Terracom Limited · ASX:TER
Terracom — JMM Sydney Investor Lunch (October 2024)
30 slides from Terracom's conference presentation, Oct 30, 2024
Slide 1: TerraCom Limited
October 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 Investment Highlights 3 Operations 4 Operational Performance 5 Market & Capital Management 6 Sustainability 7 Outlook 8 Contact 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
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 • 26 years in min
Slide 9: 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$159 Record 1. Based on FY24 Financial Statement released to the market 30 August 2024. 2. The dat
Slide 10: Corporate Snapshot
Corporate Snapshot Market Cap (A$) 156M 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 0.195 Shares on Issue (million) 801.0 Shareholders % ISC Regal 14.3 Bonython 9
Slide 11: Operations
Operations 11
Slide 12: Australia
Header Australia TerraCom acquired its flagship Blair Athol Coal Mine, located in Clermont Queensland, in 2017. Since the acquisition, the Company has successfully restarted operations and now exports approximately 1.8 million tonnes per annum of high-quality thermal coal. Rehabilitation at the site
Slide 13: 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 market iron markets Open Pit Ore Reserves Life of Mine (LOM) Dragline, truck, ~ 20Mt ~ 8 years excavato
Slide 14: Blair Athol
Blair Athol The Australian Business Unit comprises one operational mine, the flagship Blair Athol (BA) Coal Mine located in Clermont, Queensland (as well as a large portfolio of exploration and evaluation assets predominantly located in the Northern Galilee coal region). Title ML1804 Open pit • Drag
Slide 15: South Africa
Header South Africa TerraCom, via its 100% ownership of Universal Coal Plc (Universal), holds an interest in a portfolio of producing, development and exploration assets located across South Africa’s major coalfields. The South African operations provide domestic quality coal to Eskom (South Africa’
Slide 16: South Africa – A Solid Contributor
South Africa – A Solid Contributor Operational Consistent Strong financial consistency dividend return performance 16
Slide 17: North Block Complex
North Block Complex North Block Complex (NBC) is a multi-product open cast operation that has solidified itself as a reliable supplier of high-quality export thermal coal for the export market and domestic coal for Eskom, South Africa’s power generator. The multiple established export path to market
Slide 18: New Clydesdale
New Clydesdale New Clydesdale Colliery (NCC) is a multi-product open cast and underground mine with the ability to produce domestic and export quality product. NCC has a 1.6Mt per annum offtake agreement with Eskom, South Africa’s largest power generator, until 2024 and an export offtake for 650Kt p
Slide 19: Operational Performance
Operational Performance 19
Slide 20: FY2024 Operational Performance Summary
FY2024 Operational Performance Summary Total Tonnes Equity Tonnes ROM Tonnes (kt) Coal Sales (kt) ROM Tonnes (kt) Coal Sales (kt) FY2024 FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 FY2023 Australia 1,991 2,473 1,567 1,798 1,991 2,473 1,567 1,798 Blair Athol 1,991 2,473 1,567 1,798 1,991 2,473 1,567 1,
Slide 21: Market and Capital Management
Market and Capital Management 21
Slide 22: Forecast Thermal Coal Pricing
Forecast Thermal Coal 10/30/2024 22 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– Dec
Slide 23: Thermal Coal Demand
Thermal Coal Demand Header Wood Mackenzie forecasts global demand to largely Short Term remain flat to 2030. Advanced economies face structural demand decline to 2050, while developing "Energy transition is delayed leading to stronger near-term economies see demand growth. coal demand. Energy securi
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 40–90% NPAT1 Surplus cashflow Internal Growth Additional shareholder Ext
Slide 25: Sustainability
Sustainability 25
Slide 26: 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 27: 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 June 2024 1.0 TRIFR As at
Slide 28: Outlook
Outlook
Slide 29: 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 30: 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