Anglo mine fire positive for Peabody, negative for Anglo, says Jefferies

Jefferies analyst Christopher LaFemina notes that Peabody Energy (BTU) announced that it is reviewing all options related to its acquisition of steelmaking coal assets from Anglo American (NGLOY) following an ignition event last week at Anglo American Plc’s Moranbah North Mine. If this is deemed to be a “material adverse change” to these assets, it is possible that Peabody can walk away or negotiate new terms, notes the analyst, who views these developments as positive for Peabody and a negative for Anglo, though adds that “this makes Anglo potentially more ‘vulnerable’ to a new bid from BHP Group (BHP). Jefferies has a Buy rating and $18 price target on Peabody shares.