Ann: Blair Athol Result - July 2021, page-19

100% agree.

Why are they all of a sudden releasing monthly updates when profit is positive. They have only been doing it since April when the coal price turned.

whilst I have been tempted to invest over the past few months I can’t do it as I just don’t trust these guys. Their transparency and respect for retail shareholders is woeful.

the fact wal king was chair speaks volumes (gone now I admit) - an awful track record of greed. The board has proven themselves entirely incompetent. They are at the mercy of the banks for their survival. How could a competent board get themselves in such debt?

the only reason they have any hope is that the coal
price has hit record levels in the space of a few months - pure good fortune. If they turn it around, which is probably an even money bet from here given the coal price, they will claim genius, but reality is they have dodged a bullet by pure luck.

Even then, there is a good chance they will waste any money they make on a new acquisition.I mean, bauxite in guinea? Give me a break. What has that got to do with their core business of coal?

lastly, there are much better options for a play on coal. On an enterprise value basis (including debt), both new hope and Whitehaven are cheaper than terracom at current prices. Both at circa 2x ebitda vs terracom at around 2.5x. Too many people on this forum just quote market cap, but terracom have twice that in debt.

The only thing terracom have is that they are leveraged to the hilt, so if they do get through this and coal prices stay stronger for longer, I admit, they could have more explosive upside than the others.

I don’t rule out the share price doubling (or more), but if it does it is pure luck and for me, I can’t trust management and the board to be reliable custodians of my cash.

no offence intended.