Valuing a South African Coal Mine
pricing
What this case is about
Your client is a private equity firm considering a controlling investment in Kliprand Coal, a South African coal exporter with one mine near the ports. The client invests in traditional energy and wants an attractive return over six to seven years, but the seller has not provided a valuation. Should the client pursue the investment, and what would make the deal worthwhile?
Objective
Assess the mine’s strategic fit, market and operating risks, and risk-adjusted value, then recommend whether to proceed and establish a maximum price for the proposed stake.
Skills this case tests
Structuring the problem
Working the numbers
Judgement and recommendation
Reading the data
This is an interview practice scenario. Figures in the brief are case inputs, not current market research.