Tigers Realm Coal (TIG) Q2 2025 TU earnings summary

Executive summary

• Ongoing process to conclude the sale of Russian subsidiaries and mining/port operations, with the transaction in a state of impasse due to buyer's demands for further price reductions and pending Presidential approval for part of the assets.

Significant events and developments

• Share Purchase Agreement signed in April 2024 to dispose of Russian operations, with all seller conditions met except for Presidential approval for the Amaam Entity.

• Russian authorities introduced new legislation in late 2024, delaying transaction approvals and splitting the deal into two elements requiring separate approvals.

• Commission approved part of the transaction at a reduced price (capped at RUB 2.348 billion, approx. A$46 million), but buyer has not signed amended SPA and seeks further reductions.

• Board is exploring alternative exit mechanisms due to the impasse.

Risk factors and uncertainties

• Completion of the sale is contingent on Presidential approval and mutual agreement on amended SPA terms.

• Buyer's financing difficulties, high Russian interest rates, and deteriorating global coal market conditions increase transaction risk.

• Australian sanctions regime limits communication and information flow from Russian management, impacting financial reporting.