Category Archives: Materials

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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Arch Coal Post-Bankruptcy

On October 5, Arch Coal officially exited the bankruptcy process.  The exit came just short of nine months after it had filed for bankruptcy on January 11, 2016.  This was a remarkable achievement, given the company’s size, the large and … Continue reading

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Coal Stocks Surge on Rebound in Overseas Prices

Many coal stocks have surged in price in October, primarily because of rising coal prices overseas and improving production volumes in the U.S. Shares of Peabody Energy (BTUUQ), which is still in bankruptcy, surged more than ten-fold in just ten … Continue reading

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