Peabody Energy (BTU) Status Update summary

Project Overview and Strategic Rationale

• Centurion is a premium hard coking coal asset with significant capital investment, strong board support, and a 25+ year mine life, aiming to meet growing global demand amid declining supply.

• The mine targets the premium low volatile hard coking coal segment, expected to see the tightest supply-demand fundamentals, especially driven by growth in India and Asia.

• Centurion's coal quality offers high coke strength, low ash, low phosphorus, and low sulfur, making it highly desirable for steelmakers and likely to command premium pricing.

• The mine benefits from proximity to key Asian markets, competitive logistics, and established infrastructure, enhancing its cost and delivery advantages.

• Centurion is expected to transform the company’s portfolio, shifting EBITDA mix toward metallurgical coal and increasing exposure to seaborne markets.

Development Progress and Operational Update

• Development activities are 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 in place for the southern district, with routine amendments expected for the north; mine life exceeds 25 years with 140 million tons of reserves.

• Infrastructure includes a refurbished prep plant, new longwall system, accommodation for 400+ workers, and dedicated rail and port access.

• Mining equipment is fit-for-purpose, with three Komatsu continuous miners and a Caterpillar longwall system ready for installation in 2026.

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

Market Positioning and Demand Drivers

• Demand for Centurion’s coal is expected from India, Japan, Korea, and Taiwan, with a focus on partnering with cornerstone customers in Asia.

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

• Demand for seaborne metallurgical coal is shifting to India and Southeast Asia, driving long-term growth.

• Queensland location provides freight cost advantages to Indian markets.

• Initial shipments are being marketed to several partners, with ongoing discussions to finalize sales.