Terracom Ltd

Blair Athol is producing below plan in early FY27, though 2.0-2.2Mt guidance is held. TerraCom is debt-free, with the April 2025 prepayment repaid, but working capital is under pressure. It is negotiating a new coal prepayment and says it needs additional funding too.

other

Non-Executive Director Mark Chadwick resigned after under three months, citing a divergence of views with the board on its oversight, sequencing and risk management. The board will search for a replacement independent director.

director officer appointment

Chairman's letter cuts FY26 Blair Athol sales expectation to about 1.52Mt (from guidance of 1.6Mt) as a vessel slipped into July. Cost of sales is expected around A$120/t. FY27 planning exceeds 2.0Mt; debt repaid; South Africa strategic review announced.

production update

Managing Director Danny McCarthy, in the role since 2018, steps down immediately, with employment ending 30 April and consulting to 30 September 2026. COO Chris Bourke becomes interim CEO while a permanent CEO search starts. Board says strategy is unchanged.

director officer appointment

Chairman Mark Lochtenberg resigned immediately; no reason is given. Engineer Andy Coles, formerly of Thiess and PT Bis Industries in Indonesia, joins as Non-Executive Director. A new Chair will be announced later.

director officer appointment

The entitlement offer raised the full A$60m at A$0.06, despite only A$40m being underwritten at launch. Eligible shareholders took about 462.8m new shares (about A$28m); the balance went to the underwriter and Orbit, which increases its stake. New shares trade from 28 January 2026.

capital raising announcement

TerraCom launches a 1.25-for-1 renounceable entitlement offer at A$0.06 per share to raise up to about A$60m, to pay down creditors and fund working capital. Underwritten to about A$41.5m; Orbit Marketing sub-underwrites A$40m and could reach up to 55.31% of shares.

capital raising announcement

Blair Athol mining continued, with four vessels shipped and a fifth expected, but December quarter sales will be lower than September's, with one fewer shipment. Constrained cash receipts led to a launch of a roughly A$60m entitlement offer; South Africa sale proceeds are not expected short term.

production update

Rail and supply chain constraints will delay Blair Athol coal reaching Dalrymple Bay in the December 2025 quarter, cutting expected revenue and cash receipts. The company flags short-term working capital and cashflow strain, and is seeking more shipment prepayments and assessing funding options.

production update

Blair Athol's updated JORC statement shows 27.0Mt resources, 18.0Mt reserves and 14.0Mt marketable reserves at 30 June 2025, with mine life to 2033 at 1.6-1.8Mtpa sales. Reserves are slightly lower than 2024's 19.6Mt, though the company says life of mine is maintained.

resource reserve update

Audited FY25 loss widens to A$43.4m from the A$33.7m preliminary figure, mainly from a further A$6.8m impairment on the 49% New Clydesdale investment and a A$4.6m lower tax benefit. Net tangible assets fall to 14.94c per share from 16.16c.

financial restatement

Unaudited FY25 result: revenue fell 13% to A$226.7m and the statutory loss was A$33.7m, versus a A$25.0m profit in FY24. Normalised loss is A$8.6m after adding back the A$8.5m ASIC settlement and A$15.3m impairments. No final dividend; audit still in progress.

annual report

Jen Williams, with 15+ years in Australian coal (including Peabody, Coronado, Bowen Coking Coal and Whitehaven), is appointed CFO and Company Secretary from 7 August 2025. She fills the role Megan Etcell announced she would leave in July.

director officer appointment

CFO and Company Secretary Megan Etcell will step down, citing personal circumstances that prevent relocating to the new Brisbane headquarters. She stays until end of 2025 or as agreed; a Brisbane-based CFO search has begun.

director officer appointment

Federal Court dismissed ASIC's case against Managing Director Danny McCarthy and three former directors and officers. The company's own settlement with ASIC remains subject to Court approval. This largely resolves the individuals' side of the 2023 case.

regulatory community update

Blair Athol FY25 sales guidance cut again, to 1.52Mt from 1.6Mt, including a roughly 80kt shipment due in late June. FY26 production and sales profile is being finalised with a focus on cutting costs.

production update

TerraCom agrees with ASIC to settle the whistleblower case filed in February 2023: a A$7.5m civil penalty (A$4m soon after the order, A$3.5m by 30 June 2026) plus A$1m of ASIC costs. Subject to Court approval.

regulatory community update

Blair Athol FY25 sales guidance cut to 1.6Mt from 1.8Mt after March-quarter rain more than 1.5 times the 10-year average. March quarter sales were 321kt. Operating costs are said to be largely unchanged; Moorlands first coal still targeted for 2026.

production update

Half-year to December 2024: revenue fell 21% to A$111.3m, EBITDA fell 69% to A$15.2m and profit after tax fell 91% to A$2.9m. No dividend for the December quarter. Net tangible assets were 20.61 cents per share.

half year report

TerraCom declares a fully franked 1 cent per share dividend for the September quarter, payable 6 December 2024. This restarts dividends, the first declared since the 3c paid in September 2023, earlier than the company's hope in July.

dividend declaration

FY24 results: revenue A$259.1m (down 61%) and profit after tax A$25.0m (down 90%), with A$25.95m attributable to owners. Only A$24m of dividends were paid, the September 2023 3c payment, and none was declared after year-end. NTA is 20.96c.

annual report

TerraCom signs a cooperation agreement with Shanghai-listed Wintime to develop the Moorlands thermal coal project, 14km from Blair Athol (378Mt resource, proposed 1.9Mtpa). Definitive documents are targeted by 31 December 2024, with first coal targeted in FY26. Subject to approvals.

material agreement

June quarter: Blair Athol sold 408kt, with FY24 at 1.57Mt, below expectation. A US$20m customer prepayment enabled substantial repayment of the historic tax debt. No dividend is declared, though one may restart earlier if prices hold. Cash A$12.8m plus A$56.4m restricted.

quarterly activities report

Blair Athol sold 408kt in the June quarter, finishing FY24 at 1.57Mt, short of the revised 1.7Mt guidance after a mid-June dragline breakdown. FY25 guidance is 1.8Mt.

production update

March quarter: Blair Athol sold 315kt after a shipment slipped into April, and FY24 guidance is cut again to 1.7Mt. No dividend is declared as the company repays historical tax obligations. Cash A$11.4m plus A$56.4m restricted.

quarterly activities report

December quarter: Blair Athol sold 418kt at A$159/t amid a geological event and heavy rain; operating EBITDA was A$24.1m. FY24 guidance is cut to 1.8-2.0Mt from about 2.0Mt. No dividend is declared, citing weather and income tax obligations. Cash A$21.6m plus A$56.4m restricted.

quarterly activities report

September quarter operating EBITDA was A$35.2m, down from A$55m in June. Blair Athol sold 426kt at A$176/t; FY24 guidance is about 2.0Mt. No dividend is declared for the quarter, after 3c paid in September, to keep liquidity strong.

quarterly activities report

FY23 results: revenue A$660.6m (down 18%), profit after tax A$262.5m (up 5%), with A$262.1m attributable to owners. NTA is 20.96c. A$244m of dividends were paid in the year; a 3c final dividend is declared. Control of one South African entity (49% held) was lost.

annual report

Blair Athol FY23 coal sales are now expected at 1.8-1.9Mt, down from the 2.1Mt forecast (originally 2.2Mt), because of Queensland logistics delays. The company says the shortfall is timing only, with sales moving into early FY2024.

production update

Chairman Graeme Campbell resigned after about 16 months on the board; Mark Lochtenberg becomes Non-Executive Chairman immediately. The board is reviewing its composition. It is the third non-executive departure since October 2022. No reason is given.

director officer appointment

ASIC has filed Federal Court proceedings against the company and current and former officers, including Mr McCarthy, Mr Boom and Mr Ransley, over its disclosures about a former employee in early 2020. The company says it will vigorously defend. Outcome and penalties are unknown.

regulatory community update

Half-year to December 2022: revenue A$430.3m (up 11%), profit after tax A$180.4m, up more than 100% on the prior period. A 7.5c fully franked interim dividend is planned. Net tangible assets are 20.07c per share.

half year report

Audited FY22 profit after tax is A$249.1m, up A$33.5m from the preliminary A$215.6m, because of adjustments tied to deconsolidating the South African operations. Attributable profit is A$196.1m versus A$170.6m preliminary. Revenue (A$804.6m) and year-end cash (A$69.6m) are unchanged.

annual report

Preliminary FY22 results: revenue A$804.6m (up 46.5%), profit after tax A$215.7m, A$170.6m attributable, against last year's loss. Net tangible assets are 16.76c per share. Accounts are still being audited; the 10c dividend is confirmed.

annual report

A 10c unfranked final dividend (7.5c ordinary plus 2.5c special) is declared, payable 19 September. Policy is revised to 60-90% of profit paid quarterly, replacing the April 40-70% half-yearly policy, with future dividends franked. A capital management review is under way.

dividend declaration

Founder and Executive Chairman Craig Ransley retires under his employment contract, having founded the company (then Guildford Coal) in 2010. Non-executive director Graeme Campbell becomes Non-Executive Chairman, and the board is reviewing its composition.

director officer appointment

Offtake agreement signed with a Japanese trading partner for up to 1.25Mt over 13 monthly cargoes, August 2022 to August 2023, priced to the Newcastle index. Blair Athol targets 2.2Mt in FY23 and is fully sold until October 2022; the 10c dividend forecast is repeated.

contract award

Blair Athol June quarter EBITDA is forecast at about A$180m, with full-year attributable EBITDA of about A$423m. OCP Asia is converting its US$20m note into 39.9m shares (about 5%), removing a roughly A$27m cash liability. A first dividend of about 10c is forecast for September.

other

The Euroclear bond is fully repaid after the final US$20m of prepayment funds went to bondholders. It had been restructured in October 2021 and was originally due 31 December 2022; a dividend for the period to 30 June 2022 is still expected.

debt financing

US$10m more of the prepayment arrived, with US$30m expected by 27 May, and the customer has made it interest free (previously 8%). TerraCom is withdrawing from all Guinea interests, ending the Kalia iron ore and bauxite threads, and reviewing non-core assets. June quarter: eight Blair Athol cargoes, about 650kt.

other

US$35m was paid to bondholders in April, including the first US$20m of the US$60m prepayment, cutting bond principal to US$53.5m. With the remaining US$40m and a further US$15m from operations, the bond would be fully repaid.

debt financing

The board adopts a formal dividend policy of paying 40% to 70% of attributable net profit after tax, half-yearly and yearly, starting once all debt is repaid. This formalises earlier talk of dividends after deleveraging; the first dividend since 2019's 1c.

dividend declaration

Half-year to December 2021: revenue A$387.4m (up 51%), profit after tax A$57.4m (up 186%), reversing last year's loss. No dividend was paid. North Block was deconsolidated from 31 October 2021 after the operating agreement expired, as TerraCom lost operational control.

half year report

Binding term sheet for a US$60m prepayment against 600,000t of Blair Athol coal, delivered June 2022 to May 2023, at 8% fixed interest. Proceeds go to the bond, now to be fully repaid by 30 June 2022, with dividends expected for the period to 30 June.

debt financing

Bond principal was US$121.3m at 31 January, and US$20m will be paid in February, taking it to about US$102.6m. About US$15m a month is expected thereafter, with full repayment now forecast in the September 2022 quarter, earlier than the December 2022 maturity.

debt financing

Graeme Campbell and Mark Lochtenberg, the nominees of the two requisitioning shareholder groups, were appointed to the board on 28 January, ahead of the AGM. This settles the October challenge by agreement; their election votes still go ahead.

director officer appointment

Euroclear bond principal fell US$32.2m (19%) in the second half of 2021 to US$134.9m, after US$44.1m of interest, fees and principal payments. This is early progress on the repayment plan towards the December 2022 maturity.

debt financing

Two shareholder groups requisitioned resolutions to appoint directors at the AGM: Bonython (10.45%) nominating Graeme Campbell, and a consortium including Gleneagle, Thorney and Bart (9.5%) nominating Mark Lochtenberg. This is a challenge to board composition.

security holder rights change

The 8 October maturity lapsed and the restructured Euroclear bond deal took effect, with the new funder not proceeding. Terms: maturity 31 December 2022, 12.5% interest plus 0.75% of Blair Athol revenue, monthly cash-sweep repayments. Company says refinance risk is removed.

debt financing

Audited FY21 loss was A$94.6m, A$6.3m better than the preliminary A$100.8m. Total equity is a A$27.5m deficit, and A$27.6m of borrowings, mainly the convertible bond, moved from non-current to current. The audit adjustments also cut non-current assets by A$12.0m.

financial restatement

ASX suspended TerraCom shares from 1 October 2021 for failing to lodge its annual report by the due date. The suspension adds to the audit delay flagged in the preliminary report.

listing compliance notice

Bondholders agreed a restructure: the bond is extended to 8 October 2021, and if the new funder has not settled, an alternate plan repays monthly to 31 December 2022 at 12.5%. Company forecasts full repayment by then. The new loan is still unsigned.

debt financing

Blair Athol marketable coal reserves were updated by Deswik to 19.5Mt at 30 June 2021. At 2Mt a year sales, that gives about 10 more years of mine life, or 14 years under TerraCom, which bought it in 2017.

resource reserve update

TerraCom signed an exclusive, non-binding MOU to acquire the Kalia iron ore project in Guinea, owned by a UK company in liquidation. It is subject to due diligence and approvals; the 4.7bn tonne figure is an exploration target only. It adds to the Guinea bauxite interest.

asset acquisition disposition

Euroclear bondholders unanimously extended the bond maturity from 30 June to 13 August 2021. Indicative new facility: up to US$215m at about 9% fixed for up to 7 years, versus 12.5% now, said to save about 4% a year. Trading halt lifted.

debt financing

TerraCom has re-established operational management control over its South African operations, which were deconsolidated from 31 October 2020. Managing Director McCarthy has been there since late March to apply Blair Athol methods. Board expects a return to profit; no figures given.

regulatory community update

ASIC investigators attended Blair Athol on 29 March over coal-sample testing claims in a press article. TerraCom says it is not at the centre of the issue, as Blair Athol cargoes are about 1% of those tested by ALS, and will co-operate.

regulatory community update

Chairman Wal King will retire at the end of March 2021 for health reasons, staying on as an adviser. Craig Ransley becomes Executive Chairman and Danny McCarthy moves from CEO to Managing Director on A$900,000 a year fixed pay from 1 April.

director officer appointment

Half-year loss attributable to owners was A$52.3m on revenue up 51% to A$190.4m. TerraCom lost control of its South African operations after management and board changes, deconsolidating them from 31 October 2020. They are now treated as an associate, with a 49% interest in the main operations. No dividend declared.

half year report

An independent South African valuation puts the Universal assets at A$750.1m, making TerraCom's 49% share A$367.5m. That compares with the A$118.0m purchase price (A$59.1m cash plus A$58.9m equity), over three times the cost. It is a third-party estimate, not a booked figure.

resource reserve update

TerraCom is looking at an additional A$50m-A$70m growth bond program for retail and wholesale investors, with cashwerkz (Bond Income) running the wholesale side. Documents are still being prepared; no pricing or terms are given.

debt financing

TerraCom starts a debt refinance targeted to complete by 30 November 2020, led by adviser Christian Baylis. OCP Asia has indicated up to A$80m towards it. This addresses the Euroclear bond due June 2021 flagged in the going-concern warning (inference).

debt financing

Preliminary FY20 results: revenue A$351.6m including discontinued operations, and a loss attributable to owners of A$141.3m versus A$11.2m a year earlier. Audit is not finished; an emphasis of matter on going-concern risk is expected over refinancing of the Euroclear bond due 30 June 2021.

annual report

The UK squeeze-out of Universal Coal is complete, so TerraCom now owns all of it. Remaining holders get 10c cash plus 0.6026 new TerraCom shares per UNV share, and UNV is delisted from the ASX after close on 3 July.

business combination

TerraCom completes the sale of both Mongolian mines, BNU and Enkhtunkh Orchon, to Bridge Resources for US$3, with Bridge taking on net liabilities up to US$28m. This resolves the Mongolia exit, with the second mine now included, unlike the earlier BNU-only term sheet.

asset acquisition disposition

Blair Athol FY20 sales guidance is cut again to 2.5-2.6Mt, with about 2.0Mt targeted for FY21, as the mine plan is scaled back for COVID-19. Combined TerraCom and Universal FY20 guidance is 10.2-10.6Mt sales and A$86-90m EBITDA; squeeze-out notices due by 29 May.

production update

TerraCom signs a binding term sheet to sell its BNU coal mine in Mongolia to Singapore coal buyer Bridge Resources for US$2, with Bridge taking on a net US$15m of liabilities. Completion is targeted for 5 June 2020; it continues the planned Mongolia exit.

asset acquisition disposition

With sell-out acceptances TerraCom now holds just over 92% of Universal's votes, enough to start UK compulsory acquisition of the rest. Squeeze-out notices will go out soon; the process takes at least six weeks and ASX quotation of Universal will be suspended.

business combination

Following TerraCom's 90%+ control, Universal's chair Mark Eames, Tony Weber and Henri Bonsma step down from the board on 3 April. TerraCom's Craig Ransley becomes chairman and Glen Lewis joins. Weber (CEO) and the CFO stay for an initial six months.

director officer appointment

TerraCom finishes with just over 90% of Universal's voting rights, up from about 87%. It will start the UK mandatory sell-out process (same terms: 10c cash plus 0.6026 TerraCom shares) and have Universal apply for ASX delisting within weeks.

business combination

With acceptances taking its voting rights to about 87%, TerraCom confirms it intends to have Universal apply to delist from the ASX. Delisting would leave remaining minority holders with unlisted shares. The offer closes on 25 March.

business combination

Universal publishes Deloitte's report calling the bid neither fair nor reasonable, valuing Universal at A$0.40-0.45 a share against bid consideration of A$0.21-0.25. Its bid committee recommends rejecting the bid. This is the first independent valuation and it opposes TerraCom's offer.

business combination

ASIC revokes the interim stop order, so Universal acceptances and payment in cash and new TerraCom shares can resume. TerraCom now has the right to about 55% of Universal's votes. Offer now closes 25 March 2020 (CDI holders 23 March).

business combination

ASIC served an interim stop order on 28 February over TerraCom's prospectus, so no TerraCom shares can be issued and unprocessed acceptances are frozen. TerraCom holds about 52.5% of Universal; the offer now closes 14 days after the order lifts, no later than 16 April.

business combination

Half-year to 31 December 2019: revenue fell 6.9% to A$160.0m and the loss attributable to owners was A$9.3m, versus a A$3.3m profit a year earlier. A 1 cent interim dividend is declared and net tangible assets are 7.20 cents per share. The Universal stake contributed A$1.2m.

half year report

Universal formally starts High Court proceedings in England seeking a ruling that its articles' conditions are met, which would let it suspend TerraCom's votes or force it to sell its shares. Turns the earlier threat into an actual case; 'take no action' stays.

business combination

TerraCom signs a binding term sheet to buy Anglo African Minerals, holder of Guinea bauxite projects, with exclusivity to 31 August 2020 for a US$500,000 refundable deposit. Resource figures are only exploration targets, and the deal needs due diligence and approvals. A new commodity and country for TerraCom.

asset acquisition disposition

TerraCom denies a former commercial manager's court allegation, reported by the AFR, of a scheme involving fake coal sample analysis. It says six directors seek summary dismissal, the Federal Police found insufficient evidence, and Blair Athol coal is independently tested at three stages.

other

TerraCom declares its Universal Coal offer unconditional after acceptances, with its existing stake, gave it over 51% of UNV voting rights. ASX also approved quotation of the new TerraCom shares. This moves TerraCom from a minority holder to control of UNV, subject to the dispute.

business combination

TerraCom's subsidiary launched a takeover offer for the rest of Universal Coal: 10c cash plus about 0.6026 TerraCom shares each, valued at 33.5c or about A$175m. This escalates the 19.995% stake bought in October. Combined, UNV holders would own about 33.4% of the merged group.

business combination

The A$72m Blair Athol insurance bond is complete, releasing A$27m of restricted cash. OCP Asia convertible notes were issued in late December. Cash was about A$66m at 31 December 2019. This resolves the bond step needed for the refinance.

debt financing

TerraCom agreed to buy about 19.9% of ASX-listed Universal Coal (104.5m securities) for A$34.6m: about A$17.3m cash plus roughly 34.2m TerraCom shares at A$0.5061. This is a first move into South Africa, explaining the earlier trading pause (inference).

asset acquisition disposition

TerraCom declared its first dividend: 1 cent per share, unfranked, payable 13 November 2019. The policy is a minimum of 1 cent per half-year. This delivers the maiden dividend goal the board had set since the raise.

dividend declaration

TerraCom signed a binding term sheet through Aon for a A$72m rehabilitation bonding facility at Blair Athol, needing only A$45m cash backing and releasing A$27m of restricted cash. This delivers the insurance bond step needed to complete the refinance.

debt financing

Annual statement at 30 June 2019: Blair Athol JORC resource up 1Mt and reserves up 10.9Mt (66%) despite 2.6Mt mined. Some coal licences with no resource were relinquished. Group resource totals about 2,474Mt.

resource reserve update

FY19 operating EBITDA was A$93.9m, up A$66.7m, with a loss after tax of A$11.3m after non-cash or one-off items including A$31.2m of finance costs. Debt fell about US$25.6m (14%). Refinance is on track for September; the chairman again flags a maiden dividend.

half year report

June quarter: cash A$57.9m, Blair Athol EBITDA A$20.9m, record group run-of-mine output of 1,037kt. Refinance now due in the September quarter. New: PwC and Ashurst are advising on either a demerger of 100% of Mongolia or a sale of at least 51%.

quarterly activities report

TerraCom signed a binding term sheet with OCP Asia for a US$80m, 3-year term loan at 8.5% (down from 12.5%), with dividends pre-approved up to 30% of NPAT. Completion would cut finance costs about A$12.5m a year; US$20m of the refinance still depends on an insurance bond releasing A$25-30m.

debt financing

TerraCom issued about 60.93m new shares at A$0.58, raising about A$35.34m gross, completing the rights issue. Bonython underwrote A$20m. The chairman says the money will cut debt and its cost, and may allow a maiden dividend in due course.

capital raising announcement

TerraCom launches a fully underwritten 3-for-20 entitlement offer at A$0.58 to raise about A$35m, plus a US$20m convertible bond with OCP Asia (A$0.696 conversion, 9.95% coupon). Funds go to cutting debt for the refinancing; cash interest to fall about A$8m a year.

capital raising announcement

Blair Athol marketable reserve rises to 23.5Mt, adding over three years and about 8 years of life at 3Mtpa. Total ROM reserves are 28.7Mt, up 59% since February 2018. This builds on the December resource upgrade; geotechnical work may add 1-2 more years.

resource reserve update

TerraCom agrees to buy Springsure Investments' 51% of Springsure Mining by issuing 9.23m shares at A$0.65, lifting its stake to 87%. The project holds a 191Mt resource and adjoins the Fernlee tenement bought in January 2018.

asset acquisition disposition

Half-year to December 2018: revenue A$171.9m (+280%), profit attributable A$3.3m versus a A$14.2m loss a year earlier. NTA is 11.38c, up from 7.24c. No dividend. Michael Avery resigned as director on 30 November 2018. Auditor review attached.

half year report

TerraCom paid the US$9.0m Euroclear bond coupon fully in cash for the first time, rather than PIK. Noble converted US$9m of its Blair Athol prepayment facility into 16.67m shares at A$0.75. Debt is down 11.2% to US$162.7m since July; refinancing is expected in early 2019.

debt financing

Blair Athol Measured Resource rises 44% to 31.5Mt and Indicated 11.6Mt (+29%) after review of 3,421 historic drill holes. The company aims to convert the economic part to reserves, which the chairman says could extend mine life by 4-5 years, up to 13 years.

resource reserve update

Danny McCarthy, currently Chief Operating Officer at Mineral Resources, is appointed CEO from December 2018, based in Clermont. The company has had no CEO named in recent context; the chairman calls it the start of the next growth phase.

director officer appointment

TerraCom plans to lift BNU Mongolia output to 3Mtpa by early 2019 by opening more pits, including BNU South coal (still an exploration target). Unseasonal wet weather hurt September quarter production. The wash plant is under feasibility review, with the 1 January 2019 start no longer reaffirmed.

production update

Blair Athol has buyers for 637,000t for the December quarter, taking H1 FY19 sales to 1.25Mt. A new 3-year offtake with a major Japanese customer covers up to 1,056,000t a year (42% of forecast Blair Athol sales), priced off the Newcastle index.

contract award

FY2018: revenue A$147.1m (up 76.5%) and a loss of A$18.4m, versus a prior-year profit of A$22.5m that included a A$60.9m Blair Athol acquisition gain. Net tangible assets 7.24 cents per share. The audit opinion is unqualified.

annual report

TerraCom paid US$8.6m principal and interest to fully repay the US$12m Super Senior Note A facility, which it says came from operations. That was earlier deferred to October 2018. It equals about a 4% debt reduction, and all bondholders now rank equally.

debt financing

June quarter Blair Athol sales were 384,672t against a 462,000t forecast, with the final shipment slipping to July. Price and margin met forecast (A$42/t). Cash was A$11.9m. A revised plan targets 2.5Mt of Blair Athol sales in FY2019.

production update

A subsidiary bought 41 Clermont properties with an initial A$15m State Bank of India loan at 7.61%. SBI also signed a non-binding mandate to lead refinancing of existing debt at about 6-7% for 3-5 years, aiming at a US$50m commitment. Foster exercised 750,000 options at $0.30.

debt financing

Drilling 12 km south of the BNU mine found a thick new coal deposit, BNU South, with intersections up to 122m gross coal in 42 holes. Further drilling is under way, with development targeted late Q3/early Q4 2018 if proven. Not yet a resource.

drilling result

Blair Athol's dedicated train load-out was commissioned on 6 April 2018, with the first ~9,700t train loaded for Asia, completing the March-quarter target. BNU set a daily export record above 10,000t, equal to almost 3Mtpa annualised.

production update

Rights issue completed: 55.3m retail shares (including shortfall) issued, taking total proceeds to about A$15m, as the underwriter covered the shortfall. Bonython also received 4,651,163 shares, 3,488,372 as a sub-underwriting fee and 1,162,791 for an additional placement.

capital raising announcement

Blair Athol JORC reserves rise from 15.6Mt to 18Mt, extending mine life to 9 years at ~2Mtpa. TerraCom says converting more resource could add 2-3 years. Rail load-out is still expected to be commissioned in the March 2018 quarter.

resource reserve update

TerraCom launches a fully underwritten rights issue to raise about A$15.0m at A$0.215 a share, 3 new for every 13 held (~69.7m shares). Proceeds go to working capital, the Blair Athol rail load-out and partly repaying super senior notes. Gleneagle underwrites; Bonython Coal (John Singleton) sub-underwrites.

capital raising announcement

December quarter run-of-mine output rose about 90% at BNU (282kt) and about 155% at Blair Athol (317kt) versus September. Super senior noteholders deferred US$7.5m of principal to 30 October 2018, in return for a US$2 per tonne BNU royalty for five years. TerraCom paid a ~US$4.1m bond coupon, with 50% capitalised.

production update

TerraCom details the 10:1 share consolidation, subject to shareholder approval at the 30 November meeting. Shares fall from 3,013,244,790 to 301,324,479, with the effective date 4 December 2017. Unquoted warrants and options are also consolidated.

security holder rights change

TerraCom reports its first annual profit, A$5.04m (2016: A$51.8m loss), driven by a A$45.7m gain on acquiring Blair Athol and a A$19.6m tax benefit. Net assets turned positive at A$9.6m, from a A$17.7m deficiency.

annual report

Blair Athol JORC reserves rise 2.1Mt to 15.6Mt, extending mine life to 8 years at ~2Mtpa. Measured resource rises from 12.4Mt to 21.9Mt, with total resource unchanged at 44Mt. Converting measured resource could add 3-5 years.

resource reserve update

Wal King becomes Non-Executive Chairman, replacing Cameron McRae, who stays as a non-executive director; David Stone resigns and neither executive role is replaced, cutting overheads. A 10:1 share consolidation (3.01bn to 301.3m shares) is proposed. Blair Athol mined ~25kt and invoiced ~9kt in August.

director officer appointment

Coal production has started at Blair Athol on schedule, with ramp-up to about 2Mtpa annualised in Q4 2017. First sales are due this month, trucked to a nearby loading facility; the dragline returns by month-end and the CHPP is set to restart mid-October.

production update

Blair Athol is on track for first sales in August 2017, with a six-month purchase agreement signed, priced off the Newcastle thermal coal index. Forecast output totals 818kt over six months. Aurizon is leading design of a private rail loading facility, with an indicative 6-9 months.

production update

TerraCom says its balance sheet restructuring is complete. Noble converts US$7.16m of its fuel facility into 298.3M shares (~$0.032); the US$12m super senior principal is deferred to Oct 2017 and Jan 2018; 50% of the US$7.75m bond coupon is paid in kind.

debt financing

TerraCom completes the Blair Athol acquisition for A$1, with A$79.6m of rehabilitation paid by the joint venture. Mining is to begin in June 2017; forecast is 1.9Mt of product in the first full year. This closes the long-running acquisition thread.

asset acquisition disposition

BNU reached 2 million man-hours without a lost-time injury and began the Pit 3 boxcut, with first coking coal expected early June. Mongolia approved conversion of two exploration licences (3,802 ha and 1,977 ha) to 30-year mining licences.

regulatory community update

Queensland completes the Blair Athol lease transfer, making Orion the title holder. This activates the US$9m and A$11.6m funding facilities. Mining is planned from June 2017 at about 2Mtpa; BNU has shipped ~200kt this year to Kingho.

asset acquisition disposition

Queensland confirms Orion Mining has satisfied the conditions for the Blair Athol lease transfer, and TerraCom will complete the title transfer urgently. This resolves the conditions thread; mining is planned from June 2017, with up to $85m of taxes and royalties assuming current prices.

regulatory community update

Orion has secured A$13.5m to meet the Blair Athol indicative approval conditions, which the company says has no dilutive impact on shareholders. Blair Athol operations are now targeted for the second quarter of 2017, slipping from the first.

capital raising announcement

Queensland grants formal indicative approval for the Blair Athol lease transfer, subject to conditions. This resolves the long wait; TerraCom aims to complete transfer and start mining within the first quarter. Price remains A$1, with A$79.6m paid by the JV for rehabilitation.

regulatory community update

Queensland says it is 'minded to grant' indicative approval for the Blair Athol lease transfer, subject to conditions the board calls not onerous (e.g. coal plant, rail and water access). Approval is expected shortly, with restart targeted Q1 2017.

regulatory community update

A$4.0m placement to institutional and sophisticated investors at $0.03, issuing 133.3M shares, led by Foster. Blair Athol lease transfer still awaits Queensland approval, now with production restart described as early 2017, later than the earlier late-2016 target.

capital raising announcement

Mining restarts at the BNU mine in Mongolia after the Kingho offtake was signed. The company ran the mine down in 2016 while building a new supply chain. Blair Athol lease transfer is still progressing through Queensland.

production update

Long-form binding agreements signed with Kingho for the 5.5-year, roughly 7.5Mt BNU coking coal offtake, at minegate with USD letters of credit. This finalises the 18 October term sheet and the company says it underwrites a profitable Mongolian business.

material agreement

Independent review by Xenith reinstates and lifts Blair Athol JORC reserves to 13.5Mt and resources to 44Mt, extending the mine plan from 5 to 7 years at about 2Mtpa. Lease transfer approval is still progressing.

resource reserve update

Binding term sheet with Kingho Group subsidiary for 5.5-year offtake of 7.5Mt of BNU hard coking coal, sold at minegate for USD under letters of credit. Supports the planned BNU restart; a definitive agreement is to follow in weeks.

material agreement

Orion signs a 5-year full-service mining contract with Link Mining for Blair Athol, effective on lease transfer. Link provides A$11.6m (A$4.1m working capital to TerraCom, A$7.5m restart costs), on top of the US$12m facility. Queensland approval is still pending.

contract award

US$12m of new funding secured to commission Blair Athol, at 9% interest, drawn progressively against milestones. US$3m is repayable over 12 months from commissioning and US$9m is rolling for 5 years. First coal sales targeted by end 2016.

debt financing

A binding Sale and Purchase Agreement is signed to acquire Blair Athol for A$1, with A$80m cash from the vendor joint venture for rehabilitation. This firms up the 4 July agreement. Still needs Queensland Government approval; 2Mtpa restart targeted for Q4 2016.

asset acquisition disposition

US$1m placement to Hong Kong investor Sea Honour, owned by Anthony Steains. Price is set by a VWAP around 4 July, so share count is not yet known. Small raise, part of a funding plan for Mongolia, Blair Athol and Indonesia.

capital raising announcement

Agreement to acquire the idle Blair Athol coal mine in Queensland for A$1, with the vendor joint venture providing A$80m for rehabilitation. Targets restart at about 2Mtpa in Q4 2016. Still needs board, partner and ministerial approvals; this is the Queensland mine flagged earlier.

asset acquisition disposition

McRae becomes Executive Chairman. Michael Avery moves to VP Corporate Development (staying a director), David Stone to VP Operations, Karl Arnold to CFO and Julien Lawrence to Chief Development Officer. Arnold replaces Mark Reynolds as CFO (inferred from the role change).

director officer appointment

Long-form documents done: 5-year bond of US$129m plus a US$12m secured note tied to free cash flow, with 12.5% fixed interest and first payment after 12 months. Remaining US$5m convertible rolled in, avoiding about 1.1bn new shares; US$27m interest and fees waived.

debt financing

Cameron McRae, a former Rio Tinto executive who led Oyu Tolgoi in Mongolia, becomes Chairman with immediate effect. Craig Wallace moves from Acting Chairman to Deputy Chairman. Company says McRae will take a hands-on role in its transformation.

director officer appointment

Binding agreement for a 5-year interest-only bond of US$130m, now including the US$41m working capital facility, so no 2016 maturity remains. US$21m of interest and fees to be waived; US$3.1m extra funding for BNU ramp-up to 1.5Mtpa. Long-form documents due mid-June.

debt financing

Half-year loss to 31 December 2015 was A$71.4m (prior year A$17.6m), including a A$36.8m non-cash impairment and A$7.9m unrealised foreign exchange loss on US$120m of loans. Shares on issue rose from 1.096bn to 2.401bn by 15 March 2016.

half year report

Restructuring finalised: US$55m refinanced as a 5-year interest-only bond, first interest 23 December 2016, no principal until 2021. The US$41m working capital facility extends to 23 December 2016. SPG's 583.3m-share placement (about 25% of shares then on issue) did not proceed.

debt financing

Note holders (OCP) agreed to replace existing notes with a 5-year interest-only bond, no cash payments until 23 December 2016. A US$5m loan replaces the A$7m SPG placement, avoiding dilution. Half the convertible notes (US$5m) converted into shares on 29 January; the rest is extended to 28 February.

debt financing

Term sheet signed with OCP for a circa US$115m five-year interest-only bond, with Noble still in discussion; it depends on the SPG placement passing at the 12 January EGM, as financiers require fresh equity. BNU is hit by washing, transport and yield variances and softer prices. Bank facility is proving difficult.

debt financing

Notice of 12 January 2016 EGM to approve share issues on conversion of convertible notes to Morning Crest Capital, and the A$7m SPG placement. Morning Crest and associates (including SPG) would reach 16.64% to 31.83% voting power; the vote is on the 31.83% downside case.

agm notice

Noble and OCP agreed to defer all debt payments until 31 December 2015 to allow time to restructure. Options are a US$115m bond or a traditional bank facility. SPG's A$7m placement at A$0.012 lapses if its conditions are unmet by 31 December 2015.

debt default or forbearance

Agreed a A$7m placement of 583.3m shares at A$0.012 to SPG Investment Holdings, a Chinese investor; the price is below the current share price. It needs shareholder approval and completion of debt restructuring. A circa US$115m five-year bond is the planned refinancing; an Asian listing remains uncertain.

capital raising announcement

Terra Energy was granted the Khar Servegen mining licence MV-019149 (6,664 ha, 30 years to 2045), carved from the 12600X licence next to BNU. Guildford plans to start mining there in 2016 toward its 2Mt-in-2016 goal.

asset acquisition disposition

After due diligence, Guildford decided not to proceed with the Tsaidam Energy acquisition announced 1 June. Action to recover the US$2m Mongolian Petroleum deposit is ongoing. Ends the 80% Tsaidam and power plant plan.

material agreement termination

Guildford targets 125,000t a month at BNU in H2 2015 (a 1.5Mtpa annualised rate) using the new Pit 2. It forecasts a direct cash margin of US$9-11/t for Q4 2015. Compares with the earlier 1.0-1.15Mt target for 2015.

production update

Queensland granted Mineral Development Licence 3002 over part of Springsure (EPC 1674) for three years from 1 August 2015. Reported coal quality tests are positive (low ash and sulphur). Guildford holds 35.7% of Springsure Mining with management rights. This resolves the pending MDL application.

regulatory community update

A June drilling program (91 holes) found a shallow coking coal 'micro basin' 200m east of the BNU pit, with up to 35m net coal, the thickest seen on its leases. BNU East Pit mining began 29 June. Quality results are still pending.

drilling result

First JORC 2012 resource for the 12600X licence: 15Mt inferred, plus an exploration target of 26-45Mt. Lifts the Mongolian total to 304Mt resources, with 248Mt inferred. Supports the 2Mt (2016) to 5Mt a year (2020) growth goals.

resource reserve update

Guildford completed buying 100% of Enkhtunkh Orchlon LLC from Noble, owner of the 12600 licence next to the BNU mine. This completes the option exercised earlier (US$6m due end May). A resource upgrade is said to be imminent.

asset acquisition disposition

Non-binding MOU to buy 80% of Tsaidam Energy LLC (3 thermal coal licences, claimed 630Mt non-JORC; approved 600MW power plant project) in Mongolia, plus the remaining 16.13% of Guildford Coal (Mongolia). Payment: 60M new shares and waiving the US$2m Mongolian Petroleum deposit. Subject to due diligence.

asset acquisition disposition

Offtakes signed with JISCO and Haohai at about a 30% premium to the Platts hard coking coal index. JISCO takes 15,000t in May, then 35,000t (±5,000t) monthly for 12 months from June. Haohai takes 45-50kt May-July, then 25,000t (±5,000t) monthly to April 2016.

contract award

Chairman Craig Ransley resigned from the board immediately; director Craig Wallace is Acting Chairman. Ransley says he remains a shareholder. This ends his stint as acting chair since November 2014; the Noble facility condition required him to remain a director (noted earlier).

director officer appointment

First commercial shipment of 6,000t to Baotou Iron & Steel delivered to Ceke, which the company calls completing its move from explorer to miner. A 20,000t JISCO shipment, part of a 60,000t contract, has begun. Sojitz pre-paid both shipments.

production update

Preliminary strategic review findings: plans to move the head office to Singapore, consider a Singapore listing and seek an equity partner for the Australian assets. It also targets A$3-5m in annual savings, 1Mt from BNU in 2015 and 5Mt a year by 2020, and talks on restructuring debt.

other

Sino's takeover offer lapsed at close on 25 February because its conditions were not met or waived. Acceptances are void and accepted shares are returned to holders. Sino held 3,878,137 shares through acceptances, now released.

business combination

Guildford issued 178,315,842 new shares under the entitlement offer, raising about A$6.6m before costs. The shares are due to trade normally from 27 February. This completes the raising launched in January.

capital raising announcement

First offtake agreements signed with two Chinese steel producers, via Noble: 6,000t to Inner Mongolia and 30,000t each in February and March to Gansu. Each hopes to negotiate long-term supply of 30,000-50,000t a month. A benchmarking study places BNU coal as semi-hard to hard coking coal.

contract award

Formal launch of the A$7m entitlement offer at $0.037, 1 new share for 4.85 held, partly underwritten by Maiora and a vehicle of director Craig Wallace. The price is 17% below the bottom of the independent expert's value range. Closes 16 February 2015.

capital raising announcement

Noble provided a US$7m working capital facility, fully drawn; about US$3m repays Noble's fuel agreement. Guildford also exercised its option to buy the adjacent 12600 lease from Noble, with US$6m due in May 2015. OCP deferred about US$3.9m of coupon to 8 July 2015 for a 2% fee.

debt financing

Guildford plans a partly underwritten A$7m entitlement offer at $0.037, 1 new share for every 4.85 held. Noble's A$7m extra debt is conditional on this raising. Underwriting of up to A$5m is being considered. Tony Mooney replaces Aimee Hyde as Company Secretary.

capital raising announcement

Guildford's directors unanimously recommend shareholders reject Sino's offer of 1 Sino share per 4.5 Guildford shares. The statement includes an independent expert's report by BDO. This answers the open question on the board's recommendation.

business combination

Noble and OCP agreed to extend the finance facilities and provide about A$12m of extra working capital to ramp up BNU over eight weeks. Documentation is due by 31 December. A strategic review of Mongolia and Australia, run by non-executive directors, is due to finish by end February 2015.

debt financing

Group MD Peter Kane resigned; Michael Avery, Guildford's founding MD, is Acting Group MD from 15 December. A strategic review of the whole business is planned for early 2015. Craig Wallace rejoins the board, and Chris Munday's CFO contract is extended three months.

director officer appointment

Mongolia's resource authority approved raising BNU's allowable mining capacity to 1.5Mt in 2015 and 2.0Mt in 2016, lifting the earlier 500ktpa limit. It permits higher output if economic; it is not a production target.

regulatory community update

Second BNU trial batch washed at 80% yield with 8.6% ash, versus 58% yield for the first August batch. This answers the earlier low-yield concern. Strength (CSR) results are due mid-December; offtake talks with several Chinese buyers are advancing, but no deal is signed.

well test result

BNU mine operations will recommence after the trial batches, with a forecast of 30kt in December rising to 105kt in June 2015, and 1,190kt total in 2015. Second-batch test results are now due by end of November, later than the earlier 30 October.

production update

Alan Griffiths resigned as director earlier than planned, and Craig Ransley rejoins as unpaid Acting Chairman. The board says Noble, Orchard Capital Partners and holders of over 50% of the company supported the appointment.

director officer appointment

Exercise notices received for 72.4m options at $0.06, including 71.5m from Maiora, slightly below the 73.5m it had indicated. This adds just over $4.3m of cash, with shares to be issued by 28 November.

capital raising announcement

Sino lodged its bidder's statement for an off-market takeover of all Guildford shares, at 1 Sino share per 4.5 Guildford shares. The offer opens 24 November and closes 25 February 2015 unless extended, and is conditional, including on Sino shareholder approval.

business combination

Maiora intends to exercise 73.5m of its 77.3m options at $0.06, bringing in $4.41m by 7 November. This follows the August $5m raising and is a partial exercise of the options.

capital raising announcement

Second BNU trial batch of 14,300t has begun shipping, with results due by 30 October. Targets are 25,000t in December, 35,000t in January and 65,000t in February, with cash-flow-positive production in 2015 at a targeted margin of A$9-14 per ROM tonne.

production update

Guildford agreed to end the $2.5m-a-year C1 management agreement (about $2m remaining to June 2015) by giving C1 15% of Springsure Mining. Needs shareholder approval at the AGM. Also, 20m $0.50 warrants expired unexercised.

material agreement termination

Wal King's chairman appointment is delayed until the Sino bid is resolved, reversing the 29 September start. Director Craig Wallace resigned, and Chris Munday (ex-EY transaction partner) becomes Acting CFO from 8 October.

director officer appointment

First 8,000t BNU trial batch washed to premium hard coking coal quality, but wash-plant yields were only 50.35% and 57.06% against 70-85% predicted from lab tests. Guildford blames a dormant stockpile and wash plant and expects improvement. Next 12,000t ships from 11 October.

well test result

Guildford confirmed it received Sino's notice of intention to make a conditional off-market takeover. A bidder's statement is expected within two months; the board has only noted it and will operate as usual.

business combination

Sino Construction announced an intention to make a conditional off-market takeover for all Guildford shares, offering 1 Sino share per 4.5 Guildford shares, a stated 115% premium to the prior close. This replaces the Australian-assets-only deal. Text is poorly legible.

business combination

Guildford expects a non-cash impairment of $40-50m pre-tax on its Australian assets, partly prompted by the Sino offer. It says there is no cash effect and no effect on debt covenants.

other

First 8,000t of BNU coking coal began trucking to the Chinese border, ending about nine months of approvals. The next goal is long-term offtake agreements with Chinese customers; none are announced yet.

production update

Former Leighton chief executive Wal King will become non-executive chairman from 29 September 2014. This resolves the open question of a permanent chair after Alan Griffiths' acting role.

director officer appointment

First BNU coal sales contract signed: 8,000t for supply-chain and wash testing, with about 12,000t more anticipated. Trucks leave 25 August. It is a trial, not a long-term offtake.

contract award

Entitlement offer closed: shareholders took up 6,032,868 shares and underwriter Maiora will take the remaining 35,633,799, all at $0.06, giving Guildford $2.5m.

capital raising announcement

Guildford agreed a term sheet to sell all its Australian coal assets to Sino Construction for US$25m via a six-month convertible note, plus a US$0.35/t royalty for five years. It would manage the assets. Subject to due diligence and approvals; non-binding.

asset acquisition disposition

Guildford received an unsolicited offer from an SGX-listed Singaporean company for all its Australian coal assets at US$22.5m, paid by a six-month convertible note. Subject to shareholder and SGX approvals; open until 23 July. Board is evaluating.

asset acquisition disposition

Guildford signed Maiora Asset Management (no fees) to fully underwrite a $2.5m entitlement offer at $0.06 (1 for 18.248, free option). Maiora will also subscribe $2.5m more; the company seeks up to $10m if all options are exercised.

capital raising announcement

Mongolia granted the haulage permit to carry BNU coal to Shivee Khuren at the Ceke border, resolving the permit holding up sales. A trial shipment of about 10,000 tonnes to northern China is planned, with sale terms to follow.

regulatory community update

BNU resource restated under JORC 2012 at 27.07Mt: 15.26Mt Measured, 8.77Mt Indicated, 3.04Mt Inferred, the first Measured coal at BNU. Also clarifies the $300-400m model assumes 1Mtpa for 10 years and a US$10-15/t margin.

resource reserve update

BNU is commissioned but coal cannot move without the haulage permit, so the mine is in cash preservation mode with one excavator on day shift. QCI withdrew from Kolan, ending its farm-in. Cash $18.0m; Canaccord-type advisor sought for financing; Noble lease 12600 option under review.

quarterly activities report

Michael Majendie, previously General Manager Commercial at Sedgman, is appointed Chief Financial Officer, reporting to Peter Kane. This fills the CFO vacancy open since Wotherspoon left in late 2013.

director officer appointment

The BNU mine was formally commissioned for operations and sales by the Mongolian Government, clearing the commissioning step awaited since December. Still waiting on permitting of the transport company before first coal can go to Ceke.

regulatory community update

The OCP Asia refinancing completed: Guildford received US$10m for convertible notes and US$55m for amortising notes, plus detachable warrants. Proceeds repay existing OCP debt and fund Mongolian working capital, extending maturities to 2015 and beyond.

debt financing

The Springsure resource triggers a payment to TheChairmen1, which took over the vendor's rights. It is cut from $11m to $8.8m (four tranches) and paid in 106.8m shares at $0.08239, instead of cash. This adds dilution, needs shareholder approval, and conserves cash.

asset acquisition disposition

Noble's US$22m has been signed and fully drawn, and the 98km haul road is complete. OCP documents are signed pending the 30 December vote; the old 87.5m warrants at $0.45 will be cancelled. Mine commissioning awaits Mongolian sign-off; first China sale still targeted Q1 2014.

debt financing

Guildford issued 20m shares at $0.75 ($15m) to Terra Holdings as the final payment for the remaining 25% of Terra Energy. This settles the deferred payment in shares rather than cash, though the $0.75 price is far above the ~$0.08-0.13 trading range.

capital raising announcement

Springsure gets a maiden Indicated resource of 43Mt, with 148Mt Inferred, a total of 191.5Mt. This is lower than the earlier 252.6Mt Inferred-only figure, though much is now upgraded. It triggers the contingent payment to the vendor.

resource reserve update

Peter Kane, interim CEO since 23 October, becomes Group Managing Director, resolving the permanent-leader question. Non-executive director Gary Humphrys, who was appointed in September, resigns rather than seek election, with immediate effect.

director officer appointment

Guildford signed a binding term sheet with OCP Asia for US$65m of new convertible bonds and amortising notes with warrants, refinancing existing OCP bonds, with first principal repayment not until 2015. Noble is to provide US$22m (up from the $17m planned) for the haul road. First China coal sale targeted Q1 2014.

debt financing

Group Managing Director Peter Westerhuis resigns with immediate effect, a week after Peter Kane joined the board. Kane becomes interim CEO, so the leader who took over in February and drove the move toward production is gone.

director officer appointment

Mongolia approves construction of the 98km haul road from the Baruun Noyon Uul (North Pit) mine to the Chinese border hub at Ceke, about 12 weeks' work. The $17m cost is funded by extending the Noble debt facility. Coal sales slip to January.

regulatory community update

Chairman Peter Lindsay steps down, moving to lead a Queensland Development Committee. Alan Griffiths becomes acting chairman while Heidrick & Struggles searches for a permanent chair.

director officer appointment

Presentation in Ulaanbaatar: coal extraction targeted Q4 2013, first exports December, 3Mtpa by Q4 2014, with expected mine-site price of US$55-60/t against US$35-40/t cost. An extended Noble debt facility is agreed in principle, and a further US$45-55m raising is forecast for December 2013.

investor presentation

OCP Asia's convertible bond funding was received on 30 April 2013. This is the A$39.4m facility announced in March, so the funding conditions have been met, giving the company cash after $5.6m at 31 March.

debt financing

Earthmoving contractors begin mobilising to the South Gobi North Pit for test pits, site works and overburden stripping. The new A$39.4m senior secured 12% convertible note, from OCP Asia funds, will repay the Gleneagle bond and extend debt maturity to September 2014. Conversion price is $0.45 to $0.75.

production update

Guildford arranges A$40m of convertible notes for operations and working capital, drawn once conditions are met. If notes are repaid before the 18-month maturity, noteholders get extra warrants priced between $0.45 and $0.75. This follows the $10m Gleneagle bond from October 2012.

debt financing

Shareholders approved both resolutions at the 27 February EGM, varying the TheChairmen1 agreement and issuing the 74m consideration shares. Votes for were about 143.4m against 2.4m. This ends the remaining success fees.

agm notice

Peter Westerhuis becomes Group Managing Director from 27 February 2013, ending the search that began when Michael Avery resigned. Craig Ransley returns to non-executive director. Mongolian nominee Mr Tsogt joins the board under the Terra Holdings deal.

director officer appointment

Springsure's maiden resource is 252.6Mt Inferred thermal/PCI coal, above the 60-235Mt target. It triggers no payment to Bluestone. Guildford holds 50.69% and is operator, with marketing rights and a 5.25% sales fee. Company-wide resources now stated at 2.52Bt.

resource reserve update

Clyde Park gets a maiden Indicated resource of 50.7Mt and Inferred rises to 677Mt (from 623Mt). Hughenden Indicated rises to 132.9Mt while Inferred falls to 1,076Mt (from 1,619Mt). Peter Westerhuis is hired as Mongolian CEO. Group total is 2,145.3Mt.

resource reserve update

Guildford proposes to end all future TheChairmen1 success fees (previously $20m per 100Mt Indicated, up to $100m) by issuing it 74m shares. PwC calls it fair and reasonable. Needs shareholder approval at an EGM on 27 February 2013.

material agreement

Managing Director Michael Avery resigns immediately due to ill health. Founder Craig Ransley becomes Executive Deputy Chairman until a new MD is found; the board says it is in advanced talks with candidates.

director officer appointment

South Gobi mining has not started, missing the late-November 2012 target. Drilling for a waste dump unexpectedly found coal, forcing a redesign and new permits, and local elections then delayed approvals. Contractors are ready pending ratification; 2013 production is still forecast.

production update

Mining Lease Application ML10369 is lodged for Clyde Park (formerly White Mountain), for a combined open cut and underground mine. This meets the end-2012 target. A Hughenden underground application is targeted for late January 2013. Resource remains 623Mt Inferred.

regulatory community update

Guildford agrees to buy out Terra Holdings' 25% of Terra Energy, valuing it at A$50m, making Terra Energy wholly owned. Payment is $3m deposit (paid), $2m cash, 40m shares at $0.75, and $15m in cash or shares a year later. Terra Holdings gets a board nominee right.

asset acquisition disposition

South Gobi East Pit gets a maiden 40.5Mt Inferred resource, lifting the project total to 110.9Mt coking coal. Leighton is engaged to mine East Pit, with 2Mt in year one. A long-form 5-year Sojitz offtake is agreed, and North Pit mining is still forecast for late November despite local approval delays.

resource reserve update

Guildford decides to develop South Gobi's East Pit alongside the North Pit, ahead of Mongolian winter, funded by a $10m convertible bond from Gleneagle Securities. The bond runs 12 months with conversion at $0.50, plus warrants over up to 12m shares at $0.55 for 18 months.

debt financing

White Mountain's Inferred resource rises 138%, from 262Mt to 623Mt of thermal coal, after 14 more holes were drilled. This continues the March 2012 maiden resource and meets the 'late September quarter' upgrade expectation. Guildford holds 60% and ongoing drilling aims to upgrade part to Indicated.

resource reserve update

Terra Energy gets a mining licence over South Gobi North Pit, which was previously a pre-mining agreement. Mobilisation is underway with first coal forecast late November 2012, year-one output over 3Mt and start-up capex just over $10m. Positive cash flow is now forecast for Q1 2013, and East Pit design and contractor talks continue.

joint venture update

Terra Energy engaged Grand Power Mining for South Gobi North Pit, with mobilisation started and first coal forecast for late November 2012. Year-one output is forecast above 3Mt coking coal, start-up capex just over $10m, and a Sojitz offtake heads of agreement and Noble marketing agreement are signed.

joint venture update

ASX waives listing rules to let Guildford issue $20m of shares to TheChairmen1 for the success fee without shareholder approval. The price is the greater of $0.20 and the 30-business-day VWAP around 9 July, with shares to be issued by 3 August.

security holder rights change

Hancock Prospecting subsidiary QCI will fund $2m over three years to operate Kolan (EPCs 1872 and 2003), then can take 51% of a joint venture for a further $2m. Kolan has only hit thin seams to date, so this brings in a partner to carry on exploration.

farm in farm out agreement

Guildford lifts its stake in Terra Energy (Mongolia) from 70% to 74.76% by converting a loan to shares, and in White Mountain from 56% to 59.6% by taking up a rights issue that Galilee Co did not join. A White Mountain resource upgrade is expected this quarter.

asset acquisition disposition

Hughenden gets its first Indicated resource, 123.63Mt on EPC1477, suitable for underground mining, on top of the 1.619Bt Inferred. This triggers a $20m success fee to TheChairmen1, payable in Guildford shares, and a mining lease application is expected by end-2012.

resource reserve update

Guildford buys the remaining 20% of Orion Mining (Pentland Project, Galilee Basin) for $1m cash plus $1m of shares at $0.665, taking it to 100%. Pentland has an Exploration Target of 295Mt–2.89Bt; drilling is planned from June 2012.

asset acquisition disposition

Former federal MP Peter Lindsay becomes independent Chairman. Founder Craig Ransley steps back to non-executive director, keeping his Mongolian subsidiary chair role and representing major shareholder TheChairmen1. Stated aim is better board independence as Guildford moves from explorer to miner.

director officer appointment

Guildford agrees to buy 50.52% of Springsure Pty Ltd, holder of Bowen Basin coal permit EPC1674 (Exploration Target 60–235Mt). Price is a $0.4m cash commitment plus contingent payments up to $20m tied to Indicated Resource tranches, payable in cash or shares. Adds a new Queensland project.

asset acquisition disposition

Fluorite mineralisation of potentially ceramic grade was found outcropping on a Mid Gobi licence (EL12929X), after illegal miners were removed. A magnetic feature about 3km by 1km overlies it. Initial drilling is planned for April. Early-stage, non-coal and unquantified.

drilling result

Raised $25m through an institutional placement of about 35.7m shares at $0.70, a 1.4% discount to the last close. Funds go to resource work, a second South Gobi mining licence, Queensland pre-feasibility studies, non-coal minerals in Mongolia and possible acquisitions. Foster Stockbroking led the placement.

capital raising announcement

Maiden White Mountain Inferred resource of 262Mt thermal coal, and Hughenden Inferred resource raised 56% to 1.619Bt. Total company resource rises to 2.172Bt from 1.32Bt. Pre-feasibility study commissioned, with a mining lease application planned mid-2012.

resource reserve update

Mongolia's first mining licence (30-year term) was granted for South Gobi, and the resource rose to 70.4Mt of coking coal (from 63.1Mt). Scoping studies for 2Mtpa and 4Mtpa cases are due February; mining still targeted mid-2012. Resolves the licence thread.

resource reserve update

Drilling at White Mountain (EPC1260) hit an interpreted 13.4m of net Betts Creek coal in three seams at 242–281m. A maiden JORC resource for EPC1260 is planned for Q1 2012; Mongolian mining licence is awaited, with first coal still targeted mid-2012.

drilling result

Maiden JORC resource for Middle Gobi (EL12929X) of 221Mt thermal coal (32Mt Indicated, 189Mt Inferred), taking Mongolian resources to 284Mt and the group total to 1.32Bt. Drilling resumes March 2012; mining licences still expected before end-2011.

resource reserve update

Maiden JORC resource for South Gobi (EL13780X) of 63.1Mt of coal with coking potential (38.2Mt Indicated, 24.9Mt Inferred), delivering on the October target. Mining licence applications are lodged, with mining targeted to start by end of June quarter 2012.

resource reserve update

Raising $10m via a placement of about 10.9m shares at $0.92 to existing holder Regal Funds Management, issued 1 December 2011. Funds go to resource work, the South Gobi mining licence and Hughenden feasibility, addressing the cash decline from A$15m at 30 September.

capital raising announcement

Hughenden JORC Inferred Resource raised by 110Mt to 1.036Bt of thermal coal on EPC1477/EPC1478, up from the 925.8Mt maiden figure of 25 October. Further coal quality work is needed; transport contracts with ARG and Port of Townsville are still targeted by end-2011.

resource reserve update

Maiden JORC Inferred Resource of 925.8Mt of thermal coal at Hughenden (EPC1477, 350–595m depth). This turns part of the 0.58–5.72Bt Exploration Target into a formal resource, from under 1% of the project area. Shallower coal was also hit on EPC1478 and White Mountain.

resource reserve update

Mongolian Exploration Targets were raised again: South Gobi 0–700Mt and Middle Gobi 30–680Mt, lifting the total to 30Mt–1.38Bt from 29–731Mt. Maiden JORC resources are targeted for October 2011, and the South Gobi coal may be low-sulphur coking coal. Still not resources.

resource reserve update

Guildford bought Carpentaria's 20% of FTB, taking it to 100% of the company holding about 60% of Hughenden by area. Cost is $1.5m cash plus $2.5m of Guildford shares, and Carpentaria keeps a 50c/t royalty capped at 10Mtpa for 20 years.

asset acquisition disposition

Hughenden Exploration Target set at 0.58–5.72 billion tonnes, resolving the pending target. It is not a JORC resource, though the company says an underground inferred resource on EPC1477 could follow. Includes an Asian roadshow presentation.

resource reserve update

Guildford hired UBS to advise on a separate ASX listing of Terra Energy, in which it would stay a significant shareholder. South Gobi first coal is targeted for the first half of 2012, with a mining licence by end-2011. Company suggests over US$50m a year of operating cash flow.

material agreement

Sierra tenement EPC1822 in the Bowen Basin has been granted, resolving the earlier wait for grant. Drilling is scheduled to start early in the last quarter of 2011, taking Guildford to six rigs on its Queensland priority projects. Guildford owns Sierra 100%.

drilling scheduled

Terra Energy, now 70% owned, completed the US$3.5m purchase of Alag Tevsh LLC, holding South Gobi licence 5262X. It adds a 0–122Mt Exploration Target, lifting South Gobi to 0–582Mt and Mongolia to 29–731Mt.

asset acquisition disposition

Terra Energy signed a non-binding-style heads of agreement, subject to due diligence, to buy 100% of a Mongolian company holding four projects, including the Javkhlant project with three mining licences and a completed feasibility study. Guildford also exercised its option to lift Terra Energy from 20% to 70%.

asset acquisition disposition

EGM presentation, with the board saying it will exercise its option to lift Terra Energy from 20% to 70% on positive exploration results. Cash was A$35m at 31 May 2011; shares were $1.16, a A$479m market value. The EGM seeks to refresh the 15% share issue capacity.

investor presentation

South Gobi drilling on EL5264X hit about 21m apparent net coal, including a 13.7m seam with possible coking potential. A new Middle Gobi Exploration Target of 29–149Mt lifts the Mongolian total to 29–609Mt. Hughenden drilling is slower, and its target is still pending.

drilling result

Craig Ransley, company founder and previously deputy chairman, becomes Non-Executive Chairman; Tony Bellas moves to deputy chairman. The board says the change reflects rapid progress fast-tracking project developments, with resource drill-outs under way at Hughenden and South Gobi.

director officer appointment

Hughenden hole H005c hit 11.9 metres net coal in Permian Betts Creek seams up to 5.5m, 70% thicker than expected; the Exploration Target is due within 30 days. South Gobi's first four holes hit 4–8m net coal; mining licence application targeted by July.

drilling result

First hole in the South Gobi project in Mongolia hit about 8 metres net coal in three seams, the deepest at 87 metres. A mining licence application is expected in the third quarter 2011. Early result on the newly acquired Terra Energy assets.

drilling result

Guildford signed a heads of agreement to buy 51% of EPC1260 from Tiaro Coal for $3.3 million plus a $5 million exploration commitment. Adjoining its EPC1250, it lifts the White Mountain Exploration Target to 40–815 million tonnes. The deal was introduced by TheChairmen1.

asset acquisition disposition

Och-Ziff funds, the 12.6% shareholder that introduced the project, get a call option over 25% of Terra Energy for A$25 million, exercisable only if Guildford lifts to 70%. Both exercising would leave Guildford with 52.5% and board control, potentially funding Mongolia.

farm in farm out agreement

Guildford agreed to buy 20% of Terra Energy LLC, holder of South Gobi and Middle Gobi coal permits in Mongolia, with an option to lift to 70%. Three rigs start in April. A new country beyond its Queensland projects; management says it could produce within 12 months.

asset acquisition disposition