What changed in this filing

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Item 1A. Risk Factors

2023-05-04 compared with 2022-11-03 · 32 added, 7 removed, 33 unchanged (54% of the section changed)

1 unchanged sentence

The Company operates in a rapidly changing environment that involves a number of risks.

For information regarding factors that could affect the Company's results of operations, financial condition and liquidity, see the risk factors disclosed in Part I, Item 1A.

The risk factor set forth below updates the corresponding risk factor previously disclosed in Part I, Item 1A.

“Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 24, 2023.

Risks inherent to mining could increase the cost of operating the Company’s business, and events and conditions that could occur during the course of its mining operations could have a material adverse impact on the Company.

The Company’s mining operations are subject to conditions that can impact the safety of its workforce, delay coal deliveries or increase the cost of mining at particular mines for varying lengths of time.

These conditions include:

• elevated gas levels;

• fires and explosions, including from methane gas or coal dust;

• accidental mine water discharges;

• weather, flooding and natural disasters;

• hazardous events such as roof falls and high wall or tailings dam failures;

• seismic activities, ground failures, rock bursts or structural cave-ins or slides;

• key equipment failures;

• supply chain constraints or unavailability of equipment or parts;

• variations in coal seam thickness, coal quality, the amount of rock and soil overlying coal deposits and geologic conditions impacting mine sequencing;

• delays in moving its longwall equipment;

• unexpected maintenance problems;

• unforeseen delays in implementation of mining technologies that are new to its operations.

In this regard, on March 29, 2023, the Company’s Shoal Creek Mine in Alabama experienced a fire involving void fill material utilized to stabilize the roof structure of the mine.

Mining operations were suspended in March 2023 and it is uncertain when or if mining operations will restart.

If after exploring all reasonable mine-planning steps focused on resuming mining activities at the Shoal Creek Mine the Company determines that it is unable to extract coal from all or a significant portion of the mine, the Company’s results of operations, financial condition and cash flows could be materially and adversely impacted.

In addition, the costs that may be incurred to address the impacts of the fire and to return the mine to active operations (if the mine returns to active operations) are uncertain and could be significant.

The Company maintains insurance policies that provide limited coverage for losses associated with the events at the Shoal Creek Mine, as well as some of the other risks referenced above, which may lessen the impact associated with these events and risks.

However, there can be no assurance as to the amount or timing of recovery under its insurance policies in connection with losses associated with these events and risks.

For information regarding other factors that could affect the Company's results of operations, financial condition and liquidity, see the risk factors disclosed in Part I, Item 1A.

“Risk Factors” in its Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 24, 2023.

In addition to the other information set forth in this Quarterly Report, including the information presented in Item 2.

In addition to the other information set forth in this Quarterly Report, including the information presented in Part I, Item 2.

“Management’s Discussion and Analysis of Financial Condition and Results of Operations,” you should carefully consider the risk factors disclosed in the aforementioned filing, which could materially affect the Company’s results of operations, financial condition and liquidity.

5 unchanged sentences

• the Company may not recover its investments in its mining, exploration and other assets, which may require the Company to recognize impairment charges related to those assets;

• the Company’s ability to operate effectively could be impaired if it loses key personnel or fails to attract qualified personnel;

• the Company could be negatively affected if it fails to maintain satisfactory labor relations;

10 unchanged sentences

• joint ventures, partnerships or non-managed operations may not be successful and may not comply with the Company’s operating standards;

• the Company’s business, results of operations, financial condition and prospects could be materially and adversely affected by pandemic or other widespread illnesses and the related effects on public health;

• the Company’s expenditures for postretirement benefit obligations could be materially higher than it has predicted if its underlying assumptions prove to be incorrect;

• inflation could result in higher costs and decreased profitability;

• Peabody is exposed to risks associated with political or international conflicts such as the ongoing conflict between Russia and Ukraine;

• Peabody could be exposed to significant liability, reputational harm, loss of revenue, increased costs or other risks if it sustains cyber attacks or other security breaches that disrupt its operations or result in the dissemination of proprietary or confidential information about the Company, its customers or other third-parties;

• the Company is subject to various general operating risks which may be fully or partially outside of its control;

• the Company’s financial performance could be adversely affected by its funded indebtedness (Indebtedness);

• despite the Company’s Indebtedness, it may still be able to incur more debt, which could further increase the risks associated with its Indebtedness;

• the terms of the indentures governing the Company’s senior secured notes and the agreements and instruments governing its other Indebtedness and surety bonding obligations impose restrictions that may limit its operating and financial flexibility;

• the terms of the agreements and instruments governing the Company’s debt and surety bonding obligations impose restrictions that may limit its operating and financial flexibility;

• the number and quantity of viable financing and insurance alternatives available to the Company may be significantly impacted by unfavorable lending and investment policies by financial institutions and insurance companies associated with concerns about environmental impacts of coal combustion, and negative views around its efforts with respect to environmental and social matters and related governance considerations could harm the perception of the Company by a significant number of investors or result in the exclusion of its securities from consideration by those investors;

• the price of Peabody’s securities may be volatile and could fall below the minimum allowed by New York Stock Exchange listing requirements;

• the price of Peabody’s securities may be volatile;

• Peabody’s common stock is subject to dilution and may be subject to further dilution in the future;

7 unchanged sentences

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-Q

Item 1A. Risk Factors