Financials and operations
Sales and financial overview
FY20 was about settling into the momentum we have built over the last few years. Global market uncertainty and the COVID-19 pandemic have had their impacts, but our results show we have a strong and reliable business.
Our sales profile illustrates the importance of stable cashflows from our domestic segment, which contributed 46 percent of total revenue (an increase of 10 percent), as export pricing decreased.
Strong underlying financial results*
Net loss after tax for the year was -$47.4m (FY19: net profit after tax $45.0m). Excluding the Buller Coal project performance payment (refer to note 15 (c) in the financial statements), which is considered a material one-off item, underlying profit was $25.8m (FY19: $45.0m).
The decrease in underlying profit reflects consistent domestic segment earnings, and a reduction in export segment earnings primarily from a weakened export coal price. These same factors contributed to an EBITDA of $76.8m for FY20 (FY19:$106.6m).
The decrease in earnings flowed through to a reduction in operating cashflows. However, $66.8m was generated during the year, which covered several significant investing and financing activities, notably:
- Continued investment in the Canadian coking coal joint venture.
- Partial repayment of corporate USD bonds.
- Payment of the FY19 dividend.
- Deferred consideration, the majority paid relating to the purchase of the BT Mining assets; this liability ceases in FY21.
- Investment in Rotowaro operations to extend the life of mine.
A reconciliation of underlying profit to statutory results after tax and EBITDA is provided below.
|Buller Coal project performance payment||15 (c)||(73,230)||-|
|Equity share of joint venture results||(30,408)||(45,300)|
|Depreciation and amortisation||7,088||6,910|
|Net finance costs||6||14,989||3,388|
|Movement in deferred consideration||15 (c)||61,686||(41)|
|Movement in rehabilitation provision||556||278|
|Equity share of BT Mining EBITDA||69,965||96,424|
*Figures are consolidated Bathurst and 65 percent BT Mining. EBITDA is considered the best reflection of the underlying cash generating results of operations, and underlying profit after tax the best reflection of net profit excluding material one-off items.