Wednesday, 11 April 2018

U.S. coal investment rationale gets weaker after reserve write-offs

Coal drilling in Colorado, US Coal drilling in Colorado, US

Major U.S. coal producers like Peabody Energy, Arch Coal and Foresight Energy had to acknowledge their reserves were overstated, and are now taking significant write-downs. This move lowers the investment rational in the American coal industry given that insurers, investors and analysts typically consider company-reported reserves as an indicator of what can be cashed in.

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