Peabody Energy Corporation (NYSE:BTU) Q3 2023 Earnings Call Transcript

Mark Spurbeck : Yes, Nate, we’ve got about $75 million spent left to date on the redevelopment at North Goonyella. I look at CapEx of about $150 million to $160 million for 2024 and 2025 million. The rest of that capital would come in after the longwall production begins at the beginning of 2026.

Nathan Martin : Great color there guys. I appreciate that. And then maybe shifting over to the seaborne thermal segment. Great job on the costs there. Obviously full year cost per ton guidance down by about $5. I guess the question is what’s driving that improvement? And is this kind of a new base we should think about going forward in 2024, or are there some other factors to consider?

Mark Spurbeck : A couple of things Nate. One certainly hitting volumes on costs have been very helpful in seaborne thermal. The Aussie dollar is historically weak. That’s also helping us on the costs. We saw costs come down quarter-over-quarter. Some of that was lower sales price sensitive costs and the higher production. And we’re not providing guidance for 2024 just yet. We’ll do that next quarter.

Nathan Martin: Okay. Thanks for that Mark. And then maybe at the U.S. thermal business side of the house. Jim I appreciate your update on 2024 thermal sales and price there. Should we kind of assume you guys are close to sold out at those levels? I think you said PRB 80 million tons at $13.77 and other thermal at 15 million at $51.18.

Jim Grech: I think if you look at the guidance ranges we’re providing this year for the different markets that can give you a pretty good range of what we think about for the tons for next year at this time and where we sit with these sales within those guidance ranges.

Nathan Martin: Okay. Just to be sure so you’re saying maybe somewhere within this year’s guidance ranges for 2024 is not a bad place to start.

Jim Grech: Yes and maybe towards the higher end of the guidance ranges.

Nathan Martin: Okay. Good. Very helpful. I’ll leave it there. I appreciate the time. Best of luck in the fourth quarter.

Jim Grech: Thanks, Nate.

Operator: With no further questions this concludes our question-and-answer session. I would like to turn the conference back over to Jim Grech for any closing remarks.

Jim Grech: Thank you all for joining us today. I’d especially like to thank our employees for remaining focused on safety and for continuing to execute on our various initiatives. I’d also like to thank our customers investors insurance providers and vendors for your continued support. Operator that concludes our call. Operator: Thank you. The conference has now concluded. Thank you for attending today’s presentation. You may all now disconnect.