TerraCom (TER) Q1 2027 earnings summary

Executive summary

• Total coal sales were 1.634 Mt; South African sales rose 13% QoQ to 1.225 Mt, while Blair Athol sales rose 5% to 409 kt.

• Blair Athol production remained below plan as the expanded fleet completed pre-strip work ahead of expected coal output from the new pit in the December quarter.

• No recordable injuries or High Potential Incidents were recorded across the Group in September.

Financial highlights

• Blair Athol’s average achieved price on total sales, including purchased coal, was A$136.32/t, versus A$146.44/t in the June quarter.

• Blair Athol FOB operating costs, excluding royalties and purchased coal, averaged A$171/t, up from A$126/t in the June quarter.

• At quarter end, operational Cash at Bank was $3.338 million, with $54.441 million of restricted cash for Blair Athol rehabilitation bonds.

Outlook and guidance

• Blair Athol FY27 sales guidance was maintained at 2.0–2.2 Mt, supported by the third fleet and a product mix expected to improve yield.

• First coal from the third fleet’s pit is expected in the December quarter, with volumes building through H2; the new Hitachi EX3600-7 excavator is expected on site by end-November.

• FY27 priorities include lifting production, reducing unit costs, improving operational resilience and delivering the shipping program.