TerraCom shows strong performance in its latest activity report

• Cash and Cash Equivalents as at 30 June 2017 AUS$8.65 million.
• The closing cash and cash equivalents balance at the end of June is not a true reflection of the gross working capital position of TerraCom. The gross working capital at the end of June includes delivered coal which revenue had not been receipted for and coal inventory on hand.
• Continued signs of sustained commodity price recovery in both metallurgical and thermal coal markets.
• Thermal coal closed the quarter at ~US$78 per tonne – up 56% from US$50 in January 2016 and only a 7% reduction compared to March 2017. Post 30 June 2017 the market has seen a spot market trade of US$99 per tonne.
• Metallurgical coal closed the quarter at ~US$150 per tonne – up 97% from US$76 in January 2016 and only a 2% reduction compared to March 2017.
• Coupon interest payment of US$7.75 million made on the Company’s Listed Euroclear Bond. The Company elected to PIK 50% of the interest.
• OL Master Limited (OCP) deferral of Super Senior Note A Principal repayment of US$12.0 million from 30 June 2017 to 50% on 30 October 2017 and 50% on 30 January 2018.
• Noble Resources International Pte Limited (Noble) agreed to convert US$7.16 million of its Fuel Exclusivity Facility into 298 311 234 fully paid ordinary shares of the company. The company used its existing capacity under Listing Rules 7.1 and 7.1A. The effective issue price per ordinary share was AUS$0.032 (rounded to 3 dp).
• Appointment of Wallace (Wal) King as a Non-Executive Director of TerraCom Limited.

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