YANCOAL AUS (03668) rose more than 4% again. At the time of writing, the stock was up 4.53% to HK$40.16, with a turnover of HK$35.6919 million.
The company recently announced plans to acquire a 100% interest in the Kestrel Group, indirectly gaining an 80% interest in the Kestrel Coal Mine. The maximum transaction consideration is US$2.4 billion, including an upfront cash payment of US$1.85 billion and a contingent cash payment of up to US$550 million.
The Kestrel Coal Mine is located in the Bowen Basin of Queensland and is one of Australia's largest operating underground coal mines.
Analysts note that as seasonal demand for coal strengthens, diesel supply for the coal industry tightens, and coal production cost pressures increase, overseas coal prices may rise further. Consequently, the company's coal selling prices are expected to increase in line with market prices.
The planned acquisition of the Kestrel Coal Mine in Australia is projected to increase the company's annual coal production by approximately 12% on an equity basis and boost saleable coal reserves by about 21%. With increased output of high-quality coking coal and high-calorific-value thermal coal products, the company's overall profitability is expected to improve.
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