OT: W.Buffet & B.Gates bet on coal

[arctan]

Why were Bill Gates & Warren Buffett in Gillette Wyoming?
Buying a coal mine?

activerain.com/blogsview/1960492/why-were-bill-gates-warren-buffett-in-gillette-wyoming-

CLD mine in Gillette Wyoming -
www.cloudpeakenergy.com/operations/cordero-rojo-mine

Buffett’s Coal Bet from Wyoming!

Investors are applauding coal’s comeback. After tumbling 84 percent in five months from June to November 2008 as the financial crisis gutted growth, the Stowe Global Coal Index rebounded. The index rose 295 percent from its low on Nov. 20, 2008, through Oct. 11 of this year -- more than five times the rise of the Standard & Poor’s 500 Index in that period.

Shares of Peabody Energy Corp., the largest U.S. coal producer, climbed 217 percent to $51.53. Brisbane, Australia- based Macarthur Coal Ltd., the biggest producer of coal used in steelmaking, quadrupled to A$12.90. Joy Global Inc., which makes mining equipment in Milwaukee, rose 381 percent to $73.12.

Even Warren Buffett’s $27 billion purchase of the Burlington Northern Santa Fe LLC railroad in February was partly a bet on coal. Buffett, chief executive officer of Berkshire Hathaway Inc., uses his company’s newly acquired railroad to ship coal from Wyoming to dozens of U.S. states.

www.bloomberg.com/news/2010-10-12/new-king-coal.html


Mining stocks: ANR CLF CLD PCX ACI MEE PUDA + HL

[141fe]

Coals fall in price had nothing to do with the finacial crisis per se.
It had everything to do with a socialist president and a democratic Congress pushing Cap and Trade.

Bill Gates & Warren Buffett in Gillette Wyoming had everything to do with the Republican gains in Congress and the death of Cap and Trade.

Americans must still be on guard for this adiministration to back door much of Cap and Trade's economy and job killing measures via the EPA.

If we had gotten paid already we could have begun buying coal mines on the 3rd of November!!

[arctan]

Hope we get paid soon but don't be idle while we are waiting!


I think CLD will be purchased before two years are up.

They sell for 2x book while all the other coal companies sell for around 3-3.5x book value.

Also, CLD's coal is the cleanest and easiest coal to get to.

Buffet paid $30B for a railroad whose number one cargo is coal. Why not pay $1B and purchase CLD for $30 per share. Seems to me like a logical move since he is sitting on so much cash again.

China has 5 times the people we have and they will take all of the excess production from the U.S.

The terrible hedging that CLD did a year ago will be holding this company down for another 24 months. That has kept the stock from going to $30-40. A smart buyer buys up 5% of the shares on the open market around $20. Wastes for a market downturn and makes an offer for the company at $30. We shareholders would never get the benefit of the run-up that is going to take place for coal over the next 5-10 years.

Energy consumption in China per person is 80% less than in the U.S. because their middle class has only started to purchase cars, computers, television sets appliances. Their middle class will double in size over the next 5-10 years. The hand writing is on the wall because coal is the number one source of energy powering their power plants.

[arctan]

Coal India Said to Consider Buying Its First U.S. Mine From Massey Energy


Coal India Ltd. is considering bidding for its first mine in the U.S., a deposit owned by Massey Energy Co., said three people with direct knowledge of the matter.

The state-run company, the world’s largest coal producer, is currently researching the mine, the people said, asking not to be identified because the information is confidential. The company doesn’t comment on merger and acquisition matters, Jeff Gillenwater, a Massey spokesman, said in an e-mail.

Mines overseas would help Coal India meet demand from power stations and steel mills that’s rising faster than production in Asia’s second-biggest energy-consuming nation. Coal India, which had 380.5 billion rupees ($8.7 billion) of cash and bank deposits as of June, has set aside 60 billion rupees for acquisitions this financial year.

“Being a state-run company, they have a responsibility to meet this demand,” said Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd. in Kochi, in India’s southern state of Kerala. “The timing is right now, as with recovering economies, prices of assets will only rise.”

Massey rose 96 cents, or 2.1 percent, to $47.02 at 11:42 a.m. in New York Stock Exchange composite trading. The shares have gained 12 percent this year.

Asset Purchases

Coal India is studying three assets in the U.S., Australia and Indonesia, Chairman Partha Bhattacharyya said Oct. 25. Bhattacharyya couldn’t be reached on his mobile phone and finance director A.K. Sinha declined to comment immediately.

Coal India, which started trading Nov. 4 after the country’s largest initial public offering, gained 1.8 percent to 328.55 rupees in Mumbai today, giving it a market value of $47 billion.

Massey shares surged 11 percent on Nov. 5 after the Wall Street Journal said the company is weighing a takeover offer from Alpha Natural Resources Inc. of Abingdon, Virginia.

The U.S. company, the largest coal producer in Central Appalachia, said in May it isn’t preparing itself for sale. Massey continues to have discussions with other producers to pursue joint ventures or asset sales, the company said in a May 26 statement.

Coal India is seeking to buy a mine from Massey and not the company, the people said. The transaction may be for less than $1 billion, two of the people said.

Mining Accident

Massey owns the Upper Big Branch mine where 29 people died in April, the worst U.S. coal mining accident in 40 years. The company has a market value of $4.7 billion.

The coal producer owns 2.8 billion tons of reserves, 1.3 billion of which are metallurgical coal, used to produce steel. Benchmark prices for that grade of coal have soared to $209 a metric ton for the three-month contract ending Dec. 31, 62 percent higher than a year earlier.

India’s government sold a 10 percent stake in Coal India last month. The company acquired two coal blocks in Mozambique last year, which may hold a combined 1 billion tons of thermal coal and some coking coal.

The construction of new power plants and an expansion of India’s steel industry may triple coal imports from their 2007 level by 2030, the U.S. Energy Information Administration predicted last year. India may import almost 100 million tons of coal this year to meet growing demand for the fuel from power plants, Bhattacharyya said in May.

The country’s imports of coking coal, an ingredient in making steel, will triple by 2015, Citigroup Inc. analyst Alan Heap said at a conference Oct. 7.

To contact the reporters on this story: Rakteem Katakey in New Delhi at [e-mail]; George Smith Alexander in Mumbai [e-mail]; Mario Parker in Chicago at [e-mail].

www.bloomberg.com/news/2010-11-11/coal-india-said-to-consider-buying-its-first-u-s-mine-from-massey-energy.html?cmpid=yhoo

[arctan]

Peabody Rides the Supercycle to Profitville...

Here in the very early stages of a powerful long-term bull market for coal, I find it astonishing to witness the apparent indifference among most investors toward coal mining stocks.

If it takes the best-positioned company in the business to finally convey the complete picture of what is transpiring here, then so be it. Like this Fool, Peabody Energy (NYSE: BTU) is done mincing words.

Peabody chairman and CEO Gregory Boyce states the case as clearly as possible: "Peabody believes that the global coal industry is in the early stages of a long term supercycle, led by China and India. Peabody's access to these key markets represents significant value creation opportunity."


www.fool.com/investing/general/2010/10/20/peabody-rides-the-supercycle-to-profitville.aspx

[arctan]

West Coast port feasible: Cloud Peak CEO

plattsenergyweektv.com/story.aspx?storyid=119732&catid=293

Credit Suisse raises Cloud Peak Energy Inc target price to $24 from $22
classic.cnbc.com/id/40028055


coal related stocks and summary from last biggest 2 days sell-off in 3 months:

CLD: Lost 22c
11/10 closed at 20.92
11/12 closed at 20.70
finance.yahoo.com/q/hp?s=CLD+Historical+Prices

PCX: Lost 49c
11/10 closed at 15.21
11/12 closed at 14.72
finance.yahoo.com/q/hp?s=PCX+Historical+Prices

MEE: gained $1.06
11/10 closed at 46.06
11/12 closed at 47.12
finance.yahoo.com/q/hp?s=MEE+Historical+Prices

JRCC: Gained 29c
11/10 closed at 18.70
11/12 closed at 18.41
finance.yahoo.com/q/hp?s=JRCC+Historical+Prices

[arctan]

By: Liezel Hill
12th November 2010

TORONTO - A new coal-export port facility on the US West Coast is "absolutely more than a pipedream", Cloud Peak Energy CEO Colin Marshall said on Thursday.

Cloud Peak produces coal from three big surface coal mines in the Powder River Basin, and would benefit from increased export capacity as it could send more coal to energy-hungry customers in Asia.

Other Powder River Basin producers, including top US coal miner Peabody Energy, have talked about the potential for a new export facility on the West Coast.

"I would say it is absolutely more than a pipe dream," Marshall said in a presentation at a conference hosted by Raymond James.

"There is a lot of real action in terms of people trying to pull that together."

There is also real demand from Asian utilities, particularly in Korea, which are concerned about future coal supply, he said.

"They would like to be assured of coal supply in the long term, because they are building power stations that obviously are going to run for a long time," Marshall said.

"So I think it's very real, it's a question of when rather than if," he said.

"Obviously, everyone is talking to everyone else about it."

PRB coal is particularly low cost to mine, but has historically been sold to domestic power utilities because of the high transport costs to ship it to the coast and then to export markets.

Cloud Peak expects to ship three-million tons of coal from its Spring Creek mine through the existing Westshore terminal this year, and plans on exporting another three-million tons next year, Marshall said on Thursday.

However, the Westshore facility is battling capacity constraints as exports of both metallurgical and thermal coal rise, and Cloud Peak would be "very supportive of someone getting the pieces together to expand that capacity", he said.

Peabody said in June that it had narrowed down potential sites for a West Coast port, and had begun detailed engineering work.
It was also holding discussions with customers and counterparties from Asia that might be interested in participating in the project, president Rick Navarre said in a presentation at the time.

Marshall confirmed that the company is also seeing increasing interest for its PRB coal from utilities in the eastern US, as less material is available from their traditional Central Appalachia sources.

"It's not a tidal wave of coal going east," but there are certainly utilities that previously had no interest in PRB coal starting to ask for price quotes, he said.

Cloud Peak Energy started trading on the NYSE in November 2009, after Rio Tinto sold 30,6-million shares in the company in an initial public offering.

The company expects to sell 94-million tons this year, all of which is already contracted.

~CLD may go wild~

www.miningweekly.com/article/when-rather-than-if-for-new-west-coast-coal-port-2010-11-12

[arctan]

Coal (Black gold) stocks are doing well today regardless to PIIGS problem!

finance.yahoo.com/q?s=cld
finance.yahoo.com/q?s=pcx
finance.yahoo.com/q?s=btu
finance.yahoo.com/q?s=mee
finance.yahoo.com/q?s=clf
finance.yahoo.com/q?s=anr
finance.yahoo.com/q?s=aci
finance.yahoo.com/q?s=wlt
finance.yahoo.com/q?s=puda
finance.yahoo.com/q?s=llen

Cloud Peak Continues to Exceed Expectations on Cost Control
quicktake.morningstar.com/Stocknet/san.aspx?id=358978

West Coast coal export facility plan by Peabody Energy
www.trainorders.com/discussion/read.php?1,2217925


BTU/CLD could be merged in the near future - IMO

[arctan]

Coal sector is going thr. the roof..........
Walter Energy seeks to buy Western Coal for $3.24 billion...

finance.yahoo.com/news/Walter-Energy-seeks-to-buy-rb-810297493.html?x=0&.v=1


~CLD PCX CLF RIO MEE BTU PUDA ANR ACI....,etc~