Key points
- Blair Athol Mine production below plan
- Factors include workforce issues, seasonal illness, equipment availability
- Company pursuing initiatives to improve performance and liquidity
Full summary
Terracom Limited (ASX: TER) has reported operational challenges at Blair Athol Mine, resulting in lower-than-expected production in the early part of FY2027. Factors contributing to this include workforce recruitment issues, seasonal illness, equipment availability, and lower coal preparation yields. The company has initiated measures to address these challenges, including the delivery of new mining equipment and operational changes. Despite these issues, Terracom maintains its production guidance for FY2027. The company is also managing its liquidity position by pursuing a new coal prepayment arrangement and other cost reduction measures.
Guidance
Terracom maintains FY2027 production guidance of 2.0 to 2.2 million tonnes.
Outlook
Terracom is pursuing initiatives to improve productivity and liquidity, with discussions on a new coal prepayment arrangement well advanced.