In August, Adani Group entered into an option agreement with Linc Energy to buy back a private royalty associated with its Carmichael project in Australia's Galilee Basin. The purchase clearly demonstrates Adani's commitment to developing the project, and it appears to have secured the royalty stream at a sizeable discount to our base case valuation. But the degree of uncertainty facing Galilee Basin coal developments suggests Linc have secured a good price.
Table of contents
Background to the royalty deal
Assessing the risk
Tables and charts
This report includes 4 images and tables including: