Insight
Yancoal lifts stake in Moolarben with A$300 million purchase from Sojitz
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
On 27 March, Yancoal agreed to purchase an additional 10% stake in the low-cost export thermal coal Moolarben joint venture for A$300 million (US$183 million) cash from Sojitz. The acquisition sees Yancoal increase its ownership to 95% and marketable equity production by 1.8 Mtpa. The deal marks Yancoal’s first M&A transaction in over a year, and the largest coal transaction in 2020, superseding fellow Australian miner Terracom’s recent acquisition of Universal Coal. In this insight, we evaluate: * the strategic rationale for both Yancoal and Sojitz * deal metrics and how the deal implied price compares with recent thermal coal transactions
Table of contents
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Executive summary
- Deal summary
- Moolarben Complex
- Deal analysis
Tables and charts
This report includes the following images and tables:
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Deal summaryLocation mapMoolarben Complex production profile
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2020 Seaborne export thermal coal TCPS curve (energy-adj to 6,000 nar)Marketable reservesSummary valuationValuation metricsThermal coal deal-implied pricesEconomic assumptions
What's included
This report contains:
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