ANGLO American had overstated the thermal coal gross sales and understated the rehabilitation prices of Thungela Assets, in response to analysis firm Boatman Capital.
Citing a report by the research house, described as ‘secretive’, the Sunday Telegraph said today that Thungela Assets was nugatory. The report comes simply as Thungela Assets is because of make its debut on the London and Johannesburg inventory exchanges.
The guts of the report claims that environmental legal guidelines in South Africa, at present into consideration by the federal government, would lead to rehabilitation prices a lot larger than set down by Anglo, mentioned the Sunday Telegraph.
Anglo mentioned that the regulation adjustments that will have an effect on rehabilitation prices had been “controversial” and had been nonetheless underneath dialogue. The matter had been raised by the Minerals Council South Africa by way of submissions it has made to the federal government, the group mentioned.
Boatman Capital is alleged to have scored successes towards the UK defence contractor Babcock following a report it compiled three years in the past through which it mentioned the corporate had “buried a whole lot of unhealthy information” and was going through “doubtlessly huge distinctive prices”. The corporate lately wrote down its enterprise by £1.7bn, mentioned the newspaper.
Thungela Assets is the creation of the de-merged South African thermal coal property beforehand held in Anglo Coal. Mark Cutifani, CEO of Anglo, mentioned beforehand a demerger was probably the most elegant resolution to the group’s decarbonisation plans as it could permit shareholders to stay invested within the firm while offering for “a simply transition” by way of South African coal.
Nevertheless, Boatman Capital concluded in its report that: “The demerger permits Anglo to dump huge environmental prices onto a a lot much less properly capitalised firm.
“To us, this seems to be like greenwashing: Anglo is claiming to be appearing positively by lowering its greenhouse emissions whereas seemingly washing its palms of clean-up obligations. Thungela appears to have considerably under-estimated its environmental liabilities and due to this fact may have given buyers a deceptive impression of the corporate’s worth.”
Anglo will inject R2.5bn into Thungela and mentioned it could additionally proceed to supply monetary help to the corporate till end-2022 within the occasion rand-denominated thermal coal costs fell beneath a sure threshold.
Anglo American produced 16.5 million tons from its South African coal property throughout its 2020 monetary 12 months, a 7% year-on-year discount, producing a $15m underlying EBITDA loss, and taking EBITDA losses over two years to $20m.