TerraCom reports significant FY25 operating loss, outlines strategic shifts

TerraCom Limited (ASX:TER) reported a statutory operating loss after tax of A$(33,749) for the year ended 30 June 2025, a significant decrease from a profit of A$25,039 in the prior year. Revenue from ordinary activities also declined by 13% to A$226,671. After adjusting for non-recurring items, including an ASIC Settlement of A$8,500 and exploration impairment of A$13,524, the normalised operating loss after tax was A$(8,610). Net tangible assets per ordinary security stood at A$0.1616, down from A$0.2096.

Total coal sales for the year were 6.60 million tonnes, with equity coal sales at 4.02 million tonnes. Australian operations contributed 1.54 million tonnes in coal sales, while South African operations sold 5.065 million tonnes. The company paid A$8.01 million in dividends to shareholders, a reduction from A$24.03 million in FY2024. TerraCom also entered a cooperation agreement with Wintime Energy Group Co. Ltd to jointly develop and operate the Moorlands Thermal Coal Project in Queensland, with first coal anticipated in 2026.

TerraCom's financial statements are currently undergoing audit. The company expects to have sufficient cash to continue operations, supported by a coal prepayment facility, and maintains a going concern basis of preparation for at least the next 12 months.