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7 Pages

Peabody still cash positive in Australia

Peabody still cash positive in Australia

Report summary

With Peabody Energy's election to file for Chapter 11 bankruptcy protection in the US, comes speculation about the future of its Australian coal assets. We expect the most likely path forward for Peabody is to continue to operate its 10 Australian mines on a business-as-usual basis as our analysis suggests their average cash margin remains positive in 2016. While we forecast several of Peabody's Australian assets to run at negative cash margins in 2016, we expect Peabody will continue to operate these assets due to take-or-pay rail and port commitments and other fixed costs.

What's included?

This report includes 1 file(s)

  • Peabody still cash positive in Australia PDF - 346.58 KB 7 Pages, 2 Tables, 4 Figures


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  • Executive Summary
  • Cost reductions reduce the margin squeeze
  • Take or pay obligations incentivise continued operation
  • What is the outlook?
    • Benchmark break-even prices
    • Peabody Australia costs

In this report there are 6 tables or charts, including:

  • Executive Summary
  • Cost reductions reduce the margin squeeze
    • 2015 Margin curve
    • 2016 Margin curve
  • Take or pay obligations incentivise continued operation
    • 2016 Benefit of continuing to operate
    • 2016 Potential margin assuming no fixed transport cost
  • What is the outlook?
    • Peabody still cash positive in Australia: Table 1
    • Peabody still cash positive in Australia: Table 2
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