TerraCom to Earn US$41.5 Million on Summer Sales
TerraCom Limited has announced that it has secured buyers for coal sales for the June 2018 quarter totalling 532,000 tonnes.
TerraCom Limited (ASX:TER) has announced that it has secured buyers for coal sales for the June 2018 quarter totalling 532,000 tonnes. This means the coal sales forecasted in the June 2018 quarter of 462,000 tonnes are secured; as well as the 70,000 tonnes which has an estimated bill of lading date of July 3, 2018.
The average selling price is forecasted to be US$78 per tonne which will generate US$41.5 million in revenue for TerraCom. This average selling price allows the previous forecasted margin of AU$41 per tonne to be achieved.
TerraCom is an Australian coal mining company, with ongoing projects in a variety of locations around the world. One of the company’s most recent acquisitions was the Blair Athol coal mine purchased in May 2017. The acquisition included the mining lease related licenses etc.
TerraCom plans to progressively rehabilitate Blair Athol, which is considered to be one of Queensland’s oldest coal mines.
As quoted from the press release:
As disclosed previously, the coal sales above include trial shipments into the Japan and Korea thermal coal markets. The company’s goal is to place 1.3 to 1.5 million tonnes per annum into Japan and Korea, and the balance placed into the spot market. Following the completion of the trial shipments the company expects premium prices in the long term compared to the June 2018 quarters forecasted average realized price.