The New King Coal: George Soros

breitbart.com ^ | 8/17/2015 | Steve Miloy

[fudimo]

What needs to be brought to discussion is that Sorros did not buy any Cloud Peak Energy stock and why.

The co.’s Sorros invested in own much of the land they mine.

Cloud Peak leases their land from .gov by paying royalties.

Well wouldn’t you know it, The BLM just announced it is increasing the royalty fees.

The Obama Administration and a group of lawmakers recently took the first steps in more than thirty years toward reforming the federal government’s coal program. Standing in their way, however, is a giant new coal company with a business model that depends on bending the rules, dodging royalty payments, and spending big to win powerful political allies.

Most Americans have never heard of Cloud Peak Energy, the third largest coal company in the United States. A 2009 spinoff of the British-Australian mining company Rio Tinto, Cloud Peak only owns three mines, but these mines are among the biggest in the United States. All three are on taxpayer-owned public lands in the Powder River Basin in Montana and Wyoming, where strip-mining costs are low, production is high, and federal policies are favorable.

http://thinkprogress.org/climate/2015/08/11/3690084/cloud-peak-coal-investigation/

[Rusty0604]

Thanks for the info.

[webstersII]

Are you expecting it to recover?

Isn’t that risky, considering all rhe political junk involved?

[DaxtonBrown]

ARLP now has a 6.5 Price to Earnings ratio, it is in no danger of going bankrupt (unlike any other coal miner). It is paying a 10.5% dividend, covered 1.7 times by earnings. In short DESPITE all the artificial headwinds it is a solid money making company. Coal is not going to be displaced from energy production for many decades, if ever.