Company News in Brief
Anglo sells last steelmaking coal mines for R68bn. Next: Amplats demerger, nickel and De Beers
Anglo American has agreed to sell its portfolio of steelmaking coal mines in Australia to Peabody Energy for a cash consideration of up to $3.77 billion (about R68.5 billion).
The sale of Anglo's remaining steelmaking coal business marks a key step in the group's plan to restructure its group to create a world-class copper, premium iron ore and crop nutrients business.
"In steelmaking coal, through a combination of today's announced transaction and our previously announced agreement to sell our interest in Jellinbah [in rural Queensland], we stand to unlock up to $4.9 billion of value, reflecting the high quality of the assets and adding to our balance sheet resilience," said Duncan Wanblad, CEO of Anglo, in a statement.
"Peabody is a long-established and respected operator and we will work together and with our workforce, local communities, government, customers and partners to ensure a successful transition."
The Missouri head-quartered coal miner's agreed cash consideration comprises an upfront cash payment of $2 billion at completion, a deferred cash consideration of $725 million, the potential for up to $550 million in a price-linked earnout - meaning this portion is contingent upon the performance of the coal price after the sale.
A further contingent cash consideration of $450 million is linked to the reopening of the Grosvenor mine, where production has been suspended since June this year due to a fire at the underground mine.
The transaction is subject to a number of conditions, and its completion is expected by the third quarter of 2025.
"All the transactions to deliver our portfolio transformation are well in train – the demerger of Anglo American Platinum is expected by mid-2025 and we have seen strong interest in our nickel business with the sale process well progressed," said Wanblad.
-FIN24
Mediclinic reports rise in revenues
Hospital operator Mediclinic said on Friday that revenue rose 6% to $2.34 billion (R42 billion) and adjusted core profit 13% to $323 million in its six months to end September. it described this as a satisfying result in a challenging operator environment, particularly in Switzerland, where it is facing pressure from both operating costs and tariffs. The group, which also operates in SA and the Middle East, said it saw "strong volume growth across all the divisions." Inpatient admissions and day cases grew by 2.3% and 2.1%, respectively. In SA, which is just over a quarter of group revenue, paid patient days increased by 1%, with day case growth exceeding inpatient growth, it said. Occupancy improved to average 69.9% from 68.7% as admissions growth was partially offset by a 0.6% reduction in average length of stay. Average revenue per bed day was up 6.6% compared with the first half reflecting year-on-year tariff increases, and speciality mix changes. The hospital operator had delisted from the JSE in 2023, which followed an offer from its biggest shareholder, Remgro, in a consortium with Switzerland's MSC Mediterranean Shipping. Remgro released the results on Friday, citing the fact it is still listed and Mediclinic contributes to its results.
-FIN24
Novus' interim profit rise
JSE-listed printing group Novus Holdings, which recently announced a bid for ICT firm Mustek and acquired three divisions from Media24, announced a climb in interim profit after it bounced back from the effects of elevated paper prices. Revenue grew 3.3% to R2.1 billion, and headline earnings about doubled to R186 million, with the JSE-listed group also receiving a boost from derivative instruments held in Mustek. The group, valued at about R2.6 billion on the JSE, also reported an about 16.5% climb in operating profit to R196 million, helped by an about 150% surge in print division to R86.3 million, with margins improving, largely due to the prior year including the effect of higher priced paper stocks. Operating profit in its education division fell about 15% to R90 million, with the group reporting increased expected credit losses, as well as R15 million of additional costs on people and new or updated content to respond to the Department of Basic Education's (DBE's) curriculum reform. "We expect a further R50 million to be incurred in the next six months in order to submit updated content," it said.
-FIN24
Murray & Roberts calls for share trade suspension
Construction and engineering group Murray & Roberts (M&R) announced on Friday it has asked for its shares to be suspended from the JSE amid a cash crunch that has sent energy infrastructure unit OptiPower into business rescue. The group said it has appointed Metis Strategic Advisors for the voluntary business rescue of group, M&R Limited — or OptiPower — after feeling the strain in SA that includes cutbacks by De Beers at its Venetia operation in Limpopo. Earlier in November, M&R had warned it was struggling with liquidity constraints that had prompted delays in procurement and project progress, especially at OptiPower's projects in the renewable energy sector. The group added that Johannesburg-based M&R Cementation was also under stain from the cutbacks from De Beers, given that the contract represented more than 50% of its local mining business. M&R has been engaging with lenders and is looking to sell off further non-core assets.
-FIN24
Anglo American has agreed to sell its portfolio of steelmaking coal mines in Australia to Peabody Energy for a cash consideration of up to $3.77 billion (about R68.5 billion).
The sale of Anglo's remaining steelmaking coal business marks a key step in the group's plan to restructure its group to create a world-class copper, premium iron ore and crop nutrients business.
"In steelmaking coal, through a combination of today's announced transaction and our previously announced agreement to sell our interest in Jellinbah [in rural Queensland], we stand to unlock up to $4.9 billion of value, reflecting the high quality of the assets and adding to our balance sheet resilience," said Duncan Wanblad, CEO of Anglo, in a statement.
"Peabody is a long-established and respected operator and we will work together and with our workforce, local communities, government, customers and partners to ensure a successful transition."
The Missouri head-quartered coal miner's agreed cash consideration comprises an upfront cash payment of $2 billion at completion, a deferred cash consideration of $725 million, the potential for up to $550 million in a price-linked earnout - meaning this portion is contingent upon the performance of the coal price after the sale.
A further contingent cash consideration of $450 million is linked to the reopening of the Grosvenor mine, where production has been suspended since June this year due to a fire at the underground mine.
The transaction is subject to a number of conditions, and its completion is expected by the third quarter of 2025.
"All the transactions to deliver our portfolio transformation are well in train – the demerger of Anglo American Platinum is expected by mid-2025 and we have seen strong interest in our nickel business with the sale process well progressed," said Wanblad.
-FIN24
Mediclinic reports rise in revenues
Hospital operator Mediclinic said on Friday that revenue rose 6% to $2.34 billion (R42 billion) and adjusted core profit 13% to $323 million in its six months to end September. it described this as a satisfying result in a challenging operator environment, particularly in Switzerland, where it is facing pressure from both operating costs and tariffs. The group, which also operates in SA and the Middle East, said it saw "strong volume growth across all the divisions." Inpatient admissions and day cases grew by 2.3% and 2.1%, respectively. In SA, which is just over a quarter of group revenue, paid patient days increased by 1%, with day case growth exceeding inpatient growth, it said. Occupancy improved to average 69.9% from 68.7% as admissions growth was partially offset by a 0.6% reduction in average length of stay. Average revenue per bed day was up 6.6% compared with the first half reflecting year-on-year tariff increases, and speciality mix changes. The hospital operator had delisted from the JSE in 2023, which followed an offer from its biggest shareholder, Remgro, in a consortium with Switzerland's MSC Mediterranean Shipping. Remgro released the results on Friday, citing the fact it is still listed and Mediclinic contributes to its results.
-FIN24
Novus' interim profit rise
JSE-listed printing group Novus Holdings, which recently announced a bid for ICT firm Mustek and acquired three divisions from Media24, announced a climb in interim profit after it bounced back from the effects of elevated paper prices. Revenue grew 3.3% to R2.1 billion, and headline earnings about doubled to R186 million, with the JSE-listed group also receiving a boost from derivative instruments held in Mustek. The group, valued at about R2.6 billion on the JSE, also reported an about 16.5% climb in operating profit to R196 million, helped by an about 150% surge in print division to R86.3 million, with margins improving, largely due to the prior year including the effect of higher priced paper stocks. Operating profit in its education division fell about 15% to R90 million, with the group reporting increased expected credit losses, as well as R15 million of additional costs on people and new or updated content to respond to the Department of Basic Education's (DBE's) curriculum reform. "We expect a further R50 million to be incurred in the next six months in order to submit updated content," it said.
-FIN24
Murray & Roberts calls for share trade suspension
Construction and engineering group Murray & Roberts (M&R) announced on Friday it has asked for its shares to be suspended from the JSE amid a cash crunch that has sent energy infrastructure unit OptiPower into business rescue. The group said it has appointed Metis Strategic Advisors for the voluntary business rescue of group, M&R Limited — or OptiPower — after feeling the strain in SA that includes cutbacks by De Beers at its Venetia operation in Limpopo. Earlier in November, M&R had warned it was struggling with liquidity constraints that had prompted delays in procurement and project progress, especially at OptiPower's projects in the renewable energy sector. The group added that Johannesburg-based M&R Cementation was also under stain from the cutbacks from De Beers, given that the contract represented more than 50% of its local mining business. M&R has been engaging with lenders and is looking to sell off further non-core assets.
-FIN24
