TerraCom Ltd, an emerging resources company with a large portfolio of operating assets in Australia and South Africa, has provided the operational results for December 2021.
Coal sales for the month of December remained strong despite the impacts of poor weather conditions in Australia, as well as South Africa, delivering reduced activity due to above average rainfall conditions.
Two shipments were sold from Blair Athol (BA) during December 2021, with coal sales revenue of AUS$213/t achieved. The company has forecast for a third shipment of 79 000 t to also sail during December, however due to poor weather conditions experienced at the port throughout the Christmas to New Year period, berthing was delayed, and the shipment subsequently sailed on 5 January 2022. All coal for this shipment was at the port and ready to be loaded on 31 December 2021.
Coal sales for the December 2021 quarter totalled 502 000 t with a reported revenue of AUS$219/t, a result 4% higher than the forecast revenue of AUS$210/t for the period. If the planned third shipment for the month of December departed as scheduled, the company would have recorded total coal sales of 581 000, which would have represented an annualised coal sales run rate for the 6 months ended 31 December 2021 of 2.3 million tpy.
BA remains on track for coal sales in the 2022 financial year of approximately 2.3 million t.
Export coal sales for the South African operations increased by 21 000 t or 15% compared to the prior month, although total coal sales were below the results achieved in November 2021 due to reduced domestic sales.
The domestic coal sales reduction in South Africa is usual at this time of year due to seasonal activity; however, extreme rainfall and higher than seasonal averages significantly impacted both production and logistics.
Year to date, contracted domestic offtake quantities have been delivered to Eskom on a combined basis.
Year to date operational results
Year to date managed coal sales represent annualised tonnes of 8.9 million and year to date equity coal sales represent annualised tonnes of 5.4 million.
Read the article online at: https://www.worldcoal.com/coal/11012022/terracom-provides-december-2021-coal-sales-update/