Insight
Adaro and EMR diversify into Australian metallurgical coal with US$2.25 billion Kestrel acquisition
Report summary
On 27 March, Adaro Energy and EMR Capital announced they had jointly agreed to purchase Rio Tinto's 80% interest in the Kestrel coking coal mine in Queensland for US$2.25 billion in cash. The total consideration payable by Adaro and EMR may rise up to US$2.81 billion should Mitsui decide to exit its 20% interest for up to US$563 million. In this insight, we assess the metrics of the deal and strategic rationale of all parties involved.
Table of contents
- Overview
-
Deal summary
- Kestrel
- Deal analysis
- Strategic rationale, upside and risks
Tables and charts
This report includes 9 images and tables including:
- Deal summary
- Location map
- Summary valuation
- Valuation metrics
- Economic assumptions
- Adaro and EMR's bid signals further recovery in deal-implied benchmark hard coking coal prices
- Adaro pro-forma production profile - metallurgical coal (attributable)
- Seaborne metallurgical coal total cash cost curve 2018 (US$/tonne)
- Marketable reserves (1 July 2018)
What's included
This report contains:
Other reports you may be interested in
Commodity Market Report
Global Metallurgical Coal Strategic Planning Outlook 2024
Metallurgical coal’s seaborne imports will continue to grow until 2050, with India and Southeast Asia remaining key regions for growth
$10,000
Commodity Market Report
Global metallurgical coal short-term outlook April 2024
Premium hard coking coal prices rebound off improving sentiments
$5,000
Insight
BHP eyes Anglo American for copper growth
This document analyses the potential combination of BHP and Anglo American – including valuation, strategic rationale and synergies.
$1,050