TerraCom (TER) Q1 2025 TU earnings summary

Executive summary

• Achieved 2.5Mt total ROM coal production and 1.8Mt total coal sales for the September quarter, with Blair Athol (BA) meeting forecast sales and South Africa (SA) operations impacted by logistics constraints.

• Entered a Cooperation Agreement with Wintime Energy Group to jointly develop the Moorlands Project and pursue further strategic opportunities.

• Declared a fully franked dividend of 1 cent per share for the quarter.

Financial highlights

• BA achieved an average coal sale price of A$149.5 per tonne; FOB operating costs (excluding royalty) were $118 per tonne for the quarter.

• Closing cash at bank was $16.7 million, with restricted cash of $58.2 million as of 30 September 2024.

• Annual FOB cost guidance for BA is $105–$110 per tonne, with costs influenced by revenue-linked items and inflation.

Outlook and guidance

• BA remains on track to meet full-year sales guidance of 1.8Mt to 30 June 2025, with 85% of December quarter sales already secured.

• Thermal coal prices expected to remain stable, supported by Asia-Pacific restocking and steady demand from Japan, South Korea, and India.

• First coal from the Moorlands Project targeted for FY26, pending regulatory approvals.