Wednesday, July 16, 2014

"Severstal selling North American coal assets for $140m"


"Severstal is selling its North American coal assets, PBS Coals Inc, to Canada's Corsa Coal Corp for an enterprise value of $140 million. The Moscow-based steelmaker purchased the assets in 2008 for about $1 billion."
An 86 percent loss! A correspondent writes,
"This is an ugly benchmark. Enterprise value could be as little as $120 million, depending on how the environmental tail plays out. They produced 3.3mm tons of coal last year and half of it was thermal. No mention of reserves. Those JRCCQ bonds should be trading at a penny after this."

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