BoatmanCapital: Thungela Resources is drowning in liabilities

Anglo American is demerging its thermal coal operations into a new company called Thungela Resources, which has listed its shares in London and Johannesburg on Monday June 7th.

The BoatmanCapital Research believes that Thungela has massively under-estimated the environmental liabilities associated with closing its mines, which have just five to 11 years of expected life remaining.

Based on The BoatmanCapital Research estimates, Thungela’s environmental liabilities could be three times greater than currently reported and are more than the value of the entire company.

The BoatmanCapital Research financial model attributes zero value to Thungela. By seemingly underreporting its environmental liabilities, could Anglo and Thungela have misled investors over the true value of these assets?

Thungela Resources listing debut on the JSE, 7 June 2021

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