$27 MILLION CASH RECEIVED
TerraCom Limited (TerraCom or the Company) is pleased to announce the completion of the
insurance bond resulting in $27 million of the Restricted Cash held on the Balance Sheet being
released back to TerraCom.
As previously announced, the Blair Athol rehabilitation insurance bond facility is for $72 million,
however only requires cash backing of $45 million. This demonstrates that an independent third party
has assessed the maximum rehabilitation exposure at the Blair Athol Mine site to be no more than
The Company also confirms that the convertible notes, as approved by shareholders at the 2019
Annual General Meeting, were issued to OCP Asia (Singapore) Pte Limited in late December 2019.
The Company’s Cash at Bank as at 31 December 2019 was approximately $66 million1
. This equates
to approximately $0.13 per fully paid ordinary share on issue.
Another Sandunes pick on the high now on its 52 week low.
Sandunes sure does know how to pick em.
sure do from 20 to 80 .. re buy in the 30s plus divi .. real story real cash profits real management watch SGC xst $$$$$$$$$$$$ see LKE today $$$$$$$$$$$$ while AUL at all time lows ..
1. TER flagged using a different mining contractor which would reduce costs by 20% (should see happening this quarter) - tbh I'm still a bit unsure if they are mining there or not
2. The biggest problem with BNU is the marketability of its resource. Since it is in Mongolia - the only available market for it is Chinese steel makers who play very hard ball with the price as Russians are not buying Mongolian coal - that is my interpretation of it
3. So the asset does make a lot of sense for a Chinese buyer who could get a better price for its coal or have a vertically integrated system in place (for supplying their steel mills) - again I'm hypothesizing here.
4. you could recheck their balance sheet - with the arrival of $27m - the debt is around $165m - ok still substantial but they have hacked off huge chunks of it and you have to essentially back the smart management to be where they are right now. 18 months ago TER had $240m of debt with nothing coming in...
.5. Since FY 19 report TER has announced reduction of costs to $58 AUD ($39 USD) which places them in the 2nd quartile (cost of production) which is phenomenal achievement - again it is the management acumen. With current BA coal (5600 Kcal - 18% ash I believe ? ) fetching around $56-$58 USD (a guess) and USD/AUD ~1.48 - margins of $27 AUD are getting generated per tonne. Not bad in the really bad marke
6. Frankly the 1Bt of coal with Fernlee and Springsure is a bit of a distant dream and I'm not banking on it just yet. It does need a lot of work and a lot of capital. I doubt we would see it materialise with TER as a public company. With big banks not financing coal mines the cost of capital is too high
Yes not without risk but I back Wal King and the CEO - past record is generally a good indicator of future performance. Could be wrong DYOR as always.
Natural gas price lowest since 2009, good luck spruiking coal, ramper.
fixed contract $$$ ..coal has another 50 years good luck with a dud gold down the hole dud
UPDATE ON DEBT REFINANCE
Following the finalisation of the acquisition of Universal Coal plc in June 2020, TerraCom Limited
(TerraCom or Company) wishes to advise shareholders that is now moving forward with its debt
refinance program with expected completion by 30 November 2020.
Once finalised, the debt refinance ensures that TerraCom can maintain the momentum of its global
growth initiatives and further strengthen its balance sheet placing the Company in a stronger financial
position by supporting working capital to fund existing projects and planned acquisitions.
TerraCom has engaged an experienced team to lead and execute the refinance program with
Christian Baylis as lead advisor. Christian is a highly regarded Australian-based manager with broad
experience across global fixed income and derivatives strategies, having worked previously at UBS
Asset Management and the Reserve Bank of Australia.
Christian managed in excess of $8 billion Assets Under Management and was the lead Portfolio
Manager in the UBS Australian Fixed Income team for the UBS Cash Plus Fund, the Insurance and
ALM book of business and ran a complex suite of overlay strategies for large cross-border liability
clients. Christian was also a member of the Global Multi Strategy Committee and was appointed as
the Australian representative for the Global Dynamic Fund, the core global unconstrained Fixed
Income offering for UBS Asset Management.
In a positive first step for the refinance program, one of the Company’s current debt providers and
major shareholder, OCP Asia, has already indicated that it will provide up to A$80 million towards the
Commenting on the engagement, lead advisor Christian Baylis said “I am pleased to be working with
the TerraCom team on their refinance program. By leveraging from my significant investment client
portfolio and the current economic environment for traditional financing, I am confident that we will
be able to achieve a significant reduction in interest charges which will represent real cash cost
savings for TerraCom shareholders.”
Commenting on the program, Executive Deputy Chairman, Craig Ransley, said “We look forward to
working with Christian and his team to finalise the refinance over the next few months. Post refinance,
the Company will be well placed to focus on progressing the Company’s growth strategy to become
a global bulk commodities producer.”
The Company will continue to update shareholders with respect to the progress of the refinance
program over the next few months.
This announcement has been approved by the Company’s Disclosure Committee for release