Investor Presentaiton slide image

Investor Presentaiton

Mitsubishi Corporation (mil. mt) 40.0 Metallurgical Coal Business Mineral Resources Group BMA Annual Production and Sales Volume (50% Basis) Jan-Mar • May 9, 2023 Mitsubishi Corporation BMA production in Jan-Mar 2023 decreased by 13% to 6.9 mil. mt on a year on year basis. ⚫ The decrease was due to the impact of significant wet weather, partially offset by continued improvement in underlying truck productivity as well as reduced COVID-19 related labour constraints. ■Apr-Jun Jul-Sep Oct-Dec 31.7 31.2 30.2 29.5 28.7 28.1 30.0 7.7 7.9 7.9 7.6 6.9 6.1 20.0 7.5 7.4 6.3 6.0 7.0 7.0 7.4 7.2 6.7 6.7 6.7 6.4 10.0 9.1 8.7 9.3 9.2 8.2 8.6 US$/A$ Period 0.0 Production Sales FY2020 Production Sales FY2021 Production Sales Average Rate FY2020 1Q-4Q 0.7186 FY2021 1Q-4Q 0.7392 FY2022 1Q 1-2Q 1-3Q 1-4Q 0.7150 0.6991 0.6849 0.6849 FY2022 AUS/USD Average Exchange Rate (*) * Due to rounding, the quarterly figures do not necessarily add up to the total annual figures. Source: Mitsubishi UFJ Research and Consulting *The above exchange rates differ from the effective rates applied to MDP's transactions. Price Trend of Hard Coking Coal (US$/t) CFR China FOB US FOB Australia 800 700 600 500 400 300 200 100 0 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Source: S & P Global Platts, O 2022 by S & P Global Inc. Platts, Argus Media Limited Copyright 2023 Mitsubishi Corporation Although the FOB Australia price spiked above US$600/t in March 2021, the seasonal slump in steel materials demand had brought down the price to slightly below US$490/t by the beginning of FY2022 (April 1, 2022-). After the price fell further to near US$190/t in August due to lower demand, various supply issues in Australia and Canada that started in September caused the price to recover to near US$310/t by November. The gradual lift of China's restrictions on Australian coal imports in early 2023 helped to bring the price up further to US$390/t by mid-February. In mid-March 2023, the Australian Bureau of Meteorology announced the end of La Niña. Favorable weather conditions led to the improvement in the operations of major metallurgical coal mines, resulting in the softening of supply/demand balance and market sentiment. Such factors have led the prices to drop to around US$250/t as of end of April. 40
View entire presentation