Peabody continues to advance multiple projects in Australia and the United States. Capital expenditures for 2012, including Macarthur, are targeted in the USD 1.2 to USD 1.4 billion range, with approximately two-thirds targeted for new mines, expansion and extension projects.

Among the company's Australian projects:

1. The Millennium Mine expansion received necessary permitting in November to add 1 to 2 million tons per year of PCI and semi-hard metallurgical production. The project is expected to add incremental volumes this year with full production expected in 2013.
2. Progress at the Burton Mine extension continues and is expected to add incremental volumes of hard coking coal this year with completion of a 1 million ton-per-year expansion expected by late 2012.
3. Construction of the new Metropolitan Mine drift and upgrades to existing operations are under way to increase production of hard coking coal by 1 million tons per year by late 2013. In addition to the expansion, the mine is undertaking a modernization program to improve productivity and the cost structure.

Peabody also has begun converting the Wilpinjong and Millennium mines in Australia from contract mining to owner operations. Total expenditures of USD 400 to USD 425 million are expected in equipment investments over the next two years to significantly improve the cost structure at these mines.

In the United States, development will begin this year on the Gateway North Mine, which will replace the current Gateway Mine. The new mine is expected to produce approximately 4.5 million tons per year after completion in 2014. In the West, the company has secured agreements to begin development of an extension to the current Twentymile Mine.

OUTLOOK
Peabody is targeting first quarter 2012 EBITDA, including Macarthur, in the range of USD 500 to USD 600 million and adjusted diluted earnings per share of USD 0.50 to USD 0.75. First quarter targets reflect a longwall move at the Twentymile Mine. Results also could be impacted by the timing of shipments in Australia.

For 2012, the company is targeting total sales of 245 to 265 million tons including 33 to 36 million tons from Australia, 195 to 205 million tons from the United States and the remainder from Trading and Brokerage activities.