Peabody rises after Thomist takes stake, suggests buybacks

North Goonyella mine. Credit: Peabody

Peabody Energy Corp. rose more than 7% after Thomist Capital Management LP disclosed a 9.96 percent stake and urged the coal miner to buy back shares.

Thomist suggested to Peabody management that the company should use some of its $1.45 billion cash balance to repurchase stock, get more value out of its Powder River Basin assets, and sell a stake in its Centurion mine in Australia, according to a filing Tuesday. Peabody was up 7.4% to $24.22 at 9:38 a.m. in New York on Wednesday.

Peabody’s filing came as Arch Resources Inc. and Consol Energy Inc. agreed to combine in an all-stock merger to create Core Natural Resources, a producer and exporter of coal.

(By Josh Saul)

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