Investor Presentaiton
METALLURGICAL COAL INDUSTRY OVERVIEW
Unlocking value in attractive assets
Metallurgical Coal Overview
Metallurgical coal is used primarily for the production of steel and
benefits from the favorable drivers of steel demand, including
infrastructure, clean energy, and EVs.
Metallurgical coal is not used for power generation, so is less exposed
to more commoditized end markets.
Above average pricing environment given solid steel demand.
Growth capital spending in the coal industry has declined by more
than 75% over the last 10 years, thereby limiting new capacity
additions and long-term supply.
Many financial institutions do not to differentiate between types of
coal when making financing decisions, resulting in limited capital
availability for most players.
Solid Pricing Trends
As of May 24, 2023, U.S. High Vol A met coal spot pricing is $219 per
metric ton FOB port. While this is down from the peak, pricing
remains above the long-term average.
The Australian forward curve suggests that pricing should rise to over
$270 per metric ton FOB port by early 2024. This expected strength is
in part due to continued supply constraints from lack of availability of
new mine capital.
(1) In $/metric tonne FOB port for U.S. High Vol A (monthly average).
(2) In $/metric tonne FOB port for Australian Low Vol.
Source: Platts as of 5/24/23.
U.S. Met Coal Spot Price (1)
$500
$400
$300
$200
$100
$0
RAMACO
RESOURCES
May-19 Nov-19 May-20 Nov-20 May-21 Nov-21
May-22 Nov-22 May-23
Australian Met Coal Forward Curve (2)
$300
$275
$250
$225
$200
May-23 Sep-23 Jan-24 May-24
Sep-24 Jan-25 May-25
Sep-25
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