What changed in this filing

/stocks — the workspaceLOADING

Item 2. Properties

2021-02-23 compared with 2020-02-21 · 124 added, 87 removed, 231 unchanged (48% of the section changed)

17 unchanged sentences

December 31, 2020 (1)

Mining Segment

Mining Segment Locations

(Tons in millions)

Seaborne Thermal Mining

New South Wales

Seaborne Metallurgical Mining

Queensland, New South Wales

Powder River Basin Mining

Midwestern U.S.

Illinois, Indiana and Kentucky

Arizona, New Mexico and Colorado

Seaborne Thermal Mining New South Wales — 211 211

Seaborne Metallurgical Mining Queensland, New South Wales and Alabama — 275 275

Powder River Basin Mining Wyoming — 2,223 2,223

Thermal Mining Illinois, Indiana, Kentucky, New Mexico and Colorado 190 149 339

Total Proven and Probable Coal Reserves

190 2,858 3,048

Total United States

190 2,424 2,614

Total Australia

Total Proven and Probable Coal Reserves

190 2,858 3,048

(1) Estimated proven and probable coal reserves have been adjusted to account for estimated process dilutions and losses during mining and processing involved in producing a saleable coal product.

9 unchanged sentences

Our active properties generally have a much higher degree of reliability because of increased drilling density.

Peabody Energy Corporation

2019 Form 10-K

Peabody Energy Corporation 2020 Form 10-K

Our guidelines for geologic assurance surrounding estimated proven and probable U.S.

5 unchanged sentences

Our reserve estimates are prepared by our staff of experienced geologists and engineers.

Our corporate Geological Services group is responsible for tracking changes in reserve estimates, supervising our other geologists and coordinating periodic third-party reviews of our reserve estimates by qualified mining consultants.

Our corporate Technical Services group is responsible for tracking changes in reserve estimates, supervising our other geologists and coordinating periodic third-party reviews of our reserve estimates by qualified mining consultants.

Our coal reserve estimates are predicated on information obtained from an extensive historical database of drill holes and information obtained from our ongoing drilling program.

12 unchanged sentences

The estimates are also impacted by decreases resulting from current year production and increases resulting from information obtained from additional drilling.

Our estimation as of December 31, 2019 reflected a net reduction compared to the prior year of 841 million tons of coal reserves.

The decrease was driven by production, changes to our estimates of economic recoverability to reflect current market conditions, mine plan changes and new drilling.

Our estimation as of December 31, 2020 reflected a net reduction compared to the prior year of 1.0 billion tons of coal reserves.

The decrease was driven by production, changes to our estimates of economic recoverability to reflect market conditions, mine plan changes and new drilling.

We periodically engage independent mining and geological consultants and consider their input regarding the procedures used by us to prepare our internal estimates of coal reserves, selected property reserve estimates and tabulation of reserve groups according to standard classifications of reliability.

There was no audit conducted in 2019, and in coming years we plan to complete additional audits of our reserve estimates on a cyclical basis for each of our major operating regions.

Our December 31, 2020 reserve estimates for the Gateway North Mine and El Segundo Mine in the U.S.

were audited by Weir International, Inc., independent mining and geological consulting firm, which included a review of the data, procedures and parameters employed by us in developing our reserve estimates.

The audits found that the reserve estimates for the areas were (1) well documented, clearly and concisely reported and (2) prepared consistent with standard industry and geological practice, and in accordance with United States Geological Survey Circular 891 requirements and SEC Industry Guide 7 guidelines.

We plan to complete additional audits of our reserve estimates on a cyclical basis for each of our major operating regions.

With respect to the accuracy of our coal reserve estimates, our experience is that recovered reserves are within plus or minus 10% of our proven and probable estimates, on average, and our probable estimates are generally within the same statistical degree of accuracy when the necessary drilling is completed to move reserves from the probable to the proven classification.

Peabody Energy Corporation 2020 Form 10-K

For each mine or future mine, we employ a market-driven, risk adjusted capital allocation process to guide long-term mine planning of active operations and development projects for economically mineable coal.

3 unchanged sentences

The expected volumes for each mine and product, as well as annual pricing forecasts for each product, developed as described below, and related cost forecasts, developed as described below, are then evaluated to determine the economically recoverable coal in the LOM plan.

Peabody Energy Corporation

2019 Form 10-K

The pricing information used to establish our reserves includes internal, proprietary price forecasts and existing contract economics, in each case on a mine-by-mine and product-by-product basis.

22 unchanged sentences

In addition to the factors noted above, the prices which may be obtained at each individual mine or future mine can be impacted by factors such as (i) the mine’s location, which impacts the total delivered energy costs to its customers, (ii) quality characteristics, particularly if they are unique relative to competing mines, (iii) assumed transportation costs and (iv) other mine costs that are contractually passed on to customers in certain commercial relationships.

Peabody Energy Corporation

2019 Form 10-K

Peabody Energy Corporation 2020 Form 10-K

The cost estimates we use to establish our reserves are generally estimated according to internal processes that project future costs based on historical costs and expected trends.

51 unchanged sentences

As of December 31, 2020, we leased 1,610 acres of federal land in Alabama, 3,480 acres in Colorado, 640 acres in New Mexico and 38,915 acres in Wyoming, for a total of 44,645 acres nationwide subject to those limitations.

Peabody Energy Corporation

2019 Form 10-K

Peabody Energy Corporation 2020 Form 10-K

Similar provisions govern three coal leases with the Navajo and Hopi Indian tribes.

17 unchanged sentences

Title to lands and reserves of the lessors or grantors and the boundaries of our leased properties are not completely verified until we prepare to mine those reserves.

Peabody Energy Corporation

2019 Form 10-K

Peabody Energy Corporation 2020 Form 10-K

The following charts provide a summary, by mining complex, of production (in descending order by mining segment) for the years ended December 31, 2020, 2019 and 2018, tonnage of coal reserves that are assigned to our active operating mines, our property interest in those reserves and other characteristics of the facilities.

3 unchanged sentences

>1.2 to 2.5 lbs.

Year Ended December 31,

Segment/Mining Complex

Production Sulfur Sulfur Sulfur Received

Year Ended December 31, Type of Dioxide per Dioxide per Dioxide per Btu per

Segment/Mining Complex 2020 2019 2018 Coal Million Btu Million Btu Million Btu pound (2)

Seaborne Thermal Mining:

Wilpinjong 14.2 14.1 14.1 T 93 — — 10,000

5.5 5.6 5.2 T/C 118 — — 11,300

Total 19.7 19.7 19.3 211 — —

Seaborne Metallurgical Mining:

North Goonyella

Coppabella 2.2 2.4 2.7 P 22 — — 12,600

Moorvale 1.2 1.7 2.1 C/P/T 6 — — 12,500

Metropolitan 1.0 1.5 1.7 C/P/T 16 — — 12,600

Shoal Creek 0.6 1.9 0.2 C 52 — — 12,700

Millennium (4)

0.1 0.6 1.9 C/P — — — —

North Goonyella — — 1.4 C 69 — — 12,700

Middlemount (5)

— — — C/P 20 — — 12,400

Total 5.1 8.1 10.0 185 — —

Powder River Basin Mining:

North Antelope Rochelle

Midwestern U.S.

Gateway North

Francisco Underground

Wildcat Hills Underground (5)

North Antelope Rochelle 66.1 85.3 98.3 T 1,546 — — 8,800

Caballo 11.6 12.6 11.3 T 435 6 — 8,400

Rawhide 9.5 10.1 9.5 T 192 44 — 8,300

Total 87.2 108.0 119.1 2,173 50 —

Thermal Mining:

Bear Run 5.2 6.8 6.9 T 4 25 201 10,900

El Segundo/Lee Ranch 4.6 5.5 5.5 T 1 19 4 9,100

Wild Boar 2.0 2.5 2.7 T — — 27 11,100

Gateway North 1.8 3.0 3.1 T — — 46 10,900

Francisco Underground 1.6 2.0 2.2 T — — 8 11,370

Twentymile 1.2 2.6 3.1 T 4 — — 11,200

Somerville Central (6)

0.4 1.2 2.0 T — — — 11,000

— 3.8 6.5 T — — — —

Wildcat Hills Underground (8)

— 1.4 1.3 T — — — —

Cottage Grove (9)

El Segundo/Lee Ranch

— 0.1 0.4 T — — — —

Total 16.8 28.9 33.7 9 44 286

Total Assigned 128.8 164.7 182.1 2,578 94 286

Pulverized Coal Injection Metallurgical

Peabody Energy Corporation

2019 Form 10-K

Peabody Energy Corporation 2020 Form 10-K

ASSIGNED RESERVES (10)

1 unchanged sentence

(Tons in millions)

Attributable Ownership

100% Project Basis

Modifying Factors (9)

Proven and Probable Reserves

Segment/Mining Complex

Attributable Ownership 100% Project Basis Modifying Factors (11)

Proven and Probable Reserves Proven and Probable Reserves

Segment/Mining Complex Interest Owned Leased Surface Underground Owned Leased Surface Underground ROM Factor Yield

Seaborne Thermal Mining:

Wilpinjong 100% 93 — 93 93 — 93 — 93 93 — 104 % 86 %

(a) 118 — 118 33 85 151 — 151 66 85 100 % 74 %

Total 211 — 211 126 85

Seaborne Metallurgical Mining:

Coppabella 73.3% 22 — 22 22 — 30 — 30 30 — 92 % 78 %

Moorvale 73.3% 6 — 6 6 — 8 — 8 8 — 107 % 79 %

Metropolitan 100% 16 — 16 — 16 16 — 16 — 16 109 % 84 %

Shoal Creek 100% 52 — 52 — 52 52 — 52 — 52 102 % 56 %

North Goonyella 100% 69 — 69 — 69 69 — 69 — 69 105 % 82 %

Middlemount (5)

50% 20 — 20 20 — 40 — 40 40 — 86 % 77 %

Total 185 — 185 48 137

Powder River Basin Mining:

North Antelope Rochelle 100% 1,546 — 1,546 1,546 — 1,546 — 1,546 1,546 — 92 % 100 %

Midwestern U.S.

Caballo 100% 441 — 441 441 — 441 — 441 441 — 90 % 100 %

Rawhide 100% 236 — 236 236 — 236 — 236 236 — 93 % 100 %

Total 2,223 — 2,223 2,223 —

Thermal Mining:

Bear Run 100% 230 108 122 230 — 230 108 122 230 — 106 % 72 %

El Segundo/Lee Ranch 100% 24 23 1 24 — 24 23 1 24 — 87 % 100 %

Wild Boar 100% 27 11 16 27 — 27 11 16 27 — 107 % 76 %

Gateway North 100% 46 44 2 — 46 46 44 2 — 46 64 % 62 %

Francisco Underground 100% 8 2 6 — 8 8 2 6 — 8 64 % 64 %

Wildcat Hills Underground (5)

Somerville Central

Cottage Grove (6)

El Segundo/Lee Ranch

Twentymile 100% 4 2 2 — 4 4 2 2 — 4 117 % 67 %

Total 339 190 149 281 58

Total Assigned 2,958 190 2,768 2,678 280

Peabody Energy Corporation

2019 Form 10-K

Peabody Energy Corporation 2020 Form 10-K

ASSIGNED AND UNASSIGNED PROVEN AND PROBABLE COAL RESERVES (10)

1 unchanged sentence

(Tons in millions)

Attributable Ownership

100% Project Basis

Coal Seam Location

Attributable Ownership 100% Project Basis

Proven and Proven and

Total Tons Probable Total Tons Probable

Coal Seam Location Assigned Unassigned Reserves Proven Probable Assigned Unassigned Reserves Proven Probable

Seaborne Thermal Mining (New South Wales) 211 — 211 146 65 244 — 244 176 68

Seaborne Metallurgical Mining:

Alabama 52 — 52 51 1 52 — 52 51 1

New South Wales 16 — 16 2 14 16 — 16 2 14

Queensland 117 90 207 168 39 147 120 267 212 55

Total 185 90 275 221 54

Powder River Basin Mining (Wyoming) 2,223 — 2,223 2,108 115 2,223 — 2,223 2,108 115

Midwestern U.S.

Kentucky (10)

Thermal Mining:

Illinois 46 — 46 15 31 46 — 46 15 31

Indiana 265 — 265 195 70 265 — 265 195 70

New Mexico 24 — 24 24 — 24 — 24 24 —

Colorado 4 — 4 4 — 4 — 4 4 —

Total 339 — 339 238 101

Total Proven and Probable 2,958 90 3,048 2,713 335

Peabody Energy Corporation

2019 Form 10-K

Peabody Energy Corporation 2020 Form 10-K

ASSIGNED AND UNASSIGNED - RESERVE CONTROL AND MINING METHOD

1 unchanged sentence

(Tons in millions)

Attributable Ownership

100% Project Basis

Reserve Control

Mining Method

Reserve Control

Mining Method

Coal Seam Location

Attributable Ownership 100% Project Basis

Reserve Control Mining Method Reserve Control Mining Method

Coal Seam Location Owned Leased Surface Underground Owned Leased Surface Underground

Seaborne Thermal Mining (New South Wales) — 211 126 85 — 244 159 85

Seaborne Metallurgical Mining:

Alabama — 52 — 52 — 52 — 52

New South Wales — 16 — 16 — 16 — 16

Queensland — 207 54 153 — 267 85 182

Total — 275 54 221

Powder River Basin Mining (Wyoming) — 2,223 2,223 — — 2,223 2,223 —

Midwestern U.S.

Kentucky (10)

Thermal Mining:

Illinois 44 2 — 46 44 2 — 46

Indiana 121 144 257 8 121 144 257 8

New Mexico 23 1 24 — 23 1 24 —

Colorado 2 2 — 4 2 2 — 4

Total 190 149 281 58

Total Proven and Probable 190 2,858 2,684 364

Peabody Energy Corporation

2019 Form 10-K

Peabody Energy Corporation 2020 Form 10-K

ASSIGNED AND UNASSIGNED PROVEN AND PROBABLE COAL RESERVES - SULFUR CONTENT

1 unchanged sentence

(Tons in millions)

Attributable Ownership

100% Project Basis

Attributable Ownership 100% Project Basis

Sulfur Content (1)

2 unchanged sentences

>1.2 to 2.5 lbs.

Sulfur Dioxide

Coal Seam Location

per Pound (2)

Seaborne Thermal Mining (New South Wales)

Sulfur Dioxide Sulfur Dioxide Sulfur Dioxide Sulfur Dioxide Sulfur Dioxide Sulfur Dioxide Received

Type of per per per per per per Btu

Coal Seam Location Coal Million Btu Million Btu Million Btu Million Btu Million Btu Million Btu per Pound (2)

Seaborne Thermal Mining (New South Wales) T/C 211 — — 244 — — 10,700

Seaborne Metallurgical Mining:

New South Wales

Powder River Basin Mining (Wyoming)

Midwestern U.S.

Kentucky (10)

Alabama C 52 — — 52 — — 12,700

New South Wales C/P/T 16 — — 16 — — 12,600

Queensland C/P/T 207 — — 267 — — 12,400

Total 275 — —

Powder River Basin Mining (Wyoming) T 2,173 50 — 2,173 50 — 8,700

Thermal Mining:

Illinois T — — 46 — — 46 10,800

Indiana T 4 25 236 4 25 236 11,000

New Mexico T 1 19 4 1 19 4 9,150

Colorado T 4 — — 4 — — 11,200

Total 9 44 286

Total Proven and Probable 2,668 94 286

Pulverized Coal Injection Metallurgical

Peabody Energy Corporation

2019 Form 10-K

Peabody Energy Corporation 2020 Form 10-K

(1) Compliance coal is defined by Phase II of the CAA as coal having sulfur dioxide content of 1.2 pounds or less per million Btu.

4 unchanged sentences

(3) Includes the Wambo Open-Cut Mine and the Wambo Underground Mine areas.

(4) The Company’s Millennium Mine ceased production in March 2020, with sales continuing throughout May 2020.

(5) Represents our 50% interest in Middlemount, which owns the Middlemount Mine in Queensland, Australia.

1 unchanged sentence

Middlemount produced 3.2 million tons, 2.9 million tons, and 4.2 million tons of coal in 2020, 2019 and 2018, respectively (on a 100% basis).

The Company’s Wildcat Hills Underground Mine ceased production in December 2019.

The shipment of final tons is expected in 2020.

The Company’s Cottage Grove Mine closed during July 2019.

(6) The Company’s Somerville Central Mine ceased production in December 2020, with sales continuing into January 2021.

(7) The Company’s Kayenta Mine closed during August 2019 upon termination of its coal supply agreement with the Navajo Generating Station in Arizona.

(8) The Company’s Wildcat Hills Underground Mine ceased production in December 2019, with sales continuing throughout April 2020.

(9) The Company’s Cottage Grove Mine ceased production in May 2019, with sales continuing throughout July 2019.

(10) Assigned reserves represent recoverable coal reserves that are controlled and accessible at active operations as of December 31, 2020.

9 unchanged sentences

The yield is the ratio of estimated saleable product coal over ROM coal tons with mainly processing loss considered.

All coal reserves in Kentucky are leased to third parties.

In December 2019, after receiving the requisite regulatory and permitting approvals, the Company formed an unincorporated joint venture with Glencore, in which the Company holds a 50% interest, to combine the existing operations of the Company’s Wambo Open-Cut Mine in Australia with the adjacent coal reserves of Glencore’s United Mine.

The Wambo reserve is estimated for our 50% interest in United Wambo Joint Venture and 100% interest in Wambo Underground Mine areas.

The Wambo Open-Cut reserve is estimated for our 50% interest in United Wambo Joint Venture.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties