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Ramaco Resources(METC) - 2020 Q1 - Quarterly Report
2020-05-12 20:02
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001‑38003 RAMACO RESOURCES, INC. (Exact name of registrant as specified in its charter) | Delaware | 38‑4018838 | | - ...
Ramaco Resources(METC) - 2019 Q4 - Annual Report
2020-02-20 21:07
Part I [Business](index=4&type=section&id=Item%201.%20Business) The company is a pure-play metallurgical coal operator focused on low-cost production for steel and coke producers - Ramaco Resources is a pure-play metallurgical coal company with **242 million tons** of high-quality metallurgical coal reserves across four main properties: Elk Creek, Berwind, RAM Mine, and Knox Creek[16](index=16&type=chunk) - The company's strategy is to grow production to **4-4.5 million clean tons by 2023**, subject to market conditions and capital deployment, while maintaining a position as a low-cost U.S. producer[21](index=21&type=chunk)[29](index=29&type=chunk) - In 2019, **75% of the 1.95 million tons** of coal sold went to North American markets, with the remaining 25% to export markets, primarily Europe[56](index=56&type=chunk) - Two customers accounted for approximately **42% of total revenue** in 2019[56](index=56&type=chunk) - The company's operations are subject to extensive and complex federal, state, and local regulations covering environmental protection, mine safety, and employee health, which represent a major cost consideration[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) [Our Projects](index=8&type=section&id=Our%20Projects) The company's portfolio includes four primary projects, with Elk Creek as the main producing asset - **Elk Creek Mining Complex**: Began production in late 2016, contains approximately **114 million tons** of clean saleable metallurgical coal reserves, and produces a high volatile A/B product[34](index=34&type=chunk)[35](index=35&type=chunk)[37](index=37&type=chunk) - **Berwind**: Development began in late 2017, with commercial production from the Pocahontas No. 4 seam expected in late 2020 and a mine life of over 20 years[19](index=19&type=chunk)[44](index=44&type=chunk) - **Knox Creek**: Includes a 650 tons-per-hour preparation plant that processes coal from the Berwind mine and third-party producers[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) - **RAM Mine**: Located in Pennsylvania, it is scheduled for initial production in 2022 with an anticipated annualized rate of **300-500 thousand tons** and a 10-year mine life[51](index=51&type=chunk)[52](index=52&type=chunk) [Environmental and Other Regulatory Matters](index=16&type=section&id=Environmental%20and%20Other%20Regulatory%20Matters) Operations are governed by stringent federal, state, and local laws covering reclamation, water, air, and mine safety - Operations are subject to the Surface Mining Control and Reclamation Act (SMCRA), which requires comprehensive environmental protection, reclamation standards, and a reclamation fee of **$0.28/ton for surface-mined** and **$0.12/ton for underground-mined coal**[65](index=65&type=chunk)[68](index=68&type=chunk) - The Clean Water Act (CWA) and Clean Air Act (CAA) directly and indirectly impact operations by regulating water discharges and air emissions, potentially reducing demand for thermal coal[87](index=87&type=chunk)[88](index=88&type=chunk)[99](index=99&type=chunk) - Climate change regulations concerning greenhouse gas (GHG) emissions from coal consumption, transportation, and production pose a significant risk[90](index=90&type=chunk)[95](index=95&type=chunk) - The Mine Act and MINER Act impose stringent health and safety standards, with MSHA conducting regular inspections that can result in significant penalties and operational shutdowns[79](index=79&type=chunk)[80](index=80&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks related to development delays, industry cyclicality, regulations, and corporate structure - **Business Risks**: The company's properties are not fully developed, exposing it to construction delays and cost overruns, and demand is highly dependent on the cyclical steel industry[119](index=119&type=chunk)[122](index=122&type=chunk)[124](index=124&type=chunk) - **Operational Risks**: Mining involves inherent hazards, such as the partial silo collapse at the Elk Creek plant in 2018, and is dependent on transportation infrastructure[147](index=147&type=chunk)[154](index=154&type=chunk)[156](index=156&type=chunk) - **Regulatory Risks**: Laws restricting greenhouse gas emissions, stringent environmental laws (SMCRA, CWA, CAA), and mine safety regulations (MSHA) could adversely impact the coal market and increase costs[193](index=193&type=chunk)[195](index=195&type=chunk)[208](index=208&type=chunk) - **Corporate & Stockholder Risks**: Significant stockholders (Yorktown and ECP) control **~64% of common stock**, allowing them to direct voting and creating potential conflicts of interest[229](index=229&type=chunk)[244](index=244&type=chunk) [Unresolved Staff Comments](index=76&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the SEC - None[245](index=245&type=chunk) [Properties](index=76&type=section&id=Item%202.%20Properties) The company controls approximately 114,662 acres of coal minerals with total estimated reserves of 242 million tons - At December 31, 2019, the company owned or controlled approximately **113,095 acres** of coal minerals in Virginia and West Virginia and **1,567 acres** in Pennsylvania[246](index=246&type=chunk) **Coal Reserves by Project (as of Dec 31, 2019)** | Project | Location | Mining Method | Proven (million tons) | Probable (million tons) | Total (million tons) | Status | Typical Met Coal Quality | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Elk Creek** | WV | Underground, Highwall, Surface | 55 | 37 | 93 | Producing | High Volatile A, A/B, B | | **Berwind** | WV, VA | Underground | 30 | 19 | 50 | Producing | Low Volatile | | **RAM Mine** | PA | Underground | 2 | 3 | 5 | 2022 | High Volatile C | | **Knox Creek** | VA | Highwall, Underground | 81 | 14 | 94 | Producing | High Volatile A | | **Total** | | | **168** | **74** | **242** | | | - Reserve estimates are based on SEC Industry Guide 7 and were assessed for economic recoverability using a three-year average historical benchmark price of approximately **$88/short ton** for semi-soft coking coal and **$104/short ton** for premium hard coking coal[255](index=255&type=chunk)[257](index=257&type=chunk) - In Q4 2019, the company acquired two mining permits near its Knox Creek plant, adding access to approximately **3.45 million tons** of metallurgical coal[255](index=255&type=chunk) [Legal Proceedings](index=81&type=section&id=Item%203.%20Legal%20Proceedings) The company is not involved in any material litigation, though a dispute with an insurer over a silo collapse is noted - The company is involved in a lawsuit filed on August 21, 2019, against its insurer, Federal Insurance Company, seeking coverage for a partial silo collapse that occurred on November 5, 2018[39](index=39&type=chunk)[428](index=428&type=chunk) - Management believes there are no pending legal matters that will have a material adverse effect on the company's financial condition, cash flows, or results of operations[259](index=259&type=chunk) [Mine Safety Disclosures](index=81&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety violation information required by the Dodd-Frank Act is provided in Exhibit 95.1 of the annual report - Mine safety disclosures required by Section 1503(a) of the Dodd-Frank Act are included in Exhibit 95.1 to this annual report[260](index=260&type=chunk) Part II [Market for Registrant's Common Equity and Related Shareholder Matters](index=82&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%20and%20Related%20Shareholder%20Matters) The company's common stock trades on NASDAQ under 'METC' and no cash dividends have ever been paid - The company's common stock is listed on the NASDAQ Global Select Market under the symbol 'METC'[263](index=263&type=chunk) - As of February 20, 2020, there were **37 holders of record** of the common stock[263](index=263&type=chunk) - The company has never declared or paid cash dividends on its common stock[264](index=264&type=chunk) [Selected Financial Data](index=82&type=section&id=Item%206.%20Selected%20Financial%20Data) Revenue grew to $230.2 million in 2019, with net income of $24.9 million and total assets of $226.8 million **Selected Historical Financial Data (In thousands, except per share data)** | | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Income Statement Data:** | | | | | | | Revenue | $230,213 | $227,574 | $61,036 | $5,216 | $— | | Operating income (loss) | $29,532 | $24,096 | $(15,893) | $(7,530) | $(2,333) | | Net income (loss) | $24,934 | $25,074 | $(15,417) | $(7,515) | $(2,335) | | Diluted earnings (loss) per share | $0.61 | $0.62 | $(0.41) | N/A | N/A | | **Balance Sheet Data (End of Period):** | | | | | | | Total Assets | $226,813 | $188,244 | $148,098 | $119,209 | $20,352 | | Total stockholders' equity | $170,083 | $141,109 | $113,397 | $83,788 | $6,660 | **Operating Data (Tons in thousands)** | | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | Total tons sold | 1,950 | 2,148 | 608 | | Tons produced | 1,855 | 1,750 | 548 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=84&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue and net income were stable in 2019, while Adjusted EBITDA grew 31% to $55.4 million - Metallurgical coal markets weakened significantly in 2019 due to Chinese import restrictions and global economic concerns, with the emerging coronavirus outbreak noted as a potential risk[272](index=272&type=chunk)[273](index=273&type=chunk) - For 2020, the company has entered into forward sales contracts for **1.5 million tons** of metallurgical coal at a fixed average price of **$93.29/ton** FOB mine[274](index=274&type=chunk)[298](index=298&type=chunk) - Capital expenditures in 2019 totaled **$45.7 million**, with a planned budget of **$25 million to $30 million** for 2020[275](index=275&type=chunk)[308](index=308&type=chunk) - As of December 31, 2019, available liquidity was **$21.8 million**, comprising cash and availability under the Revolving Credit Facility[308](index=308&type=chunk) [Results of Operations](index=86&type=section&id=Results%20of%20Operations) Higher realized prices for company-produced coal drove a slight revenue increase despite lower sales volume **Comparison of Financial Results (2019 vs. 2018)** | (In thousands) | 2019 | 2018 | | :--- | :--- | :--- | | **Revenue** | **$230,213** | **$227,574** | | Cost of sales | $162,470 | $176,555 | | Operating income | $29,532 | $24,096 | | Net income | $24,934 | $25,074 | | **Adjusted EBITDA** | **$55,382** | **$42,169** | **Coal Sales Breakdown (2019 vs. 2018)** | | 2019 | 2018 | | :--- | :--- | :--- | | **Company Produced** | | | | Coal sales revenue (in thousands) | $219,911 | $179,078 | | Tons sold (in thousands) | 1,872 | 1,721 | | **Purchased from Third Parties** | | | | Coal sales revenue (in thousands) | $10,302 | $48,496 | | Tons sold (in thousands) | 78 | 427 | - The cash cost per ton for company-produced coal increased from **$63 in 2018 to $73 in 2019**, partly due to higher development costs and the impact of the 2018 silo failure[281](index=281&type=chunk) [Non-GAAP Financial Measures](index=88&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like Adjusted EBITDA to evaluate performance, which rose to $55.4 million in 2019 **Reconciliation of Net Income to Adjusted EBITDA** | (In thousands) | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | Net income | $24,934 | $25,074 | $(15,417) | | Depreciation and amortization | 19,521 | 12,423 | 3,154 | | Interest expense, net | 1,193 | 1,427 | (272) | | Income taxes | 5,163 | 113 | — | | Stock-based compensation | 4,060 | 2,638 | 2,820 | | Accretion of asset retirement obligation | 511 | 494 | 405 | | **Adjusted EBITDA** | **$55,382** | **$42,169** | **$(9,310)** | **Non-GAAP Revenue and Cost Per Ton (FOB Mine) - 2019** | (Company Produced) | Per Ton | | :--- | :--- | | Revenue per ton sold (FOB mine) | $109 | | Cash cost per ton sold | $73 | [Financial Statements and Supplementary Data](index=96&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the company's audited consolidated financial statements and the independent auditor's report - The independent auditor, Briggs & Veselka Co., issued an unqualified opinion, stating the financial statements are presented fairly in all material respects in conformity with U.S. GAAP[333](index=333&type=chunk) [Consolidated Balance Sheets](index=98&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $226.8 million in 2019, driven by growth in Property, Plant and Equipment **Consolidated Balance Sheet Highlights (In thousands)** | | Dec 31, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $5,532 | $6,951 | | Total current assets | $44,323 | $35,019 | | Property, plant and equipment – net | $178,202 | $149,205 | | **Total Assets** | **$226,813** | **$188,244** | | **Liabilities & Equity** | | | | Total current liabilities | $26,411 | $29,845 | | Long-term debt, net | $9,614 | $4,474 | | Total liabilities | $56,730 | $47,135 | | Total stockholders' equity | $170,083 | $141,109 | | **Total Liabilities and Stockholders' Equity** | **$226,813** | **$188,244** | [Consolidated Statements of Income](index=99&type=section&id=Consolidated%20Statements%20of%20Income) The company reported revenue of $230.2 million and net income of $24.9 million, or $0.61 diluted EPS, for 2019 **Consolidated Income Statement (In thousands, except per share data)** | | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | Revenue | $230,213 | $227,574 | $61,036 | | Operating income (loss) | $29,532 | $24,096 | $(15,893) | | Net income (loss) | $24,934 | $25,074 | $(15,417) | | Diluted earnings (loss) per share | $0.61 | $0.62 | $(0.41) | [Consolidated Statements of Cash Flows](index=101&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was $42.4 million, offset by $45.7 million used in investing activities in 2019 **Consolidated Statement of Cash Flows (In thousands)** | | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | Net cash from operating activities | $42,382 | $36,183 | $(8,469) | | Net cash from investing activities | $(45,722) | $(42,937) | $(19,802) | | Net cash from financing activities | $2,825 | $7,916 | $29,292 | | **Net change in cash** | **$(515)** | **$1,162** | **$1,021** | [Controls and Procedures](index=122&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective - Based on an evaluation, the CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2019[447](index=447&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2019[448](index=448&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, Compensation, and Security Ownership](index=123&type=section&id=Items%2010%2C%2011%2C%2012%2C%2013%2C%20and%2014) Information for these items is incorporated by reference from the company's 2020 definitive proxy statement - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the 2020 Proxy Statement, to be filed within 120 days after December 31, 2019[454](index=454&type=chunk)[455](index=455&type=chunk)[456](index=456&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=124&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed as part of the Form 10-K report - The report includes the consolidated financial statements and related notes for the year ended December 31, 2019[461](index=461&type=chunk) - Key exhibits filed include the Credit and Security Agreements with KeyBank, various mineral lease agreements with Ramaco Central Appalachia, LLC, and the company's Long-Term Incentive Plan[464](index=464&type=chunk)[466](index=466&type=chunk)[472](index=472&type=chunk) - Certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are included as exhibits[472](index=472&type=chunk)
Ramaco Resources(METC) - 2019 Q3 - Quarterly Report
2019-11-05 21:03
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001‑38003 RAMACO RESOURCES, INC. (Exact name of registrant as specified in its charter) | Delaware | 38‑4018838 | ...
Ramaco Resources(METC) - 2019 Q2 - Quarterly Report
2019-08-13 20:41
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001‑38003 RAMACO RESOURCES, INC. (Exact name of registrant as specified in its charter) | Delaware | 38‑4018838 | | --- | ...
Ramaco Resources(METC) - 2019 Q1 - Quarterly Report
2019-05-07 20:48
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38003 RAMACO RESOURCES, INC. (Exact name of registrant as specified in its charter) Indicate by check mark whether the registra ...
Ramaco Resources(METC) - 2018 Q4 - Annual Report
2019-03-19 21:06
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38003 RAMACO RESOURCES, INC. (Exact name of registrant as specified in its charter) Delaware 38-4018838 (State or ...