TerraCom Ltd, an emerging resources company with a large portfolio of operating assets in Australia and South Africa, has provided forecast information with respect to its Blair Athol (BA) operation in Queensland.
From September 2021, the company is positioned to capitalise on the exceptional seaborne coal pricing. Thermal coal from BA (5500 NAR CV) is sold into premium Asian markets, predominately Japan and Korea, and into the Indian sponge iron market.
BA is forecast to generate revenue of AUS$170/t in September 2021, which will generate an operating cash margin in excess of AUS$100/t.
Both the Newcastle index and AP14 are nearing all-time highs and are at levels which have not been seen since mid-2008. Based on economic forecasts, the indexes are expected to remain solid throughout FY22 and, as a result, the company expects to generate strong operating cash flows from BA in FY22.
Read the article online at: https://www.worldcoal.com/coal/10092021/terracom-provides-blair-athol-revenue-forecast/
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