New Funding Boosts Re-Rating Potential for TerraCom

After weathering a tumultuous FY21 that saw export coal prices plumb cycle depths and its major domestic coal client experience capacity outage issues, ASX-listed TerraCom Limited (ASX: TER) has undergone a corporate transformation that has led to rising revenues and an accelerating earnings profile for FY22.

Now, in the face of a reduced supply of credit to coal groups by increasingly carbon-conscious debt markets, TER has laid the groundwork to refinance its existing debt obligations and secure extra funds for the company to consider new projects, boosting the potential for a re-rating.

Corporate Connect analyst Lawrence Grech has today released an updated analysis of TER, in which he has upgraded the target price from $A0.24 to $A0.31 and placed an NPV on the company at $A0.37. TER shares were trading at $A0.17 at the time this report was released.

TerraCom Limited (ASX: TER) is an emerging company originating as a resource explorer with a large portfolio of operating assets in Australia and South Africa. TER is currently enacting a growth strategy towards delivering a mid-tier diversified operating and trading business and have a global focus on the development of a high yielding diversified asset portfolio for investors.

For full details refer to the detailed report below or click here to download your copy.