Terracom Ltd (ASX: TER) shares are sliding this morning following the company’s release of its FY21 half-year results (1H21). In the opening minutes of trade, the Terracom share price has slipped 7.14% to 13 cents.
Let’s take a look at how the coal miner has been performing.
What’s pushing the Terracom share price lower?
The Terracom share price is in negative territory this morning after the company posted a 1H21 loss after tax of $60.4 million, compared to a 1H20 loss of $9.4 million.
Annualised coal sales for 1H21 were down 0.2 million tonnes, a 7% drop compared to the prior corresponding period (pcp).
Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at a loss of $27.5 million. This compares to a $27.8 million EBITDA profit in HY20.
Terracom’s earnings per share (EPS) for 1H21 was negative 6.94 cents compared to EPS of negative 1.96 cents in 1H20.
In other news putting pressure on the Terracom share price, the business reported $350.7 million of total assets at the end of the period as opposed to $630.3 million of total assets in the pcp.
CEO commentary and outlook
Commenting on the financial results for 1H21, Terracom chief executive officer Danny McCarthy said:
The current economic environment has been very uncertain and as a consequence the financial result from 1H FY2021 is somewhat disappointing. Strategic actions undertaken throughout the first half of 2020 saw the Company transform via the acquisition of Universal Coal plc and also the consolidation and restructure of our Australian operation…
From an operational perspective, the Company is in very good shape and will be able to overcome the uncertainties associated with the ongoing economic challenges. Underpinning this is the sustained reduced cost base at Blair Athol, a newly established export strategy in South Africa and improved export coal pricing, the Company is set to deliver stronger EBITDA results for the remainder of the financial year.
Terracom share price snapshot
Terracom is a resource explorer with a large portfolio of assets in Australia and South Africa. Over the past year, the Terracom share price has fallen by 35%. Year to date, Terracom shares have also dropped by around 24%.
Based on the current share price, the company has a market capitalisation of approximately $105.5 million with 753.6 million shares outstanding.
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Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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