Australian coal producer TerraCom has reported mixed results for the September quarter of 2024, with its Blair Athol mine meeting expectations while South African operations faced challenges.
The company achieved total Run-of-Mine (ROM) coal production of 2.5 million tonnes and total coal sales of 1.8 million tonnes across its operations.
Blair Athol mine in Queensland delivered forecast coal sales of 404,000 tonnes for the quarter, aligning with the annual mine plan.
The operation remains on track to meet its full-year guidance of 1.8 million tonnes for the fiscal year ending June 30, 2025.
Coal sales from Blair Athol were a combination of index-linked and fixed-price cargoes, achieving an average price of $149.5 per tonne sold.
However, TerraCom’s South African operations encountered difficulties, with total coal sales from the New Clydesdale Colliery and North Block Complex declining 12 per cent compared to the previous quarter, totalling 1.3 million tonnes.
Persistent logistics constraints and limited train availability impacted export sales, which dropped 30 per cent to 141,000 tonnes.
Domestic sales to Eskom also decreased by 9 per cent to 1.2 million tonnes.
Despite these challenges, TerraCom’s Managing Director Danny McCarthy expressed optimism about future performance and highlighted a significant development for the company.
In August 2024, TerraCom announced a Cooperation Agreement with Wintime Energy Group Co., Ltd to jointly develop and operate the Moorlands Thermal Coal Project in Queensland.
The company reported a closing cash balance of $16.7 million at the end of September, with an additional $58.2 million in restricted cash.
TerraCom’s board of directors declared a fully franked dividend of 1 cent per ordinary share for the quarter.
On the safety front, TerraCom maintained consistent performance with a lost time injury frequency rate (LTIFR) of 0.5 and a total recordable injury frequency rate (TRIFR) of 1.0 on a 12-month rolling basis.
