[PART I. FINANCIAL INFORMATION](index=7&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) Unaudited financial statements reflect significant growth in assets, revenue, and net income, driven by acquisitions and higher metallurgical coal prices [Unaudited Condensed Consolidated Balance Sheets](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets grew 70.8% to $562.1 million, driven by increased property and equipment, while liabilities rose due to acquisition-related debt Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $141,956 | $86,761 | | **Property, plant and equipment, net** | $403,130 | $227,077 | | **Total Assets** | **$562,132** | **$329,033** | | **Total Current Liabilities** | $150,438 | $46,660 | | **Total Liabilities** | **$263,463** | **$117,959** | | **Total Stockholders' Equity** | **$298,669** | **$211,074** | [Unaudited Condensed Consolidated Statements of Operations](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Revenue and net income surged for the nine-month period, reflecting significantly stronger coal pricing and operational performance Statement of Operations Summary (in thousands, except per-share amounts) | Metric | Q3 2022 | Q3 2021 | Nine Months 2022 | Nine Months 2021 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $136,925 | $76,377 | $430,461 | $195,889 | | **Operating Income** | $36,689 | $8,767 | $132,266 | $17,032 | | **Net Income** | $26,905 | $7,035 | $101,656 | $21,120 | | **Diluted EPS** | $0.60 | $0.16 | $2.27 | $0.48 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased significantly, funding capital expenditures and acquisitions, while financing activities reflected debt and dividend payments Cash Flow Summary for Nine Months Ended September 30 (in thousands) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | **Net cash from operating activities** | $158,799 | $37,757 | | **Net cash from investing activities** | ($111,837) | ($17,642) | | **Net cash from financing activities** | ($21,866) | $20,847 | | **Net change in cash** | $25,096 | $40,962 | [Notes to Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Condensed%20Consolidated%20Financial%20Statements) Key disclosures include the market impact of the Russia/Ukraine conflict, two major acquisitions, a mine ignition incident, and significant customer concentration - The European Union ban on Russian coal has put **upward pressure on international thermal coal prices**, potentially diverting coking coal to thermal markets[34](index=34&type=chunk) - On July 10, 2022, a **material methane ignition occurred at the Berwind mining complex**; the financial impact and restart plan have not yet been determined[47](index=47&type=chunk) - The company completed two major acquisitions in 2022: **Ramaco Coal for approximately $65 million** and **Maben Coal for approximately $30 million**[93](index=93&type=chunk)[98](index=98&type=chunk) - For the nine months ended September 30, 2022, sales to the **top two customers accounted for 40% of total revenue** (23% and 17% respectively)[43](index=43&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Higher coal sales pricing drove significant increases in net income and Adjusted EBITDA, despite rising costs, while liquidity remains strong [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Revenue per ton increased over 90% in Q3 and 121% year-to-date, offsetting higher costs per ton and driving profitability Q3 2022 vs Q3 2021 Performance | Metric | Q3 2022 | Q3 2021 | Change | | :--- | :--- | :--- | :--- | | Revenue | $136.9M | $76.4M | +79% | | Tons Sold (thousands) | 608 | 644 | -6% | | Revenue per ton (FOB mine) | $202 | $105 | +92% | | Cash cost per ton (FOB mine) | $99 | $72 | +37.5% | Nine Months 2022 vs 2021 Performance | Metric | Nine Months 2022 | Nine Months 2021 | Change | | :--- | :--- | :--- | :--- | | Revenue | $430.5M | $195.9M | +120% | | Tons Sold (thousands) | 1,775 | 1,751 | +1.4% | | Revenue per ton (FOB mine) | $217 | $98 | +121% | | Cash cost per ton (FOB mine) | $106 | $68 | +55.9% | [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity with $46.6 million in cash, primarily using funds for capital expenditures, acquisitions, and dividends - At September 30, 2022, the company had **$46.6 million of cash and cash equivalents** and **$22.6 million available under its credit agreements**[140](index=140&type=chunk) - Significant uses of cash in the first nine months of 2022 included **$91.4 million in capital expenditures**, **$22.4 million for acquisitions**, and **$15.0 million in dividend payments**[143](index=143&type=chunk) [Non-GAAP Financial Measures](index=42&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA, a key non-GAAP metric, increased substantially to $50.7 million in Q3 and $172.6 million for the nine-month period Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Metric | Q3 2022 | Q3 2021 | Nine Months 2022 | Nine Months 2021 | | :--- | :--- | :--- | :--- | :--- | | **Net income** | $26,905 | $7,035 | $101,656 | $21,120 | | Depreciation and amortization | $11,435 | $6,751 | $29,898 | $18,861 | | Interest expense, net | $2,255 | $933 | $5,323 | $1,418 | | Income tax expense | $6,596 | $1,588 | $27,068 | $1,650 | | Other adjustments | $3,514 | $1,498 | $8,677 | $4,380 | | **Adjusted EBITDA** | **$50,705** | **$17,805** | **$172,622** | **$47,429** | [Quantitative and Qualitative Disclosures about Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes to the company's market risk profile were reported during the period - Disclosures about market risk are included in Item 7A of the company's Annual Report, with **no new information presented in this quarterly report**[158](index=158&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no significant changes to internal controls during the quarter - The principal executive officer and principal financial officer concluded that the company's **disclosure controls and procedures were effective** as of the end of the period covered by this report[159](index=159&type=chunk) - **No significant changes were made to the internal control over financial reporting** during the quarter ended September 30, 2022[160](index=160&type=chunk) [PART II. OTHER INFORMATION](index=45&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company is appealing a reduced court award of $1.8 million related to a silo failure lawsuit - In a lawsuit over a silo failure, a jury awarded the company $7.7 million in compensatory damages and $25.0 million for inconvenience, which a court later **reduced to a total award of $1.8 million**; the company has appealed this reduction[81](index=81&type=chunk)[82](index=82&type=chunk) [Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the last annual and quarterly filings - The company states there have been **no material changes in its risk factors** from those previously disclosed in its Annual Report and prior Form 10-Q[166](index=166&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable for the reporting period - Not applicable[167](index=167&type=chunk) [Mine Safety Disclosures](index=47&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Required mine safety information is provided in Exhibit 95.1 of the report - Mine safety disclosures required by Section 1503(a) of the Dodd-Frank Act are **provided in Exhibit 95.1**[169](index=169&type=chunk) [Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists all filed exhibits, including credit agreements, officer certifications, and mine safety disclosures - Key exhibits filed include the Second Amendment to the Credit and Security Agreement, **CEO/CFO certifications**, and **Mine Safety Disclosures (Exhibit 95.1)**[174](index=174&type=chunk)

E RAMACO 3rd Quarter 2022 Investor Presentation Ramaco Resources November 2022 Disclaimer Forward Looking Statements: The information in this presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements, other than statements of historical fact included in this presentation, regarding our strategy, future operations, ...

Ramaco Resources, Inc. (NASDAQ:METC) Q3 2022 Earnings Conference Call November 8, 2022 9:00 AM ET Corporate Participants Jeremy Sussman - Chief Financial Officer Randy Atkins - Chairman and Chief Executive Officer Chris Blanchard - Chief Operating Officer Jason Fannin - Chief Commercial Officer Conference Call Participants Curt Woodworth - Credit Suisse Lucas Pipes - B. Riley Securities Nathan Martin - The Benchmark Company Operator Good day, and welcome to the Ramaco Resources Incorporated Third Quarter 20 ...

(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, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q 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 ...

Financial Performance & Growth - Ramaco achieved record net income and Adjusted EBITDA in 2021, and surpassed those annual figures in the first half of 2022 alone[6] - In 1H22, Ramaco's net income reached $75 million and Adjusted EBITDA was $122 million, exceeding full-year 2021 results by 88% and 56% respectively[7, 9] - Based on the midpoint of 2022 production and cost guidance, approximately 95% of sales are already committed, translating to over $230 million of net income and $340 million of Adjusted EBITDA[7, 8] - The company anticipates reaching 6.5 million tons of production by 2025, increased from the previous target of 5 million tons[14] Production & Operations - Ramaco expects to produce at least 43 million tons in 2023[7] - 2022 production guidance is between 28 million and 31 million tons, compared to 22 million tons in 2021, representing an increase of approximately 1/3 YoY at the midpoint[18] - The company is increasing its 2022 growth capital expectation by $25 million, in addition to the previously committed $45 million, and anticipates an additional $95 million of growth capital in 2023-24 to achieve full production build-out[14] Market & Strategy - Ramaco is a low-cost, "pure play" metallurgical coal company, primarily supplying the North American and international steel industry[5] - U S High Vol A met coal spot prices are $245 per metric ton FOB port as of August 4, 2022, up over 20% YoY[7, 26] - Ramaco has minimal AROs, net debt, and legacy liabilities, along with strong free cash flow generation[6, 7]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 2022 was $58 million, a 220% increase compared to the previous second quarter record [21] - Total adjusted EBITDA for the first half of 2022 reached almost $122 million, over 50% higher than the total for all of 2021 [21] - The company anticipates a record year for 2022 with an estimated mine level EBITDA of about $340 million [8][21] - Cost guidance for 2022 has been increased to $89 to $97 per ton, up from $82 to $90 per ton, with year-to-date costs at $104 per ton, reflecting a $35 increase from 2021 [26] Business Line Data and Key Metrics Changes - The Berwind Mining Complex is expected to be offline through year-end, impacting production guidance, which has been lowered to 2.8 million to 3.1 million tons [24] - Production from the Laurel Fork and Triad mines is anticipated to remain normal despite the Berwind mine's closure [25] - The company plans to increase processing capacity at the Elk Creek preparation plant to 3 million annualized tons by mid-next year [16] Market Data and Key Metrics Changes - The U.S. High-Vol A Spot Price is currently assessed at $245 per metric ton, down from record highs but still up 20% year-over-year [43] - There is a supply-demand imbalance in the coking coal market, with Australian met exports lagging behind 2021 levels and Russian shipments declining [44] - Domestic thermal demand continues to support U.S. met prices, providing a price floor above Australian met prices [45] Company Strategy and Development Direction - The company aims to increase long-term production guidance to at least 6.5 million tons over the next two to three years, tripling production levels from 2021 [14] - The acquisition of the Maben low vol mine reserves for $30 million is expected to enhance future production capabilities [17] - The company is exploring shifting met coal volumes to the thermal market, with significant thermal sales already transacted for the back half of the year [45] Management's Comments on Operating Environment and Future Outlook - Management acknowledges current inflationary pressures and supply chain challenges but remains optimistic about the long-term strength of the met coal markets [12][13] - The company expects improvements in rail transportation and production in the second half of the year, which should help destock inventory [10][56] - Management believes that confusion in the market may present opportunities for growth and pricing adjustments [13] Other Important Information - The company has experienced a methane ignition incident at the Berwind mine, which is currently under investigation [37][38] - Capital expenditure guidance for 2022 has been increased to $105 million to $125 million, primarily due to the Maben acquisition and Elk Creek expansion [27] Q&A Session Summary Question: Can you bridge the current cost guidance versus the prior one? - Management indicated that a significant portion of the cost increase is related to the Berwind mine's production loss and inflationary pressures [50][51] Question: How confident are you about rail performance in the second half? - Management expressed cautious optimism, noting improvements in hiring and delivery schedules from railroads [56] Question: What is your contracting strategy for 2023? - Management anticipates a stronger market for 2023 and may shift towards a higher percentage of seaborne sales compared to domestic [60] Question: How much of the 2023 production will shift to the thermal market? - Management estimates that 1 million to 1.5 million tons could potentially shift to the thermal market based on current demand [67][68] Question: Update on the Maben acquisition and future development? - The company plans to start highwall operations for 250,000 tons next year and will consider further development in the second half of next year [70][71] Question: Status of the tracking stock? - Management is preparing to file registration for the tracking stock and expects to provide more details in the coming weeks [74]

RAMACO 1st Quarter 2022 Investor Presentation Ramaco Resources May 2022 Disclaimer Forward Looking Statements: The information in this presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements, other than statements of historical fact included in this presentation, regarding our strategy, future operations, financi ...

[Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section outlines the inherent risks, uncertainties, and assumptions associated with forward-looking statements, including impacts from global events and economic conditions - Forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including the impact of the COVID-19 pandemic, economic conditions in the metallurgical coal and steel industries, and the Russia-Ukraine conflict[9](index=9&type=chunk)[10](index=10&type=chunk)[13](index=13&type=chunk)[16](index=16&type=chunk) [PART I. FINANCIAL INFORMATION](index=7&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the company's financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section includes the unaudited condensed consolidated financial statements, comprising the balance sheets, statements of operations, statements of stockholders' equity, and statements of cash flows, along with detailed notes explaining the company's business, accounting policies, debt, equity, commitments, revenue, income taxes, earnings per share, related party transactions, and subsequent events [Unaudited Condensed Consolidated Balance Sheets](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Presents the company's financial position at specific dates, detailing assets, liabilities, and equity | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | Change (in thousands) | | :----------------------------- | :------------------------------ | :------------------------------- | :-------------------- | | Cash and cash equivalents | $71,472 | $21,891 | +$49,581 | | Total current assets | $141,601 | $86,761 | +$54,840 | | Total Assets | $406,364 | $329,033 | +$77,331 | | Total current liabilities | $76,230 | $46,660 | +$29,570 | | Total liabilities | $154,429 | $117,959 | +$36,470 | | Total stockholders' equity | $251,935 | $211,074 | +$40,861 | [Unaudited Condensed Consolidated Statements of Operations](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Details the company's revenues, expenses, and net income over specific periods, reflecting operational performance | Metric | Three months ended March 31, 2022 (in thousands) | Three months ended March 31, 2021 (in thousands) | YoY Change (%) | | :---------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :------------- | | Revenue | $154,882 | $43,455 | +256.4% | | Total costs and expenses | $101,992 | $42,211 | +141.6% | | Operating income | $52,890 | $1,244 | +4152.4% | | Net income | $41,471 | $4,143 | +901.0% | | Basic Earnings per common share | $0.94 | $0.10 | +840.0% | | Diluted Earnings per common share | $0.92 | $0.10 | +820.0% | [Unaudited Condensed Consolidated Statements of Stockholders' Equity](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Outlines changes in stockholders' equity, including net income, stock-based compensation, and dividends | Metric | January 1, 2022 (in thousands) | March 31, 2022 (in thousands) | | :---------------------- | :----------------------------- | :---------------------------- | | Total Stockholders' Equity | $211,074 | $251,935 | | Net income | — | $41,471 | | Stock-based compensation | — | $1,887 | | Dividends paid | — | $(2,497) | [Unaudited Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash inflows and outflows from operating, investing, and financing activities over specific periods | Metric | Three months ended March 31, 2022 (in thousands) | Three months ended March 31, 2021 (in thousands) | | :-------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net cash from operating activities | $77,369 | $499 | | Net cash from investing activities | $(19,742) | $(3,725) | | Net cash from financing activities | $(7,920) | $3,015 | | Net change in cash and cash equivalents | $49,707 | $(211) | | Cash and cash equivalents, end of period | $72,513 | $6,499 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations and additional information supporting the unaudited condensed consolidated financial statements [NOTE 1—BUSINESS](index=12&type=section&id=NOTE%201%E2%80%94BUSINESS) Describes the company's core operations, industry, and key external factors impacting its business environment - Ramaco Resources, Inc. operates and develops high-quality, low-cost metallurgical coal in southern West Virginia, southwestern Virginia, and southwestern Pennsylvania[27](index=27&type=chunk) - The company is actively monitoring the impacts of the COVID-19 pandemic and the Russia-Ukraine conflict, noting potential volatility in commodity markets and inflationary pressures on steel products and supply costs[28](index=28&type=chunk)[29](index=29&type=chunk) - The European Union ban on Russian coal, effective in August, could create further tightness in metallurgical coal markets, as Russia was the **third-largest exporter in 2021**, accounting for **10% of global metallurgical coal trade**[30](index=30&type=chunk) [NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=12&type=section&id=NOTE%202%E2%80%94SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Outlines the key accounting principles and methods used in preparing the interim financial statements - The interim financial statements are unaudited and prepared pursuant to SEC rules, with certain disclosures condensed or omitted[31](index=31&type=chunk) - The company is self-insured for workers' compensation claims, with an estimated aggregate liability of **$3.6 million** at March 31, 2022[34](index=34&type=chunk)[35](index=35&type=chunk) - Sales to the top four customers accounted for approximately **70% of total revenue** for the three months ended March 31, 2022[39](index=39&type=chunk) [NOTE 3—PROPERTY, PLANT AND EQUIPMENT](index=15&type=section&id=NOTE%203%E2%80%94PROPERTY,%20PLANT%20AND%20EQUIPMENT) Details the company's property, plant, and equipment, including changes and depreciation over periods | Category | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :-------------------------------- | :------------------------------ | :------------------------------- | | Plant and equipment | $175,557 | $167,019 | | Mining property and mineral rights | $26,953 | $26,064 | | Construction in process | $19,978 | $9,972 | | Capitalized mine development costs | $110,736 | $104,291 | | Total property, plant and equipment, net | $245,930 | $227,077 | | Depreciation and Amortization | Three months ended March 31, 2022 (in thousands) | Three months ended March 31, 2021 (in thousands) | | :---------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Total depreciation and amortization | $8,680 | $6,155 | [NOTE 4—DEBT](index=15&type=section&id=NOTE%204%E2%80%94DEBT) Provides information on the company's debt instruments, outstanding balances, and compliance with covenants - At March 31, 2022, there was no amount outstanding under the Revolving Credit Facility, with **$39.6 million** remaining availability[46](index=46&type=chunk) - The company was in compliance with all financial covenants under the Credit Agreement at March 31, 2022[48](index=48&type=chunk) - The 9.00% Senior Unsecured Notes due 2026 had an outstanding principal balance of **$34.5 million** at March 31, 2022, with an effective interest rate of approximately **10.45%**[51](index=51&type=chunk) [NOTE 5—LEASES](index=18&type=section&id=NOTE%205%E2%80%94LEASES) Details the company's lease assets and liabilities, reflecting its obligations under lease agreements | Lease Type | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :--------- | :---------------------------- | :------------------------------- | | Financing lease right-of-use assets, net | $12,296 | $9,128 | | Total right-of-use assets | $12,302 | $9,153 | | Total lease liabilities | $10,055 | $8,085 | [NOTE 6—EQUITY](index=18&type=section&id=NOTE%206%E2%80%94EQUITY) Outlines changes in equity, including stock-based compensation and shares available under incentive plans - Stock-based compensation expense for the three months ended March 31, 2022, totaled **$1.9 million**, up from **$1.1 million** in the prior year[59](index=59&type=chunk) - As of March 31, 2022, approximately **5.2 million shares** of common stock were available for grant under the Long-Term Incentive Plan (LTIP)[58](index=58&type=chunk) - Total unrecognized compensation cost related to unvested restricted stock, restricted stock units, and performance stock units was **$8.7 million**, **$3.7 million**, and **$5.2 million**, respectively, at March 31, 2022[62](index=62&type=chunk)[64](index=64&type=chunk)[66](index=66&type=chunk) [NOTE 7—COMMITMENTS AND CONTINGENCIES](index=20&type=section&id=NOTE%207%E2%80%94COMMITMENTS%20AND%20CONTINGENCIES) Details the company's various commitments and potential liabilities, including reclamation bonds and legal matters - Total reclamation bonding requirements were **$20.8 million** at March 31, 2022[67](index=67&type=chunk) - Contingent liabilities under take-or-pay transportation arrangements totaled **$12.8 million** at March 31, 2022[68](index=68&type=chunk) - The company filed an appeal on April 1, 2022, regarding a court decision that reduced a jury award in its favor from **$7.7 million** (plus **$25.0 million** for inconvenience) to **$1.8 million**[70](index=70&type=chunk)[73](index=73&type=chunk) [NOTE 8—REVENUE](index=22&type=section&id=NOTE%208%E2%80%94REVENUE) Breaks down revenue by category and geographic market, along with outstanding performance obligations | Revenue Category | Three months ended March 31, 2022 (in thousands) | Three months ended March 31, 2021 (in thousands) | | :--------------- | :--------------------------------------------- | :--------------------------------------------- | | North American revenue | $60,094 | $20,107 | | Export revenue, excluding Canada | $94,788 | $23,348 | | Total revenue | $154,882 | $43,455 | - As of March 31, 2022, outstanding performance obligations for the remainder of 2022 include approximately **1.5 million tons** for contracts with fixed sales prices averaging **$188/ton** and **0.2 million tons** for contracts with index-based pricing mechanisms[74](index=74&type=chunk) [NOTE 9—INCOME TAXES](index=22&type=section&id=NOTE%209%E2%80%94INCOME%20TAXES) Presents information on the company's effective tax rates for different reporting periods | Metric | Three months ended March 31, 2022 | Three months ended March 31, 2021 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Effective tax rate (excluding discrete items) | 19.5% | 5% | [NOTE 10—EARNINGS PER SHARE](index=22&type=section&id=NOTE%2010%E2%80%94EARNINGS%20PER%20SHARE) Details the calculation of basic and diluted earnings per share, including net income and share counts | Metric | Three months ended March 31, 2022 | Three months ended March 31, 2021 | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | | Net income (in thousands) | $41,471 | $4,143 | | Basic weighted average shares outstanding (in thousands) | 44,181 | 43,443 | | Diluted weighted average shares outstanding (in thousands) | 44,908 | 43,443 | | Basic Earnings per share | $0.94 | $0.10 | | Diluted Earnings per share | $0.92 | $0.10 | [NOTE 11—RELATED PARTY TRANSACTIONS](index=24&type=section&id=NOTE%2011%E2%80%94RELATED%20PARTY%20TRANSACTIONS) Discloses transactions and balances with related parties, such as royalty payments to Ramaco Coal, LLC - Production royalty payables to Ramaco Coal, LLC (a related party) were **$0.9 million** at March 31, 2022, compared to **$0.4 million** at December 31, 2021[79](index=79&type=chunk) - Royalties paid to Ramaco Coal totaled **$2.0 million** for the three months ended March 31, 2022, up from **$1.1 million** in the prior year period[79](index=79&type=chunk) [NOTE 12—SUBSEQUENT EVENTS](index=24&type=section&id=NOTE%2012%E2%80%94SUBSEQUENT%20EVENTS) Reports significant events occurring after the balance sheet date, such as the acquisition of Ramaco Coal - On April 29, the company completed the acquisition of **100% of Ramaco Coal** for an initial payment of **$10 million** and a deferred purchase price of **$55 million**, payable in quarterly installments through 2023[81](index=81&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance and condition, highlighting significant revenue and net income growth driven by improved metallurgical coal market conditions. It also discusses liquidity, capital resources, and non-GAAP financial measures [Overview](index=25&type=section&id=Overview) Provides a high-level summary of the company's business, operational highlights, and market positioning - Ramaco Resources is a pure-play metallurgical coal company with **39 million reserve tons** and **769 million resource tons** of high-quality metallurgical coal[84](index=84&type=chunk) - In the first quarter of 2022, **61% of coal sales** were to export markets (principally Europe, South America, Asia, and Africa), compared to **54%** in the first quarter of 2021[86](index=86&type=chunk) - The company sold **0.6 million tons** of coal in the first quarter of 2022[86](index=86&type=chunk) [Recent Developments](index=27&type=section&id=Recent%20Developments) Highlights significant recent events impacting the company, such as the acquisition of Ramaco Coal - On April 29, the company completed the acquisition of **100% of Ramaco Coal** for an initial payment of **$10 million** and a deferred purchase price of **$55 million**, payable in quarterly installments through 2023[91](index=91&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Analyzes the company's financial performance, including revenue, net income, and key operational metrics | Metric | Three months ended March 31, 2022 (in thousands) | Three months ended March 31, 2021 (in thousands) | YoY Change (%) | | :---------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :------------- | | Revenue | $154,882 | $43,455 | +256.4% | | Net income | $41,471 | $4,143 | +901.0% | | Adjusted EBITDA | $64,058 | $11,540 | +455.1% | - Coal sales revenue increased by **256%** in Q1 2022 compared to Q1 2021, driven by a **168% increase** in revenue per ton sold (FOB mine) to **$236/ton** and a **38% increase** in tons sold to **583 thousand tons**, benefiting from improved domestic, spot, and index pricing for metallurgical coal[94](index=94&type=chunk) - Cost of sales increased to **$81.3 million** in Q1 2022 from **$31.2 million** in Q1 2021, with cash cost per ton sold (FOB mine) rising to **$110/ton** from **$59/ton**, primarily due to higher sales-related costs directly associated with increased revenue per ton sold[95](index=95&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses the company's ability to meet short-term and long-term obligations, including cash flows and funding sources | Metric | March 31, 2022 (in thousands) | | :-------------------------------------- | :---------------------------- | | Cash and cash equivalents | $71,500 | | Available under existing credit agreements | $39,600 | | Cash flows from operating activities (Q1 2022) | $77,400 | | Capital expenditures (Q1 2022) | $(19,700) | | Dividends paid (Q1 2022) | $(5,000) | - The company expects to fund its capital and liquidity requirements with cash on hand, anticipated cash flows from operations, and available liquidity under existing credit agreements[103](index=103&type=chunk) - Factors that could adversely impact future liquidity include delays in product delivery, late customer payments, cost overruns, delays in mine development, and adverse changes in metallurgical coal markets[104](index=104&type=chunk)[106](index=106&type=chunk) [Critical Accounting Estimates](index=34&type=section&id=Critical%20Accounting%20Estimates) Identifies key accounting estimates that require significant judgment and could materially impact financial results - There were no material changes to the company's critical accounting policies during the three months ended March 31, 2022[118](index=118&type=chunk) [Off-Balance Sheet Arrangements](index=34&type=section&id=Off-Balance%20Sheet%20Arrangements) Discloses any material off-balance sheet arrangements that could affect the company's financial condition - As of March 31, 2022, the company had no material off-balance sheet arrangements[119](index=119&type=chunk) [Non-GAAP Financial Measures](index=34&type=section&id=Non-GAAP%20Financial%20Measures) Provides reconciliations and explanations for non-GAAP financial measures used by management | Metric | Three months ended March 31, 2022 (in thousands) | Three months ended March 31, 2021 (in thousands) | | :---------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net income | $41,471 | $4,143 | | Adjusted EBITDA | $64,058 | $11,540 | | Metric | Three months ended March 31, 2022 | Three months ended March 31, 2021 | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Revenue per ton sold (FOB mine) | $236 | $88 | | Cash cost per ton sold (FOB mine) | $110 | $59 | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section refers to the disclosures about market risk provided in the company's Annual Report on Form 10-K - Quantitative and qualitative disclosures about market risk are included in Item 7A of the company's Annual Report on Form 10-K[126](index=126&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) The company concluded that its disclosure controls and procedures were ineffective as of March 31, 2022, due to a previously identified material weakness in internal control over financial reporting related to IT general controls. Remediation efforts are ongoing, focusing on user access and related business process controls - Disclosure controls and procedures were **ineffective** as of March 31, 2022, due to a material weakness in internal control over financial reporting related to information technology general controls (ITGCs) in user access and dependent business process controls[127](index=127&type=chunk)[128](index=128&type=chunk) - Remediation plans include modifying ITGCs over user access, implementing additional controls to detect user access issues, and resolving segregation of duties conflicts[129](index=129&type=chunk)[130](index=130&type=chunk) - The identified material weakness did not result in any material misstatements of the company's financial statements or disclosures for the quarter ended March 31, 2022, and the year ended December 31, 2021[128](index=128&type=chunk) [PART II. OTHER INFORMATION](index=39&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part covers legal proceedings, risk factors, equity sales, defaults, mine safety, and a list of exhibits [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine litigation but believes no pending claims will have a material adverse effect on its financial condition, cash flows, or results of operations. Specific details on a structural failure lawsuit are referenced in Note 7 - Management believes no pending litigation, disputes, or claims against the company will have a material adverse effect on its financial condition, cash flows, or results of operations[136](index=136&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) This section reiterates the risk factors from the Annual Report and highlights new or updated risks, specifically the substantial political and economic disruption caused by Russia's invasion of Ukraine and the potential harm from weakened global economic conditions and increased inflation - New or updated risk factors include substantial political and economic disruption, uncertainty, and risk due to Russia's recent invasion of Ukraine and the international community's response[138](index=138&type=chunk) - Weakened global economic conditions and increased inflation rates in the U.S. may harm the industry, business, and results of operations, potentially leading to decreased demand for products and increased operating costs[139](index=139&type=chunk)[140](index=140&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is marked as 'Not applicable' in the report - This section is not applicable[141](index=141&type=chunk) [Item 3. Defaults Upon Senior Securities](index=41&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is marked as 'Not applicable' in the report - This section is not applicable[143](index=143&type=chunk) [Item 4. Mine Safety Disclosures](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Information concerning mine safety violations or other regulatory matters is included in Exhibit 95.1 to this Quarterly Report - Information concerning mine safety violations or other regulatory matters is included in Exhibit 95.1[144](index=144&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) This item is marked as 'Not applicable' in the report - This section is not applicable[145](index=145&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report, including various certifications, agreements, and XBRL taxonomy documents - Exhibits include certifications from the CEO and CFO (31.1, 31.2, 32.1, 32.2), a Purchase and Sale Agreement (2.1), and various XBRL taxonomy extension documents (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[150](index=150&type=chunk)[148](index=148&type=chunk) [SIGNATURES](index=43&type=section&id=SIGNATURES) Lists the individuals responsible for signing and certifying the accuracy of the financial report - The report was signed by Randall W. Atkins, Chairman, Chief Executive Officer and Director, and Jeremy R. Sussman, Chief Financial Officer, on May 13, 2022[154](index=154&type=chunk)

Ramaco Resources, Inc. (NASDAQ:METC) Q1 2022 Earnings Conference Call May 12, 2022 11:30 AM ET Company Participants Jeremy Sussman - Chief Financial Officer Randy Atkins - Chairman & Chief Executive Officer Chris Blanchard - Chief Operating Officer Jason Fannin - Chief Commercial Officer Conference Call Participants David Gagliano - BMO Capital Lucas Pipes - B. Riley Securities Nathan Martin - Benchmark Company Operator Ladies and gentlemen, welcome to the Ramaco Resources, Inc. First Quarter 2022 Earnings ...

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, 2021 | | | | 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 | | | ...