Transcription of The Stock Network Interview with TerraCom Limited (ASX:TER) Managing Director, Danny McCarthy
Lel Smits: Terracom is an Australian-based resources company with a large portfolio of producing development and exploration coal assets across Australia and South Africa. The company is known for its low cost production profile and consistent cash generation with its operations headlined by the flagship Blair Athol coal mine in Queensland’s Bowen Basin. Ahead of appearing at the Sydney Mining Club Conference, Terracom Managing Director Danny McCarthy joins me on the Stock Network. Danny, welcome to TSN.
Danny McCarthy: Thank you so much for having me. I’m excited to be here.
Lel Smits: Now, Terracom acquired its flagship Blair Athol mine in 2017 and brought it to full production the following year. What does the current production profile look like?
Danny McCarthy: Yeah, that’s right. So over the last five or six years since restarting, we’ve identified that the appropriate production rate for Blair Athol is around about 1.8 million tonnes of salable coal and that fits a number of things. The operation’s quite condensed in its space and geometry. And we also have port and rail requirements that we need to make sure that we match. So 1.8 million tonnes is the nominal run rate for Blair Athol, and we’ve got another seven or so years to go at that rate. Wonderful.
Lel Smits: Now, last year, you also entered a cooperation agreement with Shanghai Listed Wind Time Energy to jointly develop and operate the Moorlands Thermal Coal Project in Queensland. What benefits could this agreement provide for Terracom and its investors?
Danny McCarthy: Yeah, thank you for that. So let me first talk about Moorlands before I talk about any other collaboration with Wind Time. And Moorlands has been about seven years in the discussion phase and over the last couple of years, we’ve really got to sharpen up that focus and engagement. And last year in August, I was able to visit with the parent company Wind Time in China. And that’s where our cooperation agreement was basically finalised. So we’re busy talking with them about what the commercialisation of that looks like. So for Blair Athol, it will see the Blair Athol processing precinct have a life well beyond its current life of seven years. So when Blair Athol itself runs out of coal, Moorlands will provide coal through that precinct for 25 to 30 years. So once we get it up and running, it will provide significant long term value creation for our shareholders.
Lel Smits: Danny, thank you so much for the update on Terracom. And I look forward to watching your full presentation at Sydney Mining Club.
Danny McCarthy: Thank you so much. Looking forward to it.
Ends