Insight
Global coal M&A activity August 2018: deal implied prices move higher
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Global coal M&A spend (ex. China and India) continued to strengthen in 2018, largely due to Rio Tinto's exit from coal. In this insight we take a closer look at the key deals and their drivers as well as an outlook on future activity. Stronger coal prices in 2018 have bolstered cashflows and confidence which has resulted in rising deal implied transaction prices. Will coal M&A remain robust going into 2019?
Table of contents
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Executive summary
- Deal implied prices continue to move higher signalling a return of confidence
- Operating mines still preferred, but increasing focus on projects with near term development options
- Higher confidence leads to rising deal-implied prices and reserve and resource multiples
Tables and charts
This report includes the following images and tables:
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Acquisition spend by regionNumber of deals by regionDeal-implied long-term benchmark thermal coal prices v Newcastle (6,000 nar) export thermal coal spot price
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Deal-implied long-term benchmark metallurgical coal prices v Queensland HCC coal spot priceAcquisition spend by statusNumber of deals by statusEV / reserves (US$/tonne)EV / resources (US$/tonne)
What's included
This report contains:
