Anglo American (LON:AAL) has inked a deal to sell its Eskom-tied thermal coal operations in South Africa, the blue-chip miner has said. The deal comes with the group continuing to restructure its portfolio to focus on a limited number of commodities.
Anglo American’s share price has slipped into the red in today’s session, having shed 0.40 percent to 1,230.50p as of 14:39 BST, slightly underperforming the broader London market, with the benchmark FTSE 100 index currently 0.01 percent worse off at 7,348.66 points. The group’s shares have gained more than 125 percent over the past year, and are up by some six percent in the year-to-date.
Anglo American announced in a statement today that it had agreed the sale of its Eskom-tied domestic thermal coal operations in South Africa to a wholly owned subsidiary of Seriti Resources, a company majority-owned by historically disadvantaged South Africans. The deal, which values the operation at about $164 million, is subject to regulatory conditions, as well as consent from public utility Eskom, and is expected to close by the end of the year.
“This transaction forms part of our ongoing commitment to reshape and upgrade our global asset portfolio,” the FTSE 100 miner’s chief executive Mark Cutifani commented in the statement. The company, which was hit alongside peers by the commodity price weakness in 2015, has been restructuring its portfolio to focus on diamonds, platinum and copper.
As of April 7, the consensus forecast amongst 24 polled investment analysts covering Anglo American for the Financial Times advises investors to hold their position in the company. According to MarketBeat, the blue-chip miner currently has a consensus ‘hold’ rating and an average price target of 1,319.06p. Anglo American is scheduled to post its first-quarter production report on April 24, when the company will also hold its annual general meeting.