Wet weather impacts saw coal sales out of Blair Athol drop 31 per cent last quarter compared to the previous three months, according to latest figures from TerraCom.

However, the company expects to meet FY26 sales guidance of 1.6Mt as it moves into a stronger June quarter, according to interim chief executive officer Chris Bourke.

“Throughout the (March) quarter, mining, processing and coal handling activities at Blair Athol remained stable; however, rainfall and cyclone activity reduced mining efficiency and constrained coal handling and logistics, while rail and broader supply chain disruptions further affected delivery timing and vessel loading,” he said in the company’s quarterly report.

“This resulted in lower sales volumes and elevated stockpiles at site and port, with coal sales for the quarter totalling 253kt.

“These impacts were related to shipment timing rather than underlying mine performance or product quality, with customer demand remaining strong and 100 per cent of June quarter sales contracted.

“Following improved conditions after quarter end, April shipments are forecast at approximately 229kt, reflecting improved logistics availability and stockpile drawdown.”

He said about 550kt of coal sales were forecast out of Blair Athol this quarter.

ROM coal production for the March 2026 quarter was 410kt, down 4 per cent on the December quarter and 4 per cent lower than the prior corresponding period.

Total coal stockpiles at the quarter’s end were 134kt, comprising 24kt of ROM and 110kt of saleable coal.

TerraCom said the operational focus at the mine remained on maintaining high dragline availability, optimising mining performance, and sustaining a competitive unit cost base.

The key corporate activity during the quarter was the completion of a fully subscribed $60 million entitlement offer. As at March 31, TerraCom held cash at bank of $32.9 million, with a further $54.4 million of restricted cash associated with rehabilitation bonding requirements at Blair Athol.

The company has weathered a period of turmoil on the leadership side. During the quarter, Mark Lochtenberg, Glen Lewis and Mark Ludski resigned from the board. Andrew Coles, Glenn Splatt and Stephen Barber were appointed as non-executive directors.

After quarter-end, Danny McCarthy stepped down as managing director, with Chris Bourke appointed interim chief executive officer and Andrew Coles appointed non-executive chairman.

Chief financial officer and company secretary Jen Williams resigned and is supporting transition arrangements while the company undertakes a recruitment process for her replacement.