TerraCom Limited (TER) AI Stock Analysis

• Market Cap: AU$72.89M
• Dividend Yield: N/A
• Average Volume (3M): 4.02M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• 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: 2,039,643
• 30 Day Avg. Volume: 4,021,602
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: AU$0.09 ▼(-1.11% Downside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenue and profitability. Technical analysis provides a slightly positive outlook with some upward momentum, but valuation remains a concern due to negative earnings and lack of dividends. Addressing operational issues is crucial for improving the stock's attractiveness.

Positive Factors

Strategic Partnerships

Strategic partnerships enhance TerraCom's operational capabilities and market reach, providing a durable competitive advantage in the coal industry.

Low Leverage

Low leverage suggests financial flexibility, allowing TerraCom to navigate market fluctuations and invest in growth opportunities without excessive debt burden.

Cash Generation Capability

Positive cash generation capability indicates TerraCom's ability to sustain operations and fund investments, supporting long-term business stability.

Negative Factors

Declining Revenue

Declining revenue growth reflects challenges in market demand or operational efficiency, potentially impacting TerraCom's long-term financial health.

Negative Profitability

Negative profitability undermines TerraCom's ability to reinvest in its business and compete effectively, posing risks to future growth and sustainability.

Inconsistent Cash Flow

Inconsistent cash flow can hinder TerraCom's ability to manage operational costs and invest in strategic initiatives, affecting long-term resilience.

TerraCom Limited Business Overview & Revenue Model

Company Description

TerraCom Limited engages in the exploration and extraction of coal in Australia and South Africa. The company explores for hard and soft coking, thermal, and PCI coal. Its flagship property is the Blair Athol coal mine located in Clermont, Queensland. The company also holds interests in the Northern Galilee project comprising the Hughenden and the Pentland properties covering an area of approximately 2,160 square kilometers; the Clyde Park project that covers an area of approximately 133 square kilometers located in the Galilee Basin, Queensland; and the Springsure project covering an area of approximately 1,178 square kilometers located in the Central-Western Bowen basin coal mining district, Queensland. In addition, it holds interests in the Kangala Colliery property; the New Clydesdale Colliery project; the Berenice project; the Ubuntu Colliery; the North Block Complex Colliery project; the Arnot South; the Cygnus project; and the Eloff project located in South Africa. The company was formerly known as Guildford Coal Limited and changed its name to TerraCom Limited in November 2015. TerraCom Limited was founded in 2009 and is based in Clermont, Australia.

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: Neutral
• Last Price: 0.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:TER, the sentiment is Neutral. The current price of 0.09 is below the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.09, and above the 200-day MA of 0.08, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.14 is Neutral, neither overbought nor oversold. The STOCH value of 23.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:TER.

TerraCom Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WHC	77 Outperform	AU$6.42B	9.64	11.40%	1.92%	52.51%	82.60%
NHC	71 Outperform	AU$3.31B	7.53	17.04%	8.67%	-1.53%	-7.57%
SMR	66 Neutral	AU$2.15B	553.49	0.15%	7.29%	-18.98%	-99.05%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CRN	54 Neutral	AU$586.76M	-1.12	-36.13%	4.38%	-23.91%	-352.91%
TER	52 Neutral	AU$72.89M	-1.71	-29.62%	―	-12.53%	-264.51%
BRL	45 Neutral	AU$155.98M	26.75	1.34%	―	-5.47%	-86.96%

TerraCom Limited Corporate Events

TerraCom Limited Announces Significant Shareholding Change

TerraCom Limited has announced a significant change in its shareholder structure as Bonython Coal No 1 Pty Ltd has ceased to be a substantial holder in the company. This change involved the market sale of 70,320,000 ordinary shares for a total consideration of $5,627,520. The adjustment in shareholding may impact TerraCom’s market dynamics and stakeholder relationships, as it reflects a shift in the company’s ownership landscape.

TerraCom Limited Amends Constitution Following Shareholder Approval

TerraCom Limited announced that its shareholders have approved an amendment to the company’s Constitution during the Annual General Meeting. This change reflects the company’s ongoing efforts to optimize its governance structure, potentially impacting its operational efficiency and stakeholder engagement.

TerraCom Limited’s 2025 AGM: All Resolutions Passed with Strong Shareholder Support

TerraCom Limited held its 2025 Annual General Meeting, where all resolutions were successfully carried. Key resolutions included the adoption of the remuneration report, re-election of directors, and approval of mandates and fee pool increases. The results reflect strong shareholder support and are likely to positively impact TerraCom’s governance and operational strategies.

TerraCom Limited Navigates Challenges and Eyes Strategic Growth

At TerraCom Limited’s 2025 Annual General Meeting, the company addressed challenges faced during the fiscal year, including weather events and logistics disruptions, while maintaining steady operations and a disciplined approach. The company highlighted strategic opportunities, such as the Moorlands project, which is expected to enhance production and earnings, and the ongoing divestment process in South Africa. Despite industry challenges, TerraCom remains well-positioned to benefit from forecast pricing strength and continues to focus on governance, capital discipline, and growth opportunities.

TIGA Trading Pty Ltd Ceases Substantial Holding in TerraCom Limited

TerraCom Limited, a company listed on the ASX, has announced that TIGA Trading Pty Ltd has ceased to be a substantial holder in the company as of November 11, 2025. This change follows a significant market sale of 60 million ordinary shares by TIGA Trading Pty Ltd, which could impact TerraCom’s shareholder structure and potentially influence its stock market performance.

TerraCom Limited Releases 2025 Corporate Governance Statement

TerraCom Limited has released its corporate governance statement for the financial year ending June 30, 2025, which is available on its website. The statement confirms the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations, ensuring transparency and accountability in its operations. This announcement underscores TerraCom’s commitment to maintaining robust governance practices, which is crucial for its credibility and trust among stakeholders.

TerraCom Limited Releases 2025 Corporate Governance Statement

TerraCom Limited has released its 2025 Corporate Governance Statement, which outlines the company’s adherence to the Australian Securities Exchange Corporate Governance Principles and Recommendations for the year ending June 30, 2025. The statement, approved by the Board, highlights TerraCom’s commitment to solid governance practices, detailing the roles and responsibilities of the Board and management. This announcement reinforces TerraCom’s dedication to transparency and accountability, potentially strengthening its position in the mining industry and enhancing stakeholder confidence.

TerraCom Limited Reports Solid Q1 FY26 Performance Amid Market Challenges

TerraCom Limited reported a solid operational performance for the quarter ending September 2025, with increased coal sales and production at its Blair Athol mine in Australia, despite a decrease in coal prices. The company maintained a disciplined capital structure and cost management, ensuring flexibility in operations and market cycles. TerraCom’s South African operations also showed steady performance, supported by efficient plant operations and strong local leadership. The company remains committed to safety and sustainability, with low injury rates reported. Looking ahead, TerraCom plans to continue its focus on cost discipline and strategic growth opportunities, including partnerships and diversification initiatives.

TerraCom Limited Announces 2025 Annual General Meeting Details

TerraCom Limited has announced the details for its 2025 Annual General Meeting, scheduled for November 27, 2025, in Sydney. This meeting is a significant event for the company, providing an opportunity for shareholders to engage with the company’s board and discuss future directions, potentially impacting its operations and stakeholder relations.