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  • TerraCom (TER) signs an offtake agreement with its long-term Japanese trading partner for the delivery of its coal from its Blair Athol (BA) operation in QLD
  • The agreement is for the delivery of up to 1.25 million tonnes over 13 cargoes from August 2022 to August 2023
  • Key terms of the agreement include the delivery of one cargo per month during the 12 months and each cargo will contain between 67,000 to 88,000 tonnes, subject to the tonnage as nominated by the offtake partner
  • The pricing will be linked to the globalCOAL Newcastle Index
  • Shares in TerraCom are up 4.48 per cent, trading at 75.8 cents as of 1:52 pm AEST

TerraCom (TER) has signed an offtake agreement with its long-term Japanese trading partner for the delivery of its coal from its Blair Athol (BA) operation in Queensland.

The agreement is for the delivery of up to 1.25 million tonnes over 13 cargoes from August 2022 to August 2023.

Key terms of the agreement include the delivery of one cargo per month during the 13 months and each cargo will contain between 67,000 to 88,000 tonnes, subject to the tonnage as nominated by the offtake partner.

The pricing will be linked to the globalCOAL Newcastle Index.

Commenting on the agreement, TER Chairman Craig Ransley said the team continues to deliver on production to meet ongoing sales commitments.

“The finalisation of the offtake agreement has cemented the upcoming coal sales profile for the Blair Athol operation and represents up to 50 per cent of the annualised coal sales for the operation.

“The export thermal coal market remains strong and the full year operating EBITDA attributable to TerraCom for the year ending June 30, 2022 is still forecast to be approximately $420 million.”

For the financial year ending June 30, 2023, BA is forecasting coal sales of 2.2 million
tonnes and is fully sold until October 2022.

After October 2022, the company said there will be up to 450,000 tonnes unsold for the remaining eight months up to June 2023, depending on market conditions which will be targeted for sale in the spot market.

The BA operation continues to perform well and remains on track to achieve coal sales of 2.3 million tonnes for the remainder of the financial year.

Shares in TerraCom were up 4.48 per cent, trading at 75.8 cents as of 1:52 pm AEST.

TER by the numbers
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