Mining Company Exploration and Trade Report : Macarthur Coal’s Profit May Rise as Much as 13%
Macarthur Coal Ltd., in talks with an unidentified suitor, said full-year profit may increase as much as 13 percent on rising prices for pulverized coal and the sale of its stake in a joint venture.
Net income may be between A$67 million ($64 million) and A$75 million in the 12 months ending June 30 from A$66.5 million a year ago, the Brisbane based company that supplies 35 percent of global export demand for pulverized coal said in a statement.
The forecast compares with an estimate of A$83.4 million from Macquarie Group Ltd. in an April 22 report. Earnings growth was crimped by port and rail constraints in Australia’s Queensland state and floods that stopped mining at its two operations, Chief Executive Officer Nicole Hollows said.
“Operations at Macarthur Coal’s two mines, Coppabella and Moorvale, continue to perform well with the recommencement of coal mining at both sites following the wet weather events earlier in the year,” Hollows said. “Force majeure has not as yet been lifted as access to all mining areas at the Coppabella mine is yet to be re-established.”
Macarthur, which said earlier this month that it was in talks with a potential suitor, fell 7 cents, or 0.4 percent, to A$18.38 at the 4:10 p.m. Sydney time close on the Australian stock exchange. The Wall Street Journal said earlier this month that Xstrata Plc was trying to agree a price with Macarthur.
Share Sale
A parcel of shares representing about 9.6 percent of the company was sold in a special crossing trade after the market closed today. A special crossing sale has only one seller but can have multiple buyers. The parcel was priced at A$20.00, an 8.8 percent premium to the closing share price. Company spokeswoman Annette Fraser wasn’t immediately available on her cell phone.
The potential buyer has approached a major shareholder, Macarthur said in April. Founder Ken Talbot holds 24.04 percent, followed by Citic Group with 17.66 percent and private investor Nathan Tinkler has 10.4 percent.
Talbot wants A$20 a share, Tom Elliot, who helps manage $138 million at hedge fund MM&E Capital Ltd., said on May 5.
Today’s earnings forecast includes a A$28 million gain on the sale of a stake in Monto Coal Pty Ltd., Macarthur said.
