Insight
Peabody still cash positive in Australia
This report is currently unavailable
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.
Table of contents
- 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
Tables and charts
This report includes 6 images and tables including:
- 2015 Margin curve
- 2016 Margin curve
- 2016 Benefit of continuing to operate
- 2016 Potential margin assuming no fixed transport cost
- Peabody still cash positive in Australia: Table 1
- Peabody still cash positive in Australia: Table 2
What's included
This report contains:
Other reports you may be interested in
20 April 2017
Royalty increases in Brazil: a renewed burden for iron ore miners' cost competitiveness
Insight
Royalty increases in Brazil: a renewed burden for iron ore miners' cost competitiveness
Brazilian iron ore miners cash cost set to increase by at least 2% with the new proposed royalty model.
$1,05003 February 2017
Global coal 2016 in review: a year of coal price extremes
Insight
Global coal 2016 in review: a year of coal price extremes
2016 was a year of volatile prices in the coal industry. China, weather, plant outages, and supply shortages all played a part.
$1,10015 October 2018
Peabody - Illinois Basin coal mines
Asset Report
Peabody - Illinois Basin coal mines
Peabody is the second largest producer and the largest overall reserve holder in the Illinois Basin, with operations spanning Illinois and..
$2,550
