Peabody Energy Corporation (BTU), Walter Energy, Inc. (WLT), BHP Billiton plc (ADR) (BHP): Sales from the Outback are a Competitive Advantage

That said, because of its Australian operations, BHP Billiton plc (ADR) (NYSE:BHP) is also taking market share from companies like Walter Energy, Inc. (NYSE:WLT) that have had to pull back. Clearly, the Australian dollar isn’t the sole reason for this, since operating so close to Asia also confers benefits over U.S. based mines.

Getting to the other side

The coal miners are in a tough place right now and keeping costs low is a key focus throughout the industry. BHP Billiton plc (ADR) (NYSE:BHP), Peabody, and Walter Energy, Inc. (NYSE:WLT) have all been working toward the same goal of making it through the current ebb in the cycle to benefit when prices and demand pick up. Peabody, and to a lesser extend BHP, are both benefiting from an extra cost advantage because of the falling Australian dollar. That should give them an edge when coal picks up again.

The article Sales from the Outback are a Competitive Advantage originally appeared on Fool.com and is written by Reuben Brewer.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 

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