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TerraCom Limited (AU:TER)
ASX:TER
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TerraCom Limited (TER) AI Stock Analysis

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AU:TER

TerraCom Limited

(Sydney:TER)

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Neutral 47 (OpenAI - Gpt-5.6Sol)
Rating:47Neutral
Price Target:
AU$0.08
▲(8.57% Upside)
Action:Reiterated
Date:09/06/26
The score is held down primarily by weak financial fundamentals—sharp profitability deterioration and significant FY2026 cash burn—despite a currently low-leverage balance sheet. Technical indicators contribute modest support with price trading above key moving averages and positive momentum. Valuation is limited by negative earnings (negative P/E) and no provided dividend yield.
Positive Factors
Low and improving leverage
Recent low leverage provides financial flexibility while earnings are weak, reducing the immediate burden of debt service and preserving capacity to respond to operating conditions. This is a meaningful structural strength, although the company’s historical balance-sheet stress shows it must remain disciplined.
Negative Factors
Sustained revenue contraction
Multi-year revenue decline points to weakened operating performance rather than a single isolated quarter. A smaller revenue base can reduce fixed-cost absorption, constrain cash generation, and make recovery more dependent on an improvement in volumes, pricing, or broader coal-market conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Low and improving leverage
Recent low leverage provides financial flexibility while earnings are weak, reducing the immediate burden of debt service and preserving capacity to respond to operating conditions. This is a meaningful structural strength, although the company’s historical balance-sheet stress shows it must remain disciplined.
Read all positive factors

TerraCom Limited (TER) vs. iShares MSCI Australia ETF (EWA)

TerraCom Limited Business Overview & Revenue Model

Company Description
TerraCom Limited, an Australian-based company established in 2009 and headquartered in Clermont, specializes in the exploration and extraction of coal resources across Australia and South Africa. The firm targets various coal grades, including har...

TerraCom Limited Financial Statement Overview

Summary
Financial performance is weak: Income Statement (24) reflects a sharp swing from strong FY2022–FY2023 profitability to sizable FY2025–FY2026 losses and declining revenue, including FY2026 negative gross margin. Cash Flow (22) is a major risk with deeply negative FY2026 operating cash flow and free cash flow, indicating cash burn and volatility in cash conversion. The Balance Sheet (68) is comparatively supportive with low, improving leverage, but ongoing losses and negative FCF could erode flexibility if conditions persist.
Income Statement
24
Negative
Balance Sheet
68
Positive
Cash Flow
22
Negative
BreakdownJun 2026Jun 2025Jun 2024Jun 2023Jun 2022
Income Statement
Total Revenue178.92M226.67M259.14M660.64M804.63M
Gross Profit-28.76M4.38M57.86M324.29M383.51M
EBITDA-29.42M-4.32M55.00M334.61M395.61M
Net Income-45.50M-33.05M25.95M262.10M196.13M
Balance Sheet
Total Assets252.71M295.89M314.42M356.20M422.21M
Cash, Cash Equivalents and Short-Term Investments8.38M13.38M8.35M44.03M69.57M
Total Debt9.94M11.00M4.18M7.27M37.33M
Total Liabilities118.83M166.45M146.57M188.35M276.58M
Stockholders Equity134.73M130.01M168.26M167.33M145.51M
Cash Flow
Free Cash Flow-66.04M13.19M-28.07M236.82M316.21M
Operating Cash Flow-60.87M18.32M-15.55M247.55M324.00M
Investing Cash Flow2.53M-1.03M6.19M-2.76M-22.20M
Financing Cash Flow53.48M-12.64M-26.69M-270.69M-245.64M

TerraCom Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.07
Price Trends
50DMA
0.07
Positive
100DMA
0.07
Positive
200DMA
0.07
Positive
Market Momentum
MACD
<0.01
Negative
RSI
59.94
Neutral
STOCH
77.78
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 0.07 is below the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and below the 200-day MA of 0.07, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.94 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
47
Neutral
AU$147.62M-2.20-37.07%4.83%-21.07%26.64%
47
Neutral
AU$50.71M-9.8224.37%10.16%60.40%
47
Neutral
AU$206.19M-27.97366.05%90.80%
46
Neutral
AU$106.82M-27.25-1.35%2.68%-52.34%-169.14%
16
Underperform
AU$4.55M-0.23-78.05%954.39%-222.14%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:TER
TerraCom Limited
0.08
0.02
31.75%
AU:AQC
Australian Pacific Coal
0.01
0.00
0.00%
AU:BRL
Bathurst Resources Ltd
0.45
-0.30
-39.60%
AU:CKA
Cokal
0.05
0.02
63.33%
AU:WEC
White Energy Company Limited
0.32
0.28
854.55%

TerraCom Limited Corporate Events

TerraCom Flags Blair Athol Underperformance as Liquidity Pressures Rise
Aug 31, 2026
TerraCom Limited has reported that its Blair Athol Mine in Queensland continues to produce below plan in early FY2027, following operational challenges in the June quarter. Factors such as workforce recruitment and availability issues, seasonal il...
TerraCom Releases Unaudited FY2026 Preliminary Financial Results
Aug 31, 2026
TerraCom Limited has released its Appendix 4E and preliminary financial report for the year ended 30 June 2026, providing the market with an initial view of its FY2026 results. The figures remain subject to audit, with the group still finalising i...
TerraCom names Richard Clarke CFO as CEO search continues
Aug 4, 2026
TerraCom Limited has appointed Richard Clarke as Chief Financial Officer and Company Secretary, formalising a role he has held on an interim basis since May 2026. Clarke, a Chartered Accountant with more than two decades of experience in senior fi...
TerraCom lifts Blair Athol output but withholds dividend amid weather-hit sales
Jul 31, 2026
TerraCom reported that June quarter sales were constrained by logistics timing and severe weather impacts, including mud and water in pits following over a year&#8217;s rainfall in the March quarter, with September quarter sales also contracting. ...
TerraCom Director Mark Chadwick Steps Down With No Securities Held
Jul 30, 2026
TerraCom Limited has announced that director Mark Sims Chadwick ceased to be a member of the board effective 27 July 2026. The company&#8217;s notice to the ASX confirms that Chadwick held no relevant interests in TerraCom securities or contracts ...
TerraCom Director Resigns Amid Governance Dispute
Jul 27, 2026
TerraCom Limited has announced the immediate resignation of Non-Executive Director Mark Chadwick following a divergence of views with the board over oversight, sequencing and risk management. His departure highlights internal governance tensions a...
TerraCom Trims FY2026 Blair Athol Coal Sales Forecast After Production Delay
Jun 30, 2026
TerraCom Limited has revised its forecast for FY2026 coal sales from the Blair Athol Mine to approximately 1.45 million tonnes, down from an earlier estimate of 1.52 million tonnes. The change stems from a delay to a planned production blast that ...
TerraCom Targets Operational Uplift and Growth as Blair Athol Anchors FY2027 Strategy
Jun 26, 2026
TerraCom has outlined a renewed operational and financial strategy centered on its Blair Athol coal mine, where management is pursuing higher production volumes, improved mining efficiency, better coal recovery and tighter cost control. The compan...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 06, 2026