Target $4.61, page-6181

don’t stress it they got a margin call on their hedges they locked in at 80 Usd , I think for their Wambo production , probably a put option at that level and taken out some time back . As they are so far in the money ( for the counter party) and adverse to Peabody, counter party probably had some sort of margin call right inherent in the instrument . Market over reacted as peabody still majority unhedged .

Interesting to note how little Peabody get paid on all their powder river basin coal production in the states . Thank god there isn’t a lot of west coast port coal capacity in the states that would make it easy for Peabody to redirect their powder river supply towards Asia . With all the green lunatics now probably not much chance they will ever expand that capacity significantly now either . Amazing to think were still selling most of that powder river coal at 13 per ton under long term agreements in their last filing period. If you were a shareholder in Peabody at the moment , looking at global prices and seeing how much you clear from all the powder river tonnage ,circa 95 Mt per annum , you would be shaking your head .