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Ramaco Resources(METC) - 2025 Q2 - Quarterly Results
2025-07-31 21:18
Exhibit 99.1 RAMACO RESOURCES REPORTS SECOND QUARTER 2025 RESULTS LEXINGTON, KY., July 31, 2025 -- Ramaco Resources, Inc. (NASDAQ: METC, METCB, "Ramaco" or the "Company"), is a leading operator and developer of high-quality, low-cost metallurgical coal in Central Appalachia and future developer of rare earth and critical minerals in Wyoming. Today it reported financial results for the three and six months ended June 30, 2025. SECOND QUARTER 2025 HIGHLIGHTS MARKET COMMENTARY / 2025 OUTLOOK Sales and Marketin ...
Ramaco Releases Summary of Independent Preliminary Economic Assessment Report from Fluor Corporation
Prnewswire· 2025-07-10 21:00
Core Insights - Ramaco Resources, Inc. has released a summary of the independent Preliminary Economic Assessment (PEA) for its Brook Mine, prepared by Fluor Corporation, indicating the mine's commercial and technological feasibility [1][2] - The company is optimistic about the future, with a ribbon-cutting ceremony for the Brook Mine scheduled, marking a significant milestone for both Ramaco and the nation [2] Company Overview - Ramaco Resources, Inc. operates and develops high-quality, low-cost metallurgical coal in southern West Virginia and southwestern Virginia, and is also involved in coal, rare earth, and critical minerals production in Wyoming [3] - 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 in Wyoming [3] - In 2023, Ramaco discovered a major deposit of primary magnetic rare earths and critical minerals at its Wyoming mine, and operates a carbon research facility related to advanced carbon products from coal [3] Future Prospects - The results of the PEA suggest that the Brook Mine will contribute positively to the company's growth and operational capabilities, aligning with its strategic objectives in the coal and rare earth sectors [2][3]
Update on Independent Preliminary Economic Assessment Report from Fluor Corporation
Prnewswire· 2025-07-08 20:30
Core Insights - Ramaco Resources, Inc. will receive a Preliminary Economic Assessment (PEA) of its Brook Mine from Fluor Corporation on July 9, 2025, which will be presented to the Board of Directors [1] - Following the presentation, Ramaco expects to release a summary of the updated information on its website within the week [1] Company Overview - Ramaco Resources, Inc. operates and develops high-quality, low-cost metallurgical coal in southern West Virginia and southwestern Virginia, and is also a developing producer of coal, rare earth, and critical minerals in Wyoming [2] - The company has four active metallurgical coal mining complexes in Central Appalachia and is in the initial stages of production at a coal mine and rare earth development near Sheridan, Wyoming [2] - In 2023, a major deposit of primary magnetic rare earths and critical minerals was discovered at the Wyoming mine [2] - Ramaco operates a carbon research and pilot facility related to the production of advanced carbon products and materials from coal, holding approximately 76 intellectual property patents and various licensing agreements [2]
Independent Preliminary Economic Assessment Report from Fluor Corporation Confirms Commercial and Technical Feasibility of Ramaco's Brook Mine Rare Earth Deposit
Prnewswire· 2025-07-01 12:00
Core Insights - The Fluor Corporation will deliver a full Preliminary Economic Assessment (PEA) of Ramaco Resources' Brook Mine by July 8, 2025, indicating a significant advancement in the project [1][2] - The Brook Mine is believed to contain the largest unconventional deposit of rare earth elements and critical minerals sourced from coal, which is commercially and technologically feasible [2][4] Economic Viability - The updated PEA confirms the viability of the Brook Mine project, validating Ramaco's development strategy and providing momentum for future phases [4] - The PEA outlines a net present value (NPV) of $1.197 billion at an 8% discount rate and $898 million at a 10% discount rate, with an internal rate of return (IRR) of 38% and an initial capital cost estimate of $473 million [8][15] Production and Revenue Projections - The project anticipates an adjusted EBITDA of $134 million by 2028, reaching $143 million by 2029, with annual revenue projected at $378 million [8][15] - The Brook Mine is expected to produce 1,242 short tons of rare earth oxides annually, including 456 tons of various critical minerals [11][12] Cost Structure - The total initial capital cost is estimated at $579 million, including a 22% contingency [9] - Annual steady-state costs are projected at $235 million, with mining costs at $27 million and processing costs at $195 million [12][15] Unique Geological Profile - The Brook Mine's geological profile allows for a more efficient extraction process with lower capital intensity compared to traditional hard rock mining, significantly reducing operational complexity and costs [5][6] Strategic Importance - The Brook Mine will be one of only two domestic sources of rare earth elements and the only source of heavy rare earth elements and critical minerals vital for the U.S. defense industry [18][19] - The mine is projected to support 3-5% of total U.S. permanent magnet demand and over 30% of the demand for U.S. defense applications [18] Development Timeline - Initial mining activities have commenced to procure ore for pilot-scale testing, with a pilot plant expected to be operational by mid-2026 [16]
Documents Available Regarding Ramaco's Brook Mine Rare Earth and Critical Minerals Project
Prnewswire· 2025-07-01 12:00
Company Overview - Ramaco Resources, Inc. operates and develops high-quality, low-cost metallurgical coal in southern West Virginia and southwestern Virginia, and is also a developing producer of coal, rare earth, and critical minerals in Wyoming [1] - The company has four active metallurgical coal mining complexes in Central Appalachia and one coal mine and rare earth development project near Sheridan, Wyoming, which is in the initial stages of production [1] - In 2023, a major deposit of primary magnetic rare earths and critical minerals was discovered at the Wyoming mine [1] Intellectual Property and Research - Ramaco Resources holds approximately 76 intellectual property patents, pending applications, exclusive licensing agreements, and various trademarks related to its operations [1] - The company operates a carbon research and pilot facility focused on producing advanced carbon products and materials from coal [1] Communication and Investor Relations - Additional information about Ramaco Resources, including filings with the Securities and Exchange Commission, is available on its website [1] - Investor relations can be contacted via email or phone for further inquiries [2]
Ramaco Resources (METC) Moves 6.1% Higher: Will This Strength Last?
ZACKS· 2025-06-30 15:00
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]
Ramaco Resources: High-Yield Dividend With Strategic Appeal
Seeking Alpha· 2025-06-27 21:43
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]
Ramaco Resources 8.375% Senior Notes: High Yield From A Stable Issuer
Seeking Alpha· 2025-05-19 17:38
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]
Ramaco Resources(METC) - 2025 Q1 - Quarterly Report
2025-05-12 20:05
[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)
Ramaco Resources(METC) - 2025 Q1 - Earnings Call Transcript
2025-05-12 16:02
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]