Terracom Limited · ASX:TER
Terracom — Shareholder Meeting (November 2022)
34 slides from Terracom's shareholder meeting presentation, Nov 28, 2022
Slide 1: Annual General Meeting 2022
Annual General Meeting 2022 For personal use only ASX : TER
Slide 2: Disclaimer: Important Notice
Disclaimer IMPORTANT NOTICE For personal use only 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 asse
Slide 3: Disclaimer: Important Notice (Continued)
Disclaimer IMPORTANT NOTICE (CONTINUED) For personal use only Nothing in this document should be construed as authorising the distribution of this Presentation outside of the Commonwealth of Australia. The law in or from certain jurisdictions may restrict the distribution or possession of this Prese
Slide 4: Board and Executive
Board and Executive For personal use only Graeme Campbell Glen Lewis Mark Lochtenberg Craig Lyons Non-Executive Non-Executive Non-Executive Non-Executive Independent Independent Director Independent Director Independent Director Chairman Danny McCarthy Megan Etcell Nathan Boom Managing Director Chie
Slide 5: Agenda
Agenda For personal use only 1 Chair’s Address 2 Resolutions, Proxies & Voting 3 Company Overview 4 Performance 5 Market 6 Sustainability 7 Questions 5 Agenda TerraCom Annual General Meeting 2022
Slide 6: Chair's Address
For personal use only Chair’s Address 6 Chair’s Address TerraCom Annual General Meeting 2022
Slide 7: Resolutions, Proxies & Voting
For personal use only Resolutions, Proxies & Voting 7 Resolutions, Proxies & Voting TerraCom Annual General Meeting 2022
Slide 8: Resolution 1: Adoption of Remuneration Report
Resolution 1 Adoption of Remuneration Report For personal use only To consider, and if thought fit, pass the following Resolution as an ordinary resolution: “That the Remuneration Report of the Company (which forms part of the Directors’ Report) for the financial year ended 30 June 2022 be adopted.”
Slide 9: Resolution 2: Appointment of Auditor
Resolution 2 Appointment of Auditor For personal use only To consider, and if thought fit, pass the following Resolution as an ordinary resolution: “That, for the purposes of section 327B(1) of the Corporations Act 2001 and for all other purposes, BDO, having been nominated by a shareholder and cons
Slide 10: Resolution 3(a): Re-election of Directors
Resolution 3(a) Re-election of Directors For personal use only To consider, and if thought fit, pass each of the following Resolutions as ordinary resolutions: 3(a) “That Mr. Glen Lewis, a director who retires by rotation in accordance with rule 15.3 of the Company's Constitution and, being eligible
Slide 11: Resolution 3(b): Re-election of Directors
Resolution 3(b) Re-election of Directors For personal use only To consider, and if thought fit, pass each of the following Resolutions as ordinary resolutions: 3(b) “That Mr. Craig Lyons, a director who retires by rotation in accordance with rule 15.3 of the Company's Constitution and, being eligibl
Slide 12: Resolution 4: Long-Term Incentive to Managing Director
Resolution 4 Grant of Long-Term Incentive to Managing Director under Equity Incentive Plan For personal use only To consider, and if though fit, pass the following Resolution as an ordinary resolution: “That for the purposes of ASX Listing Rule 10.14 and for all other purposes, approval is given to
Slide 13: Resolution 5: Ratification of Issue of Securities
Resolution 5 Ratification of the Issue of Securities For personal use only To consider, and if thought fit, to pass the following Resolution as an ordinary resolution “That for the purpose of ASX Listing Rule 7.4 and for all other purposes, the Shareholders approve and ratify the issue of 5,000,000
Slide 14: Resolution 6: 10% Additional Placement Capacity
Resolution 6 Approval of 10% Additional Placement Capacity For personal use only To consider and, if thought fit, to pass the following Resolution as a special resolution: “That, for the purpose of ASX Listing Rule 7.1A and for all other purposes, approval be given for the Company to issue or agree
Slide 15: Resolution 7: Replacement of Constitution
Resolution 7 Replacement of Constitution For personal use only To consider, and if though fit, pass the following Resolution as a special resolution: “That, for the purposes of section 136(2) of the Corporations Act and for all other purposes, approval be given for the Company to repeal its existing
Slide 16: Company Overview
For personal use only Company Overview 16 Company Overview TerraCom Annual General Meeting 2022
Slide 17: FY2022 Highlights
FY2022 Highlights For personal use only Record Operating EBITDA 1 Total 2 ROM production A$488m 12.6Mt Total 2 coal sales BA Record coal price per sold tonne 8.96Mt A$403 June Quarter A$245 FY2022 (1) Non IFRS measure. Based on management accounts. (2) The data represents total tonnes and assumes 10
Slide 18: Strategic Outlook
Strategic Outlook For personal use only Capital • Dividend returns to shareholders management • Capital allocation including on-market buy back framework • Maintain a capital position that allows for fluctuation in coal price Expanding • Blair Athol processing precinct with near mine expansion oppor
Slide 19: The TerraCom Journey
The TerraCom Journey For personal use only Jul May Jan Jun June Aug May Aug Nov 2010 2017 2018 2019 2020 2021 2022 2022 2022 TerraCom Limited Acquisition of listed on the ASX Blair Athol Blair Athol Repositioned Declaration of Declaration of (listed as operation Rights Issue to Rights Issue to Acqui
Slide 20: Balance Sheet Transformation
Balance Sheet Transformation For personal use only Debt Reduction TerraCom successfully transformed its 350 balance sheet via the repayment of its 300 Euroclear Bond during FY2022 (US$198 million including principal, interest and 250 fees during a 9-month period). AUD (Millions) 200 Deleveraged posi
Slide 21: Capital Management Framework
Capital Management Framework For personal use only Reliable and consistent operations Capital productivity Net operating cashflow Maintain and Optimise operations Working and sustaining capital Resilient balance sheet Target dividend payout ratio of 60–90% NPAT1 Surplus cashflow External Growth inve
Slide 22: Capital Allocation
Capital Allocation “The Company is committed to responsible capital For personal use only management, maintaining a resilient balance sheet Capital returned to shareholders 1 and delivering returns to shareholders.” 250 (2) 200 A$160 AUD (millions) 150 100 million 50 Being returned to shareholders b
Slide 23: Performance
For personal use only Performance 23 Performance TerraCom Annual General Meeting 2022
Slide 24: FY2022 ROM Production and Coal Sales Achieved
FY2022 ROM Production and Coal Sales Achieved For personal use only 12.6Mt 4,000 3,500 ROM Production 3,000 Total Tonnes (kt) 2,500 8.96Mt 2,000 1,500 Coal Sales 1,000 FY2022 500 14,000 12,000 - 10,000 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 8,000 ROM Coal Sales 6,000 4,000 2,000 - ROM Coal Sales Equity Par
Slide 25: FY2023 ROM Production and Coal Sales Outlook
FY2023 ROM Production and Coal Sales Outlook For personal use only 13.4Mt 16,000 14,000 12,000 ROM Production Forecast Total Tonnes (kt) 10,000 9.2Mt 8,000 6,000 4,000 Coal Sales Forecast 2,000 FY2023 16,000 - 14,000 2020 2021 2022 2023 (Forecast) 12,000 10,000 ROM Production Coal Sales 8,000 6,000
Slide 26: Q1 FY2023 Highlights
Q1 FY2023 Highlights For personal use only Operating EBITDA 1 Total 2 ROM Production A$180M 3.25Mt Total 2 coal sales BA Record coal price per sold tonne 2.34Mt A$497 (1) Non IFRS measure. Based on management accounts. (2) The data represents total tonnes and assumes 100% ownership of the South Afri
Slide 27: Market
For personal use only Market 27 Market TerraCom Annual General Meeting 2022
Slide 28: Forecast Thermal Coal Pricing
Forecast Thermal Coal Pricing For personal use only The average long run thermal coal price continues to shift higher in the face of reserve depletion, limited new investment, concerns over energy supply security, and other supply risks. • The average price for 2011 – 2020 was US$83 per tonne. • The
Slide 29: Short Term Thermal Coal Demand
Short Term Thermal Coal Demand • Driven by Russian reduction in gas supply to Europe. - 2 key pipelines shut down driving gas prices to 10x For personal use only pre COVID levels - Gas prices 2x equivalent coal price incentivising substituting gas for coal. - Coal plant utilisation increasing and co
Slide 30: Sustainability
For personal use only Sustainability 30 Sustainability TerraCom Annual General Meeting 2022
Slide 31: 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 For personal use only 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. 1.7 TRIFR As a
Slide 32: Environmental, Social and Governance (ESG) Policy
Environmental, Social and Governance (ESG) Policy For personal use only 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 manage
Slide 33: For personal use only
For personal use only 33 TerraCom Annual General Meeting 2022
Slide 34: Questions
Questions For personal use only 34 Questions TerraCom Annual General Meeting 2022