.JPG)
S32 Details
Not proceeding with acquisition of the Metropolitan Colliery: South32 Ltd.’s (ASX: S32) proposed acquisition of the Metropolitan Colliery and associated 16.67% interest in the Port Kembla Coal Terminal from an Australian subsidiary of Peabody Energy Corporation seems to be caught up at the back of concerns raised by the competition watchdog (ACCC) regarding lessening of competition in the supply of metallurgical coal to Australian steelmakers in case the acquisition proceeds. On the other hand, the group does not intend to make significant concessions in favour of Australian steelmakers and has highlighted that such as step will adversely affect the value proposition of the acquisition. On another note, the group inked an option agreement with Trilogy Metals Inc. for Trilogy’s Upper Kobuk Mineral Projects (UKMP) located in the Ambler Mining District in Alaska, wherein South32 will provide an initial funding of US$30M over three years for testing the extension of the high-grade copper resource at Trilogy’s Bornite deposit. This move is expected to add value by investing through the drill bit. Quite recently, we noted that mining extraction at Cannington was impacted by an underground fire and the group is putting efforts to manage the damage. Given the entire scenario and S32 stock trading at a higher level, we maintain a “Hold” recommendation at the current price of $ 2.79
.png)
S32 Daily Chart (Source: Thomson Reuters)
Disclaimer
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd currently hold positions in: BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.