Terracom Limited · ASX:TER
Terracom — Investor Presentation (February 2020)
39 slides from Terracom's investor presentation, Feb 29, 2020
Slide 1: Investor Presentation
' PLE RR AC O Viegas si INVESTOR PRESENTATION
Slide 2: Disclaimer
DISCLAIMER The information contained in this document (“Presentation”) has been prepared by TerraCom Limited (the “Company”). This Presentation does not constitute an offer or invitation to any person to subscribe for or apply for any securities in the Company. This Presentation contains summary inf
Slide 3: 1H 2020FY
1H 2020FY 3
Slide 4: Highlights and Milestones Achieved – 1H 2020FY
HIGHLIGHTS AND MILESTONES ACHIEVED – 1H 2020FY • Total – increased by 21% from 1.4Mt to 1.7Mt 1 1 ROM Production Maximise production and resultant revenue • Blair Athol – increased by 26% from 1.5Mt to 1.6Mt • Total – increased by 12% from 1.4Mt to 1.6Mt 2 3 Saleable 1 MaximiseProduction production
Slide 5: Highlights and Milestones Achieved – 1H 2020FY
HIGHLIGHTS AND MILESTONES ACHIEVED – 1H 2020FY • Unfranked interim dividend of 1 cent per ordinary share paid in November 2019 4 1 Maiden Dividend Maximise production and • Dividend Policy adopted of 1 cent per ordinary resultant revenue share per 6 month reporting period 3 Rehabilitation Bond • $27
Slide 6: Financial Snapshot
FINANCIAL SNAPSHOT FY18H1 FY18H2 FY19H1 FY19H2 FY20H1 Unit Group Group Group Group Group Production Coal Sales Mt 0.6 1.3 1.5 1.6 1.7 Income Statement Revenue $M 45 102 172 166 160 Revenue $/t 71.4 80.2 116.2 106.9 96.4 EBITDA $M 6 22 53 41 23 EBITDA $/t 8.7 17.0 35.5 26.5 13.8 Balance Sheet Cash at
Slide 7: Operational Performance
OPERATIONAL PERFORMANCE FY18H1 FY18H2 FY19H1 FY19H2 FY20H1 Group Production Unit Group Group Group Group Group Run of Mine (tonnes) Mt 871 1,628 1,441 1,927 1,743 Overburden (bcm) Mbcm 12,822 13,890 10,787 19,807 18,405 Strip Ratio Mt 14.7 8.5 7.5 10.3 10.6 Saleable Production (tonnes) Mt 835 1,396
Slide 8: Corporate Overview
CORPORATE OVERVIEW 8
Slide 9: TerraCom Snapshot
TERRACOM SNAPSHOT ASX: TER Country Diversification ASX listed coal producer with wholly owned Shares on issue^ Cash# operations in Australia and Mongolia, and 502m ________ _______________A$67m substantial interest in South Africa $ Cash Generating Capitalising on strong demand for low impurity ther
Slide 10: Share Trading Analysis
SHARE TRADING ANALYSIS Over the past 9 months (1 June 2019 to 25 February 2020) there has been A$163 million or 59% of Market Value eroded through a total of only 22.5 million shares traded (4.7% of shares on issue) Traded Shares vs Non-Traded Shares 3 ASX: TER WWW.TERRACOMRESOURCES.COM 10
Slide 11: Share Trading Analysis
SHARE TRADING ANALYSIS* Over the past 9 months (1 June 2019 to 25 February 2020) there has been A$163 million or 59% of Market Value eroded through a total of only 22.5 million shares traded (4.7% of shares on issue) Market Value Fluctuation 3 * shares on issue as at 25 February 2020 used for the ba
Slide 12: Board of Directors
BOARD OF DIRECTORS Wal King H.E. Craig Ransley Hon. Craig Wallace Tsogt Togoo Chairman Deputy Chairman Non-Executive, Independent Director Non-Executive, Independent Director Independent Director Non-Executive Director • Wal holds a Bachelor and Masters in • Mr. Ransley is a qualified Fitter and Mac
Slide 13: Board of Directors
BOARD OF DIRECTORS Jim Soorley Matthew Hunter Paul Anderson Glen Lewis Independent, Non-Executive Director Non-Executive Director Non-Executive Director Independent, Non-Executive Director • Jim served as the Lord Mayor of Brisbane from • Matthew has more than 20 years’ experience in • Paul has over
Slide 14: Executive Management Team
EXECUTIVE MANAGEMENT TEAM Danny McCarthy Nathan Boom Chief Executive Officer Chief Financial Officer • Mr McCarthy is a highly experienced mining • Nathan Boom holds a Bachelor of Commerce executive having held senior roles with Mineral (Accounting) from University of Wollongong and Resources, Thies
Slide 15: Existing Operations and Projects
EXISTING OPERATIONS AND PROJECTS ASX: TER WWW.TERRACOMRESOURCES.COM 15
Slide 16: Existing Operations and Projects
EXISTING OPERATIONS AND PROJECTS ASX: TER WWW.TERRACOMRESOURCES.COM 16
Slide 17: Queensland – Blair Athol (BA)
Queensland Blair Athol (BA) 17
Slide 18: Operational Performance
OPERATIONAL PERFORMANCE Blair Athol (BA) Production Unit FY18H1 FY18H2 FY19H1 FY19H2 FY20H1 Run of Mine kt 442 1,133 1,193 1,454 1,502 Overburden kbcm 5,961 8,288 7,329 10,535 13,368 Strip Ratio 13.5 7.3 6.1 7.2 8.9 Saleable Production kt 406 901 1,145 1,143 1,325 Coal Sales kt 205 790 1,219 1,079 1
Slide 19: Financial Performance
FINANCIAL PERFORMANCE This is the first 6 month period of rail and port being completed by Blair Athol Blair Athol (BA) Financials Unit FY18H1 FY18H2 FY19H1 FY19H2 FY20H1 Unit BA BA BA BA BA Revenue $k 14,448 67,971 153,589 121,469 125,407 Costs $k (11,473) (43,731) (92,629) (73,416) (103,737) Opera
Slide 20: Rehabilitation and Environment
REHABILITATION AND ENVIRONMENT Significant progress of rehabilitation activities at Blair Athol • Queensland’s Department of Science (DES) issued its Financial Assurance decision for the Blair Athol Mine on 2 July 2019. The Financial Assurance was reduced by a further $701,943 to $71,791,440. • Th
Slide 21: Rehabilitation and Environment
REHABILITATION AND ENVIRONMENT CHPP and ROM Area, with Rehabilitated Tailings Dam Advancing Face Rehabilitation – South Pit (post-mulch application) in the background ASX: TER WWW.TERRACOMRESOURCES.COM 21
Slide 22: JORC Resources and Reserves
JORC RESOURCES AND RESERVES Resource 3 Mt JORC Resources JORC Reserves Measured 30.2 50 50 Indicated 11.6 45 45 Inferred 2.0 40 40 Total 43.8 35 35 30 30 Reserve 4 Mt 25 25 Proved 15.3 20 20 Probable 12.1 15 15 Total 27.4 10 10 5 5 Marketable Reserve 4 Mt 0 0 Proved 12.7 RESOURCE RESERVE Probable 9.
Slide 23: Mongolia – Baruun Noyon Uul (BNU)
Mongolia Baruun Noyon Uul (BNU) 23
Slide 24: South Gobi Project | Noyon Basin
SOUTH GOBI PROJECT | NOYON BASIN | Multiple Mining & Exploration Licences The South Gobi Project comprises contiguous mining and South Gobi Project JORC Resources6 exploration licenses covering 696 sq km in the Noyon Coal Measured Indicated Inferred Total Basin North 14.0 Mt 8.2 Mt 2.7 Mt 24.9 Mt
Slide 25: Operational Performance – Baruun Noyon Uul
OPERATIONAL PERFORMANCE Baruun Noyon Uul (BNU) Unit FY18H1 FY18H2 FY19H1 FY19H2 FY20H1 Production Run of Mine (tonnes) kt 429 495 248 473 241 Overburden (bcm) kbcm 6,861 5,602 3,458 9,272 5,037 Strip Ratio 16.0 11.3 14.0 19.6 20.9 Saleable Production (tonnes) kt 429 495 248 473 241 Sales (tonnes) kt
Slide 26: Financial Performance – Baruun Noyon Uul
FINANCIAL PERFORMANCE Baruun Noyon Uul (BNU) Unit FY18H1 FY18H2 FY19H1 FY19H2 FY20H1 Financials Revenue A$ k 30,757 33,965 18,360 44,904 27,686 Costs A$ k (27,234) (30,454) (22,257) (44,043) (28,863) Operating EBITDA A$ k 3,523 3,511 (3,897) 861 (1,177) Revenue A$ / t 71.7 70.5 70.3 94.2 109.0 Costs
Slide 27: Other Projects
Other Projects 27
Slide 28: Queensland Expansion | Organic Growth from Strategically Located Assets
QUEENSLAND EXPANSION | Organic Growth from Strategically Located Assets The BA acquisition revalues TerraCom’s Australian portfolio through providing a hub for their development across major coal basins in Queensland including: œ Northern Galilee Project (1.9Bt JORC 20045) is large thermal resource
Slide 29: Queensland Expansion | Northern Galilee Project
QUEENSLAND EXPANSION | Northern Galilee Project Clyde Park Project* Hughenden Project * Note Clyde Park Project is 64% owned by TerraCom ASX: TER WWW.TERRACOMRESOURCES.COM 29
Slide 30: Queensland Expansion | Springsure Project
QUEENSLAND EXPANSION | Springsure Project ASX: TER WWW.TERRACOMRESOURCES.COM 30
Slide 31: Resources and Reserves
RESOURCES AND RESERVES RESERVES RESOURCES Tenement Proved Probable Total Measured Indicated Inferred Total Mt Mt Mt Mt Mt Mt Mt Springsure5 - - - - 43 148 191 Northern Galilee – - - - - 133 1,076 1,209 Hughenden Project5 Northern Galilee – - - - - 51 677 728 Clyde Park Project5 TOTAL - - - - 227 1,9
Slide 32: Emerging Market – Business Development
EMERGING MARKET – BUSINESS DEVELOPMENT 32
Slide 33: Country Diversification: Universal Coal plc
COUNTRY DIVERSIFICATION: UNIVERSAL COAL PLC • Acquisition Price --- $0.3314 per share 19.995% Interest Acquired 1 1 Maximise production and • Proceeds --- Cash of $0.1657 per share and on 30 October resultant 2019 revenue TerraCom equity at a deemed issue price of $0.5014 per share • Acquisition Pri
Slide 34: Commodity Diversification: Anglo-African Minerals plc
COMMODITY DIVERSIFICATION: ANGLO-AFRICAN MINERALS PLC • AAM’s bauxite resources7 are located in the Republic 1 1 Commodity – Bauxite and Maximise production of Guinea, one of the world’s leading countries in terms of proven bauxite reserves (~25%) resultant revenue • Binding term sheet subject to cu
Slide 35: Financial Statements
FINANCIAL STATEMENTS 35
Slide 36: Financial Statements
FINANCIAL STATEMENTS ASX: TER WWW.TERRACOMRESOURCES.COM 36
Slide 37: Financial Statements
FINANCIAL STATEMENTS ASX: TER WWW.TERRACOMRESOURCES.COM 37
Slide 38: References
REFERENCES 3 – Refer to ASX Announcement on 30 September 2019 for further information and clarification on the Blair Athol JORC Resource. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original announcement; and that a
Slide 39: Thank You
THANKYOU 39