Peabody Energy (BTU) Status Update summary

Project Overview and Strategic Context

• Centurion is a premium, low-cost, long-life hard coking coal asset with strong shareholder and board support, targeting growing Asian demand, especially India, amid global supply constraints.

• The mine benefits from high-quality coal attributes, favorable logistics in the Bowen Basin, and proximity to key export markets, enhancing its competitive advantage.

• Centurion's coal is classified as premium low volatile hard coking coal (PLVHCC), with high coke strength, low ash, low phosphorus, and low sulfur, making it highly desirable for steelmakers.

• The project is transformational, shifting the business mix toward seaborne metallurgical coal and increasing EBITDA exposure to over 50% from met coal.

• Diversified portfolio with significant contributions from seaborne thermal, seaborne metallurgical, and U.S. thermal segments.

Market Dynamics and Demand Outlook

• Seaborne metallurgical coal demand is projected to grow by 44 million tons over 25 years, driven by India's increasing steel production and limited domestic coal resources.

• Hard coking coal supply is expected to fall short of demand by the early 2030s, requiring new projects of Centurion's scale annually to meet market needs.

• Australian coals, including Centurion, have a landed cost advantage to Asia due to lower freight rates compared to U.S. and Canadian suppliers.

• Key target customers include steelmakers in India, Japan, Korea, and Taiwan, with a focus on long-term partnerships in Asia.

• Metallurgical coal is essential for steel production, with Centurion offering high-quality, low-impurity hard coking coal.

Project Development and Operational Progress

• Development is ahead of schedule, with record drivage rates and all key positions filled; first coal shipment is expected by the end of the current quarter.

• All required licenses and permits are secured for the southern district, with routine amendments expected for the north.

• The mine has 140 million tons of reserves and a 25+ year life, with additional reserves possible from underlying seams.

• Major milestones include first development coal (June 2024), first coal shipment (Q4 2024), and first longwall coal (March 2026).

• Utilizes over $1B in existing infrastructure, including CHPP, accommodation, and rail connections.