Anglo American share price outperforms as group sells coal mine stake
Anglo American (LON:AAL) has inked a deal to sell its 70-percent interest in an Australian coal mine, the blue-chip group has said. The move follows the FTSE 100 company’s strategy update earlier this year when the miner signalled that it had earmarked its coal assets for sale.
Anglo American’s share price has gained ground in today’s session, having added 0.74 percent to 542.40p as of 10:29 BST. The shares are outperforming the broader London market, with the benchmark FTSE 100 index currently standing 0.45 percent higher at 6,173.42 points. In the year-to-date, Anglo’s shares have soared 80.9 percent, as compared with a 1.09-percent fall in the Footsie.
Anglo American said in a statement this morning that it had entered into a sale and purchase agreement with a consortium led by Taurus Fund Management to sell its 70-percent interest in the Foxleigh metallurgical coal mine in Queensland, Australia. Foxleigh is an open cut coal operation which produces high quality pulverised coal injection coal. Anglo’s share of production last year amounted to 1.86 million tonnes.
The company noted that the transaction will be effected via a sale of shares in the subsidiary companies holding the FTSE 100 miner’s interest in Foxleigh. Anglo, however, noted that the terms of the transaction were confidential.
Anglo American, which posted a hefty full-year loss earlier this year, has said that it plans to focus on a “world class” portfolio of assets in diamonds, platinum and copper. Bulk commodities and other minerals assets meanwhile are “to be managed for cash generation or disposal”. The miner expects to raise between $3 billion and $4 billion from asset sales this year this year, on top of $2.1 billion from 2015.
As of 10:53 BST, Monday, 04 April, Anglo American plc share price is 542.85p.