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 | | | ...

Ramaco Resources, Inc (NASDAQ:METC) Q4 2021 Earnings Conference Call February 24, 2022 10:00 AM ET Company Participants Randy Atkins ??? Chairman and Chief Executive Officer Jeremy Sussman ??? Chief Financial Officer Chris Blanchard ??? Chief Operating Officer Jason Fannin ??? Chief Commercial Officer Conference Call Participants Lucas Pipes ??? B. Riley Securities David Gagliano ??? BMO Capital Markets Nathan Martin ??? The Benchmark Operator Welcome to the Ramaco Resources, Inc., Fourth Quarter 2021 earni ...

E RAMACO 3rd Quarter 2021 Investor Presentation Ramaco Resources November 2021 Disclaimer Forward Looking Statements The information in this presentation includes "forward-looking statements." All statements, other than statements of historical fact included in this presentation, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this presentation, the words ...

Financial Data and Key Metrics Changes - The company reported its highest third quarter adjusted EBITDA in history at $17.8 million, up over $17 million from the previous year [30] - Earnings per share increased to $0.16, representing a more than 240% increase year-over-year [30] - The company anticipates a significant increase in full-year 2021 EBITDA compared to 2020's $19 million, with Q4 expected to be the highest quarter since going public [12][30] Business Line Data and Key Metrics Changes - The company has increased its 2021 production guidance to 2.2 million to 2.4 million tons, up from previous estimates [31] - Sales guidance for 2021 has been adjusted to 2.3 million to 2.4 million tons [31] - The average cash mining cost for the Elk Creek complex is projected to be $63 to $65 per ton, up from $61 to $65 previously, but down from $70 in 2020 [31] Market Data and Key Metrics Changes - The company has secured 1.7 million tons of domestic sales for 2022 at an average price of $196 per ton [33] - The market for metallurgical coal remains strong, with a significant supply-demand imbalance expected to persist into 2022 [50] - U.S. met coal production is down 15% from 2019 levels, indicating a tight supply situation [51] Company Strategy and Development Direction - The company plans to return capital to shareholders and has approved the payment of a regular dividend, with details to be announced before year-end [21][22] - The acquisition of Amonate assets is expected to enhance production capabilities and operational synergies, with a target of reaching 5 million tons of production in the coming years [20][24] - The company aims to maintain a low-cost production model while exploring future growth opportunities beyond its core business [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a significant multiple of EBITDA in 2022 compared to 2021, with a strong demand for steel and metallurgical coal [12][15] - The company anticipates that the fourth quarter of 2021 will produce the strongest EBITDA on record [34] - Management highlighted the importance of maintaining a fortress balance sheet with little to no debt, positioning the company as a formidable cash generation machine [26] Other Important Information - The company has increased its revolver from $30 million to $40 million, extending the maturity date to year-end 2024 [34] - The company ended the quarter with a record liquidity figure of $74 million, not accounting for the Amonate acquisition payment [34] Q&A Session Summary Question: Can you quantify the value of synergies from the Amonate acquisition? - Management indicated significant savings from trucking costs and the absence of royalties on Amonate coal, estimating a payback period of less than 1.5 years [56][58] Question: What are the capital intensity expectations for future growth? - Management stated that future growth plans would not be capital intensive and would be logical transitions for the company [61] Question: What are the capital allocation plans beyond the regular dividend? - Management mentioned that all options are on the table, but the focus is currently on establishing a regular dividend [76] Question: Can you provide insights on inflationary pressures and hiring challenges? - Management acknowledged inflationary pressures on raw materials and labor but expressed confidence in maintaining staffing levels for growth plans [88] Question: How has transportation service been affected? - Management noted that some Q4 sales might slip into 2022 due to logistics slowdowns, with rail rates influenced by market indices [91] Question: What should analysts consider regarding tax situations and sales-related costs? - Management clarified that the tax situation is largely non-cash and provided a breakdown of sales-related costs, emphasizing direct royalties and severance taxes [106][109]

[FORM 10-Q](index=1&type=section&id=FORM%2010-Q) [Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section outlines forward-looking statements, emphasizing their basis on current expectations and assumptions, subject to various risks and uncertainties - Forward-looking statements are based on management's current expectations and assumptions, subject to risks and uncertainties[9](index=9&type=chunk) - Potential factors influencing forward-looking statements include **COVID-19 impact**, **production levels**, **economic conditions in the metallurgical coal and steel industries**, **capital project timing**, **reserve estimates**, **financing ability**, **regulatory compliance**, and **market competition**[10](index=10&type=chunk) - The company disclaims any duty to update forward-looking statements to reflect events or circumstances after the report date, except as required by applicable law[15](index=15&type=chunk) [Part I. Financial Information](index=7&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) Financial Highlights (Q3 2021 vs Q3 2020 & YTD 2021 vs YTD 2020) | Metric | 3 Months Ended Sep 30, 2021 | 3 Months Ended Sep 30, 2020 | 9 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2020 | | :----------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Revenue | $76,377 thousand | $39,459 thousand | $195,889 thousand | $117,769 thousand | | Net income (loss) | $7,035 thousand | $(4,776) thousand | $21,120 thousand | $(162) thousand | | Basic EPS | $0.16 | $(0.11) | $0.48 | $0.00 | | Diluted EPS | $0.16 | $(0.11) | $0.48 | $0.00 | Balance Sheet Snapshot (Sep 30, 2021 vs Dec 31, 2020) | Metric | Sep 30, 2021 | Dec 31, 2020 | | :--------------------------- | :------------------- | :------------------- | | Total Assets | $299,084 thousand | $228,623 thousand | | Total Liabilities | $105,277 thousand | $59,528 thousand | | Total Stockholders' Equity | $193,807 thousand | $169,095 thousand | | Cash and cash equivalents | $46,672 thousand | $5,300 thousand | - Net cash from operating activities significantly increased to **$37.8 million** for the nine months ended September 30, 2021, from **$0.9 million** in the prior year[28](index=28&type=chunk) [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents Ramaco Resources' unaudited condensed consolidated financial statements for the period ended September 30, 2021 [Unaudited Condensed Consolidated Balance Sheets](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) | Metric | September 30, 2021 (in thousands) | December 31, 2020 (in thousands) | | :-------------------------------- | :-------------------------------- | :--------------------------------- | | Total Assets | $299,084 | $228,623 | | Total Liabilities | $105,277 | $59,528 | | Total Stockholders' Equity | $193,807 | $169,095 | | Cash and cash equivalents | $46,672 | $5,300 | | Accounts receivable | $37,592 | $20,299 | | Inventories | $13,880 | $11,947 | | Accounts payable | $21,157 | $11,742 | | Senior notes, net | $32,245 | — | - Total assets increased by approximately **$70.5 million**, primarily driven by a significant increase in cash and cash equivalents and accounts receivable[19](index=19&type=chunk) - Total liabilities increased by approximately **$45.7 million**, largely due to increases in accounts payable and the issuance of senior notes[19](index=19&type=chunk) [Unaudited Condensed Consolidated Statements of Operations](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) | Metric | 3 Months Ended Sep 30, 2021 (in thousands) | 3 Months Ended Sep 30, 2020 (in thousands) | 9 Months Ended Sep 30, 2021 (in thousands) | 9 Months Ended Sep 30, 2020 (in thousands) | | :----------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Revenue | $76,377 | $39,459 | $195,889 | $117,769 | | Operating income (loss) | $8,767 | $(7,582) | $17,032 | $(10,741) | | Net income (loss) | $7,035 | $(4,776) | $21,120 | $(162) | | Basic EPS | $0.16 | $(0.11) | $0.48 | $0.00 | | Diluted EPS | $0.16 | $(0.11) | $0.48 | $0.00 | - Revenue increased by **93.5%** for the three months ended September 30, 2021, and by **66.3%** for the nine months ended September 30, 2021, compared to the respective prior periods[20](index=20&type=chunk) - The company reported a significant turnaround from a net loss of **$(4.8) million** in Q3 2020 to a net income of **$7.0 million** in Q3 2021, and from a net loss of **$(0.2) million** to a net income of **$21.1 million** for the nine months ended September 30, 2021[20](index=20&type=chunk) [Unaudited Condensed Consolidated Statements of Stockholders' Equity](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) | Metric | January 1, 2021 (in thousands) | September 30, 2021 (in thousands) | | :----------------------- | :----------------------------- | :-------------------------------- | | Total Stockholders' Equity | $169,095 | $193,807 | | Net income | $21,120 (YTD) | | | Stock-based compensation | $3,919 (YTD) | | - Total stockholders' equity increased by **$24.7 million** from January 1, 2021, to September 30, 2021, primarily due to net income and stock-based compensation[24](index=24&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Metric | 9 Months Ended Sep 30, 2021 (in thousands) | 9 Months Ended Sep 30, 2020 (in thousands) | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net cash from operating activities | $37,757 | $947 | | Net cash from investing activities | $(17,642) | $(20,515) | | Net cash from financing activities | $20,847 | $20,541 | | Net change in cash and cash equivalents | $40,962 | $973 | - Net cash from operating activities saw a substantial increase to **$37.8 million** for the nine months ended September 30, 2021, compared to **$0.9 million** in the prior year[28](index=28&type=chunk) - The company experienced a significant net increase in cash and cash equivalents of **$41.0 million** for the nine months ended September 30, 2021[28](index=28&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [NOTE 1—BUSINESS](index=12&type=section&id=NOTE%201%E2%80%94BUSINESS) - Ramaco Resources, Inc. is an operator and developer of high-quality, low-cost metallurgical coal in southern West Virginia, southwestern Virginia, and southwestern Pennsylvania[31](index=31&type=chunk) - After declining demand in 2020 due to COVID-19, the company observed increased demand for metallurgical coal in 2021, driven by global economic recovery and significant increases in U.S. steel prices[32](index=32&type=chunk) [NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=12&type=section&id=NOTE%202%E2%80%94SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) - Interim financial statements are unaudited, condensed, and prepared in accordance with SEC rules and GAAP, relying on management estimates and assumptions[34](index=34&type=chunk)[35](index=35&type=chunk) - The company is self-insured for certain workers' compensation claims, with an estimated aggregate liability of **$3.5 million** at September 30, 2021[37](index=37&type=chunk) - Sales to the top three customers accounted for approximately **64%** of total revenue for the three months ended September 30, 2021, and **59%** for the nine months ended September 30, 2021[41](index=41&type=chunk) [NOTE 3—PROPERTY, PLANT AND EQUIPMENT](index=14&type=section&id=NOTE%203%E2%80%94PROPERTY,%20PLANT%20AND%20EQUIPMENT) | (In thousands) | September 30, 2021 | December 31, 2020 | | :----------------------------------- | :----------------- | :---------------- | | Plant and equipment | $161,566 | $155,173 | | Construction in process | $4,890 | $7,245 | | Capitalized mine development costs | $88,713 | $74,279 | | Less: accumulated depreciation and amortization | $(73,494) | $(56,242) | | Total property, plant and equipment, net | $181,675 | $180,455 | - Net property, plant, and equipment increased slightly to **$181.7 million** at September 30, 2021, from **$180.5 million** at December 31, 2020[44](index=44&type=chunk) | (In thousands) | 3 Months Ended Sep 30, 2021 | 3 Months Ended Sep 30, 2020 | 9 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2020 | | :----------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total depreciation and amortization | $6,751 | $5,258 | $18,861 | $15,601 | [NOTE 4—DEBT](index=15&type=section&id=NOTE%204%E2%80%94DEBT) - The company has a Revolving Credit Facility with **$27.1 million** remaining availability and a Term Loan with an outstanding principal balance of **$4.2 million** at September 30, 2021[47](index=47&type=chunk)[48](index=48&type=chunk) - On July 13, 2021, the company completed an offering of **$34.5 million** in 9.00% Senior Unsecured Notes due 2026[51](index=51&type=chunk) - The company was in compliance with all debt covenants under the Credit Agreement at September 30, 2021[49](index=49&type=chunk) [NOTE 5—LEASES](index=17&type=section&id=NOTE%205%E2%80%94LEASES) - The company holds various financing leases for mining equipment, generally with terms up to 36 months, and one operating lease for office space expiring mid-2022[56](index=56&type=chunk) | (In thousands) | September 30, 2021 | December 31, 2020 | | :--------------------------------- | :----------------- | :---------------- | | Total right-of-use assets | $8,941 | $110 | | Total lease liabilities | $7,948 | $110 | [NOTE 6—SBA PAYCHECK PROTECTION PROGRAM LOAN](index=19&type=section&id=NOTE%206%E2%80%94SBA%20PAYCHECK%20PROTECTION%20PROGRAM%20LOAN) - The **$8.4 million** PPP Loan received in April 2020 was fully forgiven by the SBA on July 29, 2021[61](index=61&type=chunk) - The company recognized **$8.4 million** as other income in 2020 due to the anticipated forgiveness of the PPP Loan[60](index=60&type=chunk) [NOTE 7—EQUITY](index=19&type=section&id=NOTE%207%E2%80%94EQUITY) - At September 30, 2021, there was **$8.5 million** of total unrecognized compensation cost related to unvested restricted stock, to be recognized over a weighted-average period of 1.8 years[64](index=64&type=chunk) | Restricted Stock Activity | Shares | Weighted Average Grant Date Fair Value | | :------------------------ | :---------- | :------------------------------------- | | Outstanding at Dec 31, 2020 | 2,845,525 | $4.28 | | Granted | 1,592,659 | $4.37 | | Vested | (321,075) | $8.03 | | Forfeited | (129,279) | $4.11 | | Outstanding at Sep 30, 2021 | 3,987,830 | $4.02 | [NOTE 8—COMMITMENTS AND CONTINGENCIES](index=19&type=section&id=NOTE%208%E2%80%94COMMITMENTS%20AND%20CONTINGENCIES) - At September 30, 2021, the company had **$15.8 million** in reclamation bonding requirements and **$4.6 million** in contingent liabilities under take-or-pay transportation arrangements[66](index=66&type=chunk)[68](index=68&type=chunk) - A jury returned a verdict in favor of the company for **$7.7 million** in compensatory damages and an additional **$25.0 million** for inconvenience and aggravation in a lawsuit against Federal Insurance Company, though this verdict is not yet final and has not been recognized as a gain[71](index=71&type=chunk) [NOTE 9—REVENUE](index=21&type=section&id=NOTE%209%E2%80%94REVENUE) | (In thousands) | 3 Months Ended Sep 30, 2021 | 3 Months Ended Sep 30, 2020 | 9 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2020 | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | North American revenues | $47,954 | $27,284 | $105,611 | $89,795 | | Export revenues | $28,423 | $12,175 | $90,278 | $27,974 | | Total revenues | $76,377 | $39,459 | $195,889 | $117,769 | - Total revenues increased significantly, with export revenues showing a particularly strong growth of **133%** for the nine months ended September 30, 2021, compared to the prior year[72](index=72&type=chunk) - As of September 30, 2021, the company had outstanding performance obligations for the remainder of 2021 of approximately **0.5 million tons** at an average fixed price of **$84/ton** and **0.1 million tons** with index-based pricing[72](index=72&type=chunk) [NOTE 10—INCOME TAXES](index=21&type=section&id=NOTE%2010%E2%80%94INCOME%20TAXES) | (In thousands) | 3 Months Ended Sep 30, 2021 | 3 Months Ended Sep 30, 2020 | 9 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2020 | | :----------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total income tax expense (benefit) | $1,588 | $(1,407) | $1,650 | $(38) | - The effective tax rate, excluding discrete items, was **21%** for Q3 2021 and **13%** for YTD 2021[75](index=75&type=chunk) - Discrete items included a tax benefit of **$0.2 million** for legislative changes in Virginia and West Virginia for Q3 2021, and a **$1.6 million** benefit for YTD 2021[75](index=75&type=chunk) [NOTE 11—EARNINGS (LOSS) PER SHARE](index=23&type=section&id=NOTE%2011%E2%80%94EARNINGS%20(LOSS)%20PER%20SHARE) | (In thousands, except per share amounts) | 3 Months Ended Sep 30, 2021 | 3 Months Ended Sep 30, 2020 | 9 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2020 | | :--------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net income (loss) | $7,035 | $(4,776) | $21,120 | $(162) | | Basic EPS | $0.16 | $(0.11) | $0.48 | $(0.00) | | Diluted EPS | $0.16 | $(0.11) | $0.48 | $(0.00) | - Basic and diluted EPS significantly improved from a loss of **$(0.11)** in Q3 2020 to a gain of **$0.16** in Q3 2021, and from a loss of **$(0.00)** to a gain of **$0.48** for YTD 2021[76](index=76&type=chunk) [NOTE 12—RELATED PARTY TRANSACTIONS](index=23&type=section&id=NOTE%2012%E2%80%94RELATED%20PARTY%20TRANSACTIONS) - The company has mineral leases and surface rights agreements with Ramaco Coal, LLC, a related party. Royalties paid to Ramaco Coal totaled **$1.3 million** for Q3 2021 and **$3.9 million** for YTD 2021[77](index=77&type=chunk) - Charges to Ramaco Coal for shared administrative services were **$40 thousand** for Q3 2021 and **$79 thousand** for YTD 2021[78](index=78&type=chunk)[79](index=79&type=chunk) [NOTE 13—SUBSEQUENT EVENTS](index=25&type=section&id=NOTE%2013%E2%80%94SUBSEQUENT%20EVENTS) - The company completed 2022 domestic sales negotiations, contracting to sell **1.67 million tons** of coal at an average price of **$196 per short ton FOB mine**, representing **54%** of projected 2022 production[80](index=80&type=chunk) - An Asset Purchase Agreement was entered into on October 26, 2021, to acquire certain assets for **$30 million**, with closing expected in mid-November 2021[81](index=81&type=chunk) - The Board of Directors authorized the initiation of a regular quarterly dividend to be paid starting in the first quarter of 2022, and the Revolving Credit Facility was increased by **$10 million** to **$40 million** with an extended maturity to December 31, 2024[82](index=82&type=chunk)[83](index=83&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting increased revenue, return to profitability, strategic developments, liquidity, and non-GAAP measures [Overview](index=26&type=section&id=Overview) - The company's primary revenue source is metallurgical coal sales, with a **261 million ton** reserve base as of September 30, 2021[86](index=86&type=chunk) - The company plans to grow production to approximately **5 million clean tons** of metallurgical coal, subject to market conditions and capital deployment[86](index=86&type=chunk) - In Q3 2021, **0.6 million tons** of coal were sold, with **75%** in North American markets and **25%** in export markets[88](index=88&type=chunk) - Increased demand and significantly higher U.S. steel prices in 2021 are attributed to global economic recovery and large-scale government stimulus measures[90](index=90&type=chunk) [Recent Developments](index=26&type=section&id=Recent%20Developments) - Ramaco has contracted to sell **1.67 million tons** of coal for 2022 domestic sales at an average price of **$196 per short ton FOB mine**, representing **54%** of projected 2022 production[92](index=92&type=chunk) - The company entered into an Asset Purchase Agreement to acquire assets for **$30 million**, with closing expected in mid-November 2021[94](index=94&type=chunk) - The Board of Directors authorized the initiation of a regular quarterly dividend starting in the first quarter of 2022[95](index=95&type=chunk) - The Revolving Credit Facility was increased by **$10 million** to **$40 million**, and its maturity date was extended to December 31, 2024[96](index=96&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) | (In thousands) | 3 Months Ended Sep 30, 2021 | 3 Months Ended Sep 30, 2020 | 9 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2020 | | :----------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Revenue | $76,377 | $39,459 | $195,889 | $117,769 | | Operating income (loss) | $8,767 | $(7,582) | $17,032 | $(10,741) | | Net income (loss) | $7,035 | $(4,776) | $21,120 | $(162) | | Adjusted EBITDA | $17,805 | $637 | $47,429 | $19,863 | - Net income and Adjusted EBITDA were significantly higher in both the three and nine months ended September 30, 2021, compared to the same periods in 2020[97](index=97&type=chunk) - Sales volumes increased by **45%** during the nine months ended September 30, 2021, compared to the same period in 2020, largely due to the recovery from COVID-19 impacts[97](index=97&type=chunk) [Three Months Ended September 30, 2021 Compared to Three Months Ended September 30, 2020](index=30&type=section&id=Three%20Months%20Ended%20September%2030,%202021%20Compared%20to%20Three%20Months%20Ended%20September%2030,%202020) - Coal sales revenue increased **94%** to **$76.4 million** in Q3 2021, driven by a **50%** increase in tons sold (**644 thousand tons**) and a **35%** increase in revenue per ton sold (FOB mine) to **$105/ton**[100](index=100&type=chunk) - Cost of sales increased to **$54.8 million** due to higher tons sold, with cash cost per ton sold (FOB mine) rising slightly to **$72/ton** from **$69/ton**[101](index=101&type=chunk) - Interest expense, net, increased to **$0.9 million** from **$0.3 million**, primarily due to the issuance of Senior Notes in July 2021[104](index=104&type=chunk) [Nine Months Ended September 30, 2021 Compared to Nine Months Ended September 30, 2020](index=32&type=section&id=Nine%20Months%20Ended%20September%2030,%202021%20Compared%20to%20Nine%20Months%20Ended%20September%2030,%202020) - Coal sales revenue increased **66%** to **$195.9 million** for YTD 2021, with tons sold increasing **45%** to **1.8 million tons** and revenue per ton sold (FOB mine) increasing **13%** to **$98/ton**[109](index=109&type=chunk) - Cash cost per ton sold (FOB mine) improved to **$68/ton** from **$70/ton**, primarily due to higher production volumes leveraging fixed costs[110](index=110&type=chunk) - Other income for YTD 2021 was **$7.2 million**, primarily from the **$5.4 million** CARES Act Employee Retention Tax Credit[114](index=114&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) - At September 30, 2021, the company had **$46.7 million** in cash and cash equivalents and **$27.1 million** available under existing credit agreements[119](index=119&type=chunk) - Cash flows from operating activities were **$37.8 million** for the first nine months of 2021[120](index=120&type=chunk) - Capital expenditures totaled **$17.6 million** for mine development and infrastructure during the first nine months of 2021[123](index=123&type=chunk) - The company believes current cash on hand, cash flow from operations, and available liquidity will be sufficient to meet capital expenditure and operating plans[121](index=121&type=chunk) - The **$8.4 million** PPP Loan was fully forgiven by the SBA on July 29, 2021[135](index=135&type=chunk) [Off-Balance Sheet Arrangements](index=39&type=section&id=Off-Balance%20Sheet%20Arrangements) - At September 30, 2021, the company had no material off-balance sheet arrangements[137](index=137&type=chunk) [Non-GAAP Financial Measures](index=39&type=section&id=Non-GAAP%20Financial%20Measures) - Adjusted EBITDA is defined as net income plus net interest expense, stock-based compensation, depreciation and amortization expenses, and any transaction-related costs[139](index=139&type=chunk) | (In thousands) | 3 Months Ended Sep 30, 2021 | 3 Months Ended Sep 30, 2020 | 9 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2020 | | :----------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income (loss) | $7,035 | $(4,776) | $21,120 | $(162) | | EBITDA | $16,307 | $(581) | $43,049 | $16,316 | | Adjusted EBITDA | $17,805 | $637 | $47,429 | $19,863 | - Non-GAAP revenue per ton (FOB mine) and Non-GAAP cash cost per ton sold are presented to provide comparable metrics excluding transportation costs[140](index=140&type=chunk)[143](index=143&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section refers to comprehensive quantitative and qualitative disclosures about market risk, as detailed in the company's Annual Report - Quantitative and qualitative disclosures about market risk are incorporated by reference from Item 7A of the company's Annual Report[145](index=145&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of September 30, 2021, with no significant internal control changes [Disclosure Controls and Procedures](index=42&type=section&id=Disclosure%20Controls%20and%20Procedures) - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of September 30, 2021, at a reasonable assurance level[146](index=146&type=chunk) [Changes in Internal Control over Financial Reporting](index=42&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) - There were no significant changes in the company's internal control over financial reporting during the quarter ended September 30, 2021, that materially affected or are reasonably likely to materially affect it[148](index=148&type=chunk) [Part II. Other Information](index=43&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) Management believes no pending legal matters will materially affect financial condition, cash flows, or results of operations - Management believes no pending litigation, disputes, or claims will have a material adverse effect on the company's financial condition, cash flows, or results of operations[151](index=151&type=chunk) - A description of legal proceedings is included in Note 8 of the financial statements[151](index=151&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) This section refers to risk factors detailed in the Annual Report on Form 10-K, with no material changes reported - Risk factors are described in Item 1A of the company's Annual Report and other SEC filings[152](index=152&type=chunk) - There have been no material changes in the company's risk factors from those described in its Annual Report[153](index=153&type=chunk) [Item 4. Mine Safety Disclosures](index=43&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures, as required by regulations, are provided in Exhibit 95.1 of this Quarterly Report - Mine safety disclosures are included in Exhibit 95.1 to this Quarterly Report[154](index=154&type=chunk) [Item 6. Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report, including senior notes indentures, officer certifications, and mine safety disclosures - Exhibits include Indenture and First Supplemental Indenture for the **9.00% Senior Notes due 2026**[158](index=158&type=chunk) - Certifications of the Chief Executive Officer and Chief Financial Officer are included pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[158](index=158&type=chunk) - Mine Safety Disclosure is filed as Exhibit 95.1[158](index=158&type=chunk) [Signatures](index=45&type=section&id=SIGNATURES) This section contains the official signatures of the registrant's authorized officers, affirming the report filing on November 2, 2021 - The report was signed by Randall W. Atkins, Chairman, Chief Executive Officer and Director, and Jeremy R. Sussman, Chief Financial Officer, on November 2, 2021[162](index=162&type=chunk)