TerraCom Limited ("TerraCom" or "The Company") (ASX: TER) today announced record sales of $141.1 million and EBITDA of $28.6 million for the full year to 30 June 2018, reinforcing the significant operational turn-around at the Blair Athol coal mine in central Queensland.
Commenting on the substantial progress made in FY18, Terracom chairman Mr Wal King said the Company was on track to report a net operating profit of up to $100 million in FY19.
Highlights:
- Coal production delivered sales of $141.1 million
- $28.6 million EBITDA
- $34.3 million net operating cashflow
- Net loss of $19.1 million
- 1.9 million tonnes from Blair Athol and Baruun Noyon Uul, Mongolia
- Blair Athol JORC Reserves(1) upgraded to 18 million tonnes with a resource of 44 million tonnes
- Rail siding commissioned linking Blair Athol to main Goonyella Rail Line
Mr King said Blair Athol's performance justified the Company's decision to recommission what was once Australia's largest thermal coal project following the completion of its purchase from Rio Tinto in early 2017.
"It is pleasing to have made this level of progress in such a short period of time and we hit several key milestones during the year," Mr King said.
"We increased coal production at Blair Athol in each quarter and are continuing to negotiate long term sales contracts with several key customers in Japan and Korea.
"We have benefited from the growth in demand from South East Asia and Blair Athol's long-standing reputation for producing high quality thermal coal will deliver contracts with new customers this year.
"Our net loss for the year reflected our debt obligations and the Board is giving priority to fully refinancing our $180 million debt portfolio to taking advantage of the fact that we are now producing
coal with a $51 margin per tonne.
The Company is also ahead of schedule with one of the country's largest mine rehabilitation projects at Blair Athol and was able to reduce the rehabilitation financial assurances to the Queensland Government from $80 million to $72 million.
Another significant milestone was the completion of the rail siding at Blair Athol which allows the mine to feed directly into the Goonyella main rail line which carries coal to the Dalrymple port, thus reducing production costs by around $20 a tonne.
In Mongolia the Company also increased production of coking coal in every quarter and improved margins.
Source: TerraCom Limited
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