Founded in 2009 by Craig Anthony and headquartered in Clermont, Australia, TerraCom engages in exploration and development of diversified coal products. Its projects include Clyde Park, Pentland, Springsure, Hughenden, Sunrise, Monto, Sierra and Kolan projects. The company operates its business through two segments – Australia and Mongolia.
The Australia segment engages in coal exploration and extraction activities within Australia. The Mongolia segment engages in coal exploration and extraction activities within Mongolia including the transition from explorer to developer at the Baruun Noyon Uul mine of the South Gobi project. TerraCom is an extremely small company with a market cap of $105 million. The stock has not been performing well during the pandemic and even when the Australian economy is showing very positive signs of recovery. TerraCom shares have -56% over the past 1 year.
Today, TerraCom shares plunged 32.1% as the firm released its half year earnings report. TerraCom reported a loss from continuing operations of $60.4 million, compared to $4.5 million profit this time last year. This was due to TerraCom incurring a high cost of goods sold during the period and also increased operating and administration expenses.
Despite this performance, it is not all gloomy for TerraCom. The firm is expected to export coal from South Africa for the remainder of the financial year and deliver a stronger EBITDA result in the second half of the year.
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