{"id":9678,"date":"2015-07-03T09:00:18","date_gmt":"2015-07-03T14:00:18","guid":{"rendered":"http:\/\/olduvai.ca\/?p=9678"},"modified":"2015-07-03T09:00:18","modified_gmt":"2015-07-03T14:00:18","slug":"a-bad-week-for-coal-mining-industry-even-worse-for-peabody-energy","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=9678","title":{"rendered":"A Bad Week For Coal Mining Industry, Even Worse for Peabody Energy"},"content":{"rendered":"
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A Bad Week For Coal Mining Industry, Even Worse for Peabody Energy<\/a><\/h3>\n

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It’s been a really bad week for major\u00a0U.S.<\/span>\u00a0coal companies as we head into the July 4th holiday\u00a0weekend.<\/p>\n

St. Louis-based\u00a0Peabody Energy (NYSE<\/span>:\u00a0BTU<\/span>)<\/a>\u00a0closed today at $1.87 a share, down from a high of $84 per share in mid-2008. The company’s\u00a0chief financial officer Michael C. Crews resigned<\/a>\u00a0abruptly on June 28 amidst the\u00a0freefall.<\/p>\n

Another major\u00a0U.S.<\/span>\u00a0coal company,\u00a0Alpha Natural Resources (NYSE<\/span>:\u00a0ANR<\/span>)\u00a0<\/a>hit a new all-time low yesterday at just 27 cents per share, and sank as low as 24 cents that morning.<\/p>\n

Arch Coal (NYSE<\/span>:\u00a0ACI<\/span>)<\/a>\u00a0also hit its all-time low of 33 cents per share as well, down from its all-time high of $73.42 in 2008.<\/p>\n

All three companies’\u00a0stock values\u00a0are down roughly 80% from the beginning of\u00a02015.<\/p>\n

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\n2015 year-to-date stock performance on the\u00a0NYSE<\/span>\u00a0for Peabody (BTU<\/span>), Arch (ACI<\/span>) and Alpha (ANR<\/span>). Source: Google Finance.<\/em><\/p>\n

Arch has received a\u00a0delisting notice<\/a>\u00a0from the New York Stock Exchange for falling below $1 per share, and has only a few months to regain its footing or lose its spot on the\u00a0NYSE<\/span>. \u00a0Alpha received<\/a>\u00a0its own delisting notice a month\u00a0prior.<\/p>\n

Given the global nature of the coal industry and the generally complicated world of commodity trading, there are\u00a0a myriad of influences at play\u00a0<\/a>here. But one cannot ignore the fact that these historic lows are coming at a time of historic commitments to renewable energy and carbon reductions by major coal-consuming and producing countries\u00a0like the United States<\/a>\u00a0and\u00a0China.\u00a0<\/a><\/p>\n

According to energy analysts at the\u00a0Institute for Energy Economics and Financial Analysis<\/a>\u00a0(IEEFA<\/span>),\u00a0the\u00a0Stowe Global Coal Index<\/a>\u00a0has lost 71% of its value since\u00a02010:<\/p>\n

\"stowe<\/p>\n

IEEFA<\/span>‘s director of finance, Tom Sanzillo,\u00a0recently told reporters<\/a>\u00a0that,\u00a0\u201cthe coal industry is arguably the poorest-performing sector in today’s global economy and is in a state of structural decline. It is a shrinking industry with little upside potential.\u201d<\/p>\n

That’s bad news for coal investors, but frankly it’s a welcome development for anyone concerned about the carbon<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

A Bad Week For Coal Mining Industry, Even Worse for Peabody Energy It’s been a really bad week for major\u00a0U.S.\u00a0coal companies as we head into the July 4th holiday\u00a0weekend. St. Louis-based\u00a0Peabody Energy (NYSE:\u00a0BTU)\u00a0closed today at $1.87 a share, down from a high of $84 per share in mid-2008. The company’s\u00a0chief financial officer Michael C. Crews […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[6954,147,1043,5317,6953,1162],"class_list":["post-9678","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-nyse-btu","tag-coal","tag-coal-mining","tag-desmog-blog","tag-energy-markets","tag-peabody-energy"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9678","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9678"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9678\/revisions"}],"predecessor-version":[{"id":9679,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9678\/revisions\/9679"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9678"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9678"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9678"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}