The BHP Group Ltd (ASX: BHP) share price is up more than 1% after the mining giant announced its production for the September 2025 quarter.September 2025 quarterThere are four main commodities that BHP produces and we’ll look at the performance compared to the fourth quarter of FY25 (quarter on quarter) and the first quarter of FY25 (year on year).BHP produced 493.6kt of copper, which was a decline of 4% quarter on quarter, but up 4% year on year. It noted record concentrator throughput at Escondida.Iron or ...

Group 1 - Anglo American has initiated arbitration proceedings against Peabody Energy due to the cancellation of a purchase agreement for its steelmaking coal assets [1] - Peabody Energy retracted its offer of approximately $3.8 billion for Anglo American's Australian coking coal assets after failing to agree on price reductions following a fire at the Moranbah North mine [1][2] - The Moranbah North mine operations were suspended in April due to an underground fire caused by elevated gas levels, which led Peabody to activate a clause allowing withdrawal or renegotiation of the agreement [2][3] Group 2 - Anglo American returned $29 million of the $75 million deposit to Peabody, with Peabody demanding the remaining amount promptly [3] - Anglo American, through its subsidiary Anglo American Sur, signed a definitive agreement with Codelco to execute a joint mine plan for their copper operations in Chile [3][4]

Core Viewpoint - Peabody has terminated its purchase agreements with Anglo American Plc due to a material adverse change related to Anglo's steelmaking coal assets, following an ignition event at Anglo's Moranbah North Mine, which has no clear timeline for resuming production [1][2]. Group 1: Termination of Agreements - Peabody's decision to terminate the transaction comes nearly five months after an ignition event at Anglo's Moranbah North Mine, with no definitive timeline for resuming sustainable longwall production [1]. - The two companies did not reach a revised agreement to address the material adverse change that would compensate Peabody for the impacts on the acquisition [2]. - Peabody has also terminated the agreement for the related sale of the Dawson Mine to PT Bukit Makmur Mandiri Utama [3]. Group 2: Financial Implications - Anglo estimates holding costs at Moranbah North to be $45 million per month, with the mine previously targeted to produce 5.3 million tons of saleable production in 2025 [2]. - There is currently no timetable for the resumption of longwall production at forecasted volumes and costs [2]. Group 3: Strategic Positioning - Peabody's portfolio is well positioned with growing exposure to seaborne metallurgical coal, highlighted by the new 25-year premium hard coking coal Centurion Mine [4]. - The company intends to execute a four-pronged strategy for value creation, focusing on managing safe, productive, and environmentally responsible operations [5]. - Peabody aims to return 65-100% of available free cash flow to shareholders primarily through share buybacks, while maintaining a resilient balance sheet and exercising strong capital discipline [5].

Financial Performance - Revenue decreased by 25% to $2975 million for the three months ended June 30, 2025, compared to $3965 million in 2024[17] - Net income decreased by 92% to $56 million for the three months ended June 30, 2025, compared to $707 million in 2024[17] - Adjusted EBITDA decreased by 54% to $536 million for the three months ended June 30, 2025, compared to $1159 million in 2024[17] - For the six months ended June 30, 2025, the company recorded a net loss of $26 million, a 101% change compared to a net income of $2077 million in 2024[21] - Revenue decreased by 34% to $5975 million for the six months ended June 30, 2025, from $9000 million in 2024[21] - Adjusted EBITDA decreased by 71% to $931 million for the six months ended June 30, 2025, compared to $3161 million in 2024[21] Production and Sales - Coal production increased by 6% to 2308 thousand short tons for the three months ended June 30, 2025, compared to 2172 thousand short tons in 2024[17] - Coal sales increased by 6% to 2219 thousand short tons for the three months ended June 30, 2025, compared to 2098 thousand short tons in 2024[17] - Coal production increased by 8% to 4562 thousand short tons for the six months ended June 30, 2025, compared to 4223 thousand short tons in 2024[21] - Coal sales increased by 4% to 4391 thousand short tons for the six months ended June 30, 2025, compared to 4227 thousand short tons in 2024[21] Blue Creek Project - The company achieved commercial sales of 239 thousand short tons of Blue Creek steelmaking coal ahead of schedule[10] - The company invested $518 million in the continued development of Blue Creek, bringing the total project-to-date capital expenditures to $8235 million[12] - The longwall startup at Blue Creek is accelerated to early first quarter of 2026[11]

Core Points - Peabody has notified Anglo American Plc of a Material Adverse Change (MAC) affecting its planned acquisition of steelmaking coal assets due to issues at the Moranbah North Mine, which has been inactive since a gas ignition event on March 31, 2025 [1][2] - The uncertainty surrounding the Moranbah North Mine has raised concerns about the acquisition's value, as a significant portion of it was tied to this mine, and there is currently no known timetable for resuming production [2] - If the MAC is not resolved satisfactorily within the specified timeframe, Peabody may choose to terminate the acquisition agreements [2] Company Overview - Peabody is a leading coal producer that provides essential products for affordable and reliable energy and steel production [3] - The company's commitment to sustainability is a core aspect of its strategy and operations [3]

Financial Performance - Revenue decreased by 40% to $299.9 million in Q1 2025, compared to $503.5 million in Q1 2024[15] - Net loss was $8.2 million in Q1 2025, a 106% decrease compared to a net income of $137.0 million in Q1 2024[15] - Adjusted EBITDA decreased by 80% to $39.5 million in Q1 2025, compared to $200.2 million in Q1 2024[15] - Free cash flow was negative $68.4 million in Q1 2025, a 2,950% decrease compared to $2.4 million in Q1 2024[15] - Average net selling price decreased by 42% to $135.79 per short ton in Q1 2025, compared to $233.91 per short ton in Q1 2024[15] Production and Sales - Production volumes increased by 10% to 2,254 thousand short tons in Q1 2025, compared to 2,051 thousand short tons in Q1 2024, attributable to Blue Creek[11, 15] - Sales volumes increased by 2% to 2,172 thousand short tons in Q1 2025, compared to 2,129 thousand short tons in Q1 2024[11, 15] Blue Creek Project - $55.3 million was invested in the Blue Creek project in Q1 2025, bringing the total project-to-date capital expenditures to $771.8 million[11] - Blue Creek produced 251 thousand short tons in Q1 2025[11, 24] - Longwall startup at Blue Creek is expected no later than Q2 2026[8, 11, 24, 33] - Total capital expenditure estimate for Blue Creek project reiterated in a range of $995 million to $1.075 billion[30]