Short Term Trading Week Starting: 30 Apr, page-82

STTCOMP TER, FA LONG
SP .25c
Market cap:$94 Million
Shares on issue: 375 million
Coal miner producing both coking and thermal coal with 2 operating mines (one in QLD and one in Mongolia).

Catalyst - way to bloody cheap

Today TER had the quarterly come out, they are ramping up big time and had a huge quarter, in summary the below is what I expect to occur over the coming months given the guidance.

Margin per tonne Tonnes Produced Earnings guidance per quarter
$ 18.00 450,000.00 $ 8,100,000.00 BNU mine in Mongolia (Coking coal)
$ 42.00 462,000.00 $ 19,404,000.00 BA mine in QLD (Thermal coal)

Earnings per quarter : $ 27,504,000.00
Earnings per annum: $ 110,016,000.00
Shares on issue: $ 375,000,000.00
Debt : $195,000,000.00

Cash / receivables @ 31/3/18 $ 21,000,000.00
Debt per share 0.52
Cash per share 0.06

Earnings per share 0.29

Approx Debt per share $ 0.52
Approx Cash per share $ 0.06

Share Price Estimates less debt per share + cash per share

5 x ratio $ 1.00
8 x ratio $ 1.88
10 x ratio $ 2.47
15 x ratio $ 3.94

The QLD mine that accounts for the juicy margins currently has 9 years of reserves and the company just completed building a trainline to improve margins.

Furthermore, John Singleton’s company is a major shareholder and they bought another 20 mill shares the other day at .215c.

Also the directors of this company are big wigs - http://terracomresources.com/about-terracom/board/


Not advice just an opinion, do your own research as these are purely my musings.

Cheers GB.