Investor Presentaiton
SUPPLY RATIONALIZATION ACCELERATES
RAMACO
RESOURCES
Supply underinvestment and lack of funding continues,
and is likely to get worse:
2022 global coal growth capex is estimated to have fallen over
80% below peak levels, more than 10 years ago.
> Overall global mining capex is estimated to have fallen almost
•
•
60% below peak levels according to Jefferies.
Drop is due to both a high cost of capital and lack of access to funding for
many producers.
ESG pressure continues and is getting stronger.
Supply rationalization continues:
McCloskey estimates that even while U.S. met coal production
rebounded 12% in 2022 from its COVID-19 induced lows of 2020, it
still remained 7% below 2019 production.
This suggests that much of the idled production from COVID-19
demand destruction never returned.
> Labor and infrastructure constraints have kept overall met coal
production at lower than expected levels.
Global Coal Growth Capex (1)
$500
$400
$300
$200
$100
$0
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
(1) In $ Billions, Real 2022.
Source: Jefferies.
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