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Anglo Coal Spinoff Looks Cheap Against Peers After 1,300% Surge

  • Thungela Resources has gained from record prices for the fuel
  • Miner vulnerable to South African rail network snarl ups

Thungela Resources Ltd. has soared more than 1,300% since the South African coal miner was carved out of Anglo American Plc last year. But despite this scorching rally, investors value the stock at a discount to worldwide peers, whose reserves of the fuel may last longer.

Thungela’s shares trade at about 1.8 times the company’s 12-month estimated earnings, compared with 7.4 times for stocks in the MSCI World Metals and Mining Index.