Macarthur Coal

Macarthur Coal (ASX:MCC) has passed on Peabody-Arcelor's joint $4.9 billion or $16 per share bid to shareholders after failing to find a better offer. The move is taken to mean that the coal miner is not expecting a higher bid, good news for US-based Peabody, who has been eyeing Macarthur for more than a year.

Peabody-Arcelor has pushed out Anglo American, previously seen as the most likely rival to PEAM Coal.

Macarthur Coal (ASX:MCC) continues to struggle with pulling up production due to rains despite posting a net profit of $142.4 million for the year ended June 30. The results are a marginal improvement from last year's $139.1 million.

Although robust coal prices helped Macarthur to bounce back from the effects of extreme weather, output will continue to be strained next year because many of the company's mine pits are still flooded.

After Macarthur Coal (ASX:MCC) quashed the joint Peabody Energy and ArcelorMittal bid, Peabody is now going directly to the miner's shareholders.

Peabody had done due diligence before laying its $16 a share offer on the table, pending a signed bid implementation agreement (BIA) from Macarthur. The miner, however, declined the BIA, saying it would prevent the company from seeking higher bids.

Following the sale of part of its stake in the Codrilla coal deposit in Queensland, Macarthur Coal (ASX:MCC) has increased its profit guidance. The coal producer's 2011 net profit guidance rose to between $240 and $260 million from the $185 to $205 million previously announced.

Macarthur Coal (ASX:MCC) today said that its annual net profit will be $185 million to $205 million, due to record prices in metallurgical coal. Although this is about a 50 percent rise from last year's numbers, Macarthur's production is likely to be lower than expected.

Struggling after widespread flooding in Queensland, Macarthur Coal's (ASX:MCC) third quarter sales dipped to 61 percent on its Coppabella and Moorvale mines.

Significant delays in pit access were attributed to 466mm of rainfall during the quarter. The world's largest pulverised coal miner said in a statement that compared to 1.23 million metric tonnes last year, total sales fell to 476,300 metric tonnes at quarter end on March 31.

Queensland's wettest December on record have seen Macarthur Coal's (ASX:MCC) sales down by 20 percent. MCC had declared force majeure on December 3 for its Bowen Basin production, and has said that December-quarter sales had fallen from 1.4 million tonnes in the December 2009 quarter to less than 1.2 million tonnes in 2010.

China based Citic Group, the largest stakeholder of Macarthur Coal (MCC), has finally put the brakes on the $3.8 billion worth of Macarthur takeover bid submitted by US based Peabody Energy. Macarthur board turned down the offer after discussing the proposal with its key investors. The move led to a massive 15.75 percent drop to the miner’s share price which wiped off as much as $500 million from its capitalisation.