TerraCom (TER) Q4 2025 TU earnings summary

Executive summary

• Total coal sales reached 1.68Mt for the quarter, with equity coal sales at 1.1Mt, reflecting strong operational resilience despite weather disruptions and softer thermal coal prices.

• Blair Athol operations delivered 498kt in coal sales for the quarter and 1.54Mt for FY2025, meeting guidance.

• South African operations maintained steady domestic sales, though export volumes were constrained by rail issues.

• No dividend declared for the quarter due to the current pricing environment.

Financial highlights

• Closing cash at bank was $12.7 million, with an additional $58.2 million in restricted cash.

• Average coal price achieved at Blair Athol was A$128.01/t, down from $165.4/t in the previous quarter.

• Free on Board (FOB) operating costs for Blair Athol remained steady at $118/t, excluding royalties.

Outlook and guidance

• FY2026 coal sales forecast set at 1.6Mt, with a continued focus on value over volume and a lean cost structure.

• Market conditions will be actively monitored to maximize sales if pricing recovers.

• Thermal coal prices expected to remain stable in the near term, with potential upside from Asia Pacific restocking and winter demand.