Peabody Energy announced that several of its Australian subsidiaries have entered into sale and purchase agreements with Australia-based Pembroke Resources.
A portfolio company of leading energy and resources-focused global private equity firm Denham Capital, to sell its interest in undeveloped metallurgical reserve tenements in Queensland’s Bowen Basin for A$104 million in cash plus a royalty stream.
Peabody has received cash proceeds of A$65M as part of the transaction, with an additional A$22M of cash proceeds anticipated to be received before the end of the third quarter of 2016 once certain governmental and regulatory approvals are granted. The remaining proceeds are related to the sale of select tenements held by the Coppabella-Moorvale Joint Venture (CMJV) and are subject to approval by the CMJV partners and other conditions.
The transactions include the Olive Downs South, Olive Downs South Extended, Willunga and Olive Downs North tenements, which consist of undeveloped SEC-reported proven and probable reserves (as of Dec. 31, 2015) totaling approximately 165 million tons on a net basis to Peabody.
The sale is part of Peabody’s overall portfolio management strategy, one of a range of measures the company is taking to improve the business across three core priorities of operational, financial and portfolio. The reserves are not assigned to active mining operations within Peabody’s core Australia region. The agreement contains no financing condition, with Denham Capital providing all funding for the transaction. Peabody expects to use transaction proceeds for general corporate purposes.
Peabody’s Australian operations sold 35.8 million tons of metallurgical and thermal coal in 2015 and control 861 million tons of coal reserves.
Peabody Energy is the world’s largest private-sector coal company and a Fortune 500 company. The company serves metallurgical and thermal coal customers in 25 countries on six continents. For further information, visit PeabodyEnergy.com.
U.S. / International
+1 (314) 342-7768
+61 7 3333 5670