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TerraCom Limited (ASX:TER) - Quarterly Activities Report for period ended 30 September 2024

TerraCom Limited (ASX:TER)

In the September Quarter, the business achieved 2.5Mt of Total Run-of-Mine (ROM) Coal production1 and 1.8Mt in Total coal sales.

Blair Athol (BA) achieved forecast total coal sales of 404kt for the September Quarter, production and shipping cadence are aligned with the annual mine plan and BA remains on track to meet the forecast guidance of 1.8Mt for the full year to 30 June 2025. BA coal sales for the Quarter were a combination of index-linked and fixed-price cargoes with an overall achieved price of A$149.5 per sold tonne.

Our operations in South Africa (SA) faced challenges this Quarter, delivering 1.3Mt total coal sales from the New Clydesdale Colliery and the North Block Complex; a 12% decrease from the June Quarter. Despite expectations for improved railing performance, logistics constraints persisted, limiting train availability to both operations during the September Quarter. This resulted in lower than anticipated export sales of 141kt on a combined basis; a 30% drop from the June Quarter. Domestic sales to Eskom also fell below the expected run rate, totalling 1.2Mt for the September Quarter; a 9% decrease from the June Quarter. However, we remain optimistic about improving export sales performance for our SA operations. 

The announcement of the Cooperation Agreement in August 2024 with Wintime Energy Group Co., Ltd (Wintime) is a significant achievement for TerraCom and our team. I am honored by the trust that Wintime has placed in TerraCom to bring the Moorlands Project to fruition and to explore global development opportunities to expand the reach of both TerraCom and Wintime.”

Managing Director, Danny McCarthy

HIGHLIGHTS

SEPTEMBER QUARTER

• September Quarter achievements:
  • Total coal sales of 1.75Mt. 
  • Total Equity coal sales of 1.1Mt.
• Blair Athol (BA)
  • ROM production of 535kt. 
  • Coal sales of 404kt and saleable coal stocks at the end of the reporting period of 27kt. 
• In August 2024 the Company announced the Cooperation Agreement with Wintime Energy Group Co., Ltd to jointly develop and operate the Moorlands Thermal Coal Project in Queensland, as well as pursue other strategic opportunities in complementary markets and industries.
• TerraCom closing cash at bank at 30 September 2024 was $16.7 million together with restricted cash of $58.2 million
• Annual JORC update establishes BA life of mine at approximately 8 years based on 1.8Mt coal sales run rate per annum. 

DIVIDEND UPDATE

• The Directors have declared a fully franked dividend of 1 cent per fully paid ordinary share for the quarter ended 30 September 2024. Refer to the dividend declaration announcement for further details.

SAFETY

• Group safety performance for the September Quarter resulted in a lost time injury frequency rate (LTIFR) of 0.5 and a total recordable injury frequency rate (TRIFR) of 1.0, on a 12-month rolling basis this is a consistent result Quarter on Quarter (QoQ). 
• Management remains committed to achieving outstanding safety outcomes with the overall safety performance of the Group consistently performing better than the benchmarked industry average.

 

About us:

TerraCom Limited (ASX: TER) is an Australian-based mining resources company with a global footprint, comprising a large portfolio of operating assets in Australia and South Africa within the coal sectors. We are a renowned low-cost producer focused on delivering exceptional outcomes from our high yielding diversified asset portfolio for its investors. To learn more about TerraCom visit terracomresources.com

Contact details:

Jane Morgan

jm@janemorganmanagement.com.au