TerraCom Limited has maintained its full-year production guidance of between 2.0 and 2.2 million tonnes for the Blair Athol coal mine in Queensland, matching the guidance range previously reported in the June 2026 quarterly activities report despite below-plan performance in the early part of the financial year.

The initial production lag at the operation near Clermont was driven by several operational factors, including workforce recruitment and availability, seasonal illness within the local workforce, equipment availability, water management challenges, and lower-than-expected coal preparation plant yields.

To address these hurdles, TerraCom recently introduced newly delivered mining equipment and commenced operations in a new pit in July. These operational initiatives are intended to increase productivity and operating efficiency as the financial year progresses.

The lower production resulted in deferred coal deliveries and reduced sales volumes during the period, placing pressure on the company's near-term working capital position. To address this, TerraCom is advancing a number of initiatives designed to provide necessary liquidity and working capital flexibility.

Discussions regarding a possible new coal prepayment arrangement are well advanced, with term sheets expected imminently. The company presently expects to secure a suitable arrangement on acceptable terms, assuming production returns to planned levels.

TerraCom confirmed that the coal prepayment arrangement entered into in April 2025 has now been fully repaid. This repayment leaves the company debt-free, excluding lease commitments, compared to previous funding arrangements. 

Read the full announcement: Market Update