The steelmaker is the major customer for the high-quality coking coal from the mine, and under its current contract, it has a first right of refusal should the mine be put up for sale.
South32 (ASX:S32) revealed on Thursday that it proposed selling the mine to Indonesian and Australian interests for around $US1.65 billion in cash and future payments.
BlueScope (ASX:BSL), given its position following South32’s announcement, has entered into an eight-year coal deal with South32, giving it the first right to buy any of the mines.
“BlueScope has rights to proceed with the long-term source agreement, adding pre-emptive acquisition rights in favor of BlueScope, and the company will review its position,” the company told investors in a statement.
Under the terms of its contract, BlueScope can buy the coal business for a negotiated value of $1. 65 billion, while the Indonesian-backed client cannot make a higher offer, said Graham Kerr, chief executive of South32.
Under the terms of the deal announced Thursday, Golden Energy and Resources, an Indonesian organization ultimately owned by the wealthy Widjaja family, and a local company, M Resources, would jointly buy the mines. GEAR will own 70% of the mining operations, as well as M Resources, which is associated with GEAR at Stanmore Resources in Queensland (at BHP’s former TDM coal mines).
The Illawarra mine has been a volatile business with big profits following Russia’s invasion of Ukraine, but it has also noticed declining revenue and profits due to the time and prices involved in repositioning its longwall mining machines.
In the December half-year, moving the longwall cost South32 $US267 million in lower sales volumes, and that is a continuing problem, especially with mining conditions in the region known for their difficulty and high levels of gas.
At the end of December, BlueScope had more than $1.3 billion in cash on hand (and around $617 million after taking into account debt). It has a major $1 billion project to revamp its Number 6 blast furnace over the next five years to replace the current Number 5 furnace, which is nearing the end of its current campaign.
The A$2. 5 billion commitment to coal mines will increase the company’s debt and leverage levels, regardless of how it structures it to balance its money and debt and have enough leftovers to fund the renovation of blast furnaces without too much pressure.
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Increases across all areas of Deep Leads resources: quality, tonnage and target area ABx Group has reported a 30% increase in its Mineral Resource Estimate (MRE) at the Deep Leads Ionic Adsorption Clay (IAC) rare earth deposit in northern Tasmania. The accumulation in MRE comes from 36 extension wells analyzed, representing a significant northward extension for the existing Deep Leads prospect.
Lake Resources (LKE. ASX) – LKE has signed two non-binding MOU’s in the space of 10 days. Ford Company (Ford) has signed an MOU for ~25,000t/year and last week Hanwa, a Japanese commodity trader signed a MOU for up to 25,000t/year. Subject to execution, this is an amazing feat as Ford and Hanwa are prepared to enter into longer-term strategic partnerships with LKE. Commercial negotiations are still ongoing but are expected, especially if Ford & Hanwa inject new equity into LKE, to further de-risk the project financing & thus ensure LKE and Kachi are fully funded.
Two recent gravity surveys have considerably exceeded expectations and revealed potential for extensions to the existing MRE at Lake Throssell, plus a material growth opportunity at Lake Yeo. This reinforces the potential for a multi-decade, Tier-1 SOP production hub based around Lake Throssell.
TMG is currently completing paints for the planned PFS in early 2023, adding the start of drilling in the third quarter of 2022, evaporation testing and permitting activities. The effects of these systems will affect the SFP and any long-term resource improvements.
SOP reference prices have increased to around $940/t due to recent geopolitical developments. The October 2021 scoping study assumed an SOP value of $550/t and contained a sensitivity study showing that each 10% accrual in value effects amounted to $144 million accrued to the NPV of the $364 million allocation. The increase of approximately 70% during the scoping study implies an NPV of the allocation of approximately $1. 4 billion.
Despite the lower realised oil and gas price, which fell by 5.4% and 19.7% respectively in August, Calima managed to show improvement in its key business metrics.
WT Financial Group Limited (WTL) is a fast-growing diversified monetary company founded in 2010 and indexed on the Australian Securities Exchange (ASX) in 2015. Their recommendations and product offerings are primarily provided through an organization of independent money advisors who act as legal representatives. . de WTL in connection with its broker organisation business Wealth Today Pty Ltd (Wealth Today) and Sentry Group Pty Ltd (Sentry Group). It has approximately 275 advisers in more than two hundred money advice firms across Australia. It also operates a direct-to-consumer operation under its Spring Financial Group brand.
In May 2021, Corporate Connect analyst Marc Sinatra published a comprehensive research report on ASX-listed biotech Immutep Ltd (ASX: IMM). So impressed was he with IMM that Corporate Connect felt it imperative that a follow-up report be released placing a valuation on the company, because the market was not seeing the vast potential of eftilagimod alpha (efti).
The follow-up report published today. Using comparables, after adding a monetary rebate to its EV estimate and dividing it by the total number of percentages issued, Corporate Connect now puts the fair price of a percentage of Immutep at A$2. 20.