Integrated Mine Plan Complete with Estimated
Net Present Value of $1.6
billion
Average Annual Production of 4.7 Million Tons
at First Quartile Cost and Mine Life
of 25+ years
ST.
LOUIS, Oct. 11, 2024 /PRNewswire/ -- Peabody
(NYSE: BTU) today provided an investor presentation on project
development and the related integrated mine plan at Centurion, the
Company's premium low volatile hard coking coal project located in
Australia's Bowen Basin. The
Company will hold a conference call on Monday, October 14, 2024, at 3:00 p.m. CST to share a comprehensive update on
Peabody's development of Centurion. To watch the event live or
access a replay, please visit www.peabodyenergy.com.
Centurion is quickly becoming the cornerstone metallurgical coal
asset in Peabody's global coal portfolio, unlocking substantial,
untapped reserves and repositioning Peabody as primarily a
metallurgical coal producer. "The development of Centurion is a key
strategic priority to maximize shareholder value and reweight our
portfolio and long-term cashflows to metallurgical coal,"
Jim Grech, Peabody's President and
Chief Executive Officer, said. "Combined with Peabody's diversified
portfolio, resilient balance sheet, fully funded reclamation
obligations and robust shareholder return program, Peabody is
uniquely positioned as a leading global coal producer."
Thus far, two continuous miner units have been commissioned and
the mine successfully produced its first development coal in June.
The prep plant successfully washed its first coal and moved it to
stockpile via the overhead belts in September. Peabody expects to
commission a third continuous miner and ship the first cargo of
coal in the fourth quarter.
Centurion is set to significantly enhance Peabody's
metallurgical coal production with average volume of 4.7 million
tons per year at expected costs of $105 per ton over the twenty-five plus year life
of the mine. Centurion will also reposition the metallurgical coal
portfolio toward higher quality premium met coals.
"We anticipate demand for premium hard coking coals to grow
significantly," Malcolm Roberts,
Peabody's Chief Marketing Officer, said. "While demand for this
product continues to grow, new projects are increasingly rare,
making Centurion's product highly sought after."
At September 30, 2024, Peabody has
completed approximately $250 million
of the anticipated $489 million of
initial development capital to achieve longwall production in
March 2026. With a $210 per metric ton benchmark price assumption,
Centurion has an estimated net present value of $1.6 billion and a 25 percent internal rate of
return.
"Peabody is committed to increasing shareholder value through a
balanced approach of maximizing shareholder returns and developing
Centurion," Mark Spurbeck, Peabody's
Chief Financial Officer, said. "Centurion provides increased
optionality to tightening metallurgical coal markets and will be a
strategic asset in Peabody's global coal portfolio for
decades."
Concurrent with this release, Peabody has issued a presentation
on the Centurion project that can be found on the investor section
of www.peabodyenergy.com.
Peabody (NYSE: BTU) is a leading coal producer, providing
essential products for the production of affordable, reliable
energy and steel. Our commitment to sustainability underpins
everything we do and shapes our strategy for the future. For
further information, visit www.PeabodyEnergy.com.
Contact:
Karla Kimrey
ir@peabodyenergy.com
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the securities laws. Forward-looking statements can
be identified by the fact that they do not relate strictly to
historical or current facts. They often include words or variation
of words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "estimates," "projects," "forecasts,"
"targets," "would," "will," "should," "goal," "could" or "may" or
other similar expressions. Forward-looking statements provide
management's or the Board's current expectations or predictions of
future conditions, events or results. All statements that address
operating performance, events, or developments that may occur in
the future are forward-looking statements, including statements
regarding the shareholder return framework, execution of Peabody's
operating plans, market conditions, reclamation obligations,
financial outlook, potential acquisitions and strategic
investments, and liquidity requirements. They may include estimates
of sales and other operating performance targets, cost savings,
capital expenditures, other expense items, actions relating to
strategic initiatives, demand for the company's products,
liquidity, capital structure, market share, industry volume, other
financial items, descriptions of management's plans or objectives
for future operations and descriptions of assumptions underlying
any of the above. All forward-looking statements speak only as of
the date they are made and reflect Peabody's good faith beliefs,
assumptions and expectations, but they are not guarantees of future
performance or events. Furthermore, Peabody disclaims any
obligation to publicly update or revise any forward-looking
statement, except as required by law. By their nature,
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from those
suggested by the forward-looking statements. Factors that might
cause such differences include, but are not limited to, a variety
of economic, competitive, and regulatory factors, many of which are
beyond Peabody's control, that are described in Peabody's periodic
reports filed with the SEC including its Annual Report on Form 10-K
for the fiscal year ended Dec. 31,
2023 and Quarterly Report on Form 10-Q for the quarter ended
Jun. 30, 2024 and other factors that
Peabody may describe from time to time in other filings with the
SEC. You may get such filings for free at Peabody's website at
www.peabodyenergy.com. You should understand that it is not
possible to predict or identify all such factors and, consequently,
you should not consider any such list to be a complete set of all
potential risks or uncertainties.
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SOURCE Peabody
