Published: October 15, 2024 |

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Peabody released 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.

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,” said Jim Grech, Peabody’s president and chief executive officer.

“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,” added Grech.

So 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,” said Malcolm Roberts, Peabody’s chief marketing officer.

“While demand for this product continues to grow, new projects are increasingly rare, making Centurion’s product highly sought after,” added Roberts.

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.

“Peabody is committed to increasing shareholder value through a balanced approach of maximizing shareholder returns and developing Centurion. Centurion provides increased optionality to tightening metallurgical coal markets and will be a strategic asset in Peabody’s global coal portfolio for decades,” said Mark Spurbeck, Peabody’s chief financial officer.

Peabody is a leading coal producer, providing essential products for the production of affordable, reliable energy, and steel. Their commitment to sustainability underpins everything they do and shapes their strategy for the future.

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