assets as at 30 June 2024 of NZ$324 million compared to the Group’s market capitalisation of NZ$170 million based on the share price at 30 June 2024, implies a shortfall of NZ$154 million. How the matter was addressed in our audit Our audit procedures included: • verifying mining permit and resource consent conditions; • comparing future coal price assumptions with third party contracts and publicly available forward price curves; • comparing the forecasted production profiles to the JORC reserve reports prepared by management experts; • challenging the discount rate used by performing sensitivity analysis to consider the impact on the recoverable value assessments; • verifying the accuracy and completeness of the assets to be written-off where impairments were identified; and • assessing the disclosures in the consolidated financial statements using our understanding of the issue obtained from our testing and against the requirements of the accounting standards. Other information The Directors, on behalf of the company and group, are responsible for the other information included in the entity’s annual Report. Other information includes the Chairman and CEO report, and the operational and financial review. Our opinion on the company and group financial statements does not cover any other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the company and group financial statements our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the company and group financial statements or our knowledge obtained in the audit or otherwise appears materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Rehabilitation provision Refer to Note 16 to the Financial Report. Judgement is required in the determination of the rehabilitation provision, including: • assumptions relating to the manner in which rehabilitation will be undertaken; and • scope and quantum of costs, and timing of the rehabilitation activities. Our audit procedures included: • obtaining an understanding of the key controls management has in place to estimate the rehabilitation provision; • agreeing rehabilitation cost estimates to underlying support, including where applicable reports from external experts; • assessing the independence, competence and objectivity of experts used by management; • confirming the closure and related rehabilitation dates are consistent with the latest estimates of life of mines; • comparing the inflation and discount rates to available market information; and • testing the mathematical accuracy of the rehabilitation provision. • We also assessed the appropriateness of the disclosures included in Note 16 to the financial statements. 121 bathurst.co.nz For the year ended 30 June 2024 Section 3: Financial Statements Independent auditor’s report Use of this independent auditor’s report This independent auditor’s report is made solely to the shareholders as a body. Our audit work has been undertaken so that we might state to the shareholders those matters we are required to state to them in the independent auditor’s 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 shareholders as a body for our audit work, this independent auditor’s report, or any of the opinions we have formed. Responsibilities of the Directors for the company and group financial statements The Directors, on behalf of the company, are responsible for: • the preparation and fair presentation of the company and group financial statements in accordance with generally accepted accounting practice in New Zealand (being New Zealand Equivalents to International Financial Reporting Standards) and International Financial Reporting Standards issued by the New Zealand Accounting Standards Board; • implementing necessary internal control to enable the preparation of a company and group set of financial statements that is free from material misstatement, whether due to fraud or error; and • assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate or to cease operations or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the company and group financial statements Our objective is: • to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error; and • to issue an independent auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs NZ will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these company and group financial statements. A further description of our responsibilities for the audit of these company and group financial statements is located at the External Reporting Board (XRB) website at: http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-1/ This description forms part of our independent auditor’s report. The engagement partner on the audit resulting in this independent auditor’s report is Peter Taylor. For and on behalf of KPMG Christchurch 23 August 2024 SECTION 4 Shareholder Information 123 bathurst.co.nz Annual Report 2024 Section 4: Shareholder Information 124 Bathurst Resources Limited Section 4: Shareholder Information Annual Report 2024 Shareholder information Financial Statement Note Reference Number on issue Number of holders Quoted Ordinary fully paid shares 191,359,780 1,936 Unquoted Executive director performance rights 18 2,119,422 2 Non-executive director performance rights 18 77,905 1 SLT performance rights 18 771,512 5 Holding range Number shareholders Number ordinary shares Percentage of ordinary shares 1 – 1,000 724 423,718 0.22% 1,001 – 5,000 694 1,741,806 0.91% 5,001 – 10,000 212 1,718,946 0.90% 10,001 – 100,000 242 7,643,304 3.99% 100,001 and over 64 179,832,006 93.98% Total 2,087 191,359,780 100% Stock exchange quotation Shares are quoted on the Australian Stock Exchange under the code “BRL”. Classes of securities The following equity securities are on issue: Voting rights Only holders of ordinary shares have voting rights. These are set out in Clause 21.5 of the Company’s constitution and are summarised as follows: • Where voting is by show of hands or by voice, every shareholder present in person or by representative has one vote. • On a poll every shareholder present in person or by representative has, in respect of each fully paid share held by that shareholder, one vote. Holders of performance rights have no voting rights until the instruments are converted/exercised into ordinary shares. Restricted securities There are no restricted securities or securities subject to voluntary escrow. Share buy-backs There were no share buy-backs during the year and there is no current on-market buy-back. Dividends There were no dividends paid or declared relating to the year ended 30 June 2024. Distribution of quoted equity securities There were 408 shareholders holding less than a marketable parcel of ordinary shares as determined by the ASX (parcels valued at less than AUD $500) based on the closing price of AU $0.76 per share. Corporate governance statement The corporate governance statement is available at www.bathurst.co.nz/our-company/corporate-governance/ Reported as at 30 September 2024 unless otherwise noted. 125 bathurst.co.nz Annual Report 2024 Section 4: Shareholder Information Shareholder information Substantial holders BRL’s record of substantial shareholdings (5 percent or more) based on notices from shareholders either directly or via a third party who collect this information on our behalf as at 23 September 2024: Approval was given by shareholders at the November 2018 AGM with specific respect to the Takeovers Code (New Zealand) for RIM to hold more than 20 percent of BRL’s shares, as a result of an on-market share buy-back and the conversion of convertible notes held by RIM. Top 20 shareholders Based on the shareholder register. Number of shares held Percentage of issued shares Republic Investment Management Pte Limited (“RIM”) 39,823,155 20.8 Talley’s Group Limited 20,659,306 10.8 Crocodile Capital Partners GmbH 17,480,144 9.1 Chng Seng Chye 11,687,453 6.1 # Holding range Number of shares held Percentage of issued shares 1 BNP PARIBAS NOMS PTY LTD 63,728,100 33.30 2 CITICORP NOMINEES PTY LIMITED 31,960,802 16.70 3 TALLEYS GROUP LIMITED 20,659,306 10.80 4 BNP PARIBAS NOMINEES PTY LTD11,675,729 6.10 5 CHNG SENG CHYE 9,596,041 5.01 6 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 7,539,433 3.94 7 MR SAN TIONG NG 2,897,383 1.51 8 AFE INVESTMENTS PTY LIMITED 2,788,877 1.46 9 ANG POON LIAT 2,710,476 1.42 10 TH INVESTMENTS PTE LIMITED 2,392,392 1.25 11 JOHN MCCALLUM 2,118,344 1.11 12 RICHARD TACON 1,469,302 0.77 13 J P MORGAN NOMINEES AUSTRALIA PTY LIMITED 1,378,868 0.72 14 NATIONAL NOMINEES LIMITED 1,300,000 0.68 15 BUTTONWOOD NOMINEES PTY LIMITED 1,220,010 0.64 16 TAN PEI SAN 964,749 0.50 17 CHOW SHOOK LIN 909,090 0.48 18 TREADSTONE RESOUCE PARTNERS PTY LTD 727,272 0.38 19 INVIA CUSTODIAN PTY LIMITED 704,545 0.37 20 RUSSELL LEE SCOTT MIDDLETON + SUSANNE MICHELLE MIDDLETON 662,645 0.35 Total top 20 shareholders 167,403,364 87.48 Total remaining shareholders 23,956,416 12.52 SECTION 5 Resources and Reserves Annual Report 2024 Section 5: Resources and Reserves 127 bathurst.co.nz 128 Bathurst Resources Limited Section 5: Resources and Reserves Annual Report 2024 Tenement schedule Permit ID Location (region) Minerals Permit type Permit operator Bathurst interest 60915 Waikato Coal Mining Permit BT Mining Limited 65% 60790 Waikato Aggregate Exploration Permit BT Mining Limited 65% 60642 Southland Coal Exploration Permit Bathurst Coal Limited 100% 60422 Waikato Coal Mining Permit BT Mining Limited 65% 60400 Southland Coal Mining Permit New Brighton Collieries Limited 100% 60321 West Coast Minerals Exploration Permit Bathurst Coal Limited 100% 56220 Waikato Coal Exploration Permit BT Mining Limited 65% 53614 Southland Coal Mining Permit Bathurst Coal Limited 100% 52937 West Coast Coal Mining Permit BT Mining Limited 65% 51279 West Coast Coal Mining Permit Buller Coal Limited 100% 41821 Waikato Coal Mining Permit BT Mining Limited 65% 41810 West Coast Coal Mining Permit BT Mining Limited 65% 41515 West Coast Coal Mining Permit BT Mining Limited 65% 41456 West Coast Coal Mining Permit Buller Coal Limited 100% 41455 West Coast Coal Mining Permit Bathurst Coal Limited 100% 41372 Canterbury Coal Mining Permit Bathurst Coal Limited 100% 41332 West Coast Coal Mining Permit Buller Coal Limited 100% 41274 West Coast Coal Mining Permit Buller Coal Limited 100% 40591 West Coast Coal Exploration Permit Bathurst Coal Limited 100% 37161 West Coast Coal Coal Mining Licence Bathurst Coal Limited 100% 3716101 West Coast Coal Ancillary Coal Mining Licence Bathurst Coal Limited 100% 3716102 West Coast Coal Ancillary Coal Mining Licence Bathurst Coal Limited 100% 3716103 West Coast Coal Ancillary Coal Mining Licence Bathurst Coal Limited 100% 3716104 West Coast Coal Ancillary Coal Mining Licence Bathurst Coal Limited 100% 37155 Waikato Coal Coal Mining Licence BT Mining Limited 65% 3715501 Waikato Coal Ancillary Coal Mining Licence BT Mining Limited 65% 37153 Waikato Coal Coal Mining Licence BT Mining Limited 65% 3715301 Waikato Coal Ancillary Coal Mining Licence BT Mining Limited 65% 37150 West Coast Coal Coal Mining Licence BT Mining Limited 65% 3715002 West Coast Coal Ancillary Coal Mining Licence BT Mining Limited 65% 3715003 West Coast Coal Ancillary Coal Mining Licence BT Mining Limited 65% At 11 September 2024 129 bathurst.co.nz Annual Report 2024 Section 5: Resources and Reserves Tenement schedule Permit ID Permit type Operator Location (region) Application date Operation name Bathurst interest 61157 Exploration Buller Coal Limited Southland 24/5/2024 Deep Creek 100% 61077 Exploration Buller Coal Limited Waikato 6/11/2023 Coal Creek 100% 61031 Exploration New Brighton Collieries Limited Southland 11/7/2023 Mossbank 100% Permit applications in past 14 months Permit ID Permit type Operator Location (region) Granted date Operation name Bathurst interest 56233 Mining Buller Coal Limited Buller 17/5/2024 Coal Creek 100% 56233 Mining Buller Coal Limited Buller 19/4/2024 Coal Creek 100% 60422 Mining BT Mining Limited Waikato 16/4/2024 Awaroa West 65% 51279 Mining Buller Coal Limited Buller 15/4/2024 Escarpment 100% 41821 Mining BT Mining Limited Waikato 9/1/2024 Maramarua 65% Permit applications granted in past 14 months Permits granted in past 14 months Permit ID Permit type Operator Location (region) Application date Operation name Bathurst interest 60915 Mining Permit BT Mining Limited Waikato 16/1/2054 Ruawaro 65% Full surrender Permit ID Permit type Operator Location (region) Expiry date Operation name Bathurst interest 40698* Exploration Permit BT Mining Limited Waikato 8/11/2018 Ruawaro 65% 60522 Exploration Permit Buller Coal Limited West Coast 8/9/2027 Blackburn 100% 60521 Exploration Permit Buller Coal Limited West Coast 8/9/2027 Millerton – Fly Creek 100% 60520 Exploration Permit Buller Coal Limited West Coast 8/9/2027 Denniston 100% 56233 Mining Permit Buller Coal Limited West Coast 22/3/2031 Coal Creek 100% Expired Permit ID Permit type Operator Location (region) Expiry date Operation name Bathurst interest 40638** Exploration Permit Buller Coal Limited West Coast 22/5/2024 West Coast 100% Reporting date The tenement schedule has been reported at 11 September 2024 rather than at 30 June 2024 due to the full surrender of the Buller Coal Limited exploration and mining permits in September as noted above in the full surrender table. *Extension of Duration Application for EP40698 withdrawn on approval of MP60915 on the 17 January 2024 **New Application EPA 61157, to replace EP 40628, under review with NZPAM Resource permitting changes 1 July 2023 to 11 September 2024 130 Bathurst Resources Limited Section 5: Resources and Reserves Annual Report 2024 Area Bathurst ownership 2024 Measured resource 2023 Measured resource Change 2024 Indicated resource 2023 indicated resource Change 2024 Inferred resource 2023 Inferred resource Change 2024 Total resource 2023 Total resource Change Escarpment (5 & 7) 100% 4.0 1.9 2.1 1.1 1.2 (0.1) 0.5 0.7 (0.2) 5.6 3.8 1.8 Cascade (5) 100% 0.5 0.5 0.0 0.6 0.6 0.0 0.3 0.3 0.0 1.4 1.4 0.0 Deep Creek (5 & 7) 100% 0.0 6.2 (6.2) 0.6 3.1 (2.5) 5.2 1.6 3.6 5.8 10.9 (5.1) Coalbrookdale (5) 100% 0.0 0.0 0.0 1.7 1.7 0.0 3.1 3.1 0.0 4.8 4.8 0.0 Whareatea West (5 & 7) 100% 12.7 6.2 6.5 6.5 7.8 (1.3) 1.9 2.7 (0.8) 21.1 16.7 4.4 Sullivan (5) 100% 1.9 1.9 0.0 3.0 3.0 0.0 3.3 3.3 0.0 8.2 8.2 0.0 South Buller totals 100% 19.1 16.7 2.4 13.5 17.4 (3.9) 14.3 11.7 2.6 46.9 45.8 1.1 Stockton (1, 3, 4 & 5) 65% 2.5 2.5 0.0 5.9 6.6 (0.7) 5.3 5.6 (0.3) 13.7 14.7 (1.0) Upper Waimangaroa (Met) (1, 3, 4 & 5) 65% 0.2 0.4 (0.2) 14.7 13.2 1.5 33.0 32.0 1.0 47.9 45.6 2.3 Upper Waimangaroa (Thermal) (1 & 5) 65% 0.0 0.0 0.0 0.6 0.6 0.0 0.9 0.9 0.0 1.5 1.5 0.0 Stockton totals 65% 2.7 2.9 (0.2) 21.2 20.4 0.8 39.2 38.5 0.7 63.1 61.8 1.3 Millerton North (8) 100% 0.0 0.0 0.0 0.0 1.8 (1.8) 0.0 3.5 (3.5) 0.0 5.3 (5.3) North Buller Totals (9) 100% 0.0 2.4 (2.4) 0.0 7.2 (7.2) 0.0 10.6 (10.6) 0.0 20.2 (20.2) Blackburn (8) 100% 0.0 0.0 0.0 0.0 5.8 (5.8) 0.0 14.1 (14.1) 0.0 19.9 (19.9) North Buller totals 100% 0.0 2.4 (2.4) 0.0 14.8 (14.8) 0.0 28.2 (28.2) 0.0 45.4 (45.4) Buller Coal Project totals 100% 21.8 22.0 (0.2) 34.7 52.6 (17.9) 53.5 78.4 (24.9) 110.0 153.0 (43.0) Takitimu (2, 3, & 5) 100% 0.1 0.1 0.0 0.6 1.1 (0.5) 0.0 0.0 0.0 0.7 1.2 (0.5) New Brighton (2 & 5) 100% 0.1 0.1 0.0 0.2 0.2 0.0 0.2 0.2 0.0 0.5 0.5 0.0 Southland/Canterbury totals 100% 0.2 0.2 0.0 0.8 1.3 (0.5) 0.2 0.2 0.0 1.2 1.7 (0.5) Rotowaro (1, 2, 3, & 5) 65% 1.6 0.4 1.2 1.6 0.7 0.9 1.1 1.0 0.1 4.3 2.1 2.2 Rotowaro North (1, 2, 6 & 7) 65% 0.9 0.3 0.6 3.5 0.9 2.6 0.9 2.2 (1.3) 5.3 3.4 1.9 Maramarua (1, 2, & 3) 65% 1.3 1.6 (0.3) 0.5 0.3 0.2 0.0 0.0 0.0 1.8 1.9 (0.1) North Island totals 65% 3.8 2.3 1.5 5.6 1.9 3.7 2.0 3.2 (1.2) 11.4 7.4 4.0 Total 25.8 24.5 1.3 41.1 55.8 (14.7) 55.7 81.8 (26.1) 122.6 162.1 (39.5) Table 1 – Resource tonnes (rounded to the nearest million tonnes) Note All resources and reserves quoted in this release are reported in terms as defined in the 2012 Editions 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”). In current resource assessments the JORC code is applied to coal by replacing terms such as ‘minerals’ by ‘coal’, and ‘grade’ by ‘quality’. The measured and indicated coal resources are inclusive of those coal reserves modified to produce the Run of Mine (RoM) coal reserves. Rounding of tonnes as required by reporting guidelines may result in summation differences between tonnes and coal quality. All resources quoted are reported as of 11 September 2024. Coal resources and reserves At 11 September 2024 131 bathurst.co.nz Annual Report 2024 Section 5: Resources and Reserves Table 1 – Resource tonnes (rounded to the nearest million tonnes) continued Note 1 Stockton, Upper Waimangaroa, Rotowaro, Ruawaro and Maramarua are owned by BT Mining Limited (65% Bathurst Resources Limited / 35% Talley’s Energy Limited). 2 Resource tonnages have been calculated using a density value calculated using approximated in-ground moisture values (Preston and Sanders method). 3 Mining depletion offset by update to geological model. 4 Update to geological model combined with a review of potential economic recovery. 5 Stockton, Deep Creek, Upper Waimangaroa, Escarpment, Cascade, Coalbrookdale, Sullivan, Rotowaro, Takitimu and New Brighton density values are based on air-dried ash density regressions. 6 Resource classification upgraded following model update. 7 Resource model update. 8 Exploration permit surrendered. 9 Mining permit surrendered. Table 2 – Average coal quality - measured Area Bathurst ownership Measured resource (Mt) Ash % (AD) Sulphur % (AD) Volatile matter % (AD) Fixed carbon % (AD) CSN Inherent moisture In situ moisture Calorific value (AD) Escarpment 100% 4.0 16.1 0.7 33.3 49.6 7.1 1.0 5.5 28.8 Cascade 100% 0.5 15.5 1.7 39.3 42.6 4.5 2.6 7.6 30.8 Deep Creek 100% 0.0 - - - - - - - - Coalbrookdale 100% 0.0 - - - - - - - - Whareatea West 100% 12.7 27.4 0.9 23.0 48.9 6.5 0.6 6.3 25.4 Sullivan 100% 1.9 4.0 1.1 31.7 59.2 8.5 1.0 6.6 34.3 Stockton 65% 2.5 25.1 2.0 26.7 46.5 7.5 1.6 - 27.2 Upper Waimangaroa (Met) 65% 0.2 3.6 0.8 38.6 49.9 5.6 3.3 - 31.4 Upper Waimangaroa (Thermal) 65% 0.0 - - - - - - - - Takitimu 100% 0.1 18.0 0.4 38.8 27.1 N/A 16.2 26.8 21.6 New Brighton 100% 0.1 10.7 0.4 32.6 39.7 N/A 17.0 23.0 21.7 Rotowaro 65% 1.6 6.8 0.3 36.7 43.9 N/A 12.7 17.4 23.9 Rotowaro North 65% 0.9 5.9 0.3 36.4 43.7 N/A 13.9 21.1 24.4 Maramarua 65% 1.3 5.0 0.2 36.7 38.2 N/A 20.1 24.0 21.8 Coal resources and reserves At 11 September 2024 132 Bathurst Resources Limited Section 5: Resources and Reserves Annual Report 2024 Table 3 – Average coal quality - indicated Area Bathurst ownership Indicated resource (Mt) Ash % (AD) Sulphur % (AD) Volatile matter % (AD) Fixed carbon % (AD) CSN Inherent moisture In situ moisture Calorific value (AD) Escarpment 100% 1.1 12.6 1.2 35.2 51.1 7.2 1.2 5.5 29.8 Cascade 100% 0.6 14.8 1.8 38.3 44.5 4.0 2.4 8.0 29.3 Deep Creek 100% 0.6 3.8 1.6 35.2 58.8 8.7 2.2 30.3 Coalbrookdale 100% 1.7 12.7 1.6 35.6 50.1 5.0 1.7 5.3 29.7 Whareatea West 100% 6.5 30.5 1.0 21.1 47.8 6.0 0.7 6.1 24.2 Sullivan 100% 3.0 5.1 1.3 30.0 59.4 8.5 1.0 6.6 33.9 Stockton 65% 5.9 6.3 3.4 35.6 56.9 7.0 1.2 - 33.2 Upper Waimangaroa (Met) 65% 14.7 4.6 2.1 38.6 49.9 5.6 3.3 - 30.5 Upper Waimangaroa (Thermal) 65% 0.6 6.5 3.9 37.3 52.1 0.0 4.1 - 27.7 Takitimu 100% 0.6 10.2 0.3 36.6 35.6 N/A 17.7 26.0 22.1 New Brighton 100% 0.2 10.4 0.4 32.1 41.7 N/A 15.7 22.2 21.1 Rotowaro 65% 1.6 7.1 0.3 36.7 43.5 N/A 12.6 17.3 23.8 Rotowaro North 65% 3.5 5.7 0.3 36.8 44.6 N/A 12.9 20.5 24.6 Maramarua 65% 0.5 5.6 0.2 36.4 37.9 N/A 20.2 24.1 21.6 Coal resources and reserves At 11 September 2024 133 bathurst.co.nz Annual Report 2024 Section 5: Resources and Reserves Table 4 – Average coal quality - inferred Area Bathurst ownership Inferred resource (Mt) Ash % (AD) Sulphur % (AD) Volatile matter % (AD) Fixed carbon % (AD) CSN Inherent moisture In situ moisture Calorific value (AD) Escarpment 100% 0.5 13.5 1.5 35.0 50.3 6.8 1.2 5.4 29.5 Cascade 100% 0.3 16.5 2.2 36.7 44.7 4.0 2.1 6.7 27.6 Deep Creek 100% 5.2 5.6 3.1 36.8 55.6 8.6 2.0 - 29.7 Coalbrookdale 100% 3.1 12.8 1.8 35.6 49.9 5.0 1.7 5.5 29.5 Whareatea West 100% 1.9 26.6 0.9 23.1 49.5 6.5 0.8 6.6 25.7 Sullivan 100% 3.3 5.6 1.3 30.6 59.4 8.5 1.0 6.5 33.7 Stockton 65% 13.7 5.9 3.4 34.4 58.4 8.0 1.2 - 33.2 Upper Waimangaroa (Met) 65% 33.0 5.9 2.2 38.9 52.2 4.8 3.5 - 30.4 Upper Waimangaroa (Thermal) 65% 0.9 4.1 1.6 34.7 54.7 2.3 6.6 - 27.8 Takitimu 100% 0.0 14.2 0.4 37.5 33.4 N/A 14.8 23.5 20.8 New Brighton 100% 0.2 11.0 0.4 33.6 39.6 N/A 15.9 22.2 22.0 Rotowaro 65% 1.1 7.1 0.3 36.8 43.3 N/A 12.8 17.4 23.8 Rotowaro North 65% 0.9 6.4 0.3 36.1 43.7 N/A 13.8 21.2 24.1 Maramarua 65% 0.0 9.1 0.2 37.1 36.4 N/A 17.5 21.2 21.5 Coal resources and reserves At 11 September 2024 134 Bathurst Resources Limited Section 5: Resources and Reserves Annual Report 2024 Table 5 – Coal reserves (ROM) tonnes Proved (Mt) Probable (Mt) Total (Mt) ROM coal area Bathurst ownership 2024 2023 Change 2024 2023 Change 2024 2023 Change Whareatea West (G) 100% 0.0 0.0 0.0 0.0 4.7 (4.7) 0.0 4.7 (4.7) Stockton (A, B, F & I) 65% 0.2 0.2 0.0 3.2 3.4 (0.2) 3.4 3.6 (0.2) Upper Waimangaroa (A, B, F, I & J) 65% 0.2 0.4 (0.2) 1.1 1.6 (0.5) 1.3 2.0 (0.7) Takitimu (C, E & F) 100% 0.0 0.0 0.0 0.4 0.7 (0.3) 0.4 0.7 (0.3) Rotowaro (A, C, D, E, F & H) 65% 0.4 0.4 0.0 0.9 0.7 0.2 1.3 1.1 0.2 Maramarua (A, C & E) 65% 0.9 1.1 (0.2) 0.2 0.1 0.1 1.1 1.2 (0.1) Total 1.7 2.1 (0.4) 5.8 11.2 (5.4) 7.5 13.3 (5.8) Table 6 – Marketable coal reserves tonnes Proved (Mt) Probable (Mt) Total (Mt) ROM coal area Bathurst ownership 2024 2023 Change 2024 2023 Change 2024 2023 Change Whareatea West (G) 100% 0.0 0.0 0.0 0.0 3.0 (3.0) 0.0 3.0 (3.0) Stockton (A, B, F & I) 65% 0.1 0.2 (0.1) 2.8 2.8 0.0 2.9 3.0 (0.1) Upper Waimangaroa (A, B, F, I & J) 65% 0.2 0.4 (0.2) 1.0 1.4 (0.4) 1.2 1.8 (0.6) Takitimu (C, E & F) 100% 0.0 0.0 0.0 0.3 0.7 (0.4) 0.3 0.7 (0.4) Rotowaro (A, C, D, E, F & H) 65% 0.4 0.4 0.0 0.8 0.6 0.2 1.2 1.0 0.2 Maramarua (A, C & E) 65% 0.9 1.1 (0.2) 0.2 0.1 0.1 1.1 1.2 (0.1) Total 1.6 2.1 (0.5) 5.1 8.6 (3.5) 6.7 10.7 (4.0) Table 7 – Marketable coal reserves – proved and probable average coal quality Proved marketable Probable marketable Area Bathurst ownership Mt Ash % Sulphur % VM % CSN CV (MJ/Kg) Mt Ash % Sulphur % VM% CSN CV (MJ/Kg) Whareatea West (G) 100% 0.0 - - - - - 0.0 - - - - - Stockton (A, B, F & I) 65% 0.1 6.8 3.0 33.2 6.5 33.2 2.8 4.2 3.3 35.3 8.0 34.1 Upper Waimangaroa (A, B, F, I & J) 65% 0.2 2.9 0.7 37.5 4.5 31.7 1.0 3.2 1.2 37.6 4.0 31.6 Takitimu (C, E & F) 100% 0.0 11.0 0.3 34.7 N/A 20.8 0.3 8.2 0.2 35.4 N/A 21.5 Rotowaro (A, C, D, E, F & H) 65% 0.4 6.3 0.3 37.4 N/A 23.1 0.8 6.4 0.3 37.1 N/A 23.8 Maramarua (A, C & E) 65% 0.9 5.1 0.2 37.5 N/A 22.1 0.2 5.9 0.2 37.3 N/A 21.9 Coal resources and reserves At 11 September 2024 135 bathurst.co.nz Annual Report 2024 Section 5: Resources and Reserves Table 8 – Marketable coal reserves – total average quality Area Bathurst ownership Coal type Mining method Mt Ash % Sulphur % VM % CSN CV (MJ/Kg) Whareatea West (G) 100% Met Open pit 0.0 - - - - - Stockton (A, B, F & I) 65% Met Open pit 2.9 4.4 2.9 34.1 8.0 33.7 Upper Waimangaroa (Met) (A, B, F, I & J) 65% Met Open pit 1.2 3.2 1.1 37.6 4.0 31.6 Takitimu (C, E & F) 100% Thermal Open pit 0.4 8.3 0.2 35.3 N/A 21.5 Rotowaro (A, C, D, E, F & H) 65% Thermal Open pit 1.1 6.4 0.3 37.2 N/A 23.6 Maramarua (A, C & E) 65% Thermal Open pit 1.1 5.3 0.2 37.5 N/A 22.1 Note All reserves quoted in this release are reported in terms as defined in the 2012 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”). The measured and indicated coal resources are inclusive of coal reserve (Run of Mine (ROM) tonnes), include consideration of standard mining factors. Rounding of tonnes as required by reporting guidelines may result in summation differences between tonnes and coal quality. All ore reserves quoted are reported as of 11 September 2024. A Stockton, Upper Waimangaroa, Rotowaro and Maramarua are owned by BT Mining Limited in which Bathurst has a 65% equity share. B Stockton and Upper Waimangaroa density values are based on air-dried ash density regressions. C In-ground total moisture is based on long term average coal production data. D Reserve tonnages have been calculated using a density value calculated using approximated in-ground moisture values (Preston and Sanders method) and as such reserve tonnages quoted in this report are wet tonnes. E Decrease in Coal Reserves due to mining depletion. F Variation due to model update. G Reserves exclude previously reported Whareatea West Export. These have been removed as Pre-Feasibility Study is being updated. H Coal Reserves increased due to a change in resource classification. I Mining Depletion offset by updated financial assessment J Mining Depletion offset by updated geotechnical assessment. Resource quality Bathurst is not aware of any information to indicate that the quality of the identified resources will fall outside the range of specifications for reserves as indicated in the above table. Further resource and reserve information can be found on Bathurst’s website at www.bathurst.co.nz. Mineral resource and ore reserves governance and estimation process Resources and reserves are estimated by internal and external personnel, suitably qualified as Competent Persons under the Australasian Institute of Mining and Metallurgy, reporting in accordance with the requirements of the JORC code, industry standards and internal guidelines. All resource estimates and supporting documentation are reviewed by a Competent Person either employed directly by Bathurst or employed as an external consultant. If there is a material change in an estimate of a resource, or if the estimate is an inaugural resource, the estimate and all relevant supporting documentation is further reviewed by an external suitably qualified Competent Person. All reserve estimates are prepared in conjunction with prefeasibility, feasibility and life of mine studies which consider all material factors. All resource and reserve estimates are then further reviewed by suitably qualified internal management. The resources and reserves statements included in Bathurst’s 2024 Annual Report have been reviewed by qualified internal and external Competent Persons, and internal management, prior to their inclusion. Reporting date The resource and reserves have been reported at 11 September 2024 rather than 30 June 2024 due to the full surrender of the Buller Coal Limited exploration and mining permits in September. The surrender of the permits noted in the tenement schedule resulted in an overall reduction in resource and reserves of 45.4Mt from the 30 June balance of 168.0Mt. Coal resources and reserves At 11 September 2024 136 Bathurst Resources Limited Section 5: Resources and Reserves Annual Report 2024 Competent person statements The information on this report that relates to mineral reserves for Whareatea West, Takitimu, Rotowaro and Maramarua is based on information compiled by Sue Bonham-Carter, who is a full time employee of BCP Associates (New Zealand) Limited and is a Chartered Professional and member of the Australasian Institute of Mining and Metallurgy and member of Professional Engineers and Geoscientists of British Columbia, Canada. Ms Bonham-Carter has a BSc Engineering (Mining) (Hons) from the Queen’s University, Canada. Ms Bonham-Carter 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 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Ms Bonham-Carter 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 Takitimu, New Brighton, Rotowaro, Rotowaro North and Maramarua is based on information compiled by Eden Sinclair as a Competent Person who is a full time employee of Bathurst Resources Limited and is a Chartered Professional and member of the Australasian Institute of Mining and Metallurgy. Mr Sinclair has a BSc in geology from the University of Canterbury. Mr Sinclair 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 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Sinclair 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 exploration results and mineral resources for Stockton, Upper Waimangaroa, Deep Creek, Escarpment, Sullivan, Cascade, Coalbrookdale, Whareatea West, Millerton North, North Buller and Blackburn is based on information compiled by Mark Lionnet as a Competent Person who is a full time employee of BT Mining Limited and is a member of the Australasian Institute of Mining and Metallurgy. Mr Lionnet has a BSc (Hons) majoring in geology from the University of Witwatersrand. Mr Lionnet 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 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Lionnet 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 on this report that relates to mineral reserves for Stockton and Upper Waimangaroa is based on information compiled by Ian Harvey who is a full time employee of Bathurst Resources Limited and is a member of the Australasian Institute of Mining and Metallurgy. Mr Harvey has a Bachelors in Mining Engineering from the University of Otago. Mr Harvey 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 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Harvey consents to the inclusion in this report of the matters based on his information in the form and context in which it appears above. 137 bathurst.co.nz Annual Report 2024 Section 5: Resources and Reserves Table 9 – Tenas Project average coal quality Tenas Resource Statement Area Class Bathurst Mineral Ownership Mt Ash % (ADB) Sulphur % (ADB) Fixed Carbon % (ADB) Moisture (ADB) Calorific Value (MJ/kg) Tenas Indicated 100% 9.4 16.8 1.4 57.7 1.0 28.5 Tenas Measured 100% 27.1 16.7 1.4 57.8 1.0 28.5 Tenas1 Total 100% 36.5 16.7 1.4 57.8 1.0 28.5 Competent person statements The information on this report that relates to mineral resources for Tenas deposit is based on information compiled by Ron Parent, who is a full time employee of Faultblock Geological and is a registered Professional Geoscientist (P. Geo.) of the Professional Engineers and Geoscientists of British Columbia, Canada. Ron Parent 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 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Ron Parent consents to the inclusion in this report of the matters based on his information in the form and context in which it appears above. Coal resources and reserves At 11 September 2024 1. Reserves are under review following update to the 2019 Feasibility study. The Tenas Resource Statement is based on the October 2018 resource estimate by Telkwa Coal Ltd. 138 Bathurst Resources Limited Corporate Directory Annual Report 2024 Corporate directory Directors Peter Westerhuis Non-executive Chairman Francois Tumahai Non-executive director Richard Tacon Executive director and Chief Executive Officer Russell Middleton Executive director and Chief Financial Officer Larissa Brown Company secretary New Zealand company number 4382538 New Zealand business number 9429030288560 Australian registered business number 164 306 905 Registered office Level 12, 1 Willeston Street Wellington 6011 New Zealand Phone: +64 4 499 6830 Australian registered office Suite 706 109 Pitt Street Sydney 2000 Australia Phone: +61 4 1849 7678 Share registry Computershare Investor Services Pty Limited GPO Box 2975 Melbourne Vic 3001 Australia Phone: +61 3 9415 4000 Email: Web.Queries@computershare.com.au Auditor KPMG 10 Customhouse Quay PO Box 996 Wellington 6140 New Zealand Solicitor Dentons Kensington Swan Level 4, 40 Bowen Street Wellington 6011 New Zealand Banker ANZ Bank New Zealand Limited Stock exchange listing Bathurst Resources Limited shares are listed on the Australian Securities Exchange under code BRL. Website address www.bathurst.co.nz Disclaimer This report has been prepared by Bathurst Resources Limited. Information contained in this report is current as at 30 June 2024 or as otherwise noted in the report. This report is provided for information purposes only and has been prepared without taking account of any particular reader's financial situation or objectives. Nothing contained in this report constitutes investment, tax, legal or other advice. Accordingly, readers should, before acting on any information in this report, consider its appropriateness, having regard to their objectives, financial situation and needs, and seek the assurance of their financial advisor or other licensed professional before making any investment decision. This report does not constitute an offer, invitation, solicitation or recommendation with respect to the subscription for purchase or sale of any security, nor does it form the basis of any contract or commitment. Bathurst Resources Limited Level 12, 1 Willeston Street Wellington 6011 New Zealand +64 4 499 6830 www.bathurst.co.nz