Coal market volatility
Revenue depends on coal prices and volumes, which move with steel demand, electricity demand and global supply.
- Scope
- Metallurgical and thermal coal sales
- Materiality
- high
Peabody Energy Corporation
Peabody Energy Corp. produces metallurgical coal and thermal coal through a portfolio of surface and underground mines in the United States and Australia. Its business includes seaborne coal sold into international markets as well as U.S. thermal coal supplied to domestic power and industrial customers.
7,9 %
−1,1 %
−8,9 %
1.85
1.40
| % | |
|---|---|
| Seaborne Metallurgical Coal | 35% Export metallurgical coal sold to steel producers and traders for coke-making and steel production. |
| Seaborne Thermal Coal | 25% Export thermal coal sold into international power markets and traded under spot, index and contract pricing. |
| Powder River Basin Coal | 20% Low-sulfur U.S. thermal coal produced from the Powder River Basin for utility customers. |
| Other U.S. Thermal Coal | 15% Thermal coal from other U.S. basins supplied mainly to electric utilities and industrial users. |
| Other and Corporate | 5% Corporate items and smaller activities including asset optimization and non-core land-related projects. |
Peabody sells mainly to electric utilities, energy marketers, steel producers and nonfinancial trading houses...
- Electric utilitiesprimary
Buy thermal coal for baseload and seasonal power generation needs.
- Steel producersprimary
Buy metallurgical coal used in blast furnace steelmaking.
- Energy marketerssecondary
Purchase coal for resale and portfolio supply management.
- Nonfinancial trading housessecondary
Buy and trade seaborne coal cargoes for global market distribution.
Peabody operates active coal mining interests in the United States and Australia, with headquarters in St...
- •Operations in the United States and Australia
- •Headquarters in St. Louis, Missouri
- •Business office in Brisbane, Queensland
- •Australian mines support seaborne metallurgical exports
- •U.S. basins supply domestic thermal coal customers
Peabody’s strategy centers on balancing seaborne metallurgical coal, seaborne thermal coal and U.S...
01
Develop the Centurion Mine in Queenslandmedium-term
Adds higher-quality metallurgical coal capacity and strengthens the seaborne segment.
02
Optimize coal reserves and surface propertiesmedium-term
Creates optionality beyond mining by monetizing non-core assets and evaluating new uses.
03
Preserve supply reliability and operating continuityshort-term
Mining depends on equipment, parts, services and logistics that must remain dependable.
Peabody is exposed to coal demand swings, commodity price volatility, trade disruptions and regulatory pressure tied to...
Geopolitical and trade disruption
Seaborne coal trade can be affected by sanctions, tariffs, customs rules and international conflict.
- Scope
- Export coal flows and pricing
- Materiality
- high
Cybersecurity and operational technology attacks
Mining and trading operations rely on connected systems that could be disrupted or compromised.
- Scope
- Mine operations, logistics and confidential data
- Materiality
- high
Regulatory and environmental pressure
Coal mining and coal combustion face ongoing policy, permitting and emissions-related constraints.
- Scope
- U.S. and Australian mining operations
- Materiality
- high
Counterparty credit risk
Customers and trading counterparties may fail to pay or perform, especially in volatile markets.
- Scope
- Utilities, marketers, steel producers and trading houses
- Materiality
- medium
Asset recoverability and impairment
Other U.S. Thermal assets were identified as sensitive to customer concentration risk
Depletion and reserve estimates
Changes in reserve assumptions alter unit costs and book value of mines
Reclamation and post-mining obligations
Affects liabilities, operating costs and cash flow timing
Derivative and hedge valuation
Can create earnings volatility through mark-to-market changes
: 29/04/2026