Queensland-based Macarthur Coal would re-emerge as a takeover target by US giant Peabody Energy because of its unallocated port structure, according to Sydney-based broking house Southern Cross Equities.
Infrastructure positioning Macarthur, which has increased its port contract at the Dalrymple Bay Coal Terminal in Queensland to 8.2 million tonnes per annum, also has an Abbot Point allocation (via the Northern Missing Link) of up to 3Mtpa.
The company also has new rail contracts with Pacific National that match the port allocations.
Macarthur’s share price, which soared when Peabody made its $15 per share offer earlier in the year, was trading 24c higher at $12.17 this morning.
Its stock recently saw forced selling from small-cap fund managers after it was added to S&P 100 index, the broker said.
Macarthur’s valuation had also dropped after the hiatus caused by the debate about the Resources Super-Profits Tax and the Minerals Resource Rent Tax, and the high price it paid for the MDL 164 tenement in central Queensland.
In New South Wales, Whitehaven was a standout for a takeover bid because of its strategic ownership of 11% of the Newcastle Coal Infrastructure Group, Southern Cross Equities director Charlie Aitken said.
“I don't think that control of Whitehaven is going to change hands at $6 as Whitehaven has key growth assets in its main Narrabri mine and other projects (10 million tonnes per annum of mine capacity two years from now) but also controls 11 per cent stake in the NCIG coal export terminal at Newcastle; therefore they control port allocation, which is very valuable to competitors,” he said.
Whitehaven’s shares were up 1c to $6.24 this morning.
Craig Brown from Sydney-based Stonebridge Group said Stanmore Coal’s 100% owned Mackenzie River project in the Bowen Basin, Queensland, is well located and one of the “very few potential open cut coking coal projects not yet held by a major”
“The Mackenzie River project is located near the Blackwater rail line to Gladstone, and is between existing Ensham and Curragh operating mines,” Brown said in his report.
“It is also in close proximity to Aquila’s Washpool project and Guildford’s Sierra project.
“Stanmore has a number of options including the possibility of selling down an equity interest in one of its projects.”
Shares in Stanmore, which earlier this week saw its shares rise after its The Range project in the Surat Basin of Queensland was found to be viable by an independent expert, rose by 2c to $1.08 this morning.
