Peabody Energy Corporation (BTU)

[LouisDesyjr]

Closer look at the recent operating report

Monthly Operating Report for Peabody Energy Corp., et al. for the Period of August 2016, document 1323:
http://www.kccllc.net/peabody/document/1642529160920000000000013


On page 14 is a consolidated balance sheet. That does show stockholders equity of $577 million. Operating losses for the month were $14 million.

The problem is the 'Property, plant, equipment and mine development, net' of $9,087 million.

The property is carried at cost on the balance sheet, so a loss or write down of as little as 7% on the assets, will wipe out the equity.

As one can imagine, the write down on assets, that were unable to generate enough cash to keep the company out of bankruptcy, will probably be on the order of 10% or higher before the case is done, leaving the existing common shares 'under water' and worthless.

Louis J. Desy Jr.