Terracom Limited · ASX:TER
Terracom — Investor Presentation (November 2024)
32 slides from Terracom's investor presentation, Nov 12, 2024
Slide 1: TerraCom Limited
November 2024 TerraCom Limited Powering growth through global mining excellence ASX:TER
Slide 2: 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 3: Disclaimer & Important Notice (continued)
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 4: About TerraCom
About TerraCom TerraCom Limited (ASX: TER) is an Australian based mining resources company with a global footprint, comprising a large portfolio of operating assets in Australia and South Africa within the coal sectors. We are a renowned low-cost producer focused on delivering exceptional outcomes f
Slide 5: Contents
Contents 1 Company Overview 2 Q1 FY2025 Performance 3 Market & Capital Management 4 Operations 5 Strategy 6 Sustainability 7 Outlook 5
Slide 6: Company Overview
Company Overview 6
Slide 7: Company at a glance
Company at a glance Portfolio & Geographic Three Producing Mining South Africa Diversification Operations A stable fixed Portfolio of producing, 1 in Australia margin business development, and 2 in South Africa 75% of coal is sold domestically exploration assets in (+ Ubuntu and Kangala Collieries o
Slide 8: 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 9: Corporate Snapshot
Corporate Snapshot Market Cap (A$) 176M Global Shipping to Customers Worldwide Delivering exception value from a diversified, high-yielding asset Share Price (A$) portfolio across Australia and South Africa's coal sectors 0.22 Shares on Issue (million) 801.0 Shareholders % ISC Regal 14.3 Bonython 9.
Slide 10: FY2024 Highlights
FY2024 Highlights Employees & Contractors BA Total Sales Revenue1 Total2 ROM Production ~3,600 A$251M 9.6Mt Total2 Coal Sales BA Average Coal Price per Low-Cost Producer sold tonne3 Proven Track 7.2Mt A$159 Record 1. Based on FY24 Financial Statements released to the market 30 August 2024. 2. The da
Slide 11: Q1 FY2025 Performance
Q1 FY2025 Performance 11
Slide 12: Q1 FY2025 ROM Production and Coal Sales Achieved
Header Q1 FY2025 ROM Production and Coal Sales Achieved 2.5Mt 3,000 2,500 2,000 ROM Production Total Tonnes (kt) 1.8Mt 1,500 1,000 Coal Sales 500 Q1 FY2025 3,000 0 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 2,500 2,000 ROM Coal Sales 1,500 1,000 500 - ROM Coal Sales Equity Partner 12
Slide 13: Q1 FY2025 Highlights
Q1 FY2025 Highlights BA ROM Production BA FY25 Coal Sales BA Coal Sales Guidance 404kt 535kt 1.8Mt Dividend Declaration BA Average Coal Price per sold tonne 1 cent per ordinary fully paid share A$149.5 13
Slide 14: Market and Capital Management
Market and Capital Management 14
Slide 15: 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 16: 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 17: Forecast Thermal Coal Pricing
Forecast Thermal Coal 11/12/2024 17 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 18: Operations
Operations 18
Slide 19: 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 20: 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 21: Moorlands Project
Moorlands Project 11/12/2024 21 • 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 lo
Slide 22: 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 23: 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 24: 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 24
Slide 25: Strategy
Strategy T
Slide 26: Management Focus
Management Focus Maximising • Blair Athol JORC Reserve confidence with current Life of Mine remaining at ~8 Value 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 • Blair
Slide 27: Sustainability
Sustainability 27
Slide 28: 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 29: Safety is a Core Value
Safety is a Core Value The safety and wellbeing of our people is fundamental to our success. Our evolving safety culture is consistent with the Company’s core values, and through strong safety leadership, we create and maintain a safe workplace for all our people. As at 30 September 2024 1.0 TRIFR A
Slide 30: Outlook
Outlook
Slide 31: Powering Growth Through Excellence
Powering Growth Through Excellence Strong diversified High quality operating South African assets portfolio of producing, performance – anticipated to deliver development and BA on track to meet improving export sales exploration assets FY2025F sales guidance performance across in Australia and of 1
Slide 32: 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