Category Archives: Materials

Cloud Peak Energy: Valuable Assets But Little Income

On January 29, Cloud Peak Energy (“CPE”) announced that it had hired a team of professionals to help it review its capital structure and formulate restructuring alternatives. That followed its announcement last November that it was pursuing strategic alternatives, including … Continue reading

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Back of the Envelope: The New Dow Chemical

DowDuPont, the chemical behemoth created in 2017 from the merger of The Dow Chemical Company and E.I. DuPont de Nemours and Company, is set to spin-off Dow Holdings (“New Dow” or DOW) on April 1.  This is the first of … Continue reading

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Barrick and Randgold Agree to Merge

On Monday, September 24, 2018, Barrick Gold Corp. and Randgold Resources Ltd. announced that they had agreed on a share-for-share merger that would create the largest publicly-traded gold company in the world.  Under the terms of the merger, each Randgold … Continue reading

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Barrick Gold: A More Speculative Bet on Gold

Barrick Gold is the second largest publicly-traded gold producer, with an equity market capitalization of $11.6 billion.  Like its rival, Newmont Mining, Barrick is focused on reducing costs and improving operating efficiency to maximize free cash flow generation in this … Continue reading

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Newmont Mining: A Safer Bet on Gold Mining

Based in the Denver, Newmont Mining Corporation (NEM) is the largest publicly-traded gold miner by equity market capitalization.  Its geographic segments include North America (the U.S.), South America (Peru and Surinam), Australia and Africa (Ghana).  Newmont’s share price rebounded sharply … Continue reading

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A Quick Look at the Price of Gold

These are tough times for investors in gold and even tougher times for investors in gold mining companies.  Since the beginning of 2011 (through Aug. 31, 2018), the price of gold, as measured by the continuous CME futures contract) has … Continue reading

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An Update on Arch Coal (ARCH)

Arch Coal emerged from bankruptcy on October 5, 2016 and recently filed its 2016 10-K which included its fourth quarter performance (Oct. 2 to Dec. 31) as a reorganized (i.e. successor) company. With its quick emergence from Chapter 11, substantial … Continue reading

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Peabody Puts Its Bankruptcy Plan to a Vote (Part 3)

Other Thoughts on the Plan.  In a bankruptcy, a debtor-in-possession serves as a fiduciary for the creditors and interests.  The court oversees the case to ensure that the debtor fulfills its obligations.  Yet, both the debtor and the court cannot … Continue reading

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Peabody Puts Its Bankruptcy Plan to a Vote (Part 2)

Under Peabody’s bankruptcy plan a simplified summary of the classes, amount and treatment of claims and interests is given in the table below:

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Peabody Puts Its Bankruptcy Plan to a Vote (Part 1)

On January 27, 2017, the bankruptcy court approved Peabody’s bankruptcy plan and disclosure statement.  By now, these documents have been distributed to creditors who are eligible to vote on the plan.  The voting deadline is March 3.  Objections to the … Continue reading

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