The company is factoring in continued strength in coal pricing throughout FY2022.
"From September the company is positioned to capitalise on the exceptional seaborne coal pricing," Terracom said.
"Thermal coal from Blair Athol [5500 NAR CV] is sold into premium Asian markets, predominately Japan and Korea, and into the Indian sponge iron market."
Blair Athol is forecast to generate revenue of A$178 per tonne in September 2021, which will generate an operating cash margin in excess of $100/t.
Blair Athol coal sales profile remains in excess of 2 million tonnes per annum and life of mine is approximately 10 years.
"Both the Newcastle Index and API4 are nearing all-time highs and are at levels that have not been seen since mid-2008, being 12 years ago," Terracom said.
"Based on economic forecasts the indexes are expected to remain solid throughout FY2022 and as a result, the company expects to generate strong operating cash flows from Blair Athol in FY2022."