TerraCom (TER) H2 2025 earnings summary

Executive summary

• Revenue declined 13% year-over-year to $226.7 million, with a net loss after tax of $33.7 million compared to a $25.0 million profit in FY2024.

• Coal sales totaled 6.60 million tonnes, with equity coal sales at 4.02 million tonnes.

• Dividends paid decreased to $8.0 million from $24.0 million in the prior year.

• No change in control over entities; audit of financials is ongoing.

Financial highlights

• Gross profit dropped sharply to $4.4 million from $40.7 million year-over-year.

• Basic and diluted EPS fell to a loss of 4.13 cents per share from a profit of 3.24 cents per share.

• Net tangible assets per share decreased to 16.16 cents from 20.96 cents.

• Cash flow from operating activities was $18.3 million, up from a negative $15.6 million in FY2024.

• Significant impairment charges of $15.3 million, mainly related to exploration and evaluation assets.

Outlook and guidance

• Blair Athol mine expected to provide near-term stability with a seven-year mine life.

• Moorlands Project, in partnership with Wintime Energy, targets first coal in 2026, pending approvals.

• South African divestment strategy continues, with no definitive completion timeline.