The Australian and South African coal arm of Swiss commodities trader Glencore International would also have fallen short of its forecast profit of $450 million for the year to December if not for a boost from the 50% devaluation of the South African rand against the US dollar.
The company failed to meet earnings before interest, tax, depreciation and amortisation, as well as production and revenue targets for 2001, the spokesman said.
The "slight shortfall" was attributed to falling demand for steaming coal at the end of last year and increased Chinese exports, which impacted prices and caused Enex to announce a production cut back. However, the situation has turned around swiftly since the beginning of the year, with China reversing its position and importing coal to meet local winter demand.
The company's failure to meet its published targets is likely to revive the debate about the pricing of last year's failed attempt to float on the Australian Stock Exchange, which was pulled after the September 11 suicide attacks.
Enex had put the retail price of its IPO at $5 a share, and the institutional price at $4-5, a substantial premium to the $3.50 a share value many market watchers placed on the company. However, the rand's devaluation is likely to push that valuation closer to $4.
In recent weeks another option for Enex has opened up, with Swiss-based Xstrata (38% owned by Glencore) confirming it was in talks with Glencore to buy Enex.
As part of the deal, Xstrata would de-list from Zurich and list on the London Stock Exchange. A listing on London's main board rather than the ASX would likely hold some appeal for Glencore.
Xstrata is also now headed up by new chief executive Mick Davis, who brought with him a close affinity for thermal coal and plenty of market credibility from his time with Billiton, where he was chief financial officer.
Davis took the reins at Xstrata from Daniel Sauter in October after quitting Billiton, following its merger with BHP.
However, Macquarie Bank and Credit Suisse First Boston have combined to formulate a revised offer in a last attempt to snare an ASX listing.
The Enex spokesman said Glencore was expected to announce within the next 10-15 days whether it will press ahead with the float or agree to the Xstrata takeover. - MiningNews.net
