TerraCom Limited (ASX:TER) has released its December 2023 Quarterly Activities Report, revealing a total coal sales volume of 1.5Mt with equity coal sales at 965kt.
Notably, the Blair Athol (BA) mine reported a run-of-mine (ROM) production of 546kt, marking a 13% increase from the previous quarter, alongside coal sales of 418kt.
Despite challenges including a geological event and significant rainfall, the average coal price attained during the quarter was $159 per sold tonne, contributing to an Operating EBITDA of $24.1 million. The company faced production challenges during the quarter, influenced by logistical issues and environmental conditions across its operations.
Notably, the South African operations, alongside BA, encountered operational hurdles that impacted sales volumes.
TerraCom concluded the quarter with $21.6 million in cash at bank alongside $56.4 million in restricted cash.
Despite these challenges, TerraCom remains optimistic about the thermal coal markets long-term outlook, focusing on cost management and operational improvements moving forward.
No dividends were declared for this quarter due to these operational challenges and the board's caution in light of the short-term softening of thermal coal prices.