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Coronado valued at up to US$3.1B ahead of November listing


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Coronado valued at up to US$3.1B ahead of November listing

Ahead of its planned listing in November on the ASX, Coronado Coal LLC was valued at between US$2.5 billion and US$3.1 billion by Credit Suisse, The Australian reported Sept. 3.

Credit Suisse expects Coronado's Curragh mine in Queensland, Australia, and the Buchanan complex in Virginia to produce about 80% of the company's total coal output and generate over 90% of EBITDA this year.

Analysts at Goldman Sachs, meanwhile, valued Coronado at between US$2.1 billion and US$2.8 billion. Goldman forecast that the coal miner will report an EBITDA of US$659 million and free cash flow of US$377 million in 2019.

The company is targeting leverage at 0.1x to 0.5x times and dividend payment at between 60% and 100% of free cash flow.

Coronado, a Connecticut-based unit of U.S. private equity firm Energy and Minerals Group, plans to issue a prospectus in October for a A$1 billion IPO.

The IPO will be aided by Goldman Sachs, Credit Suisse, UBS and Bell Potter, with analyst marketing of the deal having begun the same day.