Insight
Yancoal lifts stake in Moolarben with A$300 million purchase from Sojitz
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 9 images and tables including:
- Deal summary
- Location map
- Moolarben Complex production profile
- 2020 Seaborne export thermal coal TCPS curve (energy-adj to 6,000 nar)
- Marketable reserves
- Summary valuation
- Valuation metrics
- Thermal coal deal-implied prices
- Economic assumptions
What's included
This report contains:
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