Past year: ▼ 21%(6.30c – 9.98c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
26 Oct 2021quarterly activities report▲ Good
September quarter operating EBITDA was a record A$58.3m (Australia A$36.4m, South Africa A$21.8m on a 100% basis), with managed sales of 2.47Mt. The report confirms the bond refinance with new 31 December 2022 maturity.
25 Oct 2021production update▲ Good
Blair Athol coal is fully sold until end January 2022. December quarter forecast is 575kt at A$224/t, an operating margin of about A$134/t and EBITDA of about A$77m, slightly below the earlier A$230/t forecast.
21 Oct 2021security holder rights change● NeutralMajor
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.
18 Oct 2021production update▲ Good
Blair Athol made operating EBITDA of A$17.2m in September on 170kt sold, a A$101/t margin, in line with the 9 September forecast. December quarter forecast is unchanged: 575kt at A$230/t.
14 Oct 2021agm notice● Neutral
TerraCom expects to hold its FY2021 AGM on or after 30 November 2021, with director re-elections on the agenda. Director nominations close 20 October 2021.
8 Oct 2021debt financing▲ GoodMajor
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.
7 Oct 2021other● Neutral
Annual corporate governance statement, assessing practices against ASX principles for the year to 30 June 2021. Administrative, with no new figures or events.
7 Oct 2021financial restatement▼ BadMajor
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.
7 Oct 2021listing compliance notice▲ Good
ASX will lift the trading suspension from the start of trading on 8 October 2021, after TerraCom lodged its annual report, Appendix 4G and governance statement. This resolves the suspension that began 1 October.
7 Oct 2021director officer appointment● Neutral
Company Secretary Megan Etcell becomes interim CFO as the board moves the role back to Australia. Celeste van Tonder, CFO since September 2020, moves to CFO – South Africa.
7 Oct 2021other● Neutral
Appendix 4G key to the corporate governance disclosures for the year to 30 June 2021, lodged with the annual report. Administrative, with no new figures or events.
7 Oct 2021annual report● Neutral
The FY21 annual report was released with audited accounts. Highlights state EBITDA of A$17.0m and managed sales of 9.18Mt, with Blair Athol free-on-board costs cut to about A$65/t. It resolves the late-lodgement issue behind the suspension.
6 Oct 2021production update▲ Good
September managed sales were 808kt, annualising to 9.9Mt year to date. Blair Athol made A$177/t revenue. December quarter forecast: about 575kt at A$230/t, with an operating cash margin above A$140/t if achieved. South African exports stayed at 85kt.
1 Oct 2021listing compliance notice▼ BadMajor
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.
1 Oct 2021listing compliance notice▼ Bad
TerraCom says COVID-related delays stopped it lodging audited accounts by 30 September. ASX refused a waiver, so shares are suspended from 1 October. The company calls the decision unreasonable and says it will release the accounts as soon as practicable.
21 Sept 2021debt financing▲ GoodMajor
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.
9 Sept 2021production update▲ Good
TerraCom forecasts Blair Athol September revenue of A$178/t and an operating cash margin above A$100/t, versus A$58/t in July. It expects strong coal prices through FY2022, with Newcastle and API4 indices near highs not seen since 2008.
6 Sept 2021production update▲ Good
August managed sales were 817kt, annualising to about 10Mt for the year to date. Blair Athol sold two cargoes (161kt). South African export sales were 86kt, up about 28% on July despite logistics constraints.
3 Sept 2021debt financing● Neutral
Bondholders agreed a third extension of the Euroclear bond maturity, from 3 September to 17 September 2021, as the refinance needs more time. The new funder's loan is still not signed.
31 Aug 2021annual report▼ Bad
Preliminary FY21 results: revenue A$549.0m (up 73.3%), loss after tax A$100.8m, EBITDA A$19.4m, cash A$70.6m. Audit unfinished; the company says an unmodified audit opinion is unlikely to be affected if the bond refinance completes first. Links to the unresolved refinance.
23 Aug 2021resource reserve update▲ GoodMajor
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.
20 Aug 2021production update▲ Good
South African operations made July operating EBITDA of A$11.0m (A$17.9/t) on 614kt sold, 547kt domestic and 67kt export. Combined with Blair Athol's A$13.6m, group total is A$24.6m. South African figures are 100% basis, TerraCom owns 49%.
13 Aug 2021asset acquisition disposition● NeutralMajor
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.
12 Aug 2021debt financing● Neutral
Refinance documents are not yet complete, so bondholders agreed a second extension of the Euroclear bond maturity, from 13 August to 3 September 2021. The new funder's loan is still unsigned.
10 Aug 2021production update▲ Good
Blair Athol earned operating EBITDA of A$13.6m in July on 234kt sold, a margin of A$58/t. That compares with A$24.0/t in the June quarter and A$15.5/t in the March quarter.
5 Aug 2021production update▲ Good
July sales were 848kt managed, annualising to 10.17Mt. South African export sales fell on rail constraints and political unrest, though Eskom deliveries held at 547kt. Blair Athol sold three cargoes, one delayed from June.
30 July 2021quarterly activities report▲ Good
June quarter operating EBITDA rose 63% to A$23.9m. Blair Athol made A$24.0/t at an average A$94.1/t price; South Africa made A$6.4/t. A 83,023t shipment slipped to 1 July, costing about A$5.9m. Kangala is on care and maintenance.
9 July 2021production update● Neutral
FY21 coal sales were 9.18Mt managed, below the 10.2Mt+ originally guided in October 2020. Blair Athol sold 2.2Mt, above the 2Mtpa first projected after going owner-operator, with FOB costs down 17%. South Africa managed 6.9Mt.
30 June 2021debt financing▲ GoodMajor
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.
3 June 2021production update▲ Good
May sales were 723kt managed. A Blair Athol August cargo was sold at a fixed US$90.5/t, which the company says is a margin of over A$50/t on its roughly A$60/t costs. FY21 sales forecast stays at about 9.3Mt.
