Past year: ▼ 21%(6.30c – 9.98c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
31 Aug 2018annual report● NeutralMajor
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.
24 Aug 2018debt financing▲ Good
TerraCom paid US$2.8m to settle the equity-convertible Noble Fuel Facility, which was due in January 2018. The company says debt has fallen about 5% since 1 July 2018.
9 Aug 2018debt financing▲ GoodMajor
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.
2 July 2018production update● NeutralMajor
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.
12 June 2018debt financing▲ Good
TerraCom paid ~US$4.3m Euroclear bond interest, again paying 50% in kind (PIK). It says this should be the last PIK payment. It repeats the State Bank of India refinancing partnership, still a non-binding mandate.
8 June 2018production update▲ Good
Blair Athol has secured 520,000t for the September quarter at a forecast US$92/t, targeting 650,000t total and a margin above A$54/t, up from the ~A$42/t forecast for June. June quarter sales are said to be in line with forecast.
7 June 2018debt financing▲ GoodMajor
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.
6 June 2018drilling result▲ GoodMajor
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.
23 May 2018director officer appointment● Neutral
Paul Anderson joins the board as a non-executive director, nominated by Bonython Coal No 1, a substantial shareholder that sub-underwrote the February rights issue. Board now has eight directors including two shareholder nominees (OCP Asia's Hunter and Bonython's Anderson).
7 May 2018production update▲ Good
Blair Athol has buyers for 532,000t for the June quarter at a forecast average US$78/t, about US$41.5m revenue. This secures the 462,000t forecast plus 70,000t shipping in July, and supports the earlier ~A$41/t margin forecast.
20 Apr 2018other● Neutral
Corporate governance statement setting out TerraCom's board practices against ASX recommendations, stated as at 25 October 2017. It notes no formal board or executive performance evaluation was done in the year. Administrative; no new business information.
9 Apr 2018production update▲ GoodMajor
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.
28 Mar 2018contract award▲ Good
Long-form contracts are signed for port access at Dalrymple Bay and rail haulage with Pacific National. Load-out construction is almost complete, rail line recommissioning is planned for 4 April and the first train is scheduled for 6 April, slipping from end-March.
16 Mar 2018regulatory community update● Neutral
ASX has reclassified TerraCom from a mining exploration company to a mining production company. It no longer has to lodge quarterly cashflow reports (Appendix 5B), but must file half-year and full-year reports within two months of period end.
13 Mar 2018regulatory community update● Neutral
Photo-only progress update on the Blair Athol train load-out, showing Aurizon rail works. It contains no new dates or figures beyond the boilerplate company description.
8 Mar 2018production update▲ Good
Blair Athol has sold 500,000 tonnes by truck-and-alternate-route to South Korea and China, and says its short-term sales book is full. Rail load-out construction is well advanced, with commissioning now expected around the end of March 2018.
28 Feb 2018half year report● Neutral
Half-year to 31 December 2017: loss of A$14.192m (prior year A$29.032m loss), on gross profit of A$10.125m and finance expense of A$17.219m. Blair Athol earned about A$22/t gross margin and BNU about A$13/t, the first operating revenue under the current strategy.
28 Feb 2018half year report▲ Good
Supplemental release to the half-year accounts: maiden operating EBITDA of A$5.525m and gross profit of A$10.125m (Blair Athol A$4.453m, BNU A$5.672m). Restates the 18Mt reserve and the March-quarter rail load-out timing.
16 Feb 2018capital raising announcement▲ GoodMajor
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.
13 Feb 2018resource reserve update▲ GoodMajor
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.
12 Feb 2018capital raising announcement● Neutral
The retail offer closed with applications for ~24.53m shares, raising ~A$5.24m at A$0.215. About 30.98m shares are shortfall, now passed to the underwriter. Institutional and retail takeup together is ~A$8.3m of the A$15m target.
31 Jan 2018capital raising announcement● Neutral
The retail offer booklet for the A$0.215 rights issue has been dispatched; the offer is open 31 January to 9 February. It repeats the Blair Athol rail load-out update: construction started, commissioning in the March 2018 quarter, forecast +A$20/t margin.
25 Jan 2018capital raising announcement● Neutral
Retail offer booklet for the 3-for-13 entitlement offer at A$0.215 a share, closing 5pm AEDT on 9 February 2018. It restates known terms and attaches earlier announcements. It adds no new substance.
25 Jan 2018capital raising announcement● Neutral
The institutional part of the rights issue raised about A$3.1m from ~14.4m shares at A$0.215, a fraction of the A$15m total. The retail offer opens 31 January and closes 9 February, with the remainder underwritten. The rail load-out is expected to be commissioned in the March 2018 quarter.
What it means for a shareholder
14.4m new shares at A$0.215 to raise about A$3.1m. That's 3.7% dilution: every existing holder's slice gets 3.7% smaller. If you held A$1,000 of shares (4,651 at the issue price), your slice goes from 0.00125% to 0.0012% of the company. To keep it you'd need 180 more shares - about A$39 at the issue price.
Create a free account to see this worked out for your own holding.
24 Jan 2018director officer appointment● Neutral
Matthew Hunter joins the board as a Non-Executive Director, nominated by OCP Asia, which is described as TerraCom's largest shareholder and debt holder. He has 20+ years in finance, formerly a Managing Director at The Carlyle Group.
23 Jan 2018investor presentation● Neutral
Presentation supporting the rights issue repeats known terms: A$15m at A$0.215, with shares rising from ~302.1m to ~371.8m. The market capitalisation is A$64.95m at the 18 January price. It adds no new events beyond the announcement.
23 Jan 2018capital raising announcement● NeutralMajor
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.
8 Jan 2018production update● NeutralMajor
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.
22 Dec 2017production update▲ Good
TerraCom says Blair Athol and BNU are both producing at name plate rates, keeping the 3.5Mtpa target for 2018 (1.5Mtpa BNU, 2Mtpa Blair Athol). The first 58 hectares of Blair Athol rehabilitation is done, and the rail load-out is on track for February 2018.
14 Dec 2017security holder rights change● Neutral
Final consolidation notice confirms actual figures: 301,324,833 shares and 12,630,833 warrants, with 3,000,000 options. This is a minor correction to the prior notice, and the 10:1 consolidation is now complete.
