TORONTO (miningweekly.com) – The world’s largest private-sector coal company Peabody Energy has slightly narrowed its fourth-quarter loss, as its efforts to reduce costs in the low-price environment gain traction.
The St Louis-based miner, with 27 surface and underground mines across the US and Australia, on Tuesday reported a net loss attributable to common stockholders of $514.6-million, or $1.92 a share, in the three months ended December 31, down from $565.7-million, or $2.12 a share, a year earlier.
Peabody pointed out that its 2014 Australian costs a ton of $68.05 reached the lowest annual level since 2010, driven by structural cost improvements from owner-operator conversions, two new longwall systems and reduced production at the contractor-operated Burton mine, the company’s highest unit-cost operation.
Revenue in the quarter fell 3.3% to $1.68-billion, impacted by subdued coal prices and, in particular, sharply lower realised pricing in Australia.
Peabody’s adjusted loss a share of $1.21 disappointed analysts, who had on average expected a loss of $0.35 a share.
The company aimed to produce between 245-million and 265-million tons of coal this year, in line with total 2014 output of 249.8-million tons.
Peabody's NYSE-listed stock did not fare much better on Tuesday, losing 6.455 in value to $6.24 apiece.