TerraCom refinances as Blair Athol sales are on the rise

The new finance facility provides for up to $287m and will offer savings for the company.

Blair Athol mine. Picture: Lock the Gate Alliance

An emerging mining and resources company has secured a new finance facility, offering increased savings to the company as its Central Queensland operation continues to deliver “superior operational results”.

TerraCom Limited revealed that all bondholders unanimously approved an extension of the Euroclear Bond maturity date from June 30, 2021, to August 13.

It announced the extension would allow the incoming debt funder sufficient time to complete the documents for the refinance program.

The new finance facility will provide up to US$215 million (A$287m) with fixed interest of nine per cent per annum for up to seven years.

Based on indicative terms, the new facility will provide savings of about four per cent per annum.

Executive chairman Craig Ransley said the news had been well received by all involved.

“The Company wishes to formally acknowledge the incoming debt funder for their time and effort to brief the current bondholders on the status of the refinance program which was instrumental in obtaining the extension of time,” he said.

“The continued support from the company’s current bondholders has been well received and we look forward to working with both our current bondholders and incoming debt funder throughout the course of the next four to six weeks to finalise the refinance program.”

It comes as TerraCom’s Blair Athol Coal Mine, located about 15km north of Clermont, remains on target to deliver 675,000 tonnes of thermal coal for the June 2021 quarter under its owner operator model with the product attracting US$90.5 per tonne (A$120.1/t) under the most recent fixed priced sale.

With TerraCom’s reduced cost base of A$60/t of coal produced, the latest sale price represents a margin over A$50/t.

The company revealed its South African operation remained at pre-covid sales levels with delivered domestic tonnes for May above the year-to date monthly average of 448,000 tonnes.

Despite the ongoing uncertainty and challenges faced by coronavirus, the forecast total coal sales for the 2021 financial year remains around 9.3 million tonnes.