TerraCom (TER) Q3 2025 TU earnings summary

Executive summary

• Total coal sales reached 1.6Mt for the quarter, with equity coal sales of 923kt, reflecting continued operational momentum despite severe weather disruptions in Australia and logistical challenges in South Africa.

• No dividend declared for the quarter due to the current thermal coal pricing environment; closing cash at bank was $3.3 million, with $61.3 million in restricted cash.

• Historic tax debt fully eliminated; a US$20 million prepayment agreement was finalized in April for working capital.

Financial highlights

• Average coal price achieved at Blair Athol was A$165.4/t, up from A$162.4/t in the previous quarter.

• Free on Board (FOB) operating costs for Blair Athol remained steady at $112/t, with expectations for costs to remain stable for FY2025.

• No foreign exchange hedges in place for USD sales as of 31 March 2025.

Outlook and guidance

• FY2025 sales guidance for Blair Athol is approximately 1.6Mt, with first coal from the Moorlands Thermal Coal Project expected in 2026.

• Thermal coal prices are expected to remain stable in the near term, with modest increases possible due to restocking demand and weather risks in Asia Pacific markets.

• Steady demand anticipated from key markets in Japan, South Korea, and India for the remainder of 2025.