TerraCom (TER) investor relations material

Executive summary

• June quarter sales were impacted by logistics timing and significant rainfall, causing mud and water in pits and disrupting mining productivity and coal handling, primarily affecting shipment timing.

• Recovery efforts included installing additional pumping capacity and mobilizing a third mining fleet at Blair Athol, with operational foundations laid for increased production and efficiency in FY27.

• No dividend declared, with focus on balance sheet strength and operational stability.

• Leadership changes included the appointment and subsequent resignation of a Non-Executive Director and appointment of an Interim CFO.

Financial highlights

• Cash at bank as of 30 June 2026 was A$8.4 million, with A$54.4 million in restricted cash for rehabilitation bonding.

• Proceeds of ~A$12 million received post-quarter from a June shipment.

• Average coal price achieved for the quarter was A$146.44 per tonne.

• Blair Athol's FOB operating costs (excluding royalties) for 4Q FY2026 averaged A$126 per tonne, reflecting weather impacts and increased logistics and fuel costs.

Outlook and guidance

• FY27 sales guidance for Blair Athol is 2.0–2.2 Mt, supported by additional mining equipment and operational improvements.

• Market conditions expected to remain supportive in the near term, with focus on operational discipline and cost control.

• First trial shipments of new coal products for Asian customers targeted for the September quarter.