Peabody Energy and Cliffs Natural Resources Poised to Take Advantage of Coal Shortage

NEW YORK, NY / ACCESSWIRE / April 5, 2017 / As American manufacturing companies rev up their production, a potential shortage of coal for steel production has injected temporary life into an otherwise dismal coal industry. Cyclone Debbie shut down operations in Australia’s largest coking coal mine, the type of coal needed for quality steel production. Current markets list the price of coking coal at around $176 per metric ton, but with the world’s largest supplier out of production, the price could double according to some analysts. U.S. mines will be counted on to make up for the lost production, likely boosting the stock values of key coal producing companies. In addition, China is undergoing an infrastructure makeover, and its demand for steel will also increase, opening the door for all U.S. coking coal producers to see a profitable 2017.

RDI Initiates
Coverage:

Peabody Energy
Corporation https://ub.rdinvesting.com/news/?ticker=BTU

Cliffs Natural
Resources Inc. https://ub.rdinvesting.com/news/?ticker=CLF

Peabody Energy fell 12.10% to close at $27.25 a share on Tuesday. The stock traded between $26.51 and $32.50 on volume of 3.71 million shares traded. The St. Louis, Missouri company is the largest U.S. coal mining company. In less than 7 years, the market value of Peabody Energy has gone from nearly $20 billion to its current estimated market value of $38 million. The problem is that while all of its mining facilities are profitable, the company has amassed unresolvable debt.

Access RDI’s Peabody Energy Research Report at:
https://ub.rdinvesting.com/news/?ticker=BTU

Cliffs Natural Resources advanced 3.86% to close at $8.61 a share on Tuesday. The stock traded between $8.22 and $8.63 on volume of 10.9 million shares traded. The company is scheduled to release results for the first quarter of 2017 before market open on Thursday, April 27th.

Cliffs Natural Resources announced in February that it was planning to shore up its financial position by issuing 500 million senior notes due 2025, secured by Cliff’s domestic subsidiaries. With two senior secured notes due for redemption in 2020, the majority of the proceeds are likely to be directed for the payment of the notes. It will save $50 million in interest by this financial maneuver.

Access RDI’s Cliffs Natural Resources Research Report at:

https://ub.rdinvesting.com/news/?ticker=CLF

Our Actionable Research on Peabody Energy Corporation (NYSE: BTU) and Cliffs Natural Resources Inc. (NYSE: CLF) can be downloaded free of charge at Research Driven Investing.

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