yeah almost twice as expensive as Coronado by all calculations, BofA note from their report of the deal
Keen to see your calculations to back up your upside case? I don't see any reason to buy more SMR instead of more CRN, and i hold both.
The deal is good for BHP, not SMR, with BHP getting the creamy profits till June, who knows where met coal is come June 22.
Infact the way the deal is structured most analysts believe BHP got the better deal and a premium to most NPV models. Don't be blinded by 2-3times spot ebitda, that is going to only go to BHP, if spot prices are this high till June, you might as well buy Peabody/CRN anyone who is going to have made a stack of cash, rather than the company which is going to take a massive debt at the end of this mini met-coal high cycle.
SMR Price at posting:
$1.20 Sentiment: None Disclosure: Held
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