South32's Asset Sale Leads UBS to Question Coal-Price Assumptions -- Market Talk

Dow Jones03-01

0259 GMT - UBS wonders whether it needs to lift its assumptions for metallurgical coal prices in the wake of South32's up to $1.65 billion sale of its coal business. In a note, analyst Lachlan Shaw said the bank's valuation of the asset relied on a $180/ton long-term real met coal price. However, the transaction implies a price of $210/ton. "We think the buyers, GEAR and M Resources, would be looking at upside from life extensions and cost out, but also potentially a minimum $230/ton long-term real met coal price," which implies a 16% internal rate of return, Shaw says. "If met coal prices trade closer to these implied values, earnings and valuation upside risk emerges for Australian met coal producers." (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

February 29, 2024 21:59 ET (02:59 GMT)

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In a note, analyst Lachlan Shaw ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK7129","symbol_name":"钢铁","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2416063200","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2416063200","pubTimestamp":1709261940,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0259 GMT - UBS wonders whether it needs to lift its assumptions for metallurgical coal prices in the wake of South32's up to $1.65 billion sale of its coal business. 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