Ann: South Africa Energy Coal Divestment Update, page-26

Oh for heavens sake, commenters! The change before us is not about greenie activists or shareholder interests. Don't let fools frame the arguments in those terms.

We are witnessing an electrical revolution. The transformation is due to economics, not climate change. Solar, wind and batteries are cheaper than coal or gas+ or nukes or hydro. They are certain to become even cheaper in the future, as is the cost of electricity. Steaming coal mines are a stranded asset, just like the power stations they supply. We are well rid of SAEC. It makes commercial sense to pay Seriti to take the business.

This is not an out-and-out loss for S32: the demand for metals in this revolution, particularly copper, nickel, manganese, silver and aluminium, is set to sky-rocket and few new mines are coming forward. Lithium and cobalt may or may not gain too. I leave that investment risk for others.

The cost of producing aluminium will fall on cheaper electricity. Bauxite, alumina and aluminium is half S32's business.

S32 is exquisitely positioned to gain from this transition. Detaching SAEC will prove a momentary blip compared to the opportunities immediately ahead.

I hope you have your desired allocation of S32.

CONVICTION BUY

Ash