Tigers Realm Coal (TIG) Q3 2025 TU earnings summary

Executive summary

• Ongoing efforts to complete the sale of Russian subsidiaries and mining/port operations, with the process facing significant regulatory and transactional hurdles.

• Share Purchase Agreement (SPA) signed in April 2024, but completion delayed due to new Russian legislation and required Presidential approval.

Significant events and developments

• Russian authorities introduced new exit legislation in October 2024, delaying approvals for foreign sellers.

• The transaction was split into two elements: Operating Assets & Assignments (requiring Commission approval) and the Amaam Entity (requiring Presidential approval).

• Commission approved the Operating Assets & Assignments sale at a reduced price (RUB 2.348 billion, approx. A$46 million), but the Buyer has not signed the amended SPA.

• The Buyer is seeking further price reductions due to increased exit taxes, high Russian interest rates, and weak global coal markets; the board has rejected these requests.

• The sale agreement is at an impasse, and alternative exit mechanisms are being explored.

Risk factors and uncertainties

• Completion of the sale is contingent on Presidential approval for the Amaam Entity, with no clear timeline.

• The "locked box" mechanism means all revenue from Russian subsidiaries accrues to the Buyer, limiting the Seller's financial benefit during the delay.

• Australian sanctions and limited information flow from Russian management have hindered financial reporting.