Past year: ▼ 21%(6.30c – 9.98c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
4 Oct 2019debt financing▲ GoodMajor
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.
1 Oct 2019production update▲ Good
September quarter coal sales hit a record 921,119t (3.68Mtpa annualised), including 795,532t from Blair Athol. TerraCom targets a FY20 Blair Athol operating cost of A$58 per tonne sold.
30 Sept 2019resource reserve update▲ GoodMajor
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.
30 Aug 2019annual report● Neutral
FY19 revenue rose 129.9% to A$338.3m, with a loss after tax of A$11.2m (down 39% from A$18.4m). No dividend was declared; the audit opinion is unqualified. Net tangible assets were 15.08 cents per share, up from 7.24 cents.
30 Aug 2019investor presentation● Neutral
FY19 results presentation repeating the figures already announced: sales 3.0Mt, operating EBITDA A$93.9m, debt cut US$25.6m. No new information (the text is truncated).
30 Aug 2019half year report▲ GoodMajor
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.
31 July 2019quarterly activities report● NeutralMajor
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%.
1 July 2019debt financing▲ GoodMajor
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.
5 June 2019capital raising announcement▲ GoodMajor
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.
3 June 2019capital raising announcement● Neutral
Eligible shareholders took up about 34.97m shares at A$0.58, raising about A$20.28m. A shortfall of about 25.97m shares went to the underwriter.
What it means for a shareholder
35.0m new shares at A$0.580 to raise about A$20.3m. That's 7.0% dilution: every existing holder's slice gets 7.0% smaller. If you held A$1,000 of shares (1,724 at the issue price), your slice goes from 0.000369% to 0.000343% of the company. To keep it you'd need 129 more shares - about A$75 at the issue price.
Create a free account to see this worked out for your own holding.
20 May 2019capital raising announcement● Neutral
Notice to shareholders outside Australia and New Zealand that they are ineligible for the A$0.58 entitlement offer. They need take no action. Administrative notice.
15 May 2019capital raising announcement● Neutral
Information booklet for the 3-for-20 entitlement offer at A$0.58, closing 29 May 2019. It carries the standard offer terms already announced; the text is truncated and no new figures are visible.
13 May 2019capital raising announcement● Neutral
Chairman's letter to shareholders restates the A$35m entitlement offer at A$0.58, 3 for 20. It opens 20 May and closes 29 May 2019. Proceeds go to reducing debt. No new terms.
10 May 2019other● Neutral
ASX notice that TerraCom's trading suspension is lifted following the refinancing announcement. Administrative only.
10 May 2019investor presentation● Neutral
Investor presentation supporting the A$35m entitlement offer announced the same day. Text is mostly disclaimers and is truncated, so no new figures can be drawn from it.
10 May 2019capital raising announcement▲ GoodMajor
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.
8 May 2019other● Neutral
TerraCom requested a trading suspension pending an announcement on part of its refinancing package. The suspension was to last until the announcement or the start of trade on 10 May 2019.
30 Apr 2019quarterly activities report● Neutral
March quarter: record sales of 827kt, group EBITDA A$22.9m, cash A$32.7m. Blair Athol June quarter sales forecast cut to 682kt from 670kt... 682kt versus the earlier 670kt forecast is actually higher; the cut is relative to the 3Mtpa run-rate path, with port and rain delays cited. Refinance now due in the June quarter.
2 Apr 2019production update▲ Good
Mongolia sold a record 152,591t in March 2019 (131,486t coking coal), an annualised 1.8Mtpa. The thick-seam thermal pit is now due in the June quarter, versus April previously flagged.
20 Mar 2019resource reserve update▲ GoodMajor
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.
8 Mar 2019other● Neutral
S&P index notice listing TerraCom among additions to the All Ordinaries from 18 March 2019. It is an index-provider announcement, not a company event, and says nothing about operations or finances.
4 Mar 2019asset acquisition disposition▲ GoodMajor
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.
4 Mar 2019investor presentation● Neutral
Half-year results presentation repeats the strategy of lifting Blair Athol from 2.5 to 3Mtpa and Mongolia from 1.5 to 3Mtpa. Shows 397m shares, A$0.62 price, debt US$159m and 2.1Bt Queensland resource. Largely repeats known facts; text truncated.
28 Feb 2019half year report▲ GoodMajor
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.
28 Feb 2019half year report▲ Good
Media release on the half-year: net profit A$3.2m, EBITDA A$52.6m and operating cashflow A$33.1m. Debt refinancing is expected by end April 2019, pushing back the earlier 'early 2019' timing. FY19 EBITDA guidance of A$130-150m maintained and cash is above A$17m.
5 Feb 2019debt financing▲ Good
TerraCom repaid the Blair Athol Dragline and CHPP facilities for A$3.3m, freeing that equipment as security. Debt face value is down 12.9% to US$159.6m since July, a step toward the planned debt restructure.
31 Jan 2019quarterly activities report● Neutral
December quarter: cash A$14.5m, down from A$33.1m. Half-year group EBITDA A$47.6m, with Blair Athol A$61.0m and Mongolia a A$8.2m loss. Blair Athol sales are planned to rise to 2.7Mtpa then 3Mtpa. FY19 EBITDA guidance of A$130-150m is maintained.
14 Jan 2019production update● Neutral
Blair Athol sold 605,423t in the December quarter, giving 1.22Mt for the half at US$92/t. The 2.5Mt FY19 sales target is confirmed. Slightly below the 637,000t secured earlier for the quarter. Danny McCarthy is now signing as CEO.
21 Dec 2018debt financing▲ GoodMajor
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.
6 Dec 2018resource reserve update▲ GoodMajor
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.
