TER UNDERVALUED FAIR VALUE $1.20, page-797

The QLD govt's coal royalty system certainly expects to rake in billions and with it's recently expanded multi tier system is rather lucrative at higher coal prices:

https://www.*********.com.au/2022/06/27/queenslands-new-coal-royalty-program/

Excerpt:

The original three-tier coal royalty regime allowed the Queensland government to take 7% of revenue up to $100 a tonne, 12.5% of the sales between $100 and $150 a tonne, and 15% of any revenue above $150 a tonne.

The Treasurer, Cameron Dick, has now added three new tiers to that system to capture extra profits from the soaring coal prices. The Government will now take 20% for prices above $175 per tonne, 30% for prices above $225 per tonne and 40% for prices above $300 per tonne.

By contrast (as at the time of the above report):

....NSW coal miners pay a maximum royalty rate of 8.2%.

The following QLD state revenue from coal is forecast:

........comes alive on July 1st, to generate $1.2bn in the 2023 financial year. ..... the coal royalty program could fetch the government $14bn in the next financial year, whilst other analysts are saying that it could reach $18bn......

With lower coal prices TER will pay less royalties and less tax, just exactly by how much is as yet unknown and so is the impact on overall profit. As yet there have been no company announcements as to any material impacts. Being debt free is a nice buffer.