Terracom Limited · ASX:TER
Terracom — Shareholder Meeting (November 2024)
34 slides from Terracom's shareholder meeting presentation, Nov 21, 2024
Slide 1: ASX Announcement
TerraCom Limited PO Box 131 Contact: ABN 35 143 533 537 Clermont QLD 4721 investors@terracomresources.com Australia terracomresources.com 21/11/2024 ASX Announcement 2024 Annual General Meeting – Chair Address and Presentation TerraCom Limited (ASX: TER) (TerraCom or Company) advises in accordance w
Slide 2: Chair Address
Chair Address This year has been one of significant progress and resilience for our Company, as we navigated through a dynamic and challenging operational environment. Despite the ups and downs, our commitment to operational excellence has been unwavering. Whilst total coal sales for Blair Athol fel
Slide 3: 2024 Annual General Meeting
2024 Annual General Meeting
Slide 4: Contents
Contents 1 Chair Address 2 2024 AGM Business Update 3 Operations 4 Strategy 5 Capital Management and Market Outlook 6 Questions 7 Disclaimer and Important Notices 8 Appendices
Slide 5: Chair Address
Chair Address
Slide 6: 2024 AGM Business Update
2024 AGM Business Update T
Slide 7: Company at a glance
Company at a glance... Portfolio & Geographic Diversification Portfolio of producing, development, and exploration assets in Australia and South Africa Cash Generating Capitalising on strong demand for low-impurity thermal coal Markets 1) Export Sales (45%) – sold mainly to Japan and Korea (energy m
Slide 8: Our Projects
Our Projects SOUTH AFRICA AUSTRALIA Mining - New Clydesdale Colliery Mining - Blair Athol Project Operations - North Block Complex Operation Care & - Ubuntu Colliery - Underpins the business as the Key Facts bedrock of the Group Maintenance - Kangala Colliery - Capitalising on strong demand for low
Slide 9: Board and Executive
Board and Executive Mark Lochtenberg Danny McCarthy Glen Lewis Mark Ludski David Norris Megan Etcell Non-Executive Managing Director Non-Executive Non-Executive Non-Executive Chief Financial Officer & Chairman Director Director Director Company Secretary • Over 25 years in the coal • 28 years in min
Slide 10: Corporate Snapshot
Corporate Snapshot Market Cap (A$) 168M Global Shipping to Customers Worldwide Delivering exceptional value from a diversified, high-yielding asset Share Price (A$) portfolio across both Australia and South Africa's coal sectors. 0.21 Shares on Issue (million) 801.0 Shareholders % ISC Regal Funds Ma
Slide 11: FY2024 Highlights
FY2024 Highlights BA Total Sales Revenue1 Total2 ROM Production Total2 Coal Sales A$251M 9.6Mt 7.2Mt BA Average Coal Price per Low-Cost Producer Taxes and Royalties Paid sold tonne3 Proven Track A$62M A$159 Record 1. Based on FY24 Financial Statements released to the market 30 August 2024. 2. Data r
Slide 12: People and Wellbeing
People and Wellbeing PEOPLE AND DIVERSITY SAFETY The safety and wellbeing of our Dedicated and talented team people is fundamental to our success ~3,600 employees and 1.0 TRIFR contractors (as at 30 June 2024) Female Representation 0.5 LTIFR - Australia 21% (as at 30 June 2024) - South Africa 48% 10
Slide 13: Community and Social Impact
Community and Social Impact 11
Slide 14: Operations
Operations 12
Slide 15: Australia
Header Australia TerraCom acquired its flagship Blair Athol Coal Mine, located in Clermont Queensland, in 2017. The Company now exports approximately 1.8 million tonnes per annum of high-quality thermal coal. Rehabilitation at the site is progressive and forms part of the ongoing mining operations.
Slide 16: Blair Athol – Bedrock of the Group
Blair Athol – Bedrock of the Group Thermal coal Export Ownership 2.25Mtpa ROM 1.8Mt export, primarily to 100% ownership, Japan and South Korea Owner Operator for power generation and Indian sponge iron markets Open Pit Ore Reserves Life of Mine (LOM) Dragline, truck, ~ 20Mt Proved/Probable ~ 8 years
Slide 17: Moorlands Project
Moorlands Project 11/21/2024 15 • TerraCom intends to act as a full-service development and mining services partner for Wintime to expedite the approval and commercial operation of the Moorlands Project. • Blair Athol to be used as an infrastructure, processing and logistics precinct, generating a l
Slide 18: TerraCom Infrastructure
TerraCom Infrastructure Moorlands Lease TerraCom Blair Athol Mine + Coal Handling and Preparation Plant and crushers capable of processing 4-5Mt per annum. + Power Supply (66Kv) + Unlimited Raw Water Supply + Train Load Out facility using over wagon side loading + Dragline + Mobile mining plant, 2x4
Slide 19: Project Development Concept
Project Development Concept Stage 1A Initial Development to 0.5mtpa Key Features: Grant of approvals + 12months. Low capital intensity start-up with target coal of 500kt in year 1. Boxcut development commences from Southern end of Moorlands South Pit. Single 400t excavator fleet with 4 x 190
Slide 20: Moorlands Proposed Project Timeline
Moorlands Proposed Project Timeline Dec Definitive Project Aug To jointly develop and Documents Agreed - Design operate the Moorlands Dec - Approvals Thermal Coal Project - Planning 2024 Mar Jun - Stage 1 - Ramp up to 1.9Mtpa - Construction - Mobilisation - Resourcing 18
Slide 21: Strategy
Strategy T
Slide 22: Management Focus
Management Focus Maximising • Blair Athol JORC Reserve confidence with Life-of-Mine currently remaining at Value ~8 years Realising • Divestment of our interest in the South African Operations to achieve appropriate Value economic return, with potential for special dividend once sale concludes • Bla
Slide 23: Capital Management and Market Outlook
Capital Management and Market Outlook
Slide 24: Capital Management Framework
Capital Management Framework Reliable and consistent operations Capital productivity Net operating cashflow Maintain and optimise operations Working and sustaining capital Resilient balance sheet Dividend policy payout ratio of 60–90% NPAT1 Surplus cashflow External Growth investments Internal Growt
Slide 25: Capital Allocation
Capital Allocation Header • The Company remains committed to the payment of dividends to shareholders. Capital returned to shareholders 200 • Dividend payout ratio between 60% to 90% of (3) net profit after tax (attributable to TerraCom). 150 A$276 million AUD (millions) 100 (2) ~ 50 (4) 34.5 cents
Slide 26: Forecast Thermal Coal Pricing
Forecast Thermal Coal 11/21/2024 24 Pricing • Pricing seems to have stabilised and is supported into the near future. • The average price for 2011 – 2020 was | US$83 per tonne. | | • The average price for 2021 – Sept 2024 | | was US$206 per tonne. | | • The forecast average price Oct 2024– | Decembe
Slide 27: Questions
Questions
Slide 28: Disclaimer & Important Notice
Disclaimer & Important Notice IMPORTANT NOTICE This presentation (Presentation) has been prepared to provide prospective investors (Recipients) with information about TerraCom Limited ACN 143 533 537 (TerraCom) and its business of being a resource explorer with a large portfolio of operating assets
Slide 29: Disclaimer & Important Notice
Disclaimer & Important Notice IMPORTANT NOTICE (CONTINUED) This Presentation should not be relied upon as the sole representation of any matter that a Recipient should consider when evaluating TerraCom or the Business. Nothing in this document should be construed as authorising the distribution of t
Slide 30: Appendices
Appendices T
Slide 31: Environmental, Social and Governance (ESG) Policy
Environmental, Social and Governance (ESG) Policy Environmental Social Governance Responsible coal mining and Safety is a core value that Strong focus on corporate progressive rehabilitation to underpins our culture. governance principles and minimise the impact from our management with integrity to
Slide 32: Our position on Greenhouse Gas (GHG) Emissions
Our position on Greenhouse 11/21/2024 30 Gas (GHG) Emissions • We acknowledge that the production and consumption of coal contributes to GHG emissions. • We understand the challenges of integrating emission reduction efforts with the legitimate economic and social development aspirations of people,
Slide 33: Slide 33
Slide 34: Contact
ASX:TER Contact Danny McCarthy Managing Director P: +61 7 4983 2038 E: investors@terracomresources.com Jane Morgan Investor & Media Relations P: +61 405 555 618 E: jm@janemorganmanagement.com.au