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Saturday, 04 May 19
HOW THE 'FAIR VALUE' OF COAL ASSETS IS AFFECTED BY COMMODITY CYCLES - CRU
As with any commodity, valuing coal assets can be tricky due to the cyclical nature of the market. In this insight, CRU discusses how commodity cycles have created ‘winners’ and ‘losers’ in the last few years of M&A activity in the coal sector.
Since commodity prices tend to move in cycles, one of the biggest challenges that industry stakeholders face is determining the ‘fair value’ of assets (which is essentially derived from future cash-flows). In order to do this, CRU has noticed that the biggest hurdle lies in identifying the current position in the commodity cycle. Moreover, it appears that parties often place too heavy an emphasis on prevailing prices. This has led to companies either significantly under- or over-valuing coal assets in recent years.
Sellers are the industry ‘winners’ of 2018…
Historically, the coal industry has not been renowned for maintaining supply discipline and high margins have usually resulted in a push to ramp up supply, through both brownfield/greenfield expansions and M&A activity. Today, however, environmental concerns mean that new thermal coal investments are largely off the table, although the push towards increased supply in the metallurgical coal sector is still alive and kicking.
The benchmark Premium HCC spot price averaged $206 /t, FOB Australia in 2018, the highest annual average price since 2011, and margins for most seaborne metallurgical coal producers have been very strong. This has encouraged some to look to acquire more volume (e.g. Glencore), while other producers have divested coal assets as part of a strategic repositioning (e.g. Rio Tinto). Other companies that previously produced mostly thermal coal have also acquired metallurgical coal assets (e.g. Adaro). Meanwhile, mid-tier producers, such as Whitehaven Coal, have also acquired new assets as part of their growth strategies.
Source: CRU
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Monday, 08 April 19
SULPHUR 2020 - COUNTDOWN TO THE SWITCHOVER - LLOYD'S REGISTER
Sulphur 2020 (MARPOL Annex VI Reg. 14.1.3) is still dominating headlines and as we draw closer to the 1 January 2020 deadline it’s clear that ...
Monday, 08 April 19
INDONESIAN COAL PRICE REFERENCE PRICE PLUMMETS TO LOW NOT SEEN SINCE AUGUST 2017
COALspot.com: The Ministry of Energy and Mineral Resources of the Republic of Indonesia has revised down the benchmark price of Indonesian thermal ...
Sunday, 07 April 19
SHIP PASSAGE PLANS - NO ROOM FOR ERROR! - WATSON FARLEY & WILLIAMS
KNOWLEDGE TO ELEVATE
The English High Court’s judgment in Alize 1954 v Allianz Elementar Versicherungs AG (The CMA CGM Libra) is an impo ...
Sunday, 07 April 19
IMO 2020: READY OR NOT? - WOOD MACKENZIE
New Year’s Day 2020 is firmly marked in the calendar as the refining and shipping industries prepare for change.
The International Marit ...
Saturday, 06 April 19
AUSTRALIA COAL POSTS BIGGEST WEEKLY DROP IN A DECADE AMID WEAK DEMAND - REUTERS
Australian thermal coal prices this week registered their biggest weekly fall since the financial market turmoil of a decade ago as demand plunged ...
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- CNBM International Corporation - China
- Iligan Light & Power Inc, Philippines
- Planning Commission, India
- Maharashtra Electricity Regulatory Commission - India
- Karbindo Abesyapradhi - Indoneisa
- Pendopo Energi Batubara - Indonesia
- Bulk Trading Sa - Switzerland
- Pipit Mutiara Jaya. PT, Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Essar Steel Hazira Ltd - India
- Standard Chartered Bank - UAE
- Vedanta Resources Plc - India
- Sree Jayajothi Cements Limited - India
- Siam City Cement - Thailand
- Chettinad Cement Corporation Ltd - India
- GVK Power & Infra Limited - India
- Aditya Birla Group - India
- Gujarat Mineral Development Corp Ltd - India
- Metalloyd Limited - United Kingdom
- European Bulk Services B.V. - Netherlands
- Agrawal Coal Company - India
- Baramulti Group, Indonesia
- Eastern Coal Council - USA
- Edison Trading Spa - Italy
- Global Business Power Corporation, Philippines
- Coalindo Energy - Indonesia
- Formosa Plastics Group - Taiwan
- Trasteel International SA, Italy
- Intertek Mineral Services - Indonesia
- Kobexindo Tractors - Indoneisa
- Kalimantan Lumbung Energi - Indonesia
- Simpson Spence & Young - Indonesia
- Straits Asia Resources Limited - Singapore
- Directorate General of MIneral and Coal - Indonesia
- Georgia Ports Authority, United States
- Siam City Cement PLC, Thailand
- Asmin Koalindo Tuhup - Indonesia
- Parliament of New Zealand
- Bukit Baiduri Energy - Indonesia
- PNOC Exploration Corporation - Philippines
- Kepco SPC Power Corporation, Philippines
- Larsen & Toubro Limited - India
- ASAPP Information Group - India
- Electricity Authority, New Zealand
- Ministry of Mines - Canada
- Oldendorff Carriers - Singapore
- SN Aboitiz Power Inc, Philippines
- Tamil Nadu electricity Board
- Medco Energi Mining Internasional
- IHS Mccloskey Coal Group - USA
- TNB Fuel Sdn Bhd - Malaysia
- Gujarat Electricity Regulatory Commission - India
- ICICI Bank Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- GAC Shipping (India) Pvt Ltd
- Bangladesh Power Developement Board
- Uttam Galva Steels Limited - India
- Samtan Co., Ltd - South Korea
- Therma Luzon, Inc, Philippines
- Cement Manufacturers Association - India
- Leighton Contractors Pty Ltd - Australia
- Banpu Public Company Limited - Thailand
- Semirara Mining Corp, Philippines
- AsiaOL BioFuels Corp., Philippines
- Indonesian Coal Mining Association
- Romanian Commodities Exchange
- Malabar Cements Ltd - India
- Maheswari Brothers Coal Limited - India
- Jaiprakash Power Ventures ltd
- Binh Thuan Hamico - Vietnam
- Africa Commodities Group - South Africa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Timah Investasi Mineral - Indoneisa
- Ind-Barath Power Infra Limited - India
- Bhoruka Overseas - Indonesia
- Altura Mining Limited, Indonesia
- New Zealand Coal & Carbon
- Global Green Power PLC Corporation, Philippines
- Latin American Coal - Colombia
- Holcim Trading Pte Ltd - Singapore
- Asia Pacific Energy Resources Ventures Inc, Philippines
- London Commodity Brokers - England
- Sakthi Sugars Limited - India
- Kideco Jaya Agung - Indonesia
- Salva Resources Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- Mercuria Energy - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Orica Mining Services - Indonesia
- Kumho Petrochemical, South Korea
- Cigading International Bulk Terminal - Indonesia
- Globalindo Alam Lestari - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Commonwealth Bank - Australia
- VISA Power Limited - India
- Wilmar Investment Holdings
- Alfred C Toepfer International GmbH - Germany
- Mercator Lines Limited - India
- Semirara Mining and Power Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Port Waratah Coal Services - Australia
- Bahari Cakrawala Sebuku - Indonesia
- Bharathi Cement Corporation - India
- Borneo Indobara - Indonesia
- Coastal Gujarat Power Limited - India
- Independent Power Producers Association of India
- Central Java Power - Indonesia
- Interocean Group of Companies - India
- GMR Energy Limited - India
- The State Trading Corporation of India Ltd
- Attock Cement Pakistan Limited
- International Coal Ventures Pvt Ltd - India
- Eastern Energy - Thailand
- SMC Global Power, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Mintek Dendrill Indonesia
- Coal and Oil Company - UAE
- Merrill Lynch Commodities Europe
- CIMB Investment Bank - Malaysia
- Australian Coal Association
- Bhatia International Limited - India
- Posco Energy - South Korea
- TeaM Sual Corporation - Philippines
- Indo Tambangraya Megah - Indonesia
- Directorate Of Revenue Intelligence - India
- Marubeni Corporation - India
- Indogreen Group - Indonesia
- Bayan Resources Tbk. - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Price Waterhouse Coopers - Russia
- PTC India Limited - India
- Sojitz Corporation - Japan
- Manunggal Multi Energi - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Riau Bara Harum - Indonesia
- SMG Consultants - Indonesia
- McConnell Dowell - Australia
- Energy Link Ltd, New Zealand
- Lanco Infratech Ltd - India
- Kaltim Prima Coal - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Mjunction Services Limited - India
- Ministry of Finance - Indonesia
- Xindia Steels Limited - India
- MS Steel International - UAE
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Energy Development Corp, Philippines
- Deloitte Consulting - India
- Neyveli Lignite Corporation Ltd, - India
- Kartika Selabumi Mining - Indonesia
- Tata Chemicals Ltd - India
- Chamber of Mines of South Africa
- PetroVietnam Power Coal Import and Supply Company
- Central Electricity Authority - India
- Ambuja Cements Ltd - India
- White Energy Company Limited
- Star Paper Mills Limited - India
- Sical Logistics Limited - India
- South Luzon Thermal Energy Corporation
- Goldman Sachs - Singapore
- Petron Corporation, Philippines
- Vizag Seaport Private Limited - India
- Parry Sugars Refinery, India
- Videocon Industries ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- San Jose City I Power Corp, Philippines
- Thiess Contractors Indonesia
- Minerals Council of Australia
- Kapuas Tunggal Persada - Indonesia
- Sarangani Energy Corporation, Philippines
- Wood Mackenzie - Singapore
- Singapore Mercantile Exchange
- Offshore Bulk Terminal Pte Ltd, Singapore
- Toyota Tsusho Corporation, Japan
- The University of Queensland
- Power Finance Corporation Ltd., India
- Indika Energy - Indonesia
- Makarim & Taira - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Thai Mozambique Logistica
- Grasim Industreis Ltd - India
- Global Coal Blending Company Limited - Australia
- Barasentosa Lestari - Indonesia
- Karaikal Port Pvt Ltd - India
- Orica Australia Pty. Ltd.
- India Bulls Power Limited - India
- Krishnapatnam Port Company Ltd. - India
- Carbofer General Trading SA - India
- Madhucon Powers Ltd - India
- OPG Power Generation Pvt Ltd - India
- Meralco Power Generation, Philippines
- PowerSource Philippines DevCo
- Dalmia Cement Bharat India
- Bhushan Steel Limited - India
- Billiton Holdings Pty Ltd - Australia
- Antam Resourcindo - Indonesia
- Indian Oil Corporation Limited
- Rio Tinto Coal - Australia
- Gujarat Sidhee Cement - India
- Aboitiz Power Corporation - Philippines
- IEA Clean Coal Centre - UK
- Indian Energy Exchange, India
- LBH Netherlands Bv - Netherlands
- Economic Council, Georgia
- Ministry of Transport, Egypt
- Anglo American - United Kingdom
- Meenaskhi Energy Private Limited - India
- Sinarmas Energy and Mining - Indonesia
- Australian Commodity Traders Exchange
- Heidelberg Cement - Germany
- Vijayanagar Sugar Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Sindya Power Generating Company Private Ltd
- Electricity Generating Authority of Thailand
- Savvy Resources Ltd - HongKong
- Renaissance Capital - South Africa
- The Treasury - Australian Government
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