In 2017, TerraCom (ASX: TER) bought the Blair Athol mine for a single dollar along with some environmental remediation obligations. It then acquired four operating mines in South Africa via its acquisition of Universal Coal, with the mines underwritten by domestic coal contracts and low operating costs. Against this however it battled a heavy debt load that it struggled to re-finance, burdened further by an environment where investing in coal has been shunned by the investment community. Today with a surging coal price and strong demand from Asia, TER has now refinanced and is in a position to pay down its debt.
ShareCafe’s Tim McGowen speaks with TerraCom’s executive chairman Craig Ransley about their debt refinancing, South African mines and its Queensland cash cow Blair Athol.
