Blair Athol’s 14 Mt Coal Reserves Confirmed, Mine Life Extended

• Life of Mine extended to 2033 with 14.0 Mt marketable coal reserves
• Consistent mine life maintenance or extension over four consecutive years
• Independent JORC assessment validates technical and economic robustness
• Blair Athol remains TerraCom’s cornerstone asset driving cash flow stability
• Operational excellence and cost discipline sustain performance amid challenges

Blair Athol’s Extended Life of Mine

TerraCom Limited (ASX, TER) has announced a significant update to its flagship Blair Athol Mine in Queensland, extending the Life of Mine (LOM) to 2033. This extension is based on the latest 2025 JORC Code Resource and Reserve assessment, which reports 14.0 million tonnes of marketable coal reserves as of 30 June 2025. The update supports annual sales projections of approximately 1.6 to 1.8 million tonnes, sustaining the mine’s production outlook for around eight years.

Remarkably, Blair Athol has maintained or extended its mine life for four consecutive years despite ongoing annual depletion. This consistency highlights the quality of the coal deposit and the effectiveness of TerraCom’s mine planning and resource management strategies.

Operational Strength and Resilience

The mine’s robust geology and disciplined cost structure underpin its low-cost, long-life profile. TerraCom’s operational team has demonstrated resilience, navigating weather disruptions and supply chain challenges while maintaining safety and cost control. The updated JORC assessment, conducted by independent experts JB Mining Services Pty Ltd and The Minserve Group Pty Ltd, confirms the technical soundness and economic viability of the Blair Athol operation.

Blair Athol’s stable production and cash flow generation remain central to TerraCom’s growth strategy. The mine’s straightforward geology and established infrastructure contribute to its reliable performance, providing a solid foundation for the company’s financial strength and shareholder returns.

Market Context and Future Outlook

The coal reserves valuation incorporates long-term price forecasts, with assumptions based on Wood Mackenzie’s May 2025 outlook and other industry benchmarks. TerraCom assumes an average coal price of approximately AU$155 per tonne, reflecting a discount to the Newcastle benchmark price. This pricing framework supports the economic feasibility of the mine plan through to 2033.

While the coal market remains subject to volatility and regulatory pressures, Blair Athol’s low-cost position and operational discipline position TerraCom to capture upside as market conditions improve. The company’s focus on operational excellence and cost efficiency will be critical in sustaining performance amid evolving industry dynamics.

Independent Validation and Governance

The updated JORC Code report was prepared by qualified geologists and mining engineers with extensive experience in coal resource evaluation. The assessment adheres to the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, ensuring transparency and reliability. TerraCom’s Managing Director, Danny McCarthy, emphasized the asset’s resilience and the disciplined culture driving consistent results.

Environmental approvals and infrastructure are in place to support ongoing operations, with sustaining capital expenditures planned to maintain existing facilities. The company continues to engage with stakeholders to uphold its social license to operate.

Bottom Line?

Blair Athol’s extended mine life cements TerraCom’s position in the coal sector, but market and regulatory shifts will test its resilience in the years ahead.

Questions in the middle?

• How will TerraCom navigate potential regulatory changes impacting coal demand?
• What are the company’s plans for capital investment to sustain production beyond 2033?
• How sensitive is the mine’s economics to fluctuations in coal prices and operating costs?