NEW YORK (TheStreet) -- Peabody Energy (BTU) shares are up 6.1% to $2.61 in afternoon trading on Friday after the coal miner announced that it is selling most of its Queensland, Australia coal exploration portfolio.
Details of the sale have not been provided, but the move comes as the company is embroiled in the midst of dwindling coal prices.
Peabody Energy has seen an its market capitalization fall to $685 million, a 70% decline.
The sale, for an undisclosed amount, may be part of the company's wider strategy of eventually exiting Australia, according to the Australia financial website AFR Weekend.
Falling coal prices are responsible for cutbacks by the company. Last month falling coal prices led the company to announce that it was cutting 210 jobs and cut production at its coal mine in north Queensland.
TheStreet Ratings team rates PEABODY ENERGY CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate PEABODY ENERGY CORP (BTU) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: