Iceberg warns of more Yancoal write-downs for Noble

There’s still a $431.5m gap to be recognized.

Anonymous research group Iceberg yesterday warned that commodity trading house Noble is in for more impairments from its subsidiary Yancoal.

Iceberg stated that the carrying value of Yancoal is now $441m (US$322m) and the market value of the 13% stake is worth $9.6m (US$7m). Iceberg claimed that there is still a $431.5m (US$315m) gap that Noble will have to recognise.

A sudden $274m (US$200m) impairment from Yancoal caused Noble to report its first quarterly loss in three years in the fourth quarter.

“The company said that the $200m impairment was made on the same day they announced the results. Yancoal’s financial statements are public information. The reasons why this company is struggling are public information: low coal prices, unsustainable level of debt, and expensive take-or-pay contracts. Noble did not suddenly realise that Yancoal’s valuation was too high. The regulator and Noble’s shareholders will not find this explanation credible,” warned Iceberg.