Before we get too off-topic (about a project 300 pages into a thread with no sign of construction imminent), here’s what we should remember about the deal before we get too worried about accumulated debt positions in any Peabody M&A of Macarthur.
The primary business of Macarthur Coal, Ltd. is the exportation of pulverized coal, which is essential to the creation of steel. East Asian steel demand is still chucking along, especially with the continued growth of real estate in China continuing despite the global economy’s pains. As other countries see similar demand for steel, including Malaysia and South Korea, Macarthur will be the primary supplier. Especially considering shipping costs, this is a market that the US can compete in only through M&A.
Meanwhile, Arch Coal, another major player in coal and also based in Saint Louis, made note in the investment world today through a release stating what can be expected in the near future from metallurgical coal sales. Namely: sales are forecast to triple based off increased demand from steelmakers. Arch Coal’s forecast I believe mostly takes into consideration US steel producers; I didn’t listen to the call or read any quarterlies, just catching the highlights here.
But, what this does is act as a forecaster for Peabody and their intentions. If it can reasonably be expected to see demand in an industry’s subset to triple in the near future, geographic conditions being static, then Peabody’s acquisition could be of an imminent cash cow. Any concerns of the company retaining too much short- and mid-term debt to take care of a theoretical corporate relocation, in buildings built-to-suit by a desperate development group (under growing political pressure and a great loss of brand equity for their recent failures to act), is potentially over-reaching. If they relocate, it’ll be done with the developers wearing white gloves to facilitate the deal.
Enough consideration? Hope so.
Focus: You know what you build with metallurgical coal? Steel.
Where is the demand for this steel? New high rise construction.
You know where a great place for such construction would be?
THAT HORRIBLE SOFTBALL FIELD NEXT TO BUSCH, CORDISH!
I see that softball field, I want to take a FLAMETHROWER to that place!
After anticipating this project since I first heard about it, NINE YEARS AGO, we have nothing to show for it except for a yard that no one wants to mow. The only good things that have come of it are:
1. That kid who wrote “Cubs Suck” in the snow, and
2. The rightful derision we collectively have for your foot-dragging.
You don’t even give anticipatory hope of starting construction anytime soon, as if you’ve forgotten all about it. At least give us some hope that this giant pit of crap will be filled with something other than a chain-link fence and parking spaces. I hope to all that is right and just that you will stand by your word, start work on the project soon, and have the end result meet expectations set by your company’s schematics. However, should you continue to fail, I hope that all justice weighs down on your heads, both in the courts of law and of public opinion.
I have been a giant fan of this project for years. I still have faith in it. However, I no longer have faith in your word. I know of the state of the credit markets deeply, and professionally, and I know how you all are hurting. However, to not even give hint as to progress is a sin and completely disrespectful. Stand by your word, and get busy.
You took the old Busch from Saint Louis, promising a lot and delivering nothing, and in doing so you’ve amputated its spirit, leaving only that empty, embarrassing field. That’s no prosthetic to the tall buildings and new jobs that rightfully should be there. You think you’re merely riding out the downturn in credit while retaining your bottom line, but for Saint Louis I say you are … executing his soul! And why? Because you’re cautiously waiting it out like businessmen. Business men. Cordish, you keep mucking up the works, you’ll be business bums, the lot of ya.
Oh, and Billy, DeWitt, wherever you are out there, fark you too!
Now, here’s Saint Louis. This City has come to the cross-roads of its renaissance. He has chosen his path. It’s the right path. It’s a path made of principles, founded in jobs, renewal, and an increase livelihood for its citizens through actual development. This path furthers the City’s character. Let him continue on his journey.
Do your jobs. Start construction, and start it soon.
Whoo-ah.
