TerraCom (TER) H2 2024 earnings summary

Executive summary

• Revenue fell 61% to $259.1 million and net profit after tax dropped 90% to $25.0 million for FY2024 compared to FY2023, driven by lower coal prices and reduced sales volumes.

• Dividends paid totaled $24 million, a sharp decrease from $244 million in the prior year.

• The company operates coal mines in Queensland, Australia and South Africa, with total coal sales of 7.23 million tonnes (down from 8.03 million tonnes in FY2023).

• A new cooperation agreement was signed with Wintime Energy Group to jointly develop the Moorlands Thermal Coal Project in Queensland.

Financial highlights

• Revenue from ordinary activities declined 61% year-over-year to $259.1 million.

• Net profit after tax attributable to owners was $25.95 million, down 90% year-over-year.

• Basic and diluted EPS were 3.24 cents, compared to 32.76 cents in FY2023.

• Net tangible assets per share remained flat at 20.96 cents.

• Cash and cash equivalents at year-end were $8.4 million, down from $44.0 million.

Outlook and guidance

• Energy security is expected to remain a key priority amid a global energy supply shortfall, with high-quality thermal coal demand persisting for several years.

• No dividends were declared after year-end.

• The Moorlands Project is targeting first coal in FY2026, with Blair Athol to serve as a processing and logistics hub.