Selling Two Mines at the TopNarrow moat

Mitsubishi Corporation (8058) — moat facet

Mitsubishi sold two coal mines just before the market fell, which is the kind of timing capital recycling is supposed to produce.

On 2 April 2024 BMA divested two of its mines, Blackwater and Daunia1, and Mitsubishi recorded a gain of ¥92.9 billion on the sale in the year to March 20252. Coal prices had been high, and the sale crystallised part of the value before they fell.

Capital recycling and one-time items (¥ bn, years to March)268.82025 total92.9of which coal mines96.82026 totalMitsubishi Corporation results presentation, May 2026
The coal-mine sale was about a third of a record year of gains and one-offs.

It fits a pattern. Mitsubishi calls it capital recycling, and in the year to March 2025 capital recycling and one-time items together contributed ¥268.8 billion of its ¥950.7 billion of net income3. Its Corporate Strategy 2027 plans ¥2.1 trillion or more of divestitures over three years4.

The timing looks good in hindsight: MDP's profit fell to ¥8.3 billion the following year5. A company that sold two coal mines near the top of the market and kept the better ones made a sound decision.

The coal market since has confirmed the timing. MDP's profit in the year after the sale fell to ¥8.3 billion6. Had the two mines been kept, their share of that profit would have been small and their book value would have had to be tested for impairment.

The measure is what comes next. Further sales of BMA assets at depressed prices would be a different kind of decision from selling at the top.

Moat trajectory: Holding steady

A one-off transaction; the remaining mines stayed in the joint venture.

The number that tests this moat
Reported
Gain on the sale of two BMA mines
¥92.9bn in the year to March 2025

The capital-recycling gain from selling near the top; a sale of further BMA assets at low prices would be the opposite decision.

Source: Mitsubishi Corporation results presentation, May 2026 ↗
⚠ Threats to the moat
⚠ THREAT 01
Selling Is Not Earning
A quarter of Mitsubishi's guidance for this year is planned gains from selling assets.
References
  1. ReportedOn 2 April 2024 BMA divested two of its mines, Blackwater and Daunia, and Mitsubishi recorded a gain of ¥92.9 billion on the sale in the year to March 2025.
    Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - Corporate Strategy 2027 targets, the three-year cash flow plan, divestitures, shareholder returns and leverage policy. — FY to March 2026 · publ. 1 May 2026 · source ↗
  2. ReportedOn 2 April 2024 BMA divested two of its mines, Blackwater and Daunia, and Mitsubishi recorded a gain of ¥92.9 billion on the sale in the year to March 2025.
    Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - Corporate Strategy 2027 targets, the three-year cash flow plan, divestitures, shareholder returns and leverage policy. — FY to March 2026 · publ. 1 May 2026 · source ↗
  3. ReportedMitsubishi calls it capital recycling, and in the year to March 2025 capital recycling and one-time items together contributed ¥268.8 billion of its ¥950.7 billion of net income.
    Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - capital recycling and one-time items and adjusted consolidated net income. — FY to March 2026 · publ. 1 May 2026 · source ↗
  4. ReportedIts Corporate Strategy 2027 plans ¥2.1 trillion or more of divestitures over three years.
    Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - Corporate Strategy 2027 targets, the three-year cash flow plan, divestitures, shareholder returns and leverage policy. — FY to March 2026 · publ. 1 May 2026 · source ↗
  5. ReportedThe timing looks good in hindsight: MDP's profit fell to ¥8.3 billion the following year.
    Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - net income by segment and of major subsidiaries and affiliates, with ownership, and the forecast by segment. — FY to March 2026 · publ. 1 May 2026 · source ↗
  6. ReportedMDP's profit in the year after the sale fell to ¥8.3 billion.
    Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - net income by segment and of major subsidiaries and affiliates, with ownership, and the forecast by segment. — FY to March 2026 · publ. 1 May 2026 · source ↗
Sources
Generated September 24, 2026