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Highlights:
- TerraCom shares marked a gain of 400% on a year-to-date basis.
- Recently, the coal miner has upgraded its dividend policy to return 60-90% of NPAT to shareholders.
Share price of coal miner TerraCom Limited (ASX:TER) has went up 525% in one year, registering a rise of more than 127% in the last six months alone. On a year-to-date basis, the share price skyrocketed as much as 400%.
On the other hand, ASX 200 Energy (INDEXASX:XEJ) has marked a rise of 47.83% in the last 12 months and on a year-to-date basis, it has surged by over 35%.
What’s reason behind surge in TerraCom share price?
Recently, TerraCom shares were in limelight as the company announced a nine-fold surge in its dividend. The company’s board of directors announced a final dividend of 10 cents per share as it updates its dividend policy. The tentative payment date is 19 September 2022. It had gone ex-dividend on 2 September 2022.
Reportedly, the updated dividend policy is to return 60-90% of NPAT (net profit after tax) to shareholders. The dividend will be distributed on a quarterly basis.
On the development, Graeme Campbell, non-executive chairman of TerraCom said,
How are TerraCom shares performing today?
TerraCom’s shares were spotted trading 6.45% up at AU$0.99 per share at 11:51 AM AEST today (5 September 2022). The group however shared no price-sensitive news that could impact today’s share price performance. The shares might be following its benchmark index, ASX 200 Energy, which was up 3.38% to 11,121.80 (at 12:11 PM AEST).
Coal price and demand
Image source: © Eregister | Megapixl.com
As a commodity business, TerraCom’s share price is affected by the changes in coal prices.
As of 2 September 2022, it was priced at US$435.00 per tonne.
It is to be noted that coal price has surged recently due to the robust coal demand and persistent supply disruptions worsened by the war between Russia and Ukraine.
About TerraCom
The emerging resources company, TerraCom comprises a portfolio of operating assets in South Arica and Australia within the coal sectors.
As per the company’s website, the global focus of the group is on the development of a diversified asset portfolio that offers a high yield.
