Peabody Strengthens Position in Metallurgical Coal Market Amid Expansion Plans

February 7, 2025 – Peabody Energy has reported strong progress in its metallurgical coal segment, despite declining earnings compared to 2023. The company’s seaborne metallurgical coal sales totaled 7.3 million tons in 2024, a 6% increase from the previous year. However, a drop in coal prices led to a 45% decline in adjusted EBITDA, falling to $242.5 million from $438.1 million in 2023.

Peabody’s average realized price for seaborne metallurgical coal in Q4 2024 was $123.41 per ton, reflecting a 15% decrease from Q3, primarily due to a higher proportion of Shoal Creek sales and overall weaker market prices. Despite this, the company managed to reduce costs by 12% to $113.05 per ton, driven by strong production at Shoal Creek.

Looking ahead, Peabody is undergoing a strategic transformation, positioning itself as a leading metallurgical coal producer with a long-term earnings focus. The company is advancing its Centurion Mine project in Australia, which shipped its first coal cargo in December 2024. Longwall production is set to begin by March 2026, with annual production expected to reach 4.7 million tons over the mine’s 25-year lifespan.

Additionally, Peabody is finalizing its acquisition of premium hard coking coal mines from Anglo American, with completion expected in Q2 2025. These assets are projected to produce 11.3 million tons annually, significantly expanding Peabody’s presence in the steelmaking coal market.