Added to YB: 2026-03-25
Pitch date: 2026-03-22
TER.AX [bullish]
TerraCom Limited
-8.7%
current return
Author Info
The Pale Blue Dot is an ex-investment banker with more than a decade of experience in M&A advisory, capital raising and equity derivatives. Sign up for the newsletter.
Company Info
TerraCom Limited develops and operates coal mines in Australia and Africa. The company primarily explores thermal coal.
Market Cap
AUD 200.5M
Pitch Price
AUD 0.12
Price Target
N/A
Dividend
N/A
EV/EBITDA
-10.22
P/E
-1.48
EV/Sales
0.95
Sector
Oil, Gas and Consumable Fuels
Category
turnaround
Thermal Coal - A Beneficiary Of LNG Disruption - TerraCom Limited
TER.AX: Thermal coal derivative play on LNG disruption after Iran attack damaged Qatar facilities (17% export capacity cut). Asian utilities switching coal for gas; S.Korea lifted 80% coal gen cap. NEWC $150/t, economics support $200/t at $20/MMBtu JKM. TER mines 5500kcal/kg coal to Japan/S.Korea/India, realizes 75% NEWC. A$105-115/t cash cost; generates A$40M FCF (~30% yield) at $150/t NEWC, >50% at $200/t. Stock decimated 2023-25 on weather/dilution but raised A$60M equity Jan'26. NOLs shield taxes. Moorlands JV adds 1.9Mtpa mid-26. High beta 1-asset play; small 5% position as event-driven call option on prolonged LNG risk.
Read full article (5 min)