TerraCom Limited (TER) AI Stock Analysis

• Market Cap: AU$68.88M
• Dividend Yield: 11.63%
• Average Volume (3M): 3.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: -12.53%
• EPS Growth: -264.51%
• Country: AU
• Employees: 3,622
• Sector: Energy
• Sector Strength: 52
• Industry: Coal
• EPS (TTM): -0.06
• Shares Outstanding: 800,966,250
• 10 Day Avg. Volume: 6,184,837
• 30 Day Avg. Volume: 3,350,970
• PEG Ratio: <0.01
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 4.31
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: AU$0.00 ▼(-100.00% Downside)

TerraCom Limited's overall stock score is primarily influenced by its financial performance, which is challenged by declining revenue and profitability. The technical analysis suggests a short-term positive trend, but the overbought RSI indicates caution. Valuation is impacted by a negative P/E ratio, though the high dividend yield provides some appeal. The absence of recent earnings call data and corporate events means these factors do not influence the score.

TerraCom Limited Business Overview & Revenue Model

Company Description

TerraCom Limited (TER) is an Australian-based mining and resource company primarily focused on the development and operation of coal mines. The company operates in the mining sector, particularly in the production of thermal and metallurgical coal. TerraCom's core projects include the Blair Athol coal mine in Queensland and the Baruun Naran coal project in Mongolia, which cater to both domestic and international markets by supplying coal for power generation and steel production.

How the Company Makes Money

TerraCom Limited generates revenue primarily through the sale of coal produced from its mining operations. The company has established key revenue streams from its thermal coal and metallurgical coal sales, which are sold to various customers, including energy producers and steel manufacturers. The company's ability to secure long-term contracts and spot market sales contributes significantly to its earnings. Additionally, TerraCom benefits from strategic partnerships and collaborations that enhance its operational capabilities and market reach. Factors such as global coal demand, pricing fluctuations in the commodities market, and operational efficiency also play crucial roles in influencing the company's revenue generation.

TerraCom Limited Financial Statement Overview

Summary

TerraCom Limited faces financial challenges, with declining revenue and profitability impacting its income statement. While the balance sheet shows low leverage, recent losses have affected equity returns. Cash flow performance is mixed, with some positive cash generation but overall inconsistency. The company needs to address operational and market challenges to improve financial stability.

Income Statement

TerraCom Limited's income statement shows significant volatility. The company experienced a sharp decline in revenue and profitability in the most recent year, with negative net profit and EBIT margins. This is a stark contrast to previous years where margins were healthier. The revenue growth rate has been negative, indicating a challenging market environment or operational issues.

Balance Sheet

The balance sheet indicates a relatively low debt-to-equity ratio, suggesting conservative leverage. However, the return on equity has been negative recently, reflecting poor profitability. The equity ratio is stable, but the company's financial health is undermined by recent losses.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, with a negative trend in operating cash flow coverage. The free cash flow to net income ratio is positive, indicating some cash generation capability, but overall cash flow performance has been inconsistent.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	226.67M	226.67M	259.14M	660.64M	804.63M	549.01M
Gross Profit	4.38M	4.38M	57.86M	324.29M	383.51M	14.23M
EBITDA	-4.32M	-4.32M	55.00M	334.61M	395.61M	-16.36M
Net Income	-33.05M	-33.05M	25.95M	262.10M	196.13M	-84.06M
Balance Sheet
Total Assets	295.89M	295.89M	314.42M	356.20M	422.21M	623.99M
Cash, Cash Equivalents and Short-Term Investments	13.38M	13.38M	8.35M	44.03M	69.57M	11.19M
Total Debt	11.00M	11.00M	4.18M	7.27M	37.33M	317.42M
Total Liabilities	166.45M	166.45M	146.57M	188.35M	276.58M	651.50M
Stockholders Equity	130.01M	130.01M	168.26M	167.33M	145.51M	-80.41M
Cash Flow
Free Cash Flow	13.19M	13.19M	-28.07M	236.82M	316.21M	-22.58M
Operating Cash Flow	18.32M	18.32M	-15.55M	247.55M	324.00M	5.79M
Investing Cash Flow	-1.03M	-1.03M	6.19M	-2.76M	-22.20M	-43.80M
Financing Cash Flow	-12.64M	-12.64M	-26.69M	-270.69M	-245.64M	39.27M

TerraCom Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:TER, the sentiment is Positive. The current price of 0.08 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.07, and below the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 72.90 is Negative, neither overbought nor oversold. The STOCH value of 63.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:TER.

TerraCom Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WHC	―	$5.95B	8.68	11.40%	2.08%	52.51%	82.60%
NHC	―	$3.53B	7.71	17.04%	8.11%	-1.53%	-7.57%
Sector *	―	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SMR	―	AU$1.90B	490.70	0.15%	8.11%	-18.98%	-99.05%
TER	―	AU$68.88M	―	-29.62%	11.63%	-12.53%	-264.51%
CRN	―	AU$645.43M	―	-28.58%	5.62%	-23.26%	-1008.87%
BRL	―	AU$153.58M	26.34	1.34%	―	-5.47%	-86.96%

TerraCom Limited Corporate Events

TerraCom Limited Releases 2025 Corporate Governance Statement

TerraCom Limited has released its corporate governance statement for the financial year ending June 30, 2025, which is available on its website. The statement confirms the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations, ensuring transparency and accountability in its operations. This announcement underscores TerraCom’s commitment to maintaining robust governance practices, which is crucial for its credibility and trust among stakeholders.

TerraCom Limited Releases 2025 Corporate Governance Statement

TerraCom Limited has released its 2025 Corporate Governance Statement, which outlines the company’s adherence to the Australian Securities Exchange Corporate Governance Principles and Recommendations for the year ending June 30, 2025. The statement, approved by the Board, highlights TerraCom’s commitment to solid governance practices, detailing the roles and responsibilities of the Board and management. This announcement reinforces TerraCom’s dedication to transparency and accountability, potentially strengthening its position in the mining industry and enhancing stakeholder confidence.

TerraCom Limited Reports Solid Q1 FY26 Performance Amid Market Challenges

TerraCom Limited reported a solid operational performance for the quarter ending September 2025, with increased coal sales and production at its Blair Athol mine in Australia, despite a decrease in coal prices. The company maintained a disciplined capital structure and cost management, ensuring flexibility in operations and market cycles. TerraCom’s South African operations also showed steady performance, supported by efficient plant operations and strong local leadership. The company remains committed to safety and sustainability, with low injury rates reported. Looking ahead, TerraCom plans to continue its focus on cost discipline and strategic growth opportunities, including partnerships and diversification initiatives.

TerraCom Limited Announces 2025 Annual General Meeting Details

TerraCom Limited has announced the details for its 2025 Annual General Meeting, scheduled for November 27, 2025, in Sydney. This meeting is a significant event for the company, providing an opportunity for shareholders to engage with the company’s board and discuss future directions, potentially impacting its operations and stakeholder relations.

TerraCom Limited Reports Resilient Quarterly Performance Amid Market Challenges

TerraCom Limited reported its quarterly results for the period ending June 30, 2025, highlighting total coal sales of 1.68 million tonnes. Despite challenges such as elevated rainfall in Queensland and a softer thermal coal pricing environment, the company maintained strong operational resilience and financial discipline. The Blair Athol mine achieved significant coal sales, and the company is advancing the Moorlands Thermal Coal Project as part of its growth strategy. However, due to current market conditions, no dividend will be declared for the quarter. TerraCom’s South African operations continued to supply the domestic market, although export volumes were affected by rail constraints.