$253 Million South Africa’s Thungela Resources swiveled off from Anglo American inscribed on the Johannesburg Stock Exchange on June 7th, 2021 in a tryout of Investor enthusiasm for Coal Miners
By Abdul Rahman Bangura–
NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- Thermal coal miners have been striving to get at investor blessing amidst the thriving climate skepticisms and a switch towards sustainable investing, with global mining giants unlade such assets as they transition out of the most polluting fossil fuels.
At market open the 136 million shares in Thungela, meaning ‘to ignite’ in isiZulu, were priced at 25.00 rand per share after the newly established company recorded in Johannesburg with a derivative listing on the London Stock Exchange.
The demerger gave ownership to existing owners with investors receiving 1 Thungela share for every 10 Anglo American shares they hold.
“Institutional investors have been moving away from coal mining in recent years. Investors now require many funds to avoid polluting assets such as coal miners making it difficult to find large cornerstone investors,” announced analyst John Meyer of SP Angel.
“The performance of Thungela shares will give us a clue as to how influential ESG is in terms of stock market investment,” Meyer let out.
“People who own Anglo American itself and were given these shares probably don’t want them. I think over the next few weeks, there will be more selling pressure on the stock,” announced Greg Davies, a merchant at Cratos Capital.
Anglo American revolved off its South African thermal coal mines marrying the world’s largest mining company BHP Group, Australia’s South32, and global miner Rio Tinto is holding notches to go thermal coal-free. Irrespective of needs to quit thermal coal, countries such as China and South Africa, which emanate a majority of their power from
coal, have proposals for more coal-fired power stations.
“Our conviction is that thermal coal remains part of the energy mix for decades to come,” Thungela CEO July Ndlovu told during the listing exhibition.
Coal prospects at $108 per ton are up around 32% from a year ago, amidst a financial rebound from the Novel Coronavirus (COVID-19) pandemic and tough pressure from China.
For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent
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