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TerraCom Limited (AU:TER)
ASX:TER
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TerraCom Limited (TER) AI Stock Analysis

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AU:TER

TerraCom Limited

(Sydney:TER)

Rating:54Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
The overall stock score of 54 reflects significant financial performance challenges, particularly in revenue and cash flow. While technical analysis shows some positive momentum, valuation concerns, particularly a negative P/E ratio, weigh heavily. The high dividend yield is a positive, but its sustainability is in question given current earnings.

TerraCom Limited (TER) vs. iShares MSCI Australia ETF (EWA)

TerraCom Limited Business Overview & Revenue Model

Company DescriptionTerraCom Limited (TER) is an Australian-based mining company focused on the exploration, development, and production of coal. The company operates primarily in the resource-rich regions of Australia and Mongolia, with operations that include both thermal and metallurgical coal mining. TerraCom is committed to sustainable mining practices and aims to deliver high-quality coal products to global markets, supporting energy needs and industrial processes.
How the Company Makes MoneyTerraCom Limited generates revenue primarily through the extraction and sale of coal. The company's key revenue streams include the sale of thermal coal, which is used for electricity generation, and metallurgical coal, which is utilized in steel production. TerraCom operates several mining projects, including the Blair Athol coal mine in Queensland, Australia, and the Baruun Noyon Uul (BNU) coal mine in Mongolia. Additionally, the company may engage in strategic partnerships and long-term supply contracts with international customers to secure stable revenue streams. Market demand, coal prices, and efficient mining operations are significant factors influencing TerraCom's earnings.

TerraCom Limited Financial Statement Overview

Summary
TerraCom Limited shows a significant decline in revenues and net profit margins have turned negative, raising concerns about future profitability. While there is an improvement in the debt position, cash flow has shifted from positive to negative, indicating liquidity and cash management challenges.
Income Statement
45
Neutral
The income statement shows a significant decline in revenues, from AUD 804.63 million in 2022 to AUD 259.14 million in 2024, indicating a sharp revenue contraction. Net profit margins have turned negative in the most recent year, reflecting potential profitability issues. However, the company has previously demonstrated strong gross profit margins, suggesting some operational efficiency. Overall, the declining revenue trend and negative net income raise concerns about future profitability.
Balance Sheet
55
Neutral
The balance sheet reveals a marked improvement in the debt position, with total debt reducing significantly from prior years. Stockholders' equity has stabilized, providing a better equity ratio. However, the overall assets have decreased, and the equity ratio, while improved, indicates room for further strengthening of financial stability. The debt-to-equity ratio remains low, which is positive for leverage management.
Cash Flow
40
Negative
The cash flow statement indicates a shift from positive to negative free cash flow, primarily driven by a substantial decline in operating cash flow. The free cash flow to net income ratio has deteriorated, suggesting challenges in cash generation relative to earnings. While previous years showed robust free cash flow growth, the current trajectory highlights liquidity and cash management concerns.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue259.14M660.64M804.63M549.01M316.86M
Gross Profit57.86M324.29M383.51M14.23M-8.86M
EBITDA55.00M334.61M371.95M-16.36M4.66M
Net Income25.95M262.10M196.13M-84.06M-48.73M
Balance Sheet
Total Assets314.42M356.20M422.21M623.99M600.77M
Cash, Cash Equivalents and Short-Term Investments8.35M44.03M69.57M11.19M10.11M
Total Debt4.18M7.27M37.33M317.42M265.74M
Total Liabilities146.57M188.35M276.58M651.50M559.75M
Stockholders Equity168.26M167.33M145.51M-80.41M-21.15M
Cash Flow
Free Cash Flow-28.07M236.82M316.21M-22.58M-12.98M
Operating Cash Flow-15.55M247.55M324.00M5.79M3.29M
Investing Cash Flow6.19M-2.76M-22.20M-43.80M-54.70M
Financing Cash Flow-26.69M-270.69M-245.64M39.27M2.96M

TerraCom Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.09
Price Trends
50DMA
0.07
Positive
100DMA
0.08
Positive
200DMA
0.13
Negative
Market Momentum
MACD
<0.01
Positive
RSI
71.01
Negative
STOCH
55.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:TER, the sentiment is Positive. The current price of 0.09 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.07, and below the 200-day MA of 0.13, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 71.01 is Negative, neither overbought nor oversold. The STOCH value of 55.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:TER.

TerraCom Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
AU$3.69B6.5322.35%9.49%-1.17%-14.64%
70
Neutral
AU$2.21B7.6110.52%3.06%-13.91%-58.85%
64
Neutral
AU$191.98M4.4112.65%-2.01%-30.02%
62
Neutral
$5.81B33.643.39%3.17%47.28%-84.83%
55
Neutral
AU$326.91M-16.23%12.66%-17.57%-1132.91%
54
Neutral
AU$72.89M4.48-1.57%10.99%-38.32%-102.34%
44
Neutral
AU$1.47B-6.98-23.02%8.00%5.33%-26.92%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:TER
TerraCom Limited
0.09
-0.11
-55.00%
AU:WHC
Whitehaven Coal Limited
6.95
-0.41
-5.57%
AU:BRL
Bathurst Resources Ltd
0.80
>-0.01
-0.62%
AU:NHC
New Hope Corporation Limited
4.32
>-0.01
-0.02%
AU:SMR
Stanmore Resources Ltd
2.36
-1.18
-33.33%
AU:CRN
Coronado Global Resources Inc. Shs Chess Depository Interests Repr 10 Sh
0.25
-1.11
-81.62%

TerraCom Limited Corporate Events

TerraCom Limited Announces CFO Resignation and Transition Plan
Jul 9, 2025

TerraCom Limited announced the resignation of its Chief Financial Officer and Company Secretary, Megan Etcell, due to personal circumstances preventing her relocation to the new corporate headquarters in Brisbane. Megan will remain in her role until the end of 2025 to ensure a smooth transition. The company has begun searching for a Brisbane-based CFO to support its strategic execution and capital discipline, highlighting the importance of this role in the company’s ongoing transformation and future plans.

Federal Court Dismisses ASIC Case Against TerraCom Executives
Jul 4, 2025

The Federal Court of Australia has dismissed the case against TerraCom Limited’s Managing Director, Danny McCarthy, and three former directors and officers, brought by the Australian Securities and Investments Commission (ASIC). Earlier, TerraCom had reached an agreement with ASIC to resolve the case against the company, pending court approval. This judgment may positively impact TerraCom’s operations and industry positioning by alleviating legal uncertainties and reinforcing stakeholder confidence.

TerraCom Limited Achieves FY25 Targets, Sets Strategic Focus for FY26
Jul 1, 2025

TerraCom Limited has successfully met its revised coal sales target for FY25 at its Blair Athol Mine, achieving a total of 1.52 million tonnes. The company demonstrated strong operational performance, maintaining stable costs and reinforcing its position as a reliable, low-cost coal producer. As TerraCom enters FY26, it plans to focus on value over volume, with a responsive mine plan and a lean cost structure, ensuring continued operational discipline and market adaptability.

TerraCom Limited Updates FY25 Guidance and Outlines FY26 Strategy
Jun 12, 2025

TerraCom Limited has revised its FY25 sales guidance for the Blair Athol coal mine to 1.52 million tonnes, down from 1.6 million tonnes, due to adjustments in the production schedule. The company is finalizing its FY26 production and sales strategy, focusing on an optimized production schedule and cost reduction initiatives to maintain competitiveness amidst coal price volatility. These strategic decisions aim to strengthen TerraCom’s position in a challenging economic environment, ensuring value delivery for shareholders, customers, and communities.

TerraCom Limited Presents Investor Information on Coal Operations
Jun 5, 2025

TerraCom Limited has released a presentation intended for prospective investors, highlighting its operations and assets in Australia and South Africa. The presentation aims to provide information about the company’s business activities and financial performance, though it does not constitute investment advice. The document includes non-IFRS financial data and emphasizes that the information provided is for general purposes, urging recipients to conduct their own independent analysis before making any investment decisions.

TerraCom Director Increases Shareholding
Jun 3, 2025

TerraCom Limited has announced a change in the interest of its director, Mark Lochtenberg. The director, through Rigi Investments Pty Ltd, has acquired an additional 3,280,900 fully paid ordinary shares, bringing the total to 17,783,293 shares. This transaction was conducted as an on-market trade at a price of $0.064077 per share. The acquisition of these shares may indicate a positive outlook or increased confidence in the company’s future prospects by its director.

TerraCom Limited Announces Changes in Substantial Holder Interests
Jun 2, 2025

TerraCom Limited has announced changes in the interests of its substantial holder, Regal Funds Management Pty Limited, which has adjusted its voting power through a series of transactions involving ordinary shares. These changes reflect a strategic realignment in the company’s shareholder structure, potentially impacting its governance and future decision-making processes.

TerraCom Reaches Agreement with ASIC on Legal Proceedings
May 27, 2025

TerraCom Limited has reached an agreement with the Australian Securities and Investments Commission (ASIC) to resolve civil proceedings related to a contravention of the Corporations Act 2001. The agreement, pending Federal Court approval, includes TerraCom paying a $7.5 million civil penalty and $1 million in ASIC’s legal costs. This resolution is significant as it allows TerraCom to move forward from the legal proceedings, potentially stabilizing its operations and reassuring stakeholders.

TerraCom Limited Overcomes Weather Challenges, Maintains Strong Coal Sales
Apr 30, 2025

TerraCom Limited reported a challenging March quarter due to severe weather conditions affecting its Blair Athol operations, yet maintained strong operational momentum. The company achieved total coal sales of 1.6 million tonnes and eliminated its historic tax debt, while also securing a US$20 million prepayment agreement to bolster working capital. Despite these challenges, TerraCom remains committed to its sales guidance of 1.6 million tonnes for FY2025 and is progressing with the Moorlands Thermal Coal Project, expected to commence operations in 2026.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 26, 2025