29th Jul 2024 08:23
South32 Ltd - Perth-based diversified mining group - Says the sale of its Illawarra metallurgical coal to an entity owned by Golden Energy & Resources Pte Ltd and M Resources Pty Ltd is now unconditional, after meeting all conditions. Expects the transaction to be complete on or around September 2. South32 first announced the proposed deal late in May. On completion, South32 will receive the upfront cash payment of USD1.05 billion, less the already paid deposit of USD40 million. The deferred cash consideration of USD250 million, payable in 2030, and the contingent price-linked cash consideration of up to USD350 million, will be recognised in its financial statements as a non-current other receivable and a non-current other financial asset.
"The sale of Illawarra Metallurgical Coal is a significant milestone in the transformation of our portfolio towards commodities critical to a low-carbon future. The transaction will simplify our business, strengthen our balance sheet and reduce our capital intensity, unlocking capital to invest in our high-quality development projects in copper and zinc," South32 Chief Executive Officer Graham Kerr says.
Current stock price in London: 155.00 pence, up 1.4% on Monday morning
12-month change: up 23%
Current stock price in Johannesburg: ZAR36.37, up 0.1%
12-month change: down 21%
By Artwell Dlamini, Alliance News reporter
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