Revenue Performance - The company sold 2.9 million tons of coal during the nine months ended September 30, 2025, generating $408.6 million in revenue, a decrease of approximately 18% compared to $495.4 million in the same period of 2024[135]. - Revenue for the three months ended September 30, 2025, was $121.0 million, approximately 28% lower than the same period in 2024, driven by a 15% decrease in tons sold[149]. - Coal sales revenue for the nine months ended September 30, 2025 was $408.6 million, approximately 18% lower than the same period in 2024[157]. - Coal sales revenue for the three months ended September 30, 2025 was $121.0 million, approximately 28% lower than the same period in 2024[168]. Cost of Sales - The cost of coal sales for the three months ended September 30, 2025, was $101.8 million, approximately 24% lower than the same period in 2024, due to mine closures and reduced trucking costs[150]. - Cost of coal sales totaled $346.3 million for the nine months ended September 30, 2025, a 12% decrease compared to $393.6 million for the same period in 2024[172]. - Non-GAAP cash cost of sales for the three months ended September 30, 2025, was $84,893,000, down 18.8% from $104,573,000 in the prior year[194]. Profitability - The company reported a net loss of $36.7 million for the nine months ended September 30, 2025, compared to a net income of $7.3 million in the same period of 2024[147]. - The net loss for the three months ended September 30, 2025, was $13,308,000, compared to a loss of $239,000 in the same period of 2024[192]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $27.2 million, significantly lower than $76.6 million in the same period of 2024, impacted by softening global metallurgical coal markets[148]. - Segment adjusted EBITDA for the nine months ended September 30, 2025 was $51.4 million, approximately 40% lower than the same period in 2024[173]. - Segment adjusted EBITDA for the three months ended September 30, 2025 was $15.9 million, approximately 41% lower than the same period in 2024[170]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $27,160,000, down 64.6% from $76,596,000 for the same period in 2024[192]. Production and Sales Volume - The company produced 2.9 million tons during the first nine months of 2025, an increase from 2.7 million tons in the same period of 2024, with full-year production expected between 3.7 and 3.9 million tons[139]. - The company had outstanding performance obligations of approximately 0.6 million tons for contracts with fixed sales prices averaging $164 per ton, and 1.2 million tons for contracts with index-based pricing mechanisms[136]. Capital Expenditures and Financing - Capital expenditures for the metallurgical coal segment in the first nine months of 2025 were $45.9 million, a decrease from $55.8 million in the same period of 2024[138]. - Capital expenditures for the nine months ended September 30, 2025, were $52.1 million, including investments in the preparation plant and Maben complex expansion[182]. - The company raised gross proceeds of $200 million through a public offering of its Class A common stock to fund the development of the Brook Mine project[142]. - Cash inflows from financing activities amounted to $196.6 million, primarily driven by a Class A common stock equity issuance of $189.0 million[182]. Grants and Projects - The company received a $6.1 million matching grant from the Wyoming Energy Authority for the Brook Mine project, which is expected to enhance the development of rare earth elements and critical minerals[140]. Cash and Liquidity - As of September 30, 2025, the Company had $193.8 million of cash and cash equivalents[178]. - Cash flows provided by operating activities were $20.3 million during the nine months ended September 30, 2025[179]. - The amended Revolving Credit Facility has a maturity date of May 3, 2029, with an initial aggregate revolving commitment of $200 million[177]. Tax and Royalties - The effective tax rate for the nine months ended September 30, 2025 was 22.2%, down from 28.0% in the same period of 2024[163]. - Total royalties for the three months ended September 30, 2025, were $3,454,000, a decrease of 15.4% compared to $4,083,000 for the same period in 2024[181]. - Infrastructure fees for the three months ended September 30, 2025, totaled $6,194,000, slightly down from $6,240,000 in the prior year, reflecting a decrease of 0.7%[181]. Market and Risk Disclosures - Market risk disclosures are included in Item 7A of the Annual Report[196]. - The company filed an automatic shelf registration statement on August 5, 2025, to sell various securities, effective upon filing[185].

Financial Data and Key Metrics Changes - The company reported record liquidity of $272 million at the end of Q3 2025, up over 237% compared to the same period in 2024 [32] - Q3 adjusted EBITDA was $8.4 million compared to $9 million in Q2, with a net loss of $13 million in Q3 versus a net loss of $14 million in Q2 [35][36] - Cash cost per ton sold fell to $97, down $6 from Q2, positioning the company in the first quartile of the U.S. cash cost curve [32][33] Business Line Data and Key Metrics Changes - The metallurgical coal segment saw production fall to 945,000 tons in Q3, down from approximately 1.1 million tons in Q2, primarily due to a disciplined approach to spot sales [33][34] - The company trimmed production guidance due to weak pricing conditions in export markets, with full-year 2025 production now anticipated at 3.7 to 3.9 million tons [37] - The rare earth elements and critical minerals business is projected to generate more than $500 million of EBITDA by 2028, with a pre-tax NPV of $5.1 billion [38] Market Data and Key Metrics Changes - U.S. metallurgical coal spot price indices fell another 6% in Q3 versus Q2 and almost 20% year-over-year, impacting earnings despite strong operational achievements [34] - The rare earth and critical minerals markets are experiencing a bifurcation between Chinese and Western pricing, with significant price increases for scandium noted [41] Company Strategy and Development Direction - The company aims to establish a vertically integrated platform for critical minerals, including upstream, midstream, and downstream operations [8][10] - Plans include the construction of a commercial oxide separation and processing facility and a Strategic Critical Minerals Terminal at the Brook Mine [8][21] - The company is focusing on the rapid commercialization of rare earth elements while maintaining a cautious approach to its metallurgical coal operations [24][50] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing challenges in the metallurgical coal market due to oversupply from China, impacting pricing and production [22][39] - The company is optimistic about the demand for rare earths, particularly scandium, due to geopolitical tensions and the need for reliable domestic supply [11][41] - Management emphasized the importance of maintaining a strong liquidity position to navigate current market conditions and support future growth [25][32] Other Important Information - The company has engaged with federal and state officials to expand the existing approved Brook Mine permit, which currently covers approximately 4,500 acres [14] - A significant focus is placed on optimizing the flow sheet for rare earth extraction, with ongoing testing and engineering studies [57] Q&A Session Summary Question: Impact of U.S. government deals on development support - Management noted that while U.S. government deals have macro political implications, the specifics of supply from those countries remain uncertain [52][53] Question: De-risking the extraction of rare earth elements from coal - The company clarified that it is extracting rare earths from clays and shales intermingled with coal, and has successfully solubilized high-value critical minerals [55][56] Question: Modular plans for processing facilities - Management confirmed that they are conducting test work programs in parallel and have some optionality with ramp-up, allowing for quicker implementation [61][62] Question: Unique aspects of the Brook Mine compared to other PRB assets - Management highlighted geological anomalies at the Brook Mine that contribute to its unique potential for rare earth concentrations [68][69] Question: CapEx implications of the Strategic Critical Minerals Terminal - The terminal is expected to add relatively small CapEx compared to the commercial oxide plant, providing unique downstream control [70]

Financial Data and Key Metrics Changes - The company reported record liquidity of $272 million at the end of Q3 2025, up over 237% compared to the same period in 2024 [32] - Q3 adjusted EBITDA was $8.4 million compared to $9 million in Q2, with a net loss of $13 million in Q3 versus a net loss of $14 million in Q2 [35] - Cash cost per ton sold fell to $97, down $6 from Q2, placing the company in the first quartile of the U.S. cash cost curve [32][33] Business Line Data and Key Metrics Changes - The metallurgical coal production fell to 945,000 tons in Q3, down from approximately 1.1 million tons in Q2, primarily due to a focus on value over volume [33] - The company trimmed production guidance due to weak pricing conditions in export spot markets, with full-year 2025 production now anticipated at 3.7 million to 3.9 million tons [37] - The rare earth platform is projected to generate more than $500 million of EBITDA by 2028, with a potential NPV of over $5 billion [9][38] Market Data and Key Metrics Changes - U.S. metallurgical coal spot price indices fell another 6% in Q3 versus Q2 and almost 20% year-over-year, impacting earnings despite strong operational achievements [34] - The market for rare earth elements is bifurcating between Chinese and Western pricing, with significant price increases observed for scandium due to U.S. Department of War contracts [41] Company Strategy and Development Direction - The company aims to establish a vertically integrated platform for critical minerals, including upstream, midstream, and downstream operations [8] - Plans include the construction of a national strategic stockpile and terminal for rare earths at the Brook Mine, enhancing logistical advantages and providing predictable revenue streams [21] - The company is focusing on the rapid commercialization of rare earth elements while maintaining a cautious approach to metallurgical coal growth due to current market conditions [24][50] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing challenges in the metallurgical coal market due to oversupply from China, impacting pricing and production [22] - The company is optimistic about the future of its rare earth operations, citing strong demand and the need for reliable domestic supply chains [40] - Management emphasized the importance of maintaining a strong liquidity position to navigate market challenges and support future growth initiatives [25][32] Other Important Information - The company has engaged with federal and state officials to expand the existing approved Brook Mine permit, which currently covers approximately 4,500 acres [14] - The pilot plant for rare earth processing is under construction, with initial operations expected to begin in 2026 [16][43] Q&A Session Summary Question: Can you provide your viewpoint on U.S. government support for your development? - Management indicated that the government is moving forward to support domestic industry, but the specifics of supply from foreign countries remain uncertain [53] Question: What has been done to de-risk the extraction of rare earth elements from coal? - The company has tested various processes to solubilize high-value critical minerals from coal, focusing on downstream purification and optimization [56][57] Question: How modular are the plans for processing facilities? - The company is conducting test work in parallel and has some optionality with ramp-up, aiming to place equipment orders early to expedite the process [61][62] Question: What differentiates the Brook site from other PRB assets? - The Brook site benefits from unique geological features that enhance its rare earth concentrations, making it distinct from other sites in the Powder River Basin [68][69] Question: Will the Strategic Critical Minerals Terminal add significant CapEx to the project? - The terminal is expected to add relatively small CapEx compared to the commercial oxide plant, providing unique downstream control and price visibility [70]

Financial Data and Key Metrics Changes - The company reported record liquidity of $272 million at the end of Q3 2025, a 237% increase compared to the same period in 2024 [30] - Q3 adjusted EBITDA was $8.4 million, down from $9 million in Q2, while the net loss for Q3 was $13 million compared to a loss of $14 million in Q2 [32] - Cash cost per ton sold fell to $97, down $6 from the second quarter, placing the company in the first quartile of the U.S. cash cost curve [30][32] Business Line Data and Key Metrics Changes - The metallurgical coal production fell to 945,000 tons in Q3, down from approximately 1.1 million tons in Q2, primarily due to a disciplined approach to spot sales [31][32] - The company trimmed its production guidance for 2025 to 3.7 to 3.9 million tons, down from 3.9 million tons previously [34] Market Data and Key Metrics Changes - U.S. metallurgical coal spot price indices fell by 6% in Q3 compared to Q2 and nearly 20% year-over-year, impacting earnings despite operational achievements [32][37] - The rare earth and critical minerals markets are experiencing a bifurcation between Chinese and Western pricing, with significant price increases observed for scandium [39] Company Strategy and Development Direction - The company aims to establish a vertically integrated platform for critical minerals, including upstream, midstream, and downstream operations [4][6] - Plans include increasing the base size of the Brook Mine to approximately 5 million tons, which could generate over $500 million of EBITDA in the first year of commercial oxide production [7][36] - The establishment of a Strategic Critical Minerals Terminal at the Brook Mine is intended to create a fee-based terminal services business, enhancing supply chain resilience [19][66] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing challenges in the metallurgical coal market due to oversupply from China, which has depressed prices and production [20][37] - The company is optimistic about the future of its rare earth operations, especially given the increasing demand for scandium and other critical minerals [10][39] Other Important Information - The company has engaged with federal and state officials to expand the existing approved Brook Mine permit, which currently covers approximately 4,500 acres [11] - The pilot plant for rare earth processing is under construction, with initial operations expected to begin in 2026 [14][41] Q&A Session Summary Question: Can you provide your viewpoint on the deals with the United States and how that impacts support from the government? - Management indicated that while the U.S. is making deals with foreign countries, the implications for domestic supply remain uncertain, but the government is supportive of domestic industry [50][51] Question: What has been done to de-risk the extraction of rare earth elements from coal? - The company has focused on testing various processes to solubilize high-value critical minerals, with ongoing work on downstream purification and optimization [53][54] Question: How modular are the plans for the processing facilities? - The company is conducting test work in parallel and has some optionality with ramp-up, aiming to place equipment orders early to expedite the process [59][60] Question: What is the rationale behind the Strategic Critical Minerals Terminal? - The terminal will act as a regional hub for marketing rare earths, providing optionality for producers and visibility into the market without heavy CapEx requirements [68]

Ramaco Overview - Ramaco shipped metallurgical coal to steelmakers in over 20 countries[9] - Ramaco's 2024 sales volume was 40 million tons, with an adjusted EBITDA of $106 million[12] - As of October 27, 2025, Ramaco's market capitalization was $20 billion, with revenue of $666 million in 2024 and net cash of $77 million as of September 30, 2025[12] Brook Mine Expansion and Economics - The Brook Mine is projected to have a steady-state annual production of approximately 3,414 short tons of rare earths and critical minerals[13,56] - The revised total Capex requirement for Brook Mine is $1125 million, with an NPV (8%) of $51 billion and a 3-year payback period[21] - Brook Mine is projected to generate over $500 million in EBITDA by 2028, a 276% increase compared to the Fluor PEA[21] - At steady state, the Brook Mine is expected to generate $1038 million in revenue and $552 million in EBITDA, representing a 53% margin[56] Rare Earths and Critical Minerals Opportunity - Brook Mine is believed to be the only primary mine source of Gallium, Germanium, and Scandium in the world[10,14,39] - Approximately 40% of the total estimated REO production consists of primary magnetic REOs, gallium, germanium, and scandium, accounting for ~99% of annual revenue from the Brook Mine[40] - China holds dominant market shares in Gallium (>95%), Heavy Rare Earths (>90%), Light Rare Earths (85%), Scandium (>60%), and Germanium (65%)[25] Metallurgical Coal Business - Ramaco's cash costs of $100 per ton for YTD 2025 are among the lowest of its publicly traded peer group[16] - Ramaco's 2025 production guidance is between 37 million and 39 million tons[88]

Core Insights - Ramaco Resources reported a quarterly loss of $0.25 per share, which was better than the Zacks Consensus Estimate of a loss of $0.33, representing an earnings surprise of +24.24% [1] - The company posted revenues of $121 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 3.45%, and down from $167.41 million year-over-year [2] - The stock has increased approximately 239.9% since the beginning of the year, significantly outperforming the S&P 500's gain of 15.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.22 on revenues of $169.28 million, and for the current fiscal year, it is -$0.80 on revenues of $582.26 million [7] - The estimate revisions trend for Ramaco Resources was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The coal industry, to which Ramaco Resources belongs, is currently ranked in the bottom 7% of over 250 Zacks industries, suggesting a challenging environment for stocks in this sector [8] - Peabody Energy, another company in the coal industry, is expected to report a quarterly loss of $0.19 per share, reflecting a year-over-year change of -125.3%, with revenues anticipated to be $971.6 million, down 10.7% from the previous year [9][10]

Financial Performance - The company reported a net loss of $(13.3) million and Class A diluted EPS of $(0.25) for Q3 2025, with Adjusted EBITDA of $8.4 million[5]. - Revenue for Q3 2025 was $121 million, down 21% from Q2 2025 and 28% from Q3 2024, while year-to-date revenue was $408.6 million, an 18% decrease compared to the previous year[36]. - The net loss for Q3 2025 was $13.3 million, a slight improvement from a loss of $14.0 million in Q2 2025, but significantly worse than a profit of $0.2 million in Q3 2024[36]. - Adjusted EBITDA for Q3 2025 was $8.4 million, down 7% from Q2 2025 and a 65% decline from $23.6 million in Q3 2024[36]. - For Q3 2025, the company reported a net loss of $13,308,000 compared to a net loss of $13,974,000 in Q2 2025 and a net income of $7,334,000 in Q3 2024[67]. - Adjusted EBITDA for Q3 2025 was $8,367,000, down from $9,005,000 in Q2 2025 and significantly lower than $76,596,000 in Q3 2024[67]. - Revenue for the three months ended September 30, 2025, was $120,996,000, a decrease of 28% compared to $167,411,000 for the same period in 2024[60]. Production and Sales - The company reported a total of 873,000 tons sold in Q3 2025, a decrease of 19% from Q2 2025 and a 15% decline from Q3 2024[36]. - Full-year 2025 production is now anticipated at 3.7 – 3.9 million tons, down from the previous estimate of 3.9 million tons, with sales expected at 3.8 – 4.1 million tons[16]. - Sales commitments for 2025 total 3.9 million tons, equating to 100% of the midpoint of the production guidance range, with an average realized fixed price of $151 per ton for North American customers[7]. - The Brook Mine's annual production level is now anticipated to be approximately 5 million tons of coal ore, with expected annual commercial production of 3,400 tons of rare earth and critical mineral oxides, a 175% increase from the previous level[7]. Costs and Margins - Non-GAAP cash cost per ton sold was $97, a $6 decline from Q2 2025, with cash margins per ton improving 15% despite a 6% decline in U.S. metallurgical coal indices[5]. - Cash costs per ton sold were $97 in Q3 2025, a 6% decrease from Q2 2025 and a 5% decrease from Q3 2024[36]. - Non-GAAP cash margins on tons sold were $23 in Q3 2025, compared to $20 in Q2 2025 and $34 in Q3 2024[69]. Liquidity and Capital Expenditures - The company ended Q3 2025 with record liquidity of $272 million and a net cash position of over $77 million, enabling acceleration of its transition into a dual-platform critical minerals company[5]. - The company maintained liquidity of $272.4 million as of September 30, 2025, representing a 237% increase compared to the same period in 2024[45]. - Capital expenditures for Q3 2025 totaled $16.6 million, compared to $15.1 million in Q2 2025 and $17.8 million in Q3 2024[47]. Strategic Initiatives - The company plans to establish a national strategic critical mineral terminal (SCMT) to stockpile rare earth and critical mineral oxides produced at the Brook Mine[25]. - The SCMT will provide long-term strategic stockpiling and inventory management solutions, anchoring the company's downstream operations[27]. - The company aims to be the largest upstream producer of rare earth and critical minerals in the U.S., with significant quantities of gallium, germanium, and scandium expected from the Brook Mine[7]. - The Prefeasibility Study by Hatch, Inc. is on schedule for completion in early 2026, with ongoing discussions for future sales of rare earths and critical minerals[7]. Challenges and Risks - The company anticipates challenges in ramping up production at its complexes in accordance with growth initiatives due to various external factors[57]. - The exploration targets at the Brook Mine are based on preliminary economic analysis and are subject to revision with additional data[58]. - The company does not guarantee the conversion of inferred mineral resources into mineral reserves, highlighting the uncertainty in its new initiatives[58]. - The company has made significant investments in developing rare earth capabilities at the Brook Mine, which is a new initiative with heightened risks and uncertainties[58]. Debt and Liabilities - The company reported total liabilities of $322,743,000 as of September 30, 2025, compared to $311,880,000 at the end of 2024[62]. - Total assets increased to $849,655,000 as of September 30, 2025, up from $674,686,000 as of December 31, 2024[62]. - Cash and cash equivalents rose significantly to $193,846,000 as of September 30, 2025, compared to $33,009,000 at the end of 2024[62].

Core Viewpoint - Ramaco Resources has announced the establishment of a national strategic stockpile for rare earth elements and critical minerals at its Brook Mine facility in Wyoming [2] Company Summary - The board of Ramaco Resources (NASDAQ:METC) approved a plan for the Strategic Critical Minerals Terminal [2]

Core Viewpoint - Ramaco Resources plans to establish a strategic stockpile of rare earth elements (REE) and critical minerals at its Brook mine in Wyoming to ensure secure access to these vital resources [1][2]. Company Developments - The stockpile aims to meet both private and public demands for reliable access to REE and critical minerals [2]. - Ramaco's board has authorized a plan to increase Brook's projected output of rare earth and critical mineral oxides to approximately 3,400 short tons annually, up from a previous target of 1,240 tons [4]. - The company intends to apply for necessary permits to expand mining operations on remaining land and has recently acquired additional land for future development [8]. Industry Context - The initiative comes as the U.S. seeks to reduce reliance on China, which currently dominates about 90% of rare earth refining and permanent magnet production [5]. - Brook mine could become the second new REE mine in the U.S. in 70 years, following the Mountain Pass mine in California [6]. Resource Potential - Brook is recognized as having the largest unconventional rare earth deposit in North America and is believed to be a primary source for scandium, gallium, and germanium [3][9]. - The site contains significant quantities of heavy REEs, including dysprosium and terbium, essential for advanced technologies [9]. Economic Assessment - A proposed REE processing facility at Brook is estimated to cost about $533.1 million, with a projected unlevered pre-tax internal rate of return of 38% and a payback period of five years [11]. - Scandium is expected to contribute 59% of the facility's total revenue [12]. Strategic Partnerships - Ramaco has partnered with a nationally recognized commodity structuring and financial advisor to support its capital expenditures and financing through off-take contracts [12].

Core Insights - Ramaco Resources, Inc. has announced the establishment of a national strategic stockpile of rare earth elements and critical minerals at its Brook Mine facility in Wyoming, known as the Strategic Critical Minerals Terminal (SCMT) [1][2][3] Company Initiatives - The SCMT aims to position Ramaco as a vertically integrated producer of critical minerals and rare earth elements in the U.S. [2] - The stockpile will address both private and public needs for secure access to essential materials, leveraging Ramaco's resources and third-party expertise [3][4] - The initiative is expected to provide long-term solutions for extraction, processing, and inventory management, thereby mitigating supply chain risks [3][4] Strategic Advantages - The Brook Mine site offers strategic advantages due to its location and infrastructure, including direct connectivity to the BNSF railroad and proximity to a major interstate highway [5] - This connectivity is anticipated to facilitate efficient transportation and distribution to a wide range of customers, including defense contractors [5] Production Goals - Ramaco plans to increase its annual commercial rare earth and critical mineral oxide production from approximately 1,240 tons to 3,400 tons, representing a 174% increase [10] - The Brook Mine is believed to contain significant quantities of heavy and light rare earth elements, essential for various advanced applications [9][11] Resource Estimates - The latest Technical Report Summary estimates 1.4 million tons of Total Rare Earth Oxide (TREO) at the permitted acreage, with potential for expansion as further exploration occurs [11] - The Brook Mine is recognized as one of the world's primary sources for scandium, gallium, and germanium, which are critical for advanced technologies [9][11] Future Development - Ramaco is committed to strengthening the U.S. critical minerals supply chain and supporting national security through this initiative [11][12] - The company is also expanding its land holdings in Wyoming for future development and mineral storage potential [8]