Blair Athol set to improve margins

TERRACOM is hoping to increase the earnings margin on coal from its Blair Athol mine in Queensland to between $25 and $30 per tonne in the June 2021 quarter.
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Average achieved coal pricing for Blair Athol during the March quarter was approximately $77/t.

This company achieved a $15.50/t earnings before interest, tax, depreciation and amortisation margin at Blair Athol in the March quarter.

Average achieved coal pricing for Blair Athol during the March quarter was approximately $77/t, representing an increase of almost 30% from the average price achieved during the six-month period to December 2020 of $59/t.

"Under its owner managed operational model, the Blair Athol mine in Queensland continues to deliver, trading on a significantly reduced and sustained free-on-board operating cost base compared to the 2020 financial year," Terracom said.

"This places the Blair Athol mine in the first quartile of seaborne export FOB operating costs per tonne."

Blair Athol has contracted coal sales for the June quarter of 675,000t and is forecast to deliver coal sales of 2.41Mt in the 2020-21 financial year.