TerraCom has delivered strong operational results at its Blair Athol mine in Queensland despite a challenging thermal coal market.
The company transitioned to owner/operator status at Blair Athol this July and since then, has reduced free on board (FOB) costs by 17 per cent.
TerraCom consistently achieved this reduction every month since the transition, placing it in its first quartile of seaborne export FOB operating costs per tonne.
It also puts TerraCom in a solid position to take advantage of the recently improved thermal coal prices and demand.
Since the beginning of the 2021 financial year, the Newcastle thermal coal index has improved by more than 45 per cent, increasing from $US52 ($69) on July 1 to $US76 on December 9.
“The thermal coal market has been challenging in recent times and the entire Blair Athol team has continued to deliver exceptional results,” TerraCom stated.
“As a result of the exceptional cost management, an increased demand for Blair Athol coal and the strengthening coal price, Blair Athol is set to deliver strong margins for the 2021 financial year.”
Despite ongoing interruptions to the thermal coal market due to the COVID-19 pandemic, TerraCom sold more than a million managed tonnes of coal from its Australian operations.
TerraCom chief executive Danny McCarthy said the company was likely to deliver coal sales consistent with the 2020 financial year.
“The coal sales achieved year to date continue to be positive regardless of the ongoing market challenges,” McCarthy said.
“Based on an annualised assessment, the company is well positioned to achieve annual coal sales of approximately 9.9 million tonnes, consistent with financial year 2020.”