Terracom Limited · ASX:TER
Terracom — Shareholder Meeting (November 2023)
24 slides from Terracom's shareholder meeting presentation, Nov 29, 2023
Slide 1: 2023 Annual General Meeting
2023 Annual General 7 Meeting g
Slide 2: Disclaimer
Disclaimer 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 in Australia and So
Slide 3: Disclaimer (continued)
Disclaimer 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 this Presentation ou
Slide 4: Board and Executives
Board and Executives Mark Lochtenberg Glen Lewis Craig Lyons Mark Ludski David Norris Non-Executive Non-Executive Non-Executive Non-Executive Non-Executive Chairman Independent Independent Independent Director Director Director Director Danny McCarthy Megan Etcell Nathan Boom Managing Director Chief
Slide 5: Contents
Contents 1 Company Overview 2 Performance 3 Strategy 4 Market 5 References 6 Appendices 7 Questions
Slide 6: Company Overview
Company Overview T
Slide 7: FY2023 Highlights
FY2023 Highlights Dividend Returns 1 Operating EBITDA 2 Total 3 ROM Production A$188 million A$408M 11.5Mt 72% of NPAT Total 3 coal sales BA Record coal price per Employees & Contractors sold tonne 4 8Mt A$450 ~3,600 7
Slide 8: 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 2023 1.6 TRIFR As at
Slide 9: Capital Allocation
Capital Allocation Header • The Company remains committed to the payment of dividends to shareholders. • Dividend payout ratio between 60% to 90% of Capital returned to shareholders net profit after tax (attributable to TerraCom). 200 180 A$268 160 140 AUD (millions) 120 million 100 23.5 cents per s
Slide 10: Performance
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Slide 11: FY2023 ROM Production and Coal Sales Achieved
Header FY2023 ROM Production and Coal Sales Achieved 11.5Mt 3,500 3,000 2,500 ROM Production Total Tonnes (kt) 7 2,000 1,500 8Mt 1,000 Coal Sales 500 FY2023 - 12,000 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 10,000 ROM Coal Sales 8,000 6,000 4,000 2,000 - ROM Coal Sales Equity Partner 11
Slide 12: FY2024 ROM Production and Coal Sales Outlook
11/29/2023 12 FY2024 ROM Production and Coal Sales Outlook 11Mt 14,000 12,000 ROM Production Forecast 10,000 Total Tonnes (kt) 7 8,000 8Mt 6,000 4,000 Coal Sales Forecast 2,000 FY2024 - 12,000 2021 2022 2023 2024 10,000 (Forecast) 8,000 ROM Coal Sales 6,000 4,000 2,000 - ROM Coal Sales Equity Partne
Slide 13: Strategy
Strategy T
Slide 14: 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% NPAT 8 Surplus cashflow Internal Growth Additional shareholder Ex
Slide 15: Management Focus
Management Focus • Blair Athol JORC Reserve confidence improving annually with current Life of Mine Maximising remaining at 8+ years Value • Further cost containment with in-house blast hole drilling, Q3 FY2024 • Eskom CSA Award imminent for Eloff project Realising • Divestment of our interest in th
Slide 16: Market
Market
Slide 17: Thermal Coal Demand
Thermal Coal Demand Header • Demand for thermal coal is expected to remain strong in Wood Mackenzie forecasts global demand to largely the short and long term. remain flat to 2030. Advanced economies face • TerraCom primary markets (Japan, South Korea and India) structural demand decline to 2050, wh
Slide 18: References
References T
Slide 19: References
References 1 The total dividend return for the 12-month period ended 30 June 2023 totals 23.5 cents per share, representing approximately 72% of NPAT. NPAT is attributable to TerraCom based on FY2023 Audited Financial Statements released to the ASX on 31 August 2023. 2 Non IFRS measure. Based on man
Slide 20: Appendices
Appendices
Slide 21: 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 22: Our position on Greenhouse Gas (GHG) Emissions
Our position on 11/29/2023 22 Greenhouse 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 23: Slide 23
Slide 24: Questions
Questions