Peabody sinks after taking $301m charge on coal hedge

The booming global coal market presented a challenge for Peabody Energy after skyrocketing prices led to a $301-million first-quarter charge for the mining giant’s hedging operations. The shares slumped more than 20%.

Revenue jumped 58% from a year earlier to $1.04-billion, driven by “unprecedented upward volatility” in pricing, the biggest US coal miner said in a statement Thursday. However, that also triggered a $534-million margin call because Peabody had locked in prices last year at much lower levels.