Company Overview - Ramaco Resources (METC) shares increased by 6.1% to close at $12.2, with a notable trading volume, reflecting a 26.2% gain over the past four weeks [1] - The company is well-positioned due to its high-quality met coal production, primarily utilized in steel making, supported by robust infrastructure and a diversified customer base [2][3] Financial Performance - Ramaco is expected to report a quarterly loss of $0.25 per share, a significant year-over-year decline of 412.5%, with revenues projected at $129.29 million, down 16.8% from the previous year [4] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating a lack of upward earnings estimate revisions [5] Competitive Advantage - The company's favorable reserve geology allows for low cash production costs per ton, providing a competitive edge in the market [3] - Ramaco's extensive experience in acquiring, developing, financing, and operating coal assets enhances its operational efficiency and long-term value [3] Industry Context - Ramaco Resources is part of the Zacks Coal industry, where another company, Alliance Resource Partners (ARLP), has seen a 0.4% increase in its stock price, but has returned -2.4% over the past month [5] - Alliance Resource Partners is expected to report an EPS of $0.61, reflecting a year-over-year decline of 22.8% [6]

Group 1 - Ramaco Resources, Inc. is a low-cost metallurgical coal producer with operations in Appalachia [1] - The company plans to expand into rare earth elements (REEs) and critical minerals through its Brook Mine in Wyoming [1] - Ramaco Resources is noted for its cost-efficiency in the metallurgical coal sector [1]

Core Viewpoint - Current global uncertainty is leading to increased risk aversion among investors, prompting some to consider a more cautious investment approach [1] Group 1: Investment Strategy - The article outlines a versatile investment strategy suitable for various investor profiles, including those focused on dividends, value propositions, or growth opportunities [1]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) For the first quarter ended March 31, 2025, Ramaco Resources reported a net loss of **$9.5 million**, a significant downturn from the **$2.0 million** net income in the same period of 2024, primarily driven by a **22% decrease in revenue** to **$134.7 million** due to lower metallurgical coal prices, while total assets slightly increased to **$685.7 million**, total liabilities grew to **$330.5 million**, and net cash provided by operating activities remained relatively stable at **$26.0 million** Condensed Consolidated Statements of Operations (Unaudited) | In thousands, except per-share amounts | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Revenue** | **$134,656** | **$172,676** | | Total costs and expenses | $146,678 | $169,401 | | Operating (loss) income | $(12,022) | $3,275 | | **Net (loss) income** | **$(9,457)** | **$2,032** | | Basic EPS - Class A | $(0.19) | $(0.00) | | Diluted EPS - Class A | $(0.19) | $(0.00) | Condensed Consolidated Balance Sheets (Unaudited) | In thousands | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $43,466 | $33,009 | | Total current assets | $163,967 | $167,634 | | **Total Assets** | **$685,735** | **$674,686** | | Total current liabilities | $124,361 | $122,428 | | **Total Liabilities** | **$330,487** | **$311,880** | | **Total Stockholders' Equity** | **$355,248** | **$362,806** | Condensed Consolidated Statements of Cash Flows (Unaudited) | In thousands | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$26,039** | **$25,188** | | Net cash used for investing activities | $(22,256) | $(18,665) | | Net cash provided by (used) for financing activities | $6,674 | $(17,982) | | Net change in cash and cash equivalents | $10,457 | $(11,459) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's accounting policies, financial instrument details, and contingencies, highlighting a dual-class stock structure, an amended revolving credit facility, ongoing litigation, revenue concentration, and subsequent events related to dividends and critical minerals initiatives - The company operates as a developer of metallurgical coal in West Virginia and Virginia, and is also pursuing rare earth elements and critical minerals initiatives in Wyoming[30](index=30&type=chunk) - The company has a dual-class stock structure, with Class A common stock tied to metallurgical coal operations and Class B common stock linked to Carbon Ore-Rare Earth (CORE) assets[51](index=51&type=chunk)[53](index=53&type=chunk) - In the silo collapse litigation, a court of appeals reinstated a **$7.7 million** contract damages verdict in the company's favor and remanded the case for a new trial on additional damages, leading to a **$7.8 million gain** recognized in 2023 and an accrued loss recovery asset of **$4.2 million** as of March 31, 2025[83](index=83&type=chunk)[84](index=84&type=chunk) - The company is involved in litigation over the purchase of a Preparation Plant, where a plaintiff claims the seller did not have the right to sell the plant, but the company believes it has meritorious defenses[78](index=78&type=chunk)[79](index=79&type=chunk) - Subsequent to the quarter-end, the company declared a Q2 cash dividend for Class B stock, released a revised Technical Report Summary for its Brook Mine rare earth project, and appointed an Executive VP for Critical Minerals[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) Debt Summary | (In thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Revolving Credit Facility | $16,000 | $— | | Senior Notes, net | $88,356 | $88,135 | | **Total debt** | **$104,663** | **$88,551** | Q1 2025 Revenue by Geography | (In thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | North American revenue | $44,026 | $54,173 | | Export revenue, excluding Canada | $90,630 | $118,503 | | **Total revenue** | **$134,656** | **$172,676** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **22% year-over-year revenue decline** to softening global metallurgical coal markets and lower prices, which offset a **2% increase in sales volume**, resulting in Adjusted EBITDA falling to **$9.8 million** from **$24.2 million** in Q1 2024, while the company maintains strong liquidity with **$43.5 million** in cash and **$74.9 million** available on its recently upsized **$200 million** credit facility, and is advancing its rare earth element initiatives in Wyoming - Global metallurgical coal markets softened in 2024 and into 2025, with slower steel market growth, particularly in China, leading to reduced prices for metallurgical coal[114](index=114&type=chunk) - Production increased to **1.0 million tons** in Q1 2025 from **0.8 million tons** in Q1 2024, with full-year 2025 production expected to be between **3.9 and 4.3 million tons**[121](index=121&type=chunk) - The company is advancing its rare earth elements (REE) project at the Brook Mine in Wyoming, with plans to begin construction of a pilot processing facility in mid to late 2025, supported by a **$6.1 million** matching grant[122](index=122&type=chunk) Q1 2025 vs Q1 2024 Performance Summary | (In thousands, except per ton) | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $134,656 | $172,676 | $(38,020) | | Tons sold | 946 | 929 | 17 | | Total revenue per ton sold (GAAP) | $142 | $186 | $(44) | | Cost of sales | $114,132 | $139,713 | $(25,581) | | Total cost of sales per ton sold (GAAP) | $121 | $150 | $(29) | | **Adjusted EBITDA** | **$9,788** | **$24,180** | **$(14,392)** | Reconciliation of Net Income to Adjusted EBITDA | (In thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net (loss) income | $(9,457) | $2,032 | | Depreciation, depletion, and amortization | 17,542 | 15,220 | | Interest expense, net | 2,230 | 1,332 | | Income tax (benefit) expense | (4,290) | 540 | | Stock-based compensation | 3,361 | 4,702 | | Accretion of asset retirement obligation | 402 | 354 | | **Adjusted EBITDA** | **$9,788** | **$24,180** | [Quantitative and Qualitative Disclosures about Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section refers to the disclosures provided in Item 7A, "Quantitative and Qualitative Disclosures about Market Risk," of the company's Annual Report on Form 10-K for the year ended December 31, 2024 - Disclosures about market risk are included in the company's Annual Report and have not materially changed[159](index=159&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were not effective as of March 31, 2025, due to a previously reported material weakness in internal control over financial reporting related to an insufficiency of appropriately qualified and trained professionals, for which the company is actively executing a remediation plan - Management concluded that disclosure controls and procedures were not effective at the reasonable assurance level as of the end of the quarter[160](index=160&type=chunk) - A material weakness was identified related to an insufficiency of appropriately qualified and trained professionals to perform necessary control activities[162](index=162&type=chunk) - The company is executing a remediation plan, including hiring qualified personnel and engaging external firms, to address the material weakness, with these efforts continuing through the first quarter of 2025[163](index=163&type=chunk)[164](index=164&type=chunk) [PART II. OTHER INFORMATION](index=31&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company states that it is involved in routine litigation incidental to its business and expects no pending legal matters to have a material adverse effect on its financial condition, referring to Note 7 of the Condensed Consolidated Financial Statements for detailed descriptions - The company is not involved in any legal proceedings that are expected to have a material adverse effect on its financial condition; for details, refer to Note 7 of the financial statements[169](index=169&type=chunk) [Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) The company states there have been no material changes to its risk factors from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024, advising investors to consider the risk factors detailed in that report and other SEC filings - There have been no material changes in the company's risk factors from those described in the Annual Report[171](index=171&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None[172](index=172&type=chunk) [Defaults Upon Senior Securities](index=31&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[172](index=172&type=chunk) [Mine Safety Disclosures](index=31&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Information regarding mine safety violations and other regulatory matters as required by the Dodd-Frank Act is included in Exhibit 95.1 of this Quarterly Report - Mine safety disclosures are provided in Exhibit 95.1 to the report[172](index=172&type=chunk) [Other Information](index=31&type=section&id=Item%205.%20Other%20Information) The company reported that none of its directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the quarter - No directors or executive officers have adopted or terminated a Rule 10b5-1 trading arrangement during the reporting period[173](index=173&type=chunk) [Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report, including CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, Mine Safety Disclosures, and XBRL data files - The report includes certifications from the CEO and CFO, mine safety disclosures, and XBRL data files as exhibits[177](index=177&type=chunk)

Financial Data and Key Metrics Changes - In Q1 2025, adjusted EBITDA was $10 million, down from $29 million in Q4 2024, with a net loss of $9 million compared to a net income of $4 million in the previous quarter [33] - Class A EPS showed a loss of $0.19 in Q1 versus a gain of $0.06 in Q4 [33] - Key U.S. metallurgical coal indices fell 3% in Q1 compared to Q4, while the Australian benchmark index dropped approximately 9% during the same period [34] Business Line Data and Key Metrics Changes - Company-wide production reached a quarterly record of 1 million tons, annualizing to 4 million tons, despite losing about 150,000 tons due to adverse weather conditions [10][32] - Cash cost per ton sold remained under $100 for the second consecutive quarter, positioning the company in the first quartile of U.S. coal met producers [10][32] Market Data and Key Metrics Changes - The metallurgical coal market remains under pressure, primarily due to weak steel mill profitability and strong Chinese steel exports, which have negatively impacted global steel prices [53][54] - The Australian premium low vol index increased to $190.5 per ton, up from a recent low of $166 in late March, driven by supply disruptions and steady restocking demand [51] Company Strategy and Development Direction - The company is reducing its 2025 production and sales guidance due to weak market conditions, with anticipated production now between 3.9 million to 4.3 million tons [37] - Plans to expand production by an additional 2 million tons are in place, contingent on improved market conditions [13] - The Brook Mine project is positioned to become a significant critical mineral producer, with plans to initiate large-scale mining in June 2025 [24][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about potential market recovery, citing recent increases in Australian benchmark prices and anticipated supply cuts from higher-cost producers [14][30] - The company remains focused on controlling production costs and maintaining operational efficiency despite challenging market conditions [30][40] Other Important Information - The company has appointed Mike Wolichuk as Executive Vice President to oversee the Critical Minerals project, bringing over 30 years of experience in the field [17][18] - A $6.1 million matching fund grant from the Wyoming Energy Authority has been awarded to support pilot plant development [29] Q&A Session Summary Question: What is the guidance for sales mix and cost improvements moving into the second half? - Management indicated that Q2 sales guidance implies a pickup in the back half of the year, with expectations for improved market conditions [62][63] Question: Could the Brook Mine be included in the Fast 41 projects for federal assistance? - Management clarified that the Brook Mine did not qualify for fast tracking as it already has permits, but they are exploring federal assistance options [66][68] Question: Is there a desire to bring in a financing or operating partner for the Brook Mine? - Management stated they are not seeking a joint venture partner and plan to finance the project independently [72][73] Question: What is the breakdown of CapEx for sustaining versus growth projects? - Management confirmed that the CapEx guidance was reduced, with a focus on maintenance CapEx and deferring some growth projects due to current market conditions [79][80] Question: What are the implications of met coal being declared a potential critical mineral? - Management expressed hope for federal support but noted that immediate financial assistance is not expected [86][87]

Financial Data and Key Metrics Changes - In Q1 2025, adjusted EBITDA was $10 million, down from $29 million in Q4 2024, with a net loss of $9 million compared to a net income of $4 million in Q4 2024 [31] - Class A EPS showed a loss of $0.19 in Q1 versus a gain of $0.06 in Q4 [31] - Key U.S. metallurgical coal indices fell 3% in Q1 compared to Q4, while the Australian benchmark index dropped approximately 9% during the same period [32] Business Line Data and Key Metrics Changes - Company-wide production reached a quarterly record of 1 million tons, annualizing to 4 million tons, despite losing about 150,000 tons due to adverse weather conditions [8][41] - Cash cost per ton sold was under $100 for the second consecutive quarter, placing the company in the first quartile of U.S. metallurgical coal producers [8][33] - The company is reducing its 2025 production guidance to between 3.9 million to 4.3 million tons, down from previous expectations of 4.2 million to 4.6 million tons [36] Market Data and Key Metrics Changes - The metallurgical coal market remains under pressure, driven by weak steel mill profitability and strong Chinese steel exports, which have negatively impacted global steel prices [53][54] - The Australian premium low vol index increased to $190.5 per ton, up from a recent low of $166, driven by supply disruptions and steady restocking demand [51] - Domestic end users are taking shipments at a consistent rate, with commitments of 3.7 million tons at an average fixed price of $152 per ton [50] Company Strategy and Development Direction - The company is focused on not forcing production into a weak market, maintaining the option to increase production if market conditions improve [10] - Plans to expand production by an additional 2 million tons are in place, contingent on market clarity, with a potential increase in production capacity from the Maven Low Vol Complex and Berwind Complex [11] - The Brookline Rare Earth project is seen as a significant opportunity, with plans to initiate large-scale mining in June and construction of a pilot plant expected to begin later in the summer [23][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about potential market recovery, citing recent increases in Australian benchmark prices and anticipated supply cuts from higher-cost producers [12] - The company is well-positioned to withstand near-term market weakness due to strong liquidity and a solid balance sheet [39] - Management remains cautious about the current market conditions but is optimistic about the long-term potential of the critical minerals market [30] Other Important Information - The company has appointed Mike Wolichuk as Executive Vice President to oversee the Critical Minerals project, bringing over 30 years of experience in the field [15] - The Brook Mine is projected to produce approximately 1,400 metric tons of critical mineral oxides per year, with over 95% of expected revenue derived from a basket of seven rare earth elements and critical minerals [22] Q&A Session Summary Question: What is the guidance for sales mix and cost improvements moving into the second half? - Management indicated that Q2 sales guidance implies a pickup in the back half of the year, with costs expected to be at the higher end of the range due to lower tonnage [64][65] Question: Could the Brook Mine be included in the Fast 41 projects for federal benefits? - Management clarified that the Brook Mine was not included as it already has permits, but they are exploring federal assistance for financing and procurement [68][71] Question: Is there a desire to bring in a financing or operating partner for the Brook Mine? - Management stated they are not seeking a joint venture partner and plan to finance the project independently, leveraging existing partnerships for development [76][77] Question: What is the breakdown of CapEx for sustaining versus growth projects? - Management noted a reduction in CapEx guidance, with a focus on maintenance CapEx and deferring some growth projects due to current market conditions [82][83] Question: What are the implications of met coal being declared a potential critical mineral? - Management expressed hope for federal support but noted that immediate benefits are uncertain; they anticipate potential assistance with permitting [88][90]

Ramaco Resources (METC) came out with a quarterly loss of $0.19 per share versus the Zacks Consensus Estimate of a loss of $0.29. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 34.48%. A quarter ago, it was expected that this company would post a loss of $0.11 per share when it actually produced earnings of $0.06, delivering a surprise of 154.55%.Over the last four quarters, the company ha ...

Financial Performance & Growth - Ramaco's revenue reached $666 million in 2024[11] - Adjusted EBITDA was $106 million in 2024[11] - Net income was $11 million in 2024[11] - Sales volume was 4 million tons in 2024[11] - Net debt to adjusted EBITDA ratio was less than 0.7x[11] - Cash costs per ton decreased by 17% from $118 in 1Q24 to $98 in 1Q25[14, 26] - The company anticipates growing production at least 10% in 2025 compared to 2024[46] 2025 Guidance - The company projects production between 3900 thousand tons and 4300 thousand tons in 2025[34] - Sales are guided between 4100 thousand tons and 4500 thousand tons[34] - Capital expenditures are estimated between $55 million and $65 million[34] Rare Earth Elements (REE) & Critical Minerals Potential - The Brook Mine has a significant percentage of magnetic REEs and is rich in gallium, germanium, and scandium[59] - Over 40% of the total estimated REO basket consists of primary magnetic REOs, gallium, germanium, and scandium[60]

[First Quarter 2025 Highlights](index=1&type=section&id=FIRST%20QUARTER%202025%20HIGHLIGHTS) Ramaco reported a net loss of $9.5 million and Adjusted EBITDA of $9.8 million in Q1 2025, achieving record production and top-tier cash margins despite challenging market conditions Q1 2025 Key Financial Results | Metric | Value | Change vs Q1 2024 | | :--- | :--- | :--- | | Net Income (million USD) | $(9.5) | Down from $2.0 million | | Adjusted EBITDA (million USD) | $9.8 | Down 60% | | Diluted EPS (Class A) (USD) | $(0.19) | Down from $(0.00) | | Non-GAAP Cash Cost per Ton (USD/ton) | $98 | Down 17% | | Non-GAAP Cash Margin per Ton (USD/ton) | $24 | Down 35% | | Non-GAAP Realized Sales Price (USD/ton) | $122 | Down 21% | - Achieved a quarterly production record, with output annualizing to **4.0 million tons**, despite weather-related disruptions causing a loss of approximately **0.1 million tons**[6](index=6&type=chunk) - Total sales commitments for 2025 stand at **3.7 million tons**, representing over **90%** of the midpoint of production guidance. Of this, **2.2 million tons** are committed at a combined average fixed price of **$141 per ton**[6](index=6&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.1811 per share** on Class B common stock[6](index=6&type=chunk)[10](index=10&type=chunk) - Significant progress was made on the Brook Mine rare earth element (REE) project, with plans to start large-scale carbon ore mining in June 2025 and a pilot processing facility by Fall 2025. An updated technical report estimates the TREO deposit at approximately **1.7 million tons**[8](index=8&type=chunk)[10](index=10&type=chunk) [Management Commentary](index=5&type=section&id=MANAGEMENT%20COMMENTARY) Management highlighted Ramaco's operational outperformance in a challenging market, strategic production adjustments, and significant progress on the rare earth elements project [Metallurgical Coal Business Review](index=5&type=section&id=Metallurgical%20Coal%20Business%20Review) Ramaco achieved top-tier cash margins and realized prices in Q1 despite a weak metallurgical coal market, strategically lowering 2025 production guidance while maintaining expansion flexibility - Achieved the **highest cash margins per ton** and the **highest realized sales price** among its publicly traded peer group in Q1 2025[14](index=14&type=chunk) - Strategically reducing 2025 production and sales guidance to avoid selling into the current "oversold and underpriced spot market"[17](index=17&type=chunk) - Maintains the option to increase production to an exit run-rate above **5 million tons per annum** and has plans for a **2 million ton expansion** at the Maben and Berwind complexes, which would take overall production to **6.5-7.0 million tons** over 24-36 months once initiated[18](index=18&type=chunk)[19](index=19&type=chunk) [Rare Earths and Critical Minerals (REE/CM) Business Update](index=5&type=section&id=Rare%20Earths%20and%20Critical%20Minerals%20%28REE%2FCM%29%20Business%20Update) Ramaco is advancing its Brook Mine REE/CM project, with large-scale ore mining starting June 2025, an updated 1.7 million ton TREO estimate, and a target for commercial oxide production by 2028 - The Brook Mine will be the first new rare earth mine in the U.S. in over 70 years, with large-scale production of ore beginning in June 2025[23](index=23&type=chunk) - Hired Michael Woloschuk from Fluor Corporation as Executive Vice President for Critical Minerals to oversee the Brook Mine's development[24](index=24&type=chunk) - An updated technical report from Weir estimates the deposit at **1.7 million tons of TREO**, with average concentrations of **450-570 ppm** and hydrometallurgical tests showing primary recoveries over **80%**[25](index=25&type=chunk)[28](index=28&type=chunk) - The commercial development timeline targets pilot operations producing concentrate in 2026 and full-scale oxide production by 2028 or earlier[29](index=29&type=chunk) [Corporate and Board Updates](index=6&type=section&id=Corporate%20and%20Board%20Updates) Former U.S. Senator Joe Manchin has been appointed as an independent director to Ramaco's Board, bringing valuable experience for coal operations and rare earths initiatives - Former U.S. Senator Joe Manchin has been appointed to the Board of Directors as the newest independent director[31](index=31&type=chunk) [Financial and Operational Performance](index=7&type=section&id=Financial%20and%20Operational%20Performance) Ramaco achieved record Q1 2025 production of 989,000 tons with improved cash costs, but revenue and margins declined due to lower realized pricing, ending the quarter with $118.4 million in liquidity [Key Financial Metrics Summary](index=7&type=section&id=Key%20Financial%20Metrics%20Summary) Q1 2025 profitability declined significantly, with a net loss of $9.5 million and Adjusted EBITDA of $9.8 million, primarily due to a 21% year-over-year decrease in revenue per ton Q1 2025 Key Metrics vs. Prior Periods | Key Metrics | 1Q25 | 4Q24 | Chg. | 1Q24 | Chg. | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Tons Sold (k tons) | 946 | 1,122 | (16)% | 929 | 2% | | Revenue (million USD) | $134.7 | $170.9 | (21)% | $172.7 | (22)% | | Non-GAAP Cash Margins (USD/Ton) | $24 | $33 | (27)% | $37 | (35)% | | Net Income (Loss) (million USD) | $(9.5) | $3.9 | (344)% | $2.0 | (575)% | | Diluted EPS - Class A | $(0.19) | $0.06 | (400)% | $(0.00) | (3,778)% | | Adjusted EBITDA (million USD) | $9.8 | $29.2 | (66)% | $24.2 | (60)% | | Capex (million USD) | $20.3 | $11.9 | 70% | $18.7 | 8% | [Quarterly Performance Analysis](index=7&type=section&id=Quarterly%20Performance%20Analysis) Q1 production increased 17% year-over-year to a record 989,000 tons with cash costs improving 17% to $98/ton, though realized pricing fell 21% to $122/ton - **Year-over-Year:** Overall production increased **17%** to a record **989,000 tons**, while cash costs decreased **17%** to **$98 per ton**. Realized pricing fell **21%** to **$122 per ton**[38](index=38&type=chunk)[39](index=39&type=chunk) - **Sequential Quarter:** Production rose **4%** from Q4 2024. Realized pricing fell **5%** from **$129 to $122 per ton**, reflecting weaker market indices. Cash costs were stable at **$98 per ton** compared to **$96** in Q4 2024[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) [Balance Sheet and Liquidity](index=8&type=section&id=Balance%20Sheet%20and%20Liquidity) Ramaco's liquidity reached $118.4 million as of March 31, 2025, comprising $43.5 million in cash and $74.9 million in credit facility availability, with quarterly capital expenditures at $20.3 million - Total liquidity was **$118.4 million** as of March 31, 2025, consisting of **$43.5 million** in cash and **$74.9 million** in credit facility availability[44](index=44&type=chunk) - Quarterly capital expenditures were **$20.3 million**, up from **$18.7 million** in Q1 2024[45](index=45&type=chunk) [2025 Outlook and Guidance](index=9&type=section&id=2025%20Outlook%20and%20Guidance) Ramaco updated its 2025 guidance, lowering production and sales volumes, tightening cost forecasts, and reducing capital expenditures, with 3.7 million tons already committed [Updated Financial Guidance](index=9&type=section&id=Updated%20Financial%20Guidance) Ramaco revised its 2025 guidance, lowering production and sales volumes, reducing cost per ton and capital expenditures, but increasing SG&A due to higher legal expenses Full-Year 2025 Guidance | Metric | 2025 Guidance | Prior Guidance / Note | | :--- | :--- | :--- | | Production (k tons) | 3,900 - 4,300 | Down from 4,200 - 4,600k | | Sales (k tons) | 4,100 - 4,500 | Down from 4,400 - 4,800k | | Cash Costs Per Ton Sold (USD/ton) | $96 - $102 | Down from $97 - $103 | | Capital Expenditures (million USD) | $55 - $65 | Down from $60M - $70M | | SG&A Expense (million USD) | $36 - $40 | Up from $34M - $38M | | DD&A Expense (million USD) | $71 - $76 | Down from $73M - $78M | [Committed Sales Volume](index=10&type=section&id=Committed%20Sales%20Volume) As of March 31, 2025, Ramaco secured sales commitments for 3.7 million tons, including 2.2 million tons at a fixed average price of $141 per ton Committed 2025 Sales Volume (as of March 31, 2025) | Category | Volume (million tons) | Average Price (USD/ton) | | :--- | :--- | :--- | | North America, fixed priced | 1.6 | $152 | | Seaborne, fixed priced | 0.6 | $111 | | **Total, fixed priced** | **2.2** | **$141** | | Index priced | 1.5 | N/A | | **Total committed tons** | **3.7** | N/A | [Consolidated Financial Statements (Unaudited)](index=12&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) The unaudited financial statements for Q1 2025 show a net loss of $9.5 million, total assets of $685.7 million, and $26.0 million in net cash from operating activities [Consolidated Statements of Operations](index=12&type=section&id=Consolidated%20Statements%20of%20Operations) Ramaco reported a net loss of $9.5 million in Q1 2025, a reversal from prior year's income, driven by a 22% decrease in revenue to $134.7 million Q1 2025 vs Q1 2024 Statement of Operations (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue (USD thousands) | $134,656 | $172,676 | | Total costs and expenses (USD thousands) | $146,678 | $169,401 | | Operating (loss) income (USD thousands) | $(12,022) | $3,275 | | Net (loss) income (USD thousands) | $(9,457) | $2,032 | [Consolidated Balance Sheets](index=13&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to $685.7 million, total liabilities rose to $330.5 million due to credit facility draw, and total stockholders' equity decreased to $355.2 million Balance Sheet Summary (in thousands) | Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets (USD thousands) | $163,967 | $167,634 | | **Total Assets (USD thousands)** | **$685,735** | **$674,686** | | Total Current Liabilities (USD thousands) | $124,361 | $122,428 | | **Total Liabilities (USD thousands)** | **$330,487** | **$311,880** | | **Total Stockholders' Equity (USD thousands)** | **$355,248** | **$362,806** | [Consolidated Statement of Cash Flows](index=14&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) Q1 2025 saw net cash from operating activities at $26.0 million, net cash used for investing at $22.3 million, and a net increase in cash of $10.5 million for the quarter Q1 2025 vs Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from operating activities (USD thousands) | $26,039 | $25,188 | | Net cash used for investing activities (USD thousands) | $(22,256) | $(18,665) | | Net cash provided by (used for) financing activities (USD thousands) | $6,674 | $(17,982) | | **Net change in cash (USD thousands)** | **$10,457** | **$(11,459)** | [Reconciliation of Non-GAAP Measures](index=15&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section reconciles non-GAAP financial measures, including Adjusted EBITDA, non-GAAP revenue per ton, and cash cost per ton, to their GAAP equivalents by adjusting for specific non-operating and non-cash items [Adjusted EBITDA Reconciliation](index=15&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA for Q1 2025 was $9.8 million, a significant decrease from prior periods, reconciled from a net loss of $9.5 million by adding back non-cash and non-operating items Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net (loss) income (USD thousands) | $(9,457) | $3,858 | $2,032 | | Depreciation, depletion, and amortization (USD thousands) | 17,542 | 16,706 | 15,220 | | Interest expense, net (USD thousands) | 2,230 | 1,614 | 1,332 | | Income tax (benefit) expense (USD thousands) | (4,290) | 2,212 | 540 | | Stock-based compensation (USD thousands) | 3,361 | 4,211 | 4,702 | | **Adjusted EBITDA (USD thousands)** | **$9,788** | **$29,196** | **$24,180** | [Non-GAAP Revenue and Cash Cost Per Ton Reconciliation](index=15&type=section&id=Non-GAAP%20Revenue%20and%20Cash%20Cost%20Per%20Ton%20Reconciliation) Non-GAAP revenue (FOB mine) for Q1 2025 was $115.6 million ($122 per ton) and non-GAAP cash cost was $92.8 million ($98 per ton), derived by adjusting GAAP figures for transportation and other specific costs Q1 2025 Non-GAAP Revenue & Cost per Ton (in thousands) | Metric | GAAP Value (USD thousands) | Adjustments (USD thousands) | Non-GAAP Value (USD thousands) | Per Ton (USD) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $134,656 | $(19,042) | $115,614 | $122 | | Cost of Sales | $114,132 | $(21,369) | $92,763 | $98 |

Core Insights - Ramaco Resources, Inc. has appointed Michael Woloschuk as Executive Vice President for Critical Mineral Operations, bringing over 30 years of experience in the critical minerals industry [1][5][6] - Woloschuk previously served as Global Executive Director of Critical Minerals for Fluor Corporation and has been involved in the Brook Mine project [2][3] - The Brook Mine in Sheridan, Wyoming is positioned as a promising project for developing a domestic supply of critical minerals [6][7] Company Overview - Ramaco Resources, Inc. operates in the metallurgical coal sector and is emerging as a producer of rare earth elements and critical minerals [7] - The company has active mining complexes in Central Appalachia and the Brook Mine, where significant deposits of rare earth elements have been discovered [7] - Ramaco holds approximately 50 intellectual property patents and related agreements in connection with its operations [7] Leadership and Strategic Vision - Woloschuk's extensive background includes roles in mining companies, engineering firms, and private equity, providing a multi-disciplinary approach to project management [3][4] - The company views Woloschuk's appointment as a strategic boost and a sign of confidence in the Brook Mine's potential [5][6] - Woloschuk expressed excitement about contributing to Ramaco's strategic vision for the Brook Mine [6]