On December 6, 2018, TerraCom Limited (ASX: TER) came forward issued a press release which contains the information about the JORC Resource Confidence Upgrade. The company has made an announcement regarding the JORC Resource Confidence Upgrade as the company has conducted the assessment with respect to 3,421 drill holes. The company has taken the ownership of Blair Athol Coal Mine in May 2016, and since then it is operating this coal mine. The company has also managed to increase the confidence with respect to coal resources at Blair Athol. TerraCom Limited as well as JB Mining Services both had carried out additional work. The JB Mining Services had stated that there has been a rise to 31.5Mt in regard to the JORC measured resource. However, with respect to JORC indicated resource, JB Mining Services stated a rise to 11.6Mt.
The top management of TerraCom reflected favourable views. According to the chairman of TerraCom, the measured resource upgrade happens to be important in regard to Blair Athol mine because this mine can help in further extending the mine life for say 4-5 years, i.e. till 13 years in regard to present levels of the production.
On October 31, 2018, the TerraCom had also reported the release containing the information related to quarterly results for the September 2018 quarter. The company ended September 30, 2018 with A$33.1 million of cash as well as cash equivalents. Notably, the company also witnessed a rise of 17% in the September 2018 quarter to A$24.7 million in the EBITDA or earnings before interest, tax, depreciation and amortization as compared to the previous quarter.
The robust increase of 77% to A$32.4 million in the EBITDA of Australia (Blair Athol) in the September 2018 quarter was witnessed as compared to the previous quarter. However, during the same period, the sales of coal of Blair Athol stood at 614,000 tonnes which implies the substantial rise of 61% as compared to the previous quarter. In the September 2018 quarterly report, the company has given the expectation for the FY 2019 EBITDA. The company believes it would be able to generate EBITDA in the range of A$130-150 million.
The stock price of TerraCom ended the session on December 6, 2018 on the positive note. The stock price of the company closed at A$0.640 per share which implies that it has witnessed the rise of A$0.030 per share or 4.918%. The company has a market capitalization of $231.85 million.
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