Golden Energy and Resources Limited and M Resources Pty Ltd agreed to acquire Illawarra Metallurgical Coal from South32 Limited (ASX:S32) for $1.6 billion on February 29, 2024. As per the terms of the transaction, $1.05 billion will be paid as Upfront consideration, $250 million will be paid in year 2030, and a contingent price linked cash consideration of up to $350 million. The total consideration represents a multiple of approximately 7.2x average annual free cash flow for Illawarra Metallurgical Coal.

Golden Energy and Resources Limited will hold 70% stake, while M Resources Pty Ltd will hold 30% stake in Illawarra Metallurgical Coal, post completion. The transaction is subject to the satisfaction of certain conditions including Foreign Investment Review Board approval, customary regulatory approvals and the waiver or non-exercise of pre-emption rights held by BlueScope Steel (AIS) Proprietary Limited. The Transaction is expected to complete in H1 FY25.

BofA Securities is acting as a financial adviser and Herbert Smith Freehills as legal adviser to South32.