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Denver Coal Club

Denver Coal Club. The Powder River Basin: It’s Current Status and Prospects. Burnham Coal, LLC. March 21, 2013. Disclaimer “It’s tough making predictions, especially about the future.” - Yogi Berra, variations by Casey Stengel, Mark Twain, et. al.

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Denver Coal Club

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  1. Denver Coal Club The Powder River Basin: It’s Current Status and Prospects Burnham Coal, LLC March 21, 2013

  2. Disclaimer “It’s tough making predictions, especially about the future.” - Yogi Berra, variations by Casey Stengel, Mark Twain, et. al. “predicting the future is easy. It's trying to figure out what's going on now that's hard.” Fritz R. S. Dressler Burnham Coal, LLC March 21, 2013

  3. Powder River Basin Mine Location Map Burnham Coal, LLC March 21, 2013

  4. For the first time since 1978, PRB producers are experiencing a prolonged decline in production Burnham Coal, LLC March 21, 2013

  5. Don’t expect increased production in 2013 Burnham Coal, LLC March 21, 2013

  6. Long term planned and potential production capacity has not decreased Burnham Coal, LLC March 21, 2013

  7. Existing mines and projects Burnham Coal, LLC March 21, 2013

  8. Australian interest in U.S. coal (the grass is always greener): Ambre Energy buys 50% interest in Decker and Black Butte mines – acquisition of the remaining 50% of Decker is Pending Australian-American Many Stars project in Montana County Coal ltd., wants to develop two coal mines in the PRB Continental Coal Ltd. Is in discussions with the Crow Nation to acquire a large coal deposit in Montana. Burnham Coal, LLC March 21, 2013

  9. Current cost related trends Burnham Coal, LLC March 21, 2013

  10. Productivity began falling in 2001 42.0 TPMH 28.3 TPMH Burnham Coal, LLC March 21, 2013

  11. Ratios are climbing Burnham Coal, LLC March 21, 2013

  12. Reserves are getting more expensive Burnham Coal, LLC March 21, 2013

  13. Thoughts on companies and mines Burnham Coal, LLC March 21, 2013

  14. Where will the coal go? Burnham Coal, LLC March 21, 2013

  15. Domestic markets are not expected to improve Burnham Coal, LLC March 21, 2013

  16. Are exports the answer? Burnham Coal, LLC March 21, 2013

  17. Forecasts – everybody agrees that the demand is there. But let’s look at history. Burnham Coal, LLC March 21, 2013

  18. Burnham Coal, LLC March 21, 2013

  19. Los Angeles Export Terminal (LAXT) Utah exports jump from 0.5 Mt in 1987 to 3.0 Mt in 1993. Work starts on LAXT in 1993. Utah exports peak at 5.3 Mt in 1996. Port opens in 1997. LAXT closes due to lack of business in 2002. Burnham Coal, LLC March 21, 2013

  20. U.S. Coal Export History Burnham Coal, LLC March 21, 2013

  21. Historically, the U.S. has been the swing supplier Burnham Coal, LLC March 21, 2013

  22. U.S. producers have an transportation disadvantage from mine to port. Burnham Coal, LLC March 21, 2013

  23. West Coast Transportation Routes Burnham Coal, LLC March 21, 2013

  24. Great Lakes - Gulf Coast Transportation Routes Burnham Coal, LLC March 21, 2013

  25. And a transportation disadvantage from port to customer. Burnham Coal, LLC March 21, 2013

  26. The U.S. has a seaborne disadvantage to Asia Burnham Coal, LLC March 21, 2013

  27. Port Capacity and Proposed Expansions (Mt) Burnham Coal, LLC March 21, 2013

  28. Environmental opposition to ports: “EPA wants full review of Oregon coal-export project” “Oregon governor wants study of coal-export impacts” “Port of St. Helens eyed for coal terminal, Columbia Riverkeeper mounts no campaign” “RFK Jr. calls coal ‘corrupting’ at Portland rally” Burnham Coal, LLC March 21, 2013

  29. Environmental opposition is not limited to ports: “Federal coal sales in Powder River Basin draw suit” “Montana agency challenged over coal mine permits” “Backers of Tongue River Railroad told to resubmit application” “Seattle City Council Votes Unanimously (and Symbolically) Against Coal” “City of Helena Oks coal-train letter to Amy Corps “Missoula City Council supports study of coal trains’ effects” “Spokane wants more study of coal trains” “At chamber’s request, county commissioners back coal development” (Yellowstone County, MT) Burnham Coal, LLC March 21, 2013

  30. Final question Burnham Coal, LLC March 21, 2013

  31. Source: Peabody 8-K, May 17, 2012 Burnham Coal, LLC March 21, 2013

  32. Final thought Burnham Coal, LLC March 21, 2013

  33. “There is nothing stable in human affairs: therefore, avoid undue elation in prosperity and undue depression in adversity.” - Socrates Burnham Coal, LLC March 21, 2013

  34. Contact Information: Bob Burnham Burnham Coal, LLC 16357 W. 76th Ave Arvada, CO 80007 303.517.7826 bob@burnhamcoal.com Burnham Coal, LLC March 21, 2013

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