Anglo American transferred all the assets and liabilities related to its South African thermal coal operations, to a new company called Thungela Resources Limited. The shares of Thungela were given to the shareholders of Anglo American, who received one share in Thungela for every 10 Anglo American shares they owned.
Discuss what Anglo American’s 2020 income statement would have looked like without the South African thermal coal operations. If you can quantify the impact, do so. Discuss whether the loss of these revenues and expenses is material, and whether the financial performance of the company is better or worse without them.
