What changed in this filing

/stocks — the workspaceLOADING

Item 2. Properties

2024-02-23 compared with 2023-02-24 · 96 added, 167 removed, 374 unchanged (41% of the section changed)

Coal Reserves and Resources

Information concerning the Company’s mining properties in this Annual Report on Form 10-K has been prepared in accordance with the requirements of subpart 1300 of Regulation S-K, which first became applicable to the Company for the year ended December 31, 2021.

These requirements differ significantly from the previously applicable disclosure requirements of SEC Industry Guide 7.

Among other differences, subpart 1300 of Regulation S-K requires disclosure of mineral resources, in addition to mineral reserves, both in the aggregate and for each of the Company’s individually material mining properties.

Information concerning the Company’s mining properties in this Annual Report on Form 10-K has been prepared in accordance with the requirements of subpart 1300 of Regulation S-K.

Subpart 1300 of Regulation S-K requires disclosure of mineral resources, in addition to mineral reserves, both in the aggregate and for each of the Company’s individually material mining properties.

The Company’s coal reserves and resources are estimated by individuals deemed Qualified Persons (QP) according to the standards set forth in subpart 1300 of Regulation S-K.

9 unchanged sentences

The conversion of reported mineral resources to mineral reserves should not be assumed.

Peabody Energy Corporation 2022 Form 10-K

Coal resources are estimated from geological models constructed from an extensive historical database of drill holes and the Company’s ongoing drilling program.

14 unchanged sentences

The level of geological uncertainty associated with an inferred mineral resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability.

Peabody Energy Corporation 2023 Form 10-K

The geological confidence surrounding resource classification is first determined by a drill hole spacing analysis performed by a QP using geostatistical techniques.

25 unchanged sentences

The additional surface rights to meet long-term production requirements are expected to be acquired as needed.

Peabody Energy Corporation 2022 Form 10-K

The Company is party to numerous U.S.

8 unchanged sentences

As of December 31, 2023, the Company leased 1,610 acres of federal land in Alabama, 3,480 acres in Colorado, 282 acres in New Mexico and 38,915 acres in Wyoming, for a total of 44,287 acres nationwide subject to those limitations.

The Company also lease coal-mining properties from various state governments in the U.S.

The Company also leases coal-mining properties from various state governments in the U.S.

coal leases normally have terms of between 10 and 20 years and usually give the Company the right to renew the lease for a stated period or to maintain the lease in force until the exhaustion of mineable and merchantable coal contained on the relevant site.

6 unchanged sentences

leases containing undeveloped coal properties may expire or these leases may be renewed periodically.

Peabody Energy Corporation 2023 Form 10-K

Mining and exploration in Australia are generally carried out under leases or licenses granted by state governments.

5 unchanged sentences

Surface rights are typically acquired directly from landowners through agreement or court determination, subject to some exceptions.

The pricing information used in support of the Company’s reserve and resource estimates include internal, proprietary price forecasts and existing contract economics, in each case on a mine-by-mine and product-by-product basis.

The pricing information used in support of the Company’s coal reserve and resource estimates include internal, proprietary price forecasts and existing contract economics, in each case on a mine-by-mine and product-by-product basis.

In general, price forecasts are based on a thorough analytical process utilizing detailed supply and demand models, global economic indicators, projected foreign exchange rates, analyses of price relationships among various commodities, competing fuels analyses, projected supply and demand fundamentals for steel production and electricity generation, analyses of supplier costs and other variables.

9 unchanged sentences

The build out of renewable generation and subsidized power can also be a key driver of power market pricing and hence coal prices.

Peabody Energy Corporation 2022 Form 10-K

Internationally, thermal coal-fueled generation also competes with alternative forms of electricity generation.

9 unchanged sentences

The competitiveness of seaborne metallurgical coal supply from leading metallurgical coal exporting countries of Australia, the U.S., Russia, Canada, Mongolia and Mozambique, among others, is also an important price consideration.

In addition to the factors noted above, the prices which may be obtained at each 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 2023 Form 10-K

The cost estimates used to establish LOM plans are generally made according to internal processes that project future costs based on historical costs and expected trends.

50 unchanged sentences

Segment / Mining Complex Country State Stage Method Type Amount Quality Amount Quality Amount Quality (10)

Seaborne Thermal Mining:

Seaborne Thermal:

Tons %Ash %Sulfur Kcal/kg (6)

3 unchanged sentences

Wambo Opencut (9)

AUS NSW P S T 29 10.9 0.3 6,448 2 10.6 0.3 6,478 31 10.9 0.3 6,450 50 %

Wambo Underground AUS NSW P U T 2 13.7 0.4 6,473 3 12.2 0.4 6,588 5 12.9 0.4 6,534 100 %

AUS NSW P S T/C 24 11.2 0.3 6,425 1 11.3 0.3 6,418 25 11.2 0.3 6,425 50 %

Wambo Underground AUS NSW P U T/C 1 12.8 0.4 6,473 3 12.3 0.4 6,588 4 12.4 0.4 6,559 100 %

South Wambo AUS NSW E U T/C — — — — 74 9.8 0.3 7,034 74 9.8 0.3 7,034 100 %

Total 79 81 160

Seaborne Metallurgical Mining:

Seaborne Metallurgical:

Tons %Ash %Sulfur VM% (7)

4 unchanged sentences

Moorvale AUS QLD P S C/P/T 4 11.4 0.3 16.5 — — — — 4 11.4 0.3 16.5 73.3 %

Metropolitan AUS NSW P U C/T 3 13.9 0.4 18.6 7 13.8 0.4 18.7 10 13.8 0.4 18.6 100 %

North Goonyella AUS QLD D U C 46 7.4 0.5 21.4 24 7.5 0.5 21.1 70 7.4 0.5 21.3 100 %

Moorvale South AUS QLD P S C/P 3 11.1 0.4 18.4 2 9.8 0.4 17.4 5 10.6 0.4 18.0 73.3 %

Metropolitan AUS NSW P U C/P/T 1 11.7 0.4 18.6 9 11.7 0.4 18.4 10 11.7 0.4 18.4 100 %

Centurion AUS QLD D U C 46 7.4 0.5 20.9 23 7.5 0.5 21.1 69 7.4 0.5 21.0 100 %

Moorvale South AUS QLD P S C/P/T 3 11.1 0.4 18.5 2 9.8 0.4 17.5 5 10.6 0.4 18.1 73.3 %

Middlemount (9)

1 unchanged sentence

Total 102 61 163

Powder River Basin Mining:

Powder River Basin:

Tons %Ash %Sulfur Btu (8)

5 unchanged sentences

Total 1,508 126 1,634

Thermal Mining:

Tons %Ash %Sulfur Btu (8)

20 unchanged sentences

Deposit Country State Stage Method Type Amount Quality Amount Quality Amount Quality Amount Quality (10)

Seaborne Thermal Mining:

Seaborne Thermal:

Tons %Ash %Sulfur Kcal/kg (6)

4 unchanged sentences

Wambo Opencut (9)

AUS NSW P S/U T 191 21.6 0.4 5,731 154 21.5 0.4 5,764 345 21.6 0.4 5,746 259 19.9 0.4 5,864 50 %

Wambo South AUS NSW E U T/C 219 21.5 0.3 6,068 83 27.2 0.3 5,571 302 23.1 0.3 5,931 47 36.3 0.3 4,745 100 %

AUS NSW P S T/C 217 21.2 0.4 5,757 154 21.5 0.4 5,764 371 21.3 0.4 5,760 265 22.0 0.4 5,437 50 %

South Wambo AUS NSW E U T/C 219 21.5 0.3 6,068 83 27.2 0.3 5,571 302 23.1 0.3 5,931 47 36.3 0.3 4,745 100 %

Total 539 262 801 318

Seaborne Metallurgical Mining:

Seaborne Metallurgical:

Tons %Ash %Sulfur VM% (7)

3 unchanged sentences

Shoal Creek USA AL P U C 37 9.6 0.7 25.1 34 9.9 0.7 24.1 71 9.8 0.7 24.6 7 10.3 0.7 24.0 100 %

Metropolitan AUS NSW P U C/T 7 15.4 0.4 18.6 8 15.3 0.3 18.7 15 15.3 0.4 18.6 2 16.0 0.3 19.0 100 %

Metropolitan AUS NSW P U C/P/T 7 15.4 0.4 18.6 8 15.3 0.3 18.7 15 15.3 0.4 18.6 2 16.0 0.3 19.0 100 %

Coppabella AUS QLD P S P 13 15.8 0.3 13.0 46 14.6 0.3 12.8 59 14.9 0.3 12.8 60 15.7 0.3 12.4 73.3 %

Moorvale AUS QLD P S P 14 18.5 0.3 16.7 14 17.2 0.3 16.6 28 17.9 0.3 16.7 5 15.9 0.3 16.7 73.3 %

Moorvale South AUS QLD P S C/P 3 18.3 0.4 18.4 7 18.2 0.4 18.3 10 18.2 0.4 18.3 6 16.8 0.4 17.7 73.3 %

NGC GLB2 AUS QLD E U C — — — — 1 15.3 0.6 20.7 1 15.3 0.6 20.7 8 13.6 0.5 20.7 100 %

Moorvale AUS QLD P S C/P/T 14 18.5 0.3 16.7 14 17.2 0.3 16.6 28 17.9 0.3 16.7 5 15.9 0.3 16.7 73.3 %

Moorvale South AUS QLD P S C/P/T 3 18.3 0.4 18.4 7 18.2 0.4 18.3 10 18.2 0.4 18.3 6 16.8 0.4 17.7 73.3 %

Centurion (GLB2) AUS QLD E U C — — — — 2 14.8 0.5 20.7 2 14.8 0.5 20.7 8 13.6 0.5 20.7 100 %

Coppabella North AUS QLD E U P 255 15.8 0.3 14.6 102 16.8 0.3 14.6 357 16.1 0.3 14.6 12 16.5 0.3 14.3 75.5 %

3 unchanged sentences

Total 366 349 715 241

Powder River Basin Mining:

Powder River Basin:

Tons %Ash %Sulfur Btu (8)

5 unchanged sentences

Total 141 213 354 9

Thermal Mining:

Tons %Ash %Sulfur Btu (8)

3 unchanged sentences

Bear Run USA IN P S T 73 14.7 3.9 10,800 89 16.6 3.7 10,490 162 15.8 3.8 10,630 29 15.9 3.5 10,600 100 %

Francisco Underground USA IN P U T 2 13.8 4.7 11,325 5 12.5 4.7 11,540 7 13.1 4.7 11,440 — — — — 100 %

Gateway North USA IL P U T 25 13.1 3.9 10,583 17 13.1 3.9 10,583 42 13.1 3.9 10,583 — — — — 100 %

El Segundo/Lee Ranch USA NM P S T 1 13.5 1.0 9,932 5 12.1 0.9 10,036 6 12.4 1.0 10,014 2 14.3 1.2 9,655 100 %

6 unchanged sentences

The estimated sales prices for seaborne thermal mines are based upon estimated Newcastle benchmark prices ranging from $92 to $128 per tonne for the same period.

For US domestic thermal mines, the estimated sales prices for the same period range from approximately $10.42 to $59.69 per ton.

domestic thermal mines, the estimated sales prices for the same period range from approximately $10.44 to $70.52 per ton.

Subsequent to 2028, for all mines, sales price escalation is assumed at 2.0% to 3.0% per annum through the end of each LOM plan.

The moisture condition for Seaborne Thermal Mining segment coal quality is on an air-dry basis, except for Wambo Opencut, which is estimated on an as-shipped basis for reserves, and an in-situ moisture basis for resources.

The moisture condition for the Seaborne Metallurgical Mining segment coal quality is on an air-dry basis, except for Shoal Creek Mine which is on a dry basis.

The moisture condition for Seaborne Thermal segment coal quality is on an air-dry basis, except for the Wambo Opencut Mine, which is estimated on an as-shipped basis for coal reserves and an in situ moisture basis for coal resources.

The moisture condition for the Seaborne Metallurgical segment coal quality is on an air-dry basis, except for the Shoal Creek Mine, which is on a dry basis.

The quantities for Australian coal reserves are estimated on an as-shipped moisture basis;

1 unchanged sentence

The quality and quantity estimates for U.S.

thermal reserves are calculated on as-shipped moisture basis;

thermal coal reserves are calculated on as-shipped moisture basis;

the quality and quantity estimates for U.S.

thermal resources are calculated on an in situ moisture basis.

Kcal/kg (kilocalories per kilogram) is the net calorific value (net heating value) of coal, except for Wambo Opencut which is estimated as gross calorific value.

thermal coal resources are calculated on an in situ moisture basis.

Kcal/kg (kilocalories per kilogram) is the net calorific value (net heating value) of coal, except for the Wambo Opencut Mine which is estimated as gross calorific value.

VM (volatile matter) represents the proportion of certain organic and mineral components in coal, for example, water, carbon dioxide or sulfur dioxide.

3 unchanged sentences

Reserve and resource data is maintained and provided by joint venture managing partners utilizing the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

The quantities of reserves and resources are disclosed at Peabody’s proportional ownership share.

The quantities of coal reserves and resources are disclosed at Peabody’s proportional ownership share.

Individual Property Disclosure

3 unchanged sentences

“Management’s Discussion and Analysis of Financial Condition and Results of Operations.”) Qualitative factors may include, as applicable, strategic priorities, the regulatory environment, capital expansion plans, and the long-term pricing outlook.

The Company concluded that, as of December 31, 2021, its individually material mines are North Antelope Rochelle Mine (NARM), Shoal Creek Mine, Wilpinjong Mine, and the Coppabella-Moorvale Joint Venture.

The Company also assesses material changes in the material properties mainly on the basis of the amount of reserves and resources over a period of three years.

The Company concluded that, as of December 31, 2022, its material mining operations had no material changes.

The Company concluded that as of December 31, 2023, its individually material mines are North Antelope Rochelle Mine (NARM), Wilpinjong Mine and Centurion Mine.

The Company will update its assessment of individually material mines on an annual basis.

The information that follows relating to such individually material mines is derived, for the most part, from, and in some instances is an extract from, the studies relating to such properties prepared in compliance with the Item 601(b)(96) and subpart 1300 of Regulation S-K.

The information that follows relating to such individually material mines is derived, for the most part, from, and in some instances is an extract from, the technical report summaries (TRSs) relating to such properties prepared in compliance with the Item 601(b)(96) and subpart 1300 of Regulation S-K.

Portions of the following information are based on assumptions, qualifications and procedures that are not fully described herein.

The changes from the previous year are not material and no updates for TRS are included in this filing.

Other technical details regarding the individual properties should be referred to the previously disclosed TRS.

The changes for NARM from the previous years are not material and no updates for the TRS are included in this filing.

Reference should be made to the full text of the TRS, incorporated herein by reference, made a part of Peabody’s Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on February 18, 2022.

Reference should be made to the full text of the TRSs for Wilpinjong and Centurion Mines, incorporated herein by reference and made a part of this Annual Report on Form 10-K.

The relevant TRSs for Wilpinjong and Centurion Mines are included as Exhibits 96.2 and 96.3, respectively, to this Annual Report on Form 10-K, and specific sections of such TRSs are referenced below using the corresponding exhibit number.

Peabody Energy Corporation 2023 Form 10-K

22 unchanged sentences

NARM did not hold any coal resources as of December 31, 2023.

These reserve estimates were supported by the analyses of 4,778 total drill holes within the coal lease area.

These coal reserve estimates were supported by the analyses of 4,869 total drill holes within the coal lease area.

The quantity of the coal reserves is estimated on a saleable product basis and deemed 100% attributable to Peabody.

In addition to quantity, the table presents selected key quality parameters on an as-shipped basis.

NARM - SUMMARY OF RESERVES (1)

NARM - SUMMARY OF COAL RESERVES (1)

(Tons in millions)

8 unchanged sentences

Economic recoverability is based upon an estimated average sales price per ton of $15.00 for the five-year period ending December 31, 2028 and assumed escalation of 2.0% per annum during the subsequent period through the end of the LOM plan.

The cut-off grade and metallurgical recovery are not limiting factors for reserve estimates due to consistent coal thickness and established trends of coal quality in the leased area.

The cut-off grade and metallurgical recovery are not limiting factors for coal reserve estimates due to consistent coal thickness and established trends of coal quality in the leased area.

The strip ratio increases gradually, but the existing pit length allows an average mineable strip ratio.

5 unchanged sentences

Peabody Energy Corporation 2023 Form 10-K

Shoal Creek Mine

The Shoal Creek Mine is a production-stage underground longwall metallurgical coal mine located thirty-five miles west of Birmingham, Alabama, USA.

The mine is within the east-central portion of the Warrior Coal Field, which is part of the Southern Appalachian coal-producing region.

The Drummond Corporation began producing coal at the mine in 1994.

Peabody Energy acquired the mine from the Drummond Corporation in December 2018.

The mine was idled in the fourth quarter of 2020 due to market conditions and resumed production in November 2021.

Shoal Creek Mine extracts coal from the Mary Lee and Blue Creek coal seams at depths of 1,000 to 1,300 feet.

The Company has secured mineral rights through a combination of private, federal and state mineral leases and surface rights agreements which encompass a total of 31,747 acres of mineral control and 3,490 acres of surface land control.

The majority of the mineral leases are private leases with negotiated royalty rates set at minimum amounts per ton or as percentages of sales realization.

Shoal Creek Mine’s largest lease agreement, representing 28,517 acres of mineral control, expires in 2031 with an option to negotiate an extension.

The expiration dates vary for other leases, but typically include extension provisions.

As of December 31, 2022, all required licenses and permits were in place for the operations of the Shoal Creek Mine.

Coal is produced primarily using longwall systems.

The mine also uses continuous miner units for longwall development and limited production.

Mined coal is processed through a wash plant, conveyed to barge loadout facilities on the Black Warrior River, and transported by barge 370 miles to McDuffie Coal Terminal in Mobile Bay, Alabama, in the Gulf of Mexico, for export via ocean-going vessels.

Shoal Creek Mine metallurgical coal has a well-established customer base in Europe, South America, and East Asia for steel making.

The key supporting infrastructure for Shoal Creek Mine includes road access via interstate and state highways and roads, third-party barge services and a barge loadout on the Black Warrior River, the McDuffie Coal Terminal, electrical power provided by 69kV transmission lines, and water supplied from the Black Warrior River and recycled underground water.

The mine’s workforce is drawn primarily from Jasper and Tuscaloosa, Alabama and other adjacent communities.

Peabody Energy Corporation 2022 Form 10-K

The property, plant, equipment and mine development assets of Shoal Creek Mine had a net book value of approximately $287 million at December 31, 2022.

The mine’s operating equipment and facilities meet contemporary mining standards and are adequately maintained to execute the LOM plan.

Routine maintenance, overhauls and necessary capital replacements are generally included in the LOM plan to support future production.

While the mine was idled for parts of 2020 and 2021, the Company upgraded the mine’s coal handling and preparation plant and made other capital investments to improve its prospective cost structure.

The tables below present Shoal Creek Mine’s estimated coal reserves and resources at December 31, 2022, along with comparative quantities at December 31, 2021.

These reserve and resource estimates were supported by the analyses of 1,178 total drill holes within the coal lease area.

The quantity of the coal resources is estimated on an in situ basis as 100% attributable to Peabody.

Coal resources are reported exclusive of coal reserves.

The quantity of the coal reserves and resources are estimated on a saleable product basis as 100% attributable to Peabody.

Coal reserves and resources are reported on selected key quality parameters on a dry basis.

SHOAL CREEK MINE - SUMMARY OF RESERVES AND RESOURCES (1)

(Tons in millions)

December 31, 2022 December 31, 2021

Coal Reserves (2)(4)(5)(6)

Tons %Ash %Sulfur %VM % Mine Yield (7)

Proven 15 10.0 0.7 30.2 36 % 16

Probable 2 10.0 0.7 30.2 36 % 2

Year-over-year decrease (6) %

December 31, 2022 December 31, 2021

Coal Resources (2)(3)(4)(5)

Tons %Ash %Sulfur VM% Tons

Measured 40 9.6 0.7 25.1 40

Indicated 35 9.9 0.7 24.1 35

Measured and indicated 75 9.8 0.7 24.6 75

Inferred 7 10.2 0.7 24.0 7

The year-over-year decrease in coal reserves reflects 2022 production depletion.

Economic recoverability is based upon an estimated average sales price per ton of $159.45 for the five-year period ending December 31, 2027 and assumed escalation of 2.0% per annum during the subsequent period through the end of the LOM plan.

The quality of coal reserves and resources are estimated on a dry basis.

The quantity of resource estimates are on an in situ basis, which doesn’t take into consideration coal loss during mining and processing.

The coal resource boundary is established by considering various factors, including results from drill hole analyses, coal control, geological features, faults and other surface features.

The cut-off grade and metallurgical recovery are not limiting factors for the reserve and resource estimates due to relatively consistent coal quality and float recovery from the lab results within the assessed area.

The historically mined coal thickness has been used as the main criteria for the resource boundary based on the mine’s actual performance in the last two decades.

The quantity of coal reserves is estimated on a saleable product basis, which takes into consideration of unmined coal (pillars, etc.), 20% coal loss during mining and processing, and additional washing recovery.

The results from the LOM planning process demonstrate the economic recoverability of the coal reserve estimate.

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

Peabody Energy Corporation 2022 Form 10-K

Wilpinjong Mine

4 unchanged sentences

The Wilpinjong Mine extracts coal from the Moolarben and Ulan coal seams which have a combined thickness from 6 to 10 meters and a typical depth less than 60 meters in the Illawarra Coal Measures on the northwest margin of the Sydney Basin.

The Company has secured three exploration licenses of 3,186 hectares and three mining licenses of 3,723 hectares through the New South Wales Minister of Planning.

The typical royalty rate is 8.2% of the value of coal recovered.

The mining licenses require renewal upon expiration in 2027 for 2,863 hectares and in 2039-2040 for 860 acres.

The renewal application for two exploration licenses is currently pending approval and the third was granted in May 2022 for an initial term of 6 years.

The Company has secured three exploration licenses of 2,958 hectares and four mining leases of 3,790 hectares through the New South Wales Minister of Planning.

The typical royalty rate is 8.2% currently, increasing to 10.8% in July of 2024, of the value of coal recovered.

The mining leases require renewal upon expiration in 2027 for 2,863 hectares and in 2039-2044 for 927 hectares.

Renewal applications for two exploration licenses were approved in 2023, with the terms extended to December 2027 and March 2028, and the third was granted in May 2022 for an initial term of 6 years.

As of December 31, 2023, all required licenses and permits were in place for the operations of Wilpinjong.

Conventional open cut mining methods are used at the Wilpinjong Coal Mine, with multiple pits at a low strip ratio allowing for relatively rapid pit advance.

Overburden is removed by a combination of cast blasting, doze, and truck and shovel methods.

Overburden is removed by a combination of cast blasting, dozer, and truck and excavator methods.

Haul trucks transport coal to various hoppers and pads for blending and temporary storage, as necessary, and then to a coal handling and processing plant to be crushed and washed.

6 unchanged sentences

Routine maintenance, overhauls and necessary capital replacements are generally included in the LOM plan to support future production.

During 2018, the Company began an expansion project at Wilpinjong Mine that will extend the mine life from 2026 to 2030 by providing access to an additional 55 million tonnes of coal reserves.

The Company capitalized approximately $62 million related to the project through December 31, 2022 and expects the total cost to reach approximately $76 million.

The tables below present Wilpinjong Mine’s estimated coal reserves and resources at December 31, 2023, along with comparative quantities at December 31, 2022.

These reserve and resource estimates were supported by the analyses of 1,271 total drill holes within the coal lease area.

These coal reserve and resource estimates were supported by the analyses of 1,271 total drill holes within the coal lease area.

The quantity of the coal resources is estimated on an in situ basis as 100% attributable to Peabody.

2 unchanged sentences

Coal reserves and resources are reported on selected key quality parameters on an air-dried basis.

WILPINJONG MINE - SUMMARY OF RESERVES AND RESOURCES (1)

WILPINJONG MINE - SUMMARY OF COAL RESERVES AND RESOURCES (1)

(Tons in millions)

14 unchanged sentences

The year-over-year decrease in the quantity of coal reserves was driven by production depletion.

Economic recoverability is based upon product-specific estimated average sales prices per ton of $51.99 for the five-year period ending December 31, 2027 and assumed escalation of 2.0% to 3.0% per annum during the subsequent period through the end of the LOM plan.

Economic recoverability is based upon product-specific estimated average sales prices per tonne of $51.65 for the five-year period ending December 31, 2028 and assumed escalation of 2.0% to 3.0% per annum during the subsequent period through the end of the LOM plan.

The quality of coal resources is on an in situ , air-dry basis.

9 unchanged sentences

Peabody Energy Corporation 2023 Form 10-K

Coppabella-Moorvale Joint Venture

The Company’s Coppabella Moorvale Joint Venture (CMJV) mines are located approximately 75 miles southwest of Mackay, near the township of Coppabella, in central Queensland, Australia.

The CMJV includes two production-stage surface coal mines, the Coppabella Mine and the Moorvale Mine.

During 2022, the Moorvale Mine substantially completed development of, and began production from, its Moorvale South pit.

Peabody owns 73.3% of the joint venture and is responsible for operations management.

CMJV originally was developed by Macarthur Coal Limited (Macarthur), with production commencing in 1998 at Coppabella Mine and 2002 at Moorvale Mine.

Peabody acquired Macarthur in December 2011 and assumed its majority interest in CMJV.

The CMJV mines primarily extract coal from the Leichardt seam in the Rangal Coal Measures of the Bowen Basin.

The seam has a thickness from 5 to 10 meters and a typical depth of less than 250 meters.

The development of the Moorvale South pit made a portion of the Vermont seam economically mineable.

The CMJV mines operate with a total of fourteen mining leases and one mineral development license issued by the Queensland state government, covering 13,459 hectares in total.

Coal production is subject to royalties payable to the Queensland state government ranging from 7% to 40%, depending upon the realized revenue per tonne.

In addition, there are special private royalty agreements established in relation to exploration efforts.

The primary mining leases for the Coppabella Mine expire in 2040 and other peripheral leases expire between 2023 and 2035.

The Moorvale Mine has two mining leases which expire in 2023, and a third in 2028.

The Moorvale South pit has two mining leases which expire in 2030, and its relevant mineral development license expires in 2024.

As of December 31, 2021, all required licenses and permits were in place for the operations of CMJV.

Conventional open cut mining methods are used at the CMJV mines.

Coppabella Mine utilizes a dragline and two electric rope shovels to perform the majority of overburden removal, supplemented by diesel hydraulic excavators, which are also used to extract coal.

The Moorvale Mine utilizes only diesel hydraulic excavators for overburden removal.

All CMJV mines utilize cast and dozer push operations where applicable.

Coal is trucked via internal haul roads for direct dumping to the hopper, or rehandled from pads to the dump hopper.

Coal is crushed and washed at two processing plants, then transported by rail to the Dalrymple Bay Coal Terminal for seaborne customers.

The CMJV produces a range of products including pulverized coal injection coal, coking coal and thermal coal.

Centurion Mine

The Centurion Mine, which is currently undergoing redevelopment, is an underground longwall metallurgical coal mine located 160 kilometers WSW of Mackay, Queensland, Australia.

The Centurion Mine lies on the Collinsville Shelf on the western margin of the Bowen Basin in Central Queensland.

White Mining Ltd developed the operation (then known as the North Goonyella Mine), including a rail loop, coal handling preparation plant (CHPP) and nearby accommodation village, following the grant of ML6949 in 1991.

Peabody then acquired North Goonyella as part of an acquisition of RAG’s coal assets in April of 2004 and operated it until September of 2018, when a fire in the mine halted operations.

The mine has been idled since that time while plans to re-initiate production with regulatory approval were developed.

Centurion Mine will extract coal from the Goonyella Middle seam with future plans to extend into the Goonyella Lower B2 (GLB2) seam with mining depths ranging from 210 meters to 540 meters.

The Company has secured mineral rights through state mineral leases and has an approved production rate for the operation of 10.2 Mtpa ROM coal that after processing, equates to approximately 7.6 Mtpa product coal.

The Centurion Mine operates on a Mining Lease issued by the State Government of Queensland.

Tenement holders are bound by the Mineral Resources Act 1989 and the Mineral Resources Regulation 2013 which define the laws pertaining to coal exploration and mining in Queensland.

Under the system administered by the Department of Natural Resources, Mines and Energy (DNRME), tenements are held as either EPC (Exploration Permit Coal), MDL (Mineral Development Licence) or ML (Mining Lease).

Production from the Centurion Coal Mine will be subject to the Queensland Government Royalty charged on total revenue.

In addition to this standard Government royalty, there is also a special private Royalty agreement established in relation to the sale of the property by a prior owner.

The Centurion Mining Lease, ML6949, encompasses a total of 3,293 hectares.

The ML allows mining and sale of coal by both underground and open cut methods.

Overlapping this Mining Lease, Centurion also holds a Petroleum Lease, PL504, which enables the company to commercialize any coal seam gas (methane) that may be extracted within the lease area.

Peabody Energy Corporation 2023 Form 10-K

The key supporting infrastructure for CMJV includes the port service at Dalrymple Bay Coal Terminal, above and below rail services, road access via public roads, electrical power from 66kV transmission lines, and water supply from captured surface runoff and commercial pipelines.

Temporary housing near the mine sites provides employees with overnight accommodations, as necessary.

The mines draw personnel primarily from nearby Moranbah, Nebo and Mackay, Queensland.

The property, plant, equipment and mine development assets of CMJV had a net book value of approximately $173 million at December 31, 2021.

The CMJV’s operating equipment meets contemporary mining standards and is adequately maintained to execute the mine plan.

Coal will be produced primarily using longwall systems.

The mine will also use continuous miner units for longwall development and limited production.

Mined coal will be processed through the on-site wash plant and conveyed to rail loadout facilities.

Product coal will be loaded to train via an existing 1,000t Train Loadout Bin.

The loaded trains will then travel some 217km to the Port of Hay Point where it will be bottom dumped to conveyor and onto stockpiles at Dalrymple Bay Coal Terminal (DBCT).

Shipping of coal to customers will take place on an ocean-going vessel, often shared with other coal suppliers.

Centurion Coking coal is a premium Hard Coking Coal (PHCC) with a mature brand name in the seaborne metallurgical marketplace and is well known in both the Atlantic and Pacific seaborne markets.

The key supporting infrastructure for Centurion Mine includes road access via highways and roads, access to both the Goonyella and Newland Rail Systems, coal export terminals at the Port of Hay Point and the Port of Abbot Point, connection to a High Voltage electricity grid that provides electricity to the existing facilities, and water supplied from the 15GL capacity Burton Gorge Dam.

Centurion also has a nearby accommodation village with housing and service amenities for more than 400 workers located 19km east of the mine.

The mine’s workforce is drawn primarily from the townships of Moranbah, Nebo and Mackay.

The property, plant, equipment and mine development assets of Centurion Mine had a net book value of approximately $393 million at December 31, 2023.

The mine’s operating equipment and facilities meet contemporary mining standards and are adequately maintained to execute the LOM plan.

Routine maintenance, overhauls and necessary capital replacements are generally included in the LOM plan to support future production.

The tables below present estimates of the CMJV coal reserves and resources as of December 31, 2022, along with comparative quantities at December 31, 2021.

These reserve and resource estimates were supported by the analyses of 4,763 total drill holes within the coal lease areas.

While the mine was idled since 2018, the Company upgraded the mine’s coal transfer and handling facilities, purchased new mining equipment and made other capital investments to improve its prospective cost structure.

Peabody Energy Corporation 2023 Form 10-K

The tables below present Centurion Mine’s estimated coal reserves and resources at December 31, 2023, along with comparative quantities at December 31, 2022.

These coal reserve and resource estimates were supported by the analyses of 1,776 total drill holes within the coal lease area.

The quantity of the coal resources is estimated on an in situ basis as 100% attributable to Peabody.

Coal resources are reported exclusive of coal reserves.

The quantity of the coal reserves is estimated on a saleable product basis as 73.3% attributable to Peabody.

The quantity of the coal reserves are estimated on a saleable product basis as 100% attributable to Peabody.

Coal reserves and resources are reported on selected key quality parameters on an air-dry basis.

CMJV - SUMMARY OF RESERVES AND RESOURCES (1)

CENTURION MINE - SUMMARY OF COAL RESERVES AND RESOURCES (1)

(Tons in millions)

12 unchanged sentences

Inferred 8 13.6 0.5 20.7 8

Total 183 187

Year-over-year decrease (2) %

The decrease in reserves reflects 2022 production depletion, partially offset by the reclassification of certain mine areas to reserves;

the decrease in resources reflects this reclassification.

Peabody Energy Corporation 2022 Form 10-K

Economic recoverability is based upon product-specific estimated average sales prices per ton of $122.75 for the five-year period ending December 31, 2027 and assumed escalation of 2% to 3% per annum during the subsequent period through the end of the LOM plan.

The quality of coal resources is estimated on an in situ , air-dry basis.

The quantity of coal resource is estimated on an in situ basis, which doesn’t take into consideration coal loss during mining and processing.

Besides the results from drill hole analyses, the resource estimates are based on the following criteria:

— Open cut resources are limited to an area defined by pit shell with RF150 (revenue factor 150%), with exception of Moorvale South MDL 3034 open cut resources are limited to 150m depth of cover

— Minimum mining thickness of 0.3m for open cut

— Minimum mining thickness of 2m for underground resources

— Underground resources excluded in areas of seam dip exceeding 15 degrees

— Underground resources depth cutoff at 500m depth of cover, with exception of Moorvale Mine depth cutoff at 300m depth of cover

— A seam quality cut-off greater than 50% raw ash (a.d.) is excluded from resources

— No weathered coal included

— Intrusive sills and dykes within seams are excluded from the resources

— Heat-affected coal is included in the resources

— Other limiting factors include surface infrastructure and lease boundary

The quality of coal reserves is estimated on an air-dry basis.

The quantity of coal reserves is estimated on a saleable product basis which takes into consideration of mining and processing loss.

The economic results from the LOM planning process demonstrate the economic viability of the coal reserve estimate.

Economic recoverability is based upon an estimated average sales price per tonne of $180 for most of the LOM plan.

The quality of coal reserves and resources are estimated on an air-dry basis.

The quantity of coal resource estimates are on an in situ basis, which doesn’t take into consideration coal loss during mining and processing.

The coal resource boundary is established by considering various factors, including results from drill hole analyses, mining lease, coal control, geological features, faults and other surface features.

The cut-off grade and metallurgical recovery are not limiting factors for the coal reserve and resource estimates due to relatively consistent coal quality and float recovery from the lab results within the assessed area.

The Lease boundary, surface infrastructures, and the base of weathering are the main limiting factors.

The quantity of coal reserves is estimated on a saleable product basis, which takes into consideration of unmined coal (pillars, etc.), coal loss during mining and processing, and additional washing recovery.

The results from the LOM planning process demonstrate the economic recoverability of the coal reserve estimate.

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

3 unchanged sentences

Such controls employ management systems, standardized procedures, workflow processes, multi-functional supervision and management approval, internal and external reviews, reconciliations, and data security covering record keeping, chain of custody and data storage.

The internal controls for reserve and resource estimates also cover exploration activities, sample preparation and analysis, data verification, processing, metallurgical testing, recovery estimation, mine design and sequencing, and reserve and resource evaluations, with environmental, social and regulatory considerations.

The internal controls for coal reserve and resource estimates also cover exploration activities, sample preparation and analysis, data verification, processing, metallurgical testing, recovery estimation, mine design and sequencing, and coal reserve and resource evaluations, with environmental, social and regulatory considerations.

The quality assurance and control protocols over the assaying of drill hole samples are performed by reputable commercial laboratories following certification and accreditation programs established by the American Society for Testing and Materials (ASTM) or Australian National Association of Testing Authorities (NATA).

The reserve and resource estimates have inherent risks due to data accuracy, uncertainty from geological interpretation, mine plan assumptions, uncontrolled rights for mineral and surface properties, environmental challenges, uncertainty for future market supply and demand, and changes in laws and regulations.

Peabody Energy Corporation 2023 Form 10-K

The coal reserve and resource estimates have inherent risks due to data accuracy, uncertainty from geological interpretation, mine plan assumptions, uncontrolled rights for mineral and surface properties, environmental challenges, uncertainty for future market supply and demand, and changes in laws and regulations.

Management and QPs are aware of those risks that might directly impact the assessment of coal reserves and resources.

1 unchanged sentence

Refer to Item 1A.

“Risk Factors” for discussion of risks associated with the estimates of the Company’s reserves and resources.

“Risk Factors” for discussion of risks associated with the estimates of the Company’s coal reserves and resources.

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