Coal in the hole

[Legion Troll]

Peabody Energy Corp, the world’s largest privately owned coal producer, filed for U.S. bankruptcy protection on Wednesday in the wake of a sharp fall in coal prices that left it unable to service a recent debt-fueled expansion into Australia.

The company listed both assets and liabilities in the range of $10 billion to $50 billion, according to a court filing.

The case is in the U.S. Bankruptcy Court for the Eastern District of Missouri, St. Louis, case number 16-42529.

Peabody’s Chapter 11 bankruptcy filing ranks among the largest in the commodities sector since energy and metals prices began to fall in the middle of 2014 as once fast-growing markets such as China and Brazil began to slow.




http://www.huffingtonpost.com/entry/peabody-bankruptcy_us_570df7ace4b0ffa5937d8ad7

 

[Legion Troll]

Glencore Plc, the world’s biggest coal exporter, defended its decision to hedge future coal production, saying a $395 million loss it recorded on the trade isn’t a bet gone bad.

On a call with analysts, Chief Financial Officer Steve Kalmin described the trade as “sensible” and a “corporate risk-management” decision to lock in prices for coal. The charge wasn’t a “big deal,” according to Ivan Glasenberg, who heads the commodities company.

The loss, which hasn’t been realized yet, stings for Glencore because Glasenberg, revered in the industry for his commodity expertise, once headed the coal unit and cut his teeth trading the fuel. Glencore sank as much as 5.2 percent in London after disclosing the charge and reporting its lowest profit since going public in 2011.

Glencore produced 59 million metric tons of coal in the first half of the year from mines in Australia, Colombia and South Africa. It locked in future prices for about 55 million tons of production during the second quarter, Kalmin said on Wednesday.

The coal division is headed by Glencore veteran Tor Peterson, who has been with the company since 1992 and owned almost 3 percent of the company at the initial public offering five years ago.

The expense is an accounting “mismatch” between the fair value of coal derivative positions used as a hedge, Glencore said in a statement.



http://www.bloomberg.com/news/articles/2016-08-24/glencore-says-395-million-coal-loss-isn-t-trading-bet-gone-bad

 

[Leonthecat]

Trumpf says he will reopen the mines and put coal miners back to work, didn't he.

 

[Legion Troll]

Trumpf says he will reopen the mines and put coal miners back to work, didn't he.

He did, Bother Leon, and many believed him, and still do.

 

[iolo]

Trumpf says he will reopen the mines and put coal miners back to work, didn't he.

He was thinking of salt mines for Democrats, probably.

 

[Legion Troll]