Core Points - Ramaco Resources, Inc. announced a quarterly Class A common stock dividend of $0.1375 per share for the first quarter of 2025, payable on March 14, 2025, to shareholders of record on February 28, 2025 [2][5] - The dividend will be paid in shares of Class B common stock, with each Class A common stockholder receiving 0.015537 of a share of Class B common stock for each share of Class A held, based on the Class B closing price of $8.85 on February 28, 2025 [3][4] - No fractional shares will be issued; instead, cash will be paid for any fractional shares based on the Class B closing price [5] Company Overview - Ramaco Resources, Inc. operates and develops high-quality, low-cost metallurgical coal in Central Appalachia and is also developing rare earth elements and critical minerals in Wyoming [6] - The company has four active metallurgical coal mining complexes in Central Appalachia and is in the initial stages of production for a coal mine and rare earth development near Sheridan, Wyoming [6] - In 2023, a major deposit of primary magnetic rare earths and critical minerals was discovered at the Wyoming mine, and the company holds approximately 76 intellectual property patents and related agreements [6]

Revenue Performance - The company sold 2.9 million tons of coal during the first nine months of 2024, generating $495.4 million in revenue, a slight increase from $490.8 million in the same period of 2023[96]. - Revenue for the three months ended September 30, 2024, was $167.4 million, approximately 10% lower than the same period in 2023, driven by a 13% decrease in revenue per ton sold from $188 to $164[103]. - Coal sales revenue for the nine months ended September 30, 2024 was $495.4 million, approximately 1% higher than the same period in 2023, driven by a 16% increase in tons sold[111]. - Non-GAAP revenue (FOB mine) for the three months ended September 30, 2024, was $138,829,000, down from $156,533,000 in the prior year, reflecting a decrease of $17,704,000[138]. - Non-GAAP revenue (FOB mine) for the nine months ended September 30, 2024, was $414,317,000, slightly down from $416,185,000 in the same period of 2023, a decrease of $1,868,000[138]. Cost and Expenses - The cost of sales for the three months ended September 30, 2024, was $134.7 million, down from $144.6 million in the same period of 2023, reflecting a decrease in total cost of sales per ton sold from $145 to $132[102]. - Cost of coal sales for the nine months ended September 30, 2024 totaled $397.2 million, a 12% increase compared to $354.4 million for the same period in 2023[113]. - Non-GAAP cash cost of sales for the three months ended September 30, 2024, was $104,573,000, compared to $112,803,000 in the same period of 2023, a decrease of $8,230,000[139]. - Non-GAAP cash cost per ton sold (FOB mine) was $102 for the three months ended September 30, 2024, down from $113 in the same period of 2023, a decrease of $11[139]. Profitability - The company reported a net loss of $239,000 for the three months ended September 30, 2024, compared to a net income of $19.5 million in the same period of 2023[101]. - The company’s adjusted EBITDA for the nine months ended September 30, 2024, was $76.6 million, down from $123.7 million in the same period of 2023, impacted by softening global metallurgical coal markets[100]. - Adjusted EBITDA for the three months ended September 30, 2024, was $23,617,000, a decrease from $45,407,000 in the same period of 2023[135]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $76,596,000, compared to $123,675,000 in the same period of 2023, a decrease of $47,079,000[135]. Market Conditions - The global metallurgical coal market has softened in 2024 due to constrained economic growth and increased steel exports from China, impacting pricing and demand[95]. - The company anticipates continued volatility in metallurgical coal prices due to macroeconomic conditions and expects limited global investment in new coking coal production capacity to support future market recovery[95]. Production and Resources - The company has 59 million reserve tons and 1,119 million measured and indicated resource tons of high-quality metallurgical coal, with plans to grow annual production to approximately 7 million clean tons in the medium term[93]. - The company expects to satisfy approximately 36% of its outstanding performance obligations of 1.7 million tons in Q4 2024, with an average fixed sales price of $151 per ton[97]. Cash Flow and Financing - Cash flows provided by operating activities were $97.0 million during the first nine months of 2024, primarily driven by net earnings adjusted for non-cash expenses[123]. - Interest expense, net was $4.5 million for the nine months ended September 30, 2024, a decrease from $7.3 million for the same period in 2023[117]. - The effective tax rate for the nine months ended September 30, 2024 was 28%, compared to 21% for the same period in 2023[118]. - The company had $22.9 million of cash and cash equivalents and $57.9 million of remaining availability under its Revolving Credit Facility as of September 30, 2024[122]. - The company entered into an amended credit agreement to extend the maturity date and increase the size of its existing Revolving Credit Facility to $200 million, with an accordion feature for an additional $75 million[121]. - The company anticipates lower capital spending in the fourth quarter of 2024 as most of the annual growth capital expenditures occurred in the first half of 2024[124]. Capital Expenditures - Capital expenditures totaled $57.9 million, including $12.3 million for the Maben preparation plant, which was commissioned in October 2024[124].

Financial Data and Key Metrics Changes - Q3 2024 adjusted EBITDA was $24 million, down from $29 million in Q2 2024, with net income breakeven compared to $6 million in Q2 2024 [9] - Q3 realized price per ton decreased to $136 from $143 in Q2 2024, reflecting a $7 per ton sequential decline [9] - Cash costs improved to $102 per ton in Q3 from $108 in Q2 and $118 in Q1 2024, with cash margins per ton remaining at $34, consistent with Q2 [9][10] Business Line Data and Key Metrics Changes - Record production of 972,000 tons in Q3 2024, up 35% from Q3 2023, and record sales of 1.02 million tons, marking the first time sales exceeded 1 million tons in a single quarter [10] - The closure of the Knox Creek Jawbone mine negatively impacted Q3 results, contributing to a $1 million loss [9] Market Data and Key Metrics Changes - US metallurgical coal indices fell by approximately 7% in Q3 2024, with a $15 per ton decline in US met coal prices sequentially [4][5] - The overall US met coal production decreased by more than 8% sequentially in Q3, equating to a 6 million ton annual decline [6][21] Company Strategy and Development Direction - The company aims to maintain low cash costs and increase production, projecting a year-end run rate exceeding 5 million tons with normalized cash costs below $100 per ton [5][10] - Growth initiatives remain on track, including the Elk Creek complex and the Maben low vol complex, which is expected to reduce trucking costs by approximately $40 per ton [6][8] Management's Comments on Operating Environment and Future Outlook - Management noted that the decline in met coal prices is primarily due to China's overproduction of steel, impacting global pricing [4] - Future macroeconomic measures, such as potential tariffs on Chinese steel exports, could improve pricing for met coal [7] - The company expects to exit 2024 with strong sales and production despite challenging pricing conditions [8] Other Important Information - The company increased 2024 CapEx guidance to $61 million to $65 million, primarily due to the earlier-than-expected commissioning of the Maben prep plant [11] - Liquidity as of September 30 was $81 million, up nearly $10 million from June 30, 2024 [11] Q&A Session Summary Question: Current weakness in met and steel markets - Management acknowledged the current weakness in pricing and discussed the advantages of their low sulfur products in the high vol space [24][25] Question: Variable costs and sensitivity - Management indicated that variable costs closely track market indices, with sales price-related costs also fluctuating accordingly [26][27] Question: Confidence in maintaining sub $100 cost per ton - Management expressed confidence in maintaining a sub $100 cost per ton run rate into next year due to ongoing production growth and cost control measures [28][29] Question: Factors affecting shipment guidance range - Management noted that the guidance range is influenced by logistics and demand, with the high end assuming no carryover tonnage into 2025 [31][32] Question: Volume expectations for 2025 - Management indicated that production guidance for 2025 will be released in early December, with expectations for continued growth based on current production rates [34] Question: Broader supply situation in Central Appalachia - Management estimated that 10% to 15% of mines are currently unsustainable in the current market, with a significant portion of production at risk [36][37] Question: Domestic pricing for next year - Management indicated that additional volumes under fixed price contracts for 2025 are expected to increase the average price above current levels [38][39]

Company Performance - Ramaco Resources reported a quarterly loss of $0.03 per share, better than the Zacks Consensus Estimate of a loss of $0.12, and a significant decline from earnings of $0.45 per share a year ago, indicating an earnings surprise of 75% [1] - The company posted revenues of $167.41 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 12.57%, but down from $186.97 million year-over-year [2] - Over the last four quarters, Ramaco Resources has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance - Ramaco Resources shares have declined approximately 41.2% since the beginning of the year, contrasting with the S&P 500's gain of 20.1% [3] - The current Zacks Rank for Ramaco Resources is 4 (Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.01 on revenues of $187.47 million, and for the current fiscal year, it is $0.88 on revenues of $693.59 million [7] - The outlook for the coal industry, where Ramaco Resources operates, is currently in the top 30% of Zacks industries, suggesting potential for better performance compared to lower-ranked industries [8]

Financial Performance - For Q3 2024, Ramaco Resources reported adjusted EBITDA of $23.6 million, down from $28.8 million in Q2 2024[2]. - The company had a net income of $(0.2) million for Q3 2024, compared to $5.5 million in Q2 2024 and $19.5 million in Q3 2023[2]. - Revenue for the three months ended September 30, 2024, was $167,411,000, a decrease of 10.4% compared to $186,966,000 for the same period in 2023[51]. - Operating income for the three months ended September 30, 2024, was $1,594,000, down 90.1% from $16,081,000 in the prior year[51]. - Net income for the nine months ended September 30, 2024, was $7,334,000, a decline of 86.0% compared to $52,275,000 for the same period in 2023[51]. - Adjusted EBITDA for Q3 2024 was $23,617,000, down from $28,798,000 in Q2 2024 and $45,407,000 in Q3 2023[60]. - Total revenue for Q3 2024 was $167,411,000, an increase from $155,315,000 in Q2 2024 but a decrease from $186,966,000 in Q3 2023[62]. Production and Sales - Overall production in Q3 2024 was 972,000 tons, a 35% increase from Q3 2023, with the Elk Creek complex producing 639,000 tons, up 59% year-over-year[31]. - Third quarter sales reached a record of 1,023,000 tons, marking a 12% increase from 996,000 tons in Q3 2023[4]. - Sales volume for Q3 2024 was 1,023,000 tons, up from 915,000 tons in Q2 2024, reflecting improved productivity[34]. - Committed sales volume for 2024 totals 4.1 million tons, with an average price of $148 per ton[45]. - Total sales commitments for 2024 stand at 4.1 million tons, exceeding the high end of production guidance[6]. - For 2025, total sales commitments are 2.7 million tons, with 1.6 million tons at a fixed price of $152 per ton[8]. Costs and Expenses - Non-GAAP cash cost per ton sold decreased by $6 to $102 per ton, with production increasing by 8% to 972,000 tons[3]. - Cash costs were $102 per ton sold, a 10% decrease from the same period in 2023, leading to cash margins of $34 per ton, down from $44 per ton in Q3 2023[33][36]. - Cash costs are expected to exit the year below $100 per ton, with a reduction in guidance to $106 – $109 per ton sold[12]. - The company anticipates average annual mine costs of $90-95 per ton for new production initiatives[9]. - Transportation costs for Q3 2024 were $28,551,000, an increase from $22,872,000 in Q2 2024 and $30,254,000 in Q3 2023[63]. - Capital expenditures for Q3 2024 totaled $17.8 million, slightly up from $16.9 million in Q3 2023, with year-to-date capital expenditures at $54.9 million[38]. Liquidity and Assets - As of September 30, 2024, the company had liquidity of $80.8 million, up from $71.3 million in Q2 2024[37]. - Total assets decreased to $645,395,000 as of September 30, 2024, from $665,836,000 at the end of 2023[54]. - Cash and cash equivalents decreased to $22,864,000 as of September 30, 2024, down from $41,962,000 at the end of 2023[54]. - Net cash from operating activities for the nine months ended September 30, 2024, was $96,983,000, compared to $119,476,000 for the same period in 2023[56]. - Total liabilities decreased to $283,571,000 as of September 30, 2024, from $296,231,000 at the end of 2023[54]. - Proceeds from borrowings increased to $136,500,000 for the nine months ended September 30, 2024, compared to $95,000,000 in the same period of 2023[56]. Market Conditions - U.S. metallurgical coal indices fell by $15 per ton, or 7%, in Q3 2024 compared to Q2 2024, and by $25 per ton, or 12%, compared to Q3 2023[5]. - Quarterly pricing was $136 per ton, down 13% from $157 per ton in Q3 2023, attributed to a decrease in U.S. and global metallurgical coal price indices[32]. - Non-GAAP revenue per ton sold (FOB mine) decreased to $136 in Q3 2024 from $143 in Q2 2024 and $157 in Q3 2023[62]. - Non-GAAP revenue for Q3 2024 was $138,829,000, compared to $131,097,000 in Q2 2024 and $156,533,000 in Q3 2023[62]. Future Outlook - Full-year 2024 production guidance is set between 3,700,000 and 3,900,000 tons, with sales volume guidance between 3,900,000 and 4,100,000 tons[43]. - The company anticipates a meaningful decline in capital expenditures in Q4 2024 due to the completion of the Ram 3 and Stonecoal Alma mines[39]. - Progress continues on the rare earth and critical minerals project at the Brook Mine, with a preliminary techno-economic analysis expected in early December[14].

SHERIDAN, Wyo., Sept. 30, 2024 /PRNewswire/ -- Ramaco Resources, Inc. (NASDAQ: METC) announced today it has hired Dr. Vishnu Sundaresan as senior vice president of Technology to help lead the company's expanding rare earth element (REEs) and carbon products activities. In his role, Dr. Sundaresan will chart Ramaco's technology strategy and oversee the development and implementation of innovative technology solutions to support the company's REE and coal to advanced carbon products growth. Dr. Sundaresan joi ...

Vladimir Zapletin/iStock via Getty Images Ramaco Resources, Inc. (NASDAQ:METC) recently published their Q2 2024 results on August 7. Despite a solid performance in Q2, including increased coal production and improved net income, Ramaco is currently facing strong headwinds due to declining metallurgical coal prices. Therefore, I remain cautious about initiating a long position right now. In this article, I will dive deep into the recent headwinds and pressures that the company is experiencing, including glob ...

Revenue and Sales Performance - The company sold 1.8 million tons of coal in the first half of 2024, generating $328.0 million in revenue, a 7.9% increase from $303.8 million in the same period of 2023[78]. - Revenue from North American markets accounted for 33% of total revenue, while export markets contributed 67% in the first half of 2024[78]. - Revenue for the three months ended June 30, 2024, was $155.3 million, a 13% increase from $137.5 million in the same period of 2023, driven by a 28% increase in tons sold[84]. - Coal sales revenue for the six months ended June 30, 2024, was $328.0 million, approximately 8% higher than the same period in 2023, driven by a 25% increase in tons sold[90]. - Non-GAAP revenue (FOB mine) for the three months ended June 30, 2024, was $131,097,000, an increase of $13,359,000 from $117,738,000 in the same period of 2023[109]. - Non-GAAP revenue (FOB mine) for the six months ended June 30, 2024, was $275,488,000, an increase of $15,836,000 from $259,652,000 in the same period of 2023[109]. Pricing and Cost Analysis - The average fixed sales price for outstanding performance obligations is $165 per ton, with 1.0 million tons under fixed pricing and 2.4 million tons under index-based pricing[79]. - Revenue per ton sold decreased from $192 in Q2 2023 to $170 in Q2 2024, reflecting an 11% decline due to pricing variability[84]. - Non-GAAP revenue per ton sold (FOB mine) decreased to $143 in the three months ended June 30, 2024, down from $165 in the same period of 2023, a decrease of $22[109]. - Cost of sales for the three months ended June 30, 2024, was $122,770,000, an increase of $23,571,000 from $99,199,000 in the same period of 2023[110]. - Non-GAAP cash cost of sales for the three months ended June 30, 2024, was $98,469,000, reflecting an increase of $19,572,000 from $78,897,000 in the same period of 2023[110]. - Non-GAAP cash cost per ton sold (FOB mine) was $108 for the three months ended June 30, 2024, a slight decrease of $2 from $110 in the same period of 2023[110]. Operational and Financial Metrics - Cash flows provided by operating activities were $59.6 million during the first six months of 2024, driven primarily by net earnings adjusted for non-cash expenses[97]. - Capital expenditures totaled $40.1 million, including expenditures related to the preparation plant and expansion of the Maben complex[99]. - The Company had $27.6 million of cash and cash equivalents and $43.7 million available under its Revolving Credit Facility as of June 30, 2024[97]. - The Company anticipates capital expenditures to decline in the second half of 2024 as growth capital expenditures associated with certain mines have already occurred[99]. - Adjusted EBITDA for the three months ended June 30, 2024, was $28,798,000, compared to $30,014,000 for the same period in 2023, reflecting a decrease of $1,216,000[108]. - Adjusted EBITDA for the six months ended June 30, 2024, was $52,978,000, compared to $78,267,000 for the same period in 2023, indicating a significant decrease[108]. Tax and Interest Expenses - Interest expense, net was $2.8 million for the six months ended June 30, 2024, compared to $4.8 million for the same period in 2023, largely due to the repayment of related-party debt[93]. - The effective tax rate for the six months ended June 30, 2024, was 24.5%, compared to 19.6% for the same period in 2023[94]. - The company reported an increase in income tax expense to $1,455,000 for the six months ended June 30, 2024, compared to $8,016,000 in the same period of 2023[108]. Future Plans and Market Outlook - The company continues to assess its rare earth and critical minerals deposit in Wyoming, with plans to complete a techno-economic analysis later this year[80]. - The company anticipates constructing a demonstration processing facility for rare earth elements in 2025[80]. - The overall outlook for the metallurgical coal market remains uncertain due to global economic conditions and pricing pressures, particularly from China[77]. - Export volumes increased by 39%, while North American volumes rose by 10% during the same period[84]. Dividends - On August 7, 2024, the Company announced cash dividends of $0.1375 per share of Class A common stock and $0.2246 per share of Class B common stock for the third quarter of 2024[101].

Ramaco Resources, Inc. (NASDAQ:METC) Q2 2024 Earnings Conference Call August 8, 2024 9:00 AM ET Company Participants Jeremy Sussman - Chief Financial Officer Randy Atkins - Chairman & Chief Executive Officer Chris Blanchard - EVP, Mine Planning & Development Jason Fannin - Chief Commercial Officer Conference Call Participants Nathan Martin - Benchmark Company Lucas Pipes - B. Riley Securities Operator Good day and welcome to the Ramaco Resources Second Quarter 2024 Results Conference Call. All participants ...

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