TerraCom Limited (TER) AI Stock Analysis

• Market Cap: AU$65.68M
• Dividend Yield: 12.2%
• Average Volume (3M): 2.61M
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.75
• Revenue Growth: -12.53%
• EPS Growth: -264.51%
• Country: AU
• Employees: 3,622
• Sector: Energy
• Sector Strength: 52
• Industry: Coal
• EPS (TTM): -0.06
• Shares Outstanding: 800,966,250
• 10 Day Avg. Volume: 3,526,505
• 30 Day Avg. Volume: 2,608,609
• PEG Ratio: <0.01
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 4.31
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: AU$0.00 ▼(-100.00% Downside)

TerraCom Limited's overall stock score is primarily impacted by its financial performance challenges, including declining revenue and profitability. Technical analysis shows some short-term bullish momentum, but the valuation is hampered by a negative P/E ratio despite a high dividend yield. The absence of earnings call data and corporate events limits additional insights.

TerraCom Limited Business Overview & Revenue Model

Company Description

TerraCom Limited (TER) is an Australian-based mining and resource company primarily focused on the development and operation of coal mines. The company operates in the mining sector, particularly in the production of thermal and metallurgical coal. TerraCom's core projects include the Blair Athol coal mine in Queensland and the Baruun Naran coal project in Mongolia, which cater to both domestic and international markets by supplying coal for power generation and steel production.

How the Company Makes Money

TerraCom Limited generates revenue primarily through the sale of coal produced from its mining operations. The company has established key revenue streams from its thermal coal and metallurgical coal sales, which are sold to various customers, including energy producers and steel manufacturers. The company's ability to secure long-term contracts and spot market sales contributes significantly to its earnings. Additionally, TerraCom benefits from strategic partnerships and collaborations that enhance its operational capabilities and market reach. Factors such as global coal demand, pricing fluctuations in the commodities market, and operational efficiency also play crucial roles in influencing the company's revenue generation.

TerraCom Limited Financial Statement Overview

Summary

TerraCom Limited faces financial challenges, with declining revenue and profitability impacting its income statement. While the balance sheet shows low leverage, recent losses have affected equity returns. Cash flow performance is mixed, with some positive cash generation but overall inconsistency. The company needs to address operational and market challenges to improve financial stability.

Income Statement

TerraCom Limited's income statement shows significant volatility. The company experienced a sharp decline in revenue and profitability in the most recent year, with negative net profit and EBIT margins. This is a stark contrast to previous years where margins were healthier. The revenue growth rate has been negative, indicating a challenging market environment or operational issues.

Balance Sheet

The balance sheet indicates a relatively low debt-to-equity ratio, suggesting conservative leverage. However, the return on equity has been negative recently, reflecting poor profitability. The equity ratio is stable, but the company's financial health is undermined by recent losses.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, with a negative trend in operating cash flow coverage. The free cash flow to net income ratio is positive, indicating some cash generation capability, but overall cash flow performance has been inconsistent.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	226.67M	226.67M	259.14M	660.64M	804.63M	549.01M
Gross Profit	4.38M	4.38M	57.86M	324.29M	383.51M	14.23M
EBITDA	-4.32M	-4.32M	55.00M	334.61M	395.61M	-16.36M
Net Income	-33.05M	-33.05M	25.95M	262.10M	196.13M	-84.06M
Balance Sheet
Total Assets	295.89M	295.89M	314.42M	356.20M	422.21M	623.99M
Cash, Cash Equivalents and Short-Term Investments	13.38M	13.38M	8.35M	44.03M	69.57M	11.19M
Total Debt	11.00M	11.00M	4.18M	7.27M	37.33M	317.42M
Total Liabilities	166.45M	166.45M	146.57M	188.35M	276.58M	651.50M
Stockholders Equity	130.01M	130.01M	168.26M	167.33M	145.51M	-80.41M
Cash Flow
Free Cash Flow	13.19M	13.19M	-28.07M	236.82M	316.21M	-22.58M
Operating Cash Flow	18.32M	18.32M	-15.55M	247.55M	324.00M	5.79M
Investing Cash Flow	-1.03M	-1.03M	6.19M	-2.76M	-22.20M	-43.80M
Financing Cash Flow	-12.64M	-12.64M	-26.69M	-270.69M	-245.64M	39.27M

TerraCom Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: 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 0.08 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and below the 200-day MA of 0.09, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 79.84 is Negative, neither overbought nor oversold. The STOCH value of 68.64 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NHC	72 Outperform	AU$3.36B	7.65	17.04%	8.54%	-1.53%	-7.57%
WHC	67 Neutral	$5.69B	8.52	11.40%	2.17%	52.51%	82.60%
SMR	66 Neutral	AU$2.06B	532.56	0.15%	7.57%	-18.98%	-99.05%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
BRL	64 Neutral	AU$169.18M	29.01	1.34%	―	-5.47%	-86.96%
TER	53 Neutral	AU$65.68M	4.48	-29.62%	12.20%	-12.53%	-264.51%
CRN	50 Neutral	AU$645.43M	―	-28.58%	4.23%	-23.26%	-1008.87%

TerraCom Limited Corporate Events

TerraCom Limited Reports Resilient Quarterly Performance Amid Market Challenges

TerraCom Limited reported its quarterly results for the period ending June 30, 2025, highlighting total coal sales of 1.68 million tonnes. Despite challenges such as elevated rainfall in Queensland and a softer thermal coal pricing environment, the company maintained strong operational resilience and financial discipline. The Blair Athol mine achieved significant coal sales, and the company is advancing the Moorlands Thermal Coal Project as part of its growth strategy. However, due to current market conditions, no dividend will be declared for the quarter. TerraCom’s South African operations continued to supply the domestic market, although export volumes were affected by rail constraints.

TerraCom Limited Announces CFO Resignation and Transition Plan

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

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

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

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

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

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

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

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.