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T1243

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  • The North Antelope Rochelle Mine: An Important Competitive Advantage For Peabody Energy [View article]
    From memory they had several long running disputes with the tax office and other government agencies. Many to do with the treatment of royalties and the tax treatment of some expenditures. This payment was most likely some resolution payment from an outstanding dispute.
    Jan 29, 2015. 09:05 PM | Likes Like |Link to Comment
  • The North Antelope Rochelle Mine: An Important Competitive Advantage For Peabody Energy [View article]
    Equity30,

    Tax payments do not fall into the same year as tax accrued. The $170m payment was most likely the previous years liability. It was just paid in this financial period.
    Jan 29, 2015. 04:18 PM | Likes Like |Link to Comment
  • Update: S&P Revises Ratings Outlook On Peabody Energy To Negative [View article]
    I think you are correct about Peabody. I am looking for the re-negotiation of the 2016 bond maturity ($660M) as the potential low point for the SP.
    Jan 27, 2015. 12:31 AM | Likes Like |Link to Comment
  • The North Antelope Rochelle Mine: An Important Competitive Advantage For Peabody Energy [View article]
    Ant,
    You're welcome. However I have to admit, I have yet to "load up" on BTU because 1. I am playing a currency game as well with BTU shares. 2. I feel it's low point could well be when they re-negotiate the 2016 maturing debt/bonds. So yes....a two-three year window from now.
    Jan 25, 2015. 08:39 PM | Likes Like |Link to Comment
  • The North Antelope Rochelle Mine: An Important Competitive Advantage For Peabody Energy [View article]
    Understood.

    I am am sure you can appreciate that the mid west USA is not the center of the mining world. Albeit, I can appreciate why it is for you.

    T.
    Jan 23, 2015. 02:45 AM | 1 Like Like |Link to Comment
  • Peabody Energy names Kellow as new CEO [View news story]
    Hi,
    I heard also that a few of the larger mining houses are running a ruler over Peabody. When you consider a BHP, RIO, Glencore or maybe VALE could acquire for ~$2-3B in dilute script and a carry of $6B extra debt, I am not surprised.

    But then the bigger boys run rulers over things all the time. I am not sure their appetite for the US assets would be that high. Its mostly sub-bituminous domestic coal.

    It could be an interesting play for an Iron Ore miner looking to diversify (Like FMG), but then they have debt issues themselves, so not likely.
    Jan 22, 2015. 10:31 PM | 1 Like Like |Link to Comment
  • The North Antelope Rochelle Mine: An Important Competitive Advantage For Peabody Energy [View article]
    By the way...I worked for MacArthur Coal when Peabody took over. So I know the AU business very well. You are correct, it will bounce back.

    In my opinion, Peabody had little choice but to acquire MCC. It was either that or walk away from AU for the third time. However their timing and management of Arcelor Mittal could have been a bit sharper.
    Jan 22, 2015. 09:07 PM | 1 Like Like |Link to Comment
  • The North Antelope Rochelle Mine: An Important Competitive Advantage For Peabody Energy [View article]
    Sam,

    You are correct for power stations specifically designed for sub-bituminous coals. I was thinking more globally and the ideal coal for 70% of the coal fired power stations around the world. Most are designed for 6000Kcal coals because it keeps the size and cost of the ash handling and emissions system down.

    Cheers,

    T.
    Jan 22, 2015. 08:59 PM | Likes Like |Link to Comment
  • Peabody Energy names Kellow as new CEO [View news story]
    It is all a bit like rearranging the deck chairs on a becalmed ship. Greg stays on as Chairman. Glen gets CEO added to his tittle.

    The true measure of change would have been Glen moving into a bigger office than Greg. What they need are wall divides than slide according to your tittle (This week).

    ..... All in jest.

    T.
    Jan 22, 2015. 01:01 PM | 2 Likes Like |Link to Comment
  • The North Antelope Rochelle Mine: An Important Competitive Advantage For Peabody Energy [View article]
    Thanks for the article, well done.

    I would just like to clarify one major point. 8800BTU/lb coal is equivalent to 4900Kcal. This makes the coal sub-bituminous and full of moisture. This is not clean coal. Might be lower than most in ash and sulfur, but when one needs to burn 50% more to get the required energy, its not a clean process.

    The benchmark for "Clean coal" is 6000 Kcal, which is 10,800 BTU\lb.

    @ Samadamsftw; Buying Macarthur Coal for $4.8B in 2011 must now be putting a sick feeling in some stomachs.
    Jan 22, 2015. 12:50 PM | 1 Like Like |Link to Comment
  • Peabody Energy Has Major Competitive Advantages [View article]
    The $670m coming due in 2016 is more of a concern while the share price is so low. Re-negotiating could be an issue. Time to sell some assets.
    Jan 22, 2015. 01:03 AM | Likes Like |Link to Comment
  • Peabody Energy: Weak Australian Dollar Could Result In Significant Savings During The Wait For A Coal Recovery [View article]
    Gree,

    The Kemper Project is designed to burn 4.7mtpa of local Lignite.
    The TRIG technology is about the utilization of low energy coals like lignite and sub-bituminous. Basically uses a gasification process, then injects gas into the furnace. Allows better control and some carbon capture before the furnace.

    I personally think burning low energy coals is dumb. It is just what Mississippi has locally.

    China for example are discouraging the import of low energy coals. But this improved technology will have a place where low energy coals are local.

    Back to your question..."How will it effect BTU"? For starters it will have no effect on the Met coal market. The US thermal coal market will be largely unaffected unless the federal Govt intervenes with some ruling around a limit burning Lignite and Sub-bituminous without this or similar technology.
    Powder River is sub-bituminous, so I would not rule that scenario out.

    All starting to make Greg & Eric's push into Australian Met coal look better long term.
    Jan 15, 2015. 08:36 PM | Likes Like |Link to Comment
  • Obama reportedly set to introduce plan to cut methane emissions [View news story]
    "Clean coal exports is an item in which the US is king" You have been listening to Greg Boyce's bed time stories, like the Super Cycle.
    Other than that, you make some very good and relevant points.
    Jan 14, 2015. 06:06 PM | Likes Like |Link to Comment
  • Peabody Energy: Weak Australian Dollar Could Result In Significant Savings During The Wait For A Coal Recovery [View article]
    Great article, well done.
    My biggest concerns at the moment is the $670m debt maturing in 2016.
    T.
    Jan 14, 2015. 05:52 PM | 1 Like Like |Link to Comment
  • Obama reportedly set to introduce plan to cut methane emissions [View news story]
    Blue...I'm melting down here in the Southern Hemisphere. All the global warming you could wish for :)
    Jan 13, 2015. 11:49 PM | Likes Like |Link to Comment
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