TerraCom (TER) investor relations material

Executive summary

• FY2026 audited results were materially worse than the preliminary report after A$103.547m of impairments and a A$6.325m increase in the share of associate losses were recognised.

• Operational challenges at Blair Athol reduced sales and strained near-term working capital; management's priority is restoring reliable production, controlling costs and improving cash generation.

• A material uncertainty exists over going concern, dependent on production recovery and securing prepayment or debt funding; the auditor's opinion was not modified.

Financial highlights

• Revenue fell 21.1% YoY to A$178.918m from A$226.671m; gross result moved to a A$23.977m loss from A$4.381m profit.

• Net loss after tax was A$155.503m vs A$43.418m; loss attributable to owners was A$155.373m vs A$42.724m.

• Impairment expense was A$103.547m, including A$53.030m at Blair Athol and A$50.517m on South African interests.

• Operating cash outflow was A$56.992m vs A$18.184m inflow; year-end cash was A$8.381m, excluding A$54.441m restricted cash.

Outlook and guidance

• FY2027 coal sales guidance remains 2.0–2.2Mt; achieving it requires improved operating performance as the year progresses.

• Going-concern cash forecasts assume FY2027 saleable production of ~1.8Mt, below the targeted operating plan, and show liabilities met as due subject to stated funding and operating assumptions.

• Blair Athol's revised mine plan, product mix and additional excavator are expected to deliver initial benefits in the Dec 2026 quarter, with greater benefits in H2 FY2027.

• The preferred path for South African assets is divestment, with a disciplined process intended to maximise transaction value.