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TERRACOM LIMITED Capital/Financing Update 2021

Oct 24, 2021

65910_rns_2021-10-24_f549eb3f-7bed-4d4a-a443-a2f4d109442d.pdf

Capital/Financing Update

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TerraCom Limited Blair Athol Mine Access Road Clermont, Queensland, 4721 +61 7 4983 2038 ABN 35 143 533 537

25 October 2021

BLAIR ATHOL COAL SALES UPDATE

  • Blair Athol coal fully sold until end January 2022

  • December 2021 quarter coal sales forecast to be 575,000 tonnes with forecast revenue of A$224 per tonne[1]

  • Blair Athol Operating EBITDA for December 2021 quarter forecast to be A$77 million[2]

TerraCom Limited (ASX:TER) ( TerraCom or Company ), an emerging resources company with a large portfolio of operating assets in Australia and South Africa, wishes to advise shareholders that all cargoes from the Company’s wholly owned Blair Athol ( BA ) mine have now been sold until end January 2022.

The main markets Blair Athol sells coal to are:

  • I. Japan and South Korean energy markets, and

  • II. Indian sponge iron market – being the process of direct reduction of iron ore into iron by an elemental carbon produced from thermal coal.

Coal sold from BA for the December 2021 Quarter remains at 575,000 tonnes, which represents an annualised run rate of 2.3 million tonnes per annum.

The Company is forecasting revenue of A$224 per tonne[1] in the December 2021 Quarter, which if achieved, will result in forecast operating cash margin of approximately A$134 per tonne[3] . Based on 575,000 tonnes sold, this should deliver an operating EBITDA of A$77 million for the December 2021 Quarter[2] .

This announcement has been approved by the Board for release.

Craig Ransley Danny McCarthy Executive Chairman Managing Director P +61 7 4983 2038 P +61 7 4983 2038 E [email protected] E [email protected]

1 Based on forecast market indexes as at 22 October 2021 at an FX of 0.75.

2 Non IFRS measure. Based on management accounts. The data presented does not include the results from the South African Business unit or TerraCom corporate costs.

3 Blair Athol operating costs increase as a result of the increased revenue linked costs (predominantly royalties) and increase in other commodity price driven input costs (predominantly diesel).

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About TerraCom Limited

TerraCom Limited (ASX: TER) is an emerging company originating as a resource explorer with a large portfolio of operating assets in Australia and South Africa. We are currently enacting a growth strategy towards delivering a Mid-Tier diversified operating and trading business and have global focus on the development of a high yielding diversified asset portfolio for its investors. To learn more about TerraCom visit terracomresources.com.

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