"but I don't really understand the convertible notes thematic so could you expand on your reason(s) for the positivity please?"
Personally, I'm not sure how this announcement - in isolation - could be interpreted as positive. The company appears to be building a bit of a war chest for an acquisition.
Problem is, with coal prices at near-record highs, I'm not sure that's an environment conducive to picking up coal assets cheaply.
Unless there are distressed sellers - such as major mining companies - who are highly motivated vendors and want to exit the sector due to ESG pressures. But even then, while optimising pricing for those coal assets being sold might not be of paramount importance, vendors are likely to want valuations to reflect the current boom in coal prices in some way.
As for the actual mechanics of the note, well, it would take me a long time to explain it, and even then I'm not sure my explanation would be 100% accurate. Its one of the most complex arrangements I've come across, and at this stage exactly how it transpires is totally indeterminate, I'm afraid.
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