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George Soros buys bargain coal shares with big coal reserves

Posted By Joanne Nova On August 23, 2015 @ 2:38 pm In Global Warming | Comments Disabled

George Soros has poured money into promoting “climate change” politics through his foundations, working to demonize coal, but the man himself is now buying coal stocks. Analysts are asking if he is buying in to shut them down, or to pick up a bargain and take the profits. (There must also be options where he gets control to turn them into mixed energy renewables/coal plays.) But in the end he’s 85, and worth $24 billion. He has an 11 billion dollar stock portfolio and he’s spent less than $3 million on coal. It’s hard to believe the profits would be worth the bad press. Though Steve Milloy points out those companies own rights to 11 billion tons of coal reserves.

Coal used to supply 50% of US electricity, now it’s 40%. Peabody Energy Shares used to trade at $90, but now trade at $1.

Fox News

Soros, whose Climate Policy Initiative think tank recently urged the world to stop using fossil fuels in general and coal in particular, snapped up 1 million shares of Peabody Energy and half a million shares of Arch Coal, giving him significant stakes in what’s left of the U.S. coal industry.

The trades would have cost Soros a lot more six years ago, when Peabody, which trades under the symbol BTU, was at about $90 a share. Under the Obama administration, which has punished the coal industry with costly mandates and regulation, Peabody shares have fallen to around $1.

These are tiny dollars for Soros:

The filing shows the purchases of 553,200 shares of Arch Coal for $188,000 and an investment of $2,254,000 into Peabody Energy for 1,029,400 shares, which means he’s lost money on both so far.

Steve Milloy points out there are billions of dollars of value in their coal reserves:

“What a difference a few months makes, especially when those months have seen coal company stocks fall to fire sale prices,” Steve Milloy a former coal industry executive who publishes JunkScience.com, writes on Breitbart.

It’s true that Soros’ coal buy only represented a small portion of his personal wealth and of each company’s available stocks. This could mean that Soros is looking to make some quick cash off a rebound in global coal prices as international demand for the fuel grows. But Milloy thinks that’s unlikely.

“It’s possible that Soros is only looking for a ‘dead cat bounce’ from his Peabody and Arch Coal investments, but the companies together have provable coal reserves of about 11 billion tons, worth hundreds of billions of dollars,” Milloy added. “I doubt the shrewd Soros is looking to make just a few million dollars on these investments.”

The profits (if there are any) won’t rate in his $11 billion portfolio.

The important thing about coal, Simmons said, is a little over 10 years ago, coal produced 50 percent of energy in the U.S. and that is now at 40 percent and continuing to trend downward.

Michael South, a UK-based mining and energy consultant, told FoxNews.com that while coal prices have suffered around the world in part because of a drop in demand from China and other countries, and fracking, which produced natural gas at a cheaper price, there is still a huge need for coal, and eventually prices will go up.

“George Soros spent millions of dollars and multiple years helping to driving down price of coal,” said H. Sterling Burnett, research fellow and managing editor, at the Heartland Institute. “If he buys enough stock to have controlling interests in these coal businesses, closes them down and leaves the coal in the ground, we might accept that he is a true believer, that his investment was all about stopping climate change and saving the environment.”

“But my suspicion is that he helped to drive stocks down, bought as many shares as he can, and, when stocks rebound, he can sell his shares and make a huge profit.”  – Fox News

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