20 May 2022debt financing▲ Good
US$20m more of prepayment funds went to bondholders, cutting principal to US$18.8m. US$40m of the US$60m prepayment has now been received, with the last US$20m expected by 27 May.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
16 May 2022other● NeutralMajor
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.
5 May 2022debt financing▲ Good
A further US$15m went to bondholders, cutting bond principal to US$38.8m. The remaining US$40m of the prepayment is delayed, but the chair says a dividend for the period to 30 June 2022 is still on track.
26 Apr 2022quarterly activities report▲ Good
March quarter combined operating EBITDA was a record A$123m: Blair Athol A$84.7m (A$138/t), up from A$59.3m in December, and South Africa A$38.5m on a 100% basis. Bond principal is US$53.5m, with full repayment forecast once the remaining US$40m prepayment arrives.
20 Apr 2022debt financing▲ GoodMajor
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.
8 Apr 2022dividend declaration▲ GoodMajor
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.
28 Mar 2022debt financing▲ Good
A further US$15m was paid in March, taking bond principal to US$87.7m. With the US$60m prepayment due in April, the bond is now expected to be mostly repaid in April, and a dividend for the half to 30 June is still expected.
18 Mar 2022contract award▲ Good
Blair Athol is now fully sold until the end of July 2022, with ten cargoes (about 750kt) scheduled for April to July. One cargo is fixed at US$300/t; the March quarter target is about 600kt.
4 Mar 2022debt financing▲ Good
A further US$20.8m was paid to bondholders in February, cutting bond principal to US$102m. Coal sales and EBITDA reporting move to quarterly, while debt updates continue monthly.
28 Feb 2022half year report▲ GoodMajor
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.
28 Feb 2022debt financing▲ GoodMajor
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.
28 Feb 2022admin correction● Neutral
Re-release of the half-year accounts, unchanged apart from a date added on page 9. No new substance.
15 Feb 2022production update▲ Good
January combined operating EBITDA was A$54.9m: Blair Athol A$38.5m and South Africa A$16.4m on a 100% basis, on 548kt sold. South Africa has returned to its year-to-date run rate after December's weather.
14 Feb 2022debt financing▲ GoodMajor
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.
10 Feb 2022production update▲ Good
Blair Athol January operating EBITDA was A$38.5m on 247kt sold, a margin of about A$156/t, 32% above December's, including the delayed December shipment. Chair reiterates focus on debt reduction and capital returns.
8 Feb 2022production update▲ Good
January equity coal sales were 516kt, with three Blair Athol cargoes shipped including the delayed December one. South Africa sales recovered 53% on December. Year-to-date annualised equity sales are 5.5Mt; Blair Athol stays fully sold to mid-May.
31 Jan 2022investor presentation● Neutral
AGM presentation stating the company has begun a balance sheet transformation, with the next 12 months focused on debt reduction and capital returns to shareholders. The visible text is the quote and a disclaimer; no new figures.
31 Jan 2022agm notice▲ Good
All AGM resolutions carried. Campbell and Lochtenberg were elected as directors, with about 98.6% and 92.2% of poll votes in favour respectively. Remuneration report passed with about 91.8% for, so no strike. Placement capacity approval was the weakest at 77.4%.
31 Jan 2022quarterly activities report▲ Good
Record December quarter operating EBITDA of A$82.8m (Australia A$59.3m, South Africa A$23.5m on a 100% basis). The Euroclear bond principal is US$134.9m, down 19% since June; Blair Athol is fully sold to mid-May 2022.
28 Jan 2022director officer appointment● NeutralMajor
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.
18 Jan 2022production update● Neutral
December combined operating EBITDA was A$24.5m: Blair Athol A$19.8m on 167kt (A$118/t) and South Africa A$4.7m on a 100% basis, hit by heavy rain. The delayed 79kt cargo's revenue moves into January.
7 Jan 2022production update● Neutral
December quarter Blair Athol sold 502kt at A$219/t, short of the 575kt forecast because a 79kt shipment sailed on 5 January after weather delays at the port. Revenue beat the A$210/t forecast; FY2022 target remains about 2.3Mt.
4 Jan 2022debt financing▲ GoodMajor
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.
20 Dec 2021contract award▲ Good
Blair Athol coal is now fully sold until mid-May 2022, after a sale of four cargoes (about 320,000t) for March to June 2022 to its main Japanese buyer, priced off the globalCOAL Newcastle Index.
16 Dec 2021production update▲ Good
November combined operating EBITDA was A$31.9m: Blair Athol A$20.0m (A$112/t) and South Africa A$11.9m on a 100% basis. Blair Athol stays on target for 575kt in the December quarter.
7 Dec 2021production update● Neutral
November equity coal sales were 418kt (managed 668kt), with year to date annualised managed sales of 9.4Mt. The Blair Athol December quarter forecast is unchanged at A$210/t and A$70m EBITDA. South African exports still limited by Transnet logistics.
1 Dec 2021debt financing▲ Good
Long-form bond documents are signed, confirming the 31 December 2022 maturity on the previously announced terms, with no extra fees for early repayment. The AGM is now set for 31 January 2022, later than the earlier 30 November estimate.
18 Nov 2021capital raising announcement● Neutral
TerraCom will issue 5 million unquoted options to Evolution Capital under a lead broker agreement, exercisable at A$0.35 until 19 November 2024. Small and non-cash; the stated aim is widening the institutional shareholder base.
17 Nov 2021production update▲ Good
Blair Athol October operating EBITDA was A$19.5m on 157kt sold, a margin of A$124/t, in line with the forecast. December quarter target remains 575kt and A$70m EBITDA.
4 Nov 2021production update● Neutral
October managed sales were 767kt, annualising to 9.7Mt. Blair Athol realised A$213/t on two shipments, but the December quarter forecast was trimmed to A$210/t, a margin of about A$122/t and EBITDA of about A$70m. South African exports rose 41% via road haulage.