Corporate Connect Research

Microsoft Word - Terracom Nov22 Update V1[6313][6318].docx (corporateconnect.com.au)

Good update from Corporate Connect. They have assumed dividends at 35c for the year, based on revenue of A$320 per tonne, which equates to around US$214 / tonne which is on the conservative side. Bearing in mind the 1st 5 months will have all been above that, we would need to see a continued dramatic decline in the coal price to hit this number. They clearly don't see that happening as they have the following year at A$280 / tonne.

Nice target price too, around the price I would expect a takeover to be accepted if 1 was to arise from somewhere. As a takeover, I still see this as almost an annuity to a larger company.