CLEMONT, Queensland, March 30 / PRNewswire / – TerraCom Limited ("TerraCom" or "The Company") (ASX: TER) today has a record revenue of $ 141.1 million and an EBITDA of $ 28.6 million for the full year until now announced known as June 30, 2018. This confirms the significant operational turnaround in the Blair Athol coal mine in the center of Queensland.
The CEO of TerraCom, Mr. Wal King, commented on the significant progress made in fiscal year 2018 and said the company is about to report a net operating profit of up to $ 100 million in fiscal year 2019.
* The production of coal generated a turnover of $ 141.1 million
* EBITDA was $ 28.6 million
* Net cash flow from operations was $ 34.3 million
* The net loss was $ 19.1 million
* 1.9 million tons from Blair Athol and Baruun Noyon Uul, Mongolia
* Blair Athol JORC reserves (1) were increased to 18 million tonnes with a 44 million tonne resource
* Commissioning of the rail connection between Blair Athol and Goonyella's main track
Mr. King said Blair Athol's achievement justifies the company's decision to restart Australia's largest steam coal project in early 2017 after the completion of the Rio Tinto acquisition.
"It is gratifying that we have made this progress in such a short time and achieved several important milestones throughout the year," said Mr. King.
"We have increased coal production at Blair Athol every quarter and continue to negotiate long-term sales contracts with several major customers in Japan and Korea.
We have benefited from the growing demand from Southeast Asia and thanks to Blair Athol's long-standing reputation for producing high quality steam coal, we are able to supply new customers this year.
Our net loss reflects our debt obligations. The Board of Directors is in favor of fully refinancing our $ 180 million debt portfolio with the benefits of producing coal at a margin of $ 51 per tonne.
The company is also ahead of schedule with one of the country's largest mine rehabilitation projects at Blair Athol, reducing its financial obligations to the Queensland government from $ 80 million to $ 72 million.
Another important milestone was the completion of the Blair Athol rail link, which feeds the mine directly to the main runway in Goonyella, which transports the coal to the Dalrymple harbor. As a result, production costs were reduced by about $ 20 per tonne.
In Mongolia the company also increased the production of coking coal every quarter and improved the margins.
INFORMATION ABOUT TERRACOM – terracomarresources.com
TerraCom has fully commissioned the Baruun Noyon Uul (BNU) coking coal mine in the south of the Gobi in Mongolia. The export deliveries in the context of a 5.5-year purchase agreement have started according to the schedule. The aim of the company is to become one of the largest and best coking coal producers in Mongolia, which offers exceptional value to its steel-producing customers.
TerraCom completed the acquisition of the Blair Athol coal mine in May 2017. The acquisition included mining leases, related licenses, land, factory infrastructure, active contracts and all mining equipment, including a scraper installation, to meet the planned TerraCom production plan and to encourage incremental remediation .
Buying the Blair Athol coal mine is an important milestone for TerraCom and offers the following benefits:
* Gradual rehabilitation of one of Queensland's oldest coal mines.
* The resumption of coal mining and export sales of the Blair Athol coal mine, which provides more economic activity, employment, royalty and taxes to the local, state and federal economy.
* Predict positive cash flow through low overhead structure and operational efficiency.
TerraCom has rehabilitated more than 50 hectares of land and put the mine into use again. The TerraCom operation is expected to deliver approximately 2 million tonnes per year over 9 years (1) and continuous, progressive rehabilitation.
In addition, TerraCom has long-term exploratory plans with the intention to develop two projects in Queensland, Australia: the large North Galilee Steam Steam Project and the Springsure Project for first-class high-energy steam coal.
(1) For more information and explanation of Blair Athol's production forecast, reference is made to the ASX announcement of 13 February 2018. The main assumptions underlying Blair Athol's production objective in this ASX announcement remain applicable and are not applicable. materialized changed.
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