The AFR reports that ALS have been banned from some Korean...

  1. 7 Posts.


    The AFR reports that ALS have been banned from some Korean government tenders. This is a multi billion dollar company - when cheated customers realize their small coal suppliers are too small to sue will they seek to hold ALS accountable? If ALS 'manually altered' 45 to 50% of their certificates since 2007 this will amount to about 13,000 certificates. If each shipment is on average 70,000 / mt and has a value of AU$ 100/ tonne. Assuming the fraud was intended to inflate prices only 1% (which seems very optimistic from a customers perspective) then the damage this amounts to is staggering. 13,000 x 70,000 mt x AU$ 100 / mt x 1% = just over AU$ 900 Million. The damage would be greater if the changes were to prevent customers rejecting shipments or of the price inflation was greater than %. Have ALS made any announcement about what level of provisions they are making to cover any future damages they may have to pay to customers they have helped cheat - inadvertently or otherwise? ALS may have reported their former staff to police, but have they costed the value of the alleged fraud and reported that to shareholders. How can ALS reaffirm their FY20 guidance without pricing expected debts from claims against their coal business?
 
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