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Ramaco Resources(METC) - 2024 Q4 - Earnings Call Transcript
2025-03-11 16:42
Financial Data and Key Metrics Changes - The fourth quarter of 2024 was the strongest quarter of the year for the company, with adjusted EBITDA of $29 million compared to $24 million in Q3, and net income of $4 million compared to breakeven in Q3 [35][41] - Cash margins remained at $33 per ton, down just $2 per ton since Q2, despite a $30 drop in met coal prices [8][34] - Year-end liquidity reached $138 million, up more than 50% year on year, marking the highest year-end liquidity in company history [41][42] Business Line Data and Key Metrics Changes - Record tons sold were achieved in Q4, with a run rate of 4.5 million tons per annum, the highest level in company history [36] - Cash costs exited 2024 in the mid-nineties per ton range, the best among publicly traded peers [36] Market Data and Key Metrics Changes - Metallurgical coal prices have been under pressure, with a significant drop in prices due to increased steel exports from China [10][62] - Domestic steel prices have shown signs of recovery, with hot-rolled coil prices increasing from less than $700 per ton in Q3 to $940 per ton [11] Company Strategy and Development Direction - The company plans to increase future production by adding approximately 2 million tons of low volatile coal, with expansions at the Maven complex and continued mining in other sections [19][20] - The rare earth and critical minerals project in Wyoming is advancing, with plans for full-scale mining to begin in July [21][23] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about potential price increases in the second half of the year, despite current market challenges [31] - The company is maintaining a high level of liquidity to navigate market uncertainties and to capitalize on potential opportunities [18][19] Other Important Information - The company has received a $6 million matching fund grant recommendation from the Wyoming Energy Authority for the rare earth project [24] - The overall size of the rare earth resource is now estimated at 1.7 million tons, an increase from the previous estimate of 1.5 million tons [25] Q&A Session Summary Question: Can you provide insight on the seaborne volumes fixed at $111 per ton and the current netbacks for various qualities? - The $111 figure reflects index-linked prices for January and February, with high vol netbacks around $125 per ton and low vol slightly higher [80][81] Question: What is the capital intensity of your growth projects and what conditions would trigger moving forward? - The current guidance includes about $60 million to $70 million in capital expenditures, with growth capital split between Elk Creek and Berwind [84][90] Question: How do you see balancing growth, shareholder returns, and protecting the business during this downturn? - The company is looking for opportunistic acquisitions in a distressed market while maintaining a modest growth CapEx for 2025 [122][124]
Ramaco Resources(METC) - 2024 Q4 - Earnings Call Transcript
2025-03-11 13:00
Financial Data and Key Metrics Changes - The fourth quarter of 2024 was the strongest quarter of the year for the company, with adjusted EBITDA of $29 million compared to $24 million in Q3, and net income of $4 million compared to breakeven in Q3 [25][30] - Cash margins remained at $33 per tonne, down just $2 per tonne since Q2, despite a nearly $30 drop in met coal prices between Q2 and Q4 [7][25] - Liquidity at year-end was approximately $140 million, marking a more than 50% increase year-on-year and the highest year-end liquidity in company history [30][31] Business Line Data and Key Metrics Changes - Record tons sold were achieved, with a run rate of 4.5 million tons per annum, the highest level in company history [26][28] - The Maven plant construction was completed, reducing net trucking costs by over $20 per clean ton [33][85] Market Data and Key Metrics Changes - The overall steel demand remains weak, but there are signs of potential price increases in met coal due to supply cuts and increased domestic steel prices [9][14] - The U.S. met coal production is expected to drop by 16 million tons by the end of the year, representing a 20% decrease in supply [10][11] Company Strategy and Development Direction - The company plans to increase future production by adding approximately 2 million tons of low vol production once market conditions improve [15][16] - The rare earth and critical minerals project in Wyoming is progressing, with plans to begin full-scale mining in July [17][18] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about the potential for met coal prices to increase in the second half of the year, despite current market challenges [23][24] - The company is focused on maintaining liquidity to capitalize on opportunities during market distress [15][19] Other Important Information - The company has received a $6 million match fund grant recommendation from the Wyoming Energy Authority for the pilot plant [19][92] - The overall size of the rare earth resource is now estimated at 1.7 million tons, an increase from the previous estimate of 1.5 million tons [19][20] Q&A Session Summary Question: Can you provide details on seaborne volumes and netbacks? - The company noted that current netbacks for high vol coal are around $125 per net ton, with low vol slightly higher [60][61] Question: What is the capital intensity of growth projects? - The company indicated that the total capital guidance is $60 million to $70 million, with about $20 million allocated for growth capital [64][66] Question: How do you see balancing growth and shareholder returns? - Management expressed a cautious approach to growth capital expenditures, waiting for clearer market signals before committing to new projects [90][91]
Ramaco Resources(METC) - 2024 Q4 - Annual Results
2025-03-10 20:53
Financial Performance - In Q4 2024, Ramaco Resources achieved Adjusted EBITDA of $29.2 million, a 24% increase from $23.6 million in Q3 2024[3]. - Net income for Q4 2024 was $3.9 million, a significant increase of approximately 1,700% compared to a loss of $0.2 million in Q3 2024[3]. - Year-end liquidity reached a record $137.8 million, up over 50% from the previous year[32]. - Net income for 2024 was $11,192,000, a significant decrease of 86.4% compared to $82,313,000 in 2023[51]. - Adjusted EBITDA for the year ended December 31, 2024, was $105,792,000, down from $182,126,000 in 2023, reflecting a decline of 41.9%[54]. - The effective tax rate for 2024 was 25%, with Q4 2024 tax expense recognized at $2.2 million[34]. Sales and Production - The company sold over 1.1 million tons of metallurgical coal in Q4 2024, marking a 10% increase compared to Q3 2024[9]. - Overall production for Q4 2024 was 954,000 tons, up 28% from the same period in 2023[26]. - The Elk Creek complex produced a record 672,000 tons, representing a 63% increase year-over-year[27]. - Full-year 2024 production was 3,671,000 tons, with guidance for 2025 set between 4,200,000 and 4,600,000 tons[37]. - Committed sales volume for 2025 is 3.5 million tons, with an average price of $145 per ton[40]. Costs and Margins - Non-GAAP cash cost per ton sold decreased by $6 per ton, or 6%, to $96 per ton in Q4 2024, down from $102 per ton in Q3 2024[3]. - Cash costs were $96 per ton sold, a 10% decrease from the same period in 2023[28]. - Cash margins decreased to $33 per ton, down from $68 per ton in Q4 2023[29]. - The company expects to maintain cash margins of $33 per ton sold in Q4 2024, down just $1 per ton from Q3 2024[10]. - Non-GAAP revenue per ton sold (FOB mine) decreased to $140 in 2024 from $170 in 2023, a decline of 17.6%[55]. - Non-GAAP cash cost per ton sold (FOB mine) was $96 in Q4 2024, compared to $107 in Q4 2023, indicating a reduction of 10.3%[55]. Market Conditions - The metallurgical coal indices declined by $12 per ton, or 6%, in Q4 2024 compared to Q3 2024, and by $80 per ton, or 30%, compared to Q4 2023[3]. - U.S. metallurgical coal pricing fell to $129 per ton, a 26% decrease from $175 per ton in Q4 2023[28]. Capital Expenditures and Assets - Capital expenditures for Q4 2024 totaled $11.9 million, down from $18.0 million in Q4 2023[33]. - Capital expenditures for 2024 were $55,236,000, down from $82,904,000 in 2023, reflecting a decrease of 33.5%[51]. - Total assets increased to $674,686,000 in 2024 from $665,836,000 in 2023, representing a growth of 1.28%[49]. - Total current liabilities decreased to $122,428,000 in 2024 from $169,986,000 in 2023, a reduction of 28%[49]. - Total stockholders' equity decreased to $362,806,000 in 2024 from $369,605,000 in 2023, a decline of 1.9%[49]. Future Outlook - The company anticipates tons sold in Q1 2025 to be between 850,000 and 950,000, with a projected 33% increase in shipments for Q2 2025[7]. - Ramaco plans to commence full-scale mining for rare earth and critical minerals by July 2025, following positive preliminary testing results[20].
RAMACO RESOURCES REPORTS FOURTH QUARTER AND FULL-YEAR 2024 RESULTS
Prnewswire· 2025-03-10 20:40
Core Viewpoint - Ramaco Resources, Inc. reported strong operational and financial results for Q4 and full-year 2024, achieving record sales and improved cash costs despite a challenging market environment for metallurgical coal [1][7][10]. Financial Performance - Adjusted EBITDA for Q4 2024 was $29.2 million, a 24% increase from Q3 2024, and a significant decline of 50% year-over-year [7][26]. - Net income for Q4 2024 was $3.9 million, compared to a loss of $0.2 million in Q3 2024, marking a ~1,700% increase [7][26]. - Total tons sold in Q4 2024 reached 1.1 million, a 10% increase from Q3 2024 and a 14% increase year-over-year [26][30]. Production and Costs - The company experienced a 25% decline in costs throughout 2024, with cash costs per ton sold decreasing to $96, down from $102 in Q3 2024 [4][30]. - Production for Q4 2024 was 954,000 tons, a 28% increase from the same period in 2023, driven by the Elk Creek complex [29][30]. - The Elk Creek complex produced a record 672,000 tons, up 63% year-over-year [29]. Market Commentary and Outlook - Total sales commitments for 2025 are currently at 3.5 million tons, equating to 80% of the midpoint of production guidance [3]. - U.S. metallurgical coal indices fell by $12 per ton quarter-over-quarter in Q4 2024, representing a 6% decline [7][30]. - Despite weak steel demand, there are expectations for potential price increases in the second half of 2025 due to supply-side constraints [13][14]. Rare Earths and Critical Minerals - The company is progressing on its rare earth and critical minerals project at the Brook Mine in Wyoming, with minimal costs incurred since acquisition [8][21]. - A $6.1 million matching grant from the Wyoming Energy Authority has been received to support the development of the pilot plant [24]. - Preliminary testing results continue to confirm the project's feasibility, with further updates expected in Q2 2025 [22][23]. Balance Sheet and Liquidity - As of December 31, 2024, the company maintained record liquidity of $137.8 million, a 50% increase from the previous year [34]. - Capital expenditures for Q4 2024 totaled $11.9 million, down from $18 million in Q4 2023, reflecting the completion of growth projects [35]. Guidance - The company anticipates production for 2025 to be between 4.2 million and 4.6 million tons, with cash costs per ton sold expected to range from $97 to $103 [37][38]. - The effective tax rate is projected to be between 25% and 30% for 2025 [38].
Ramaco Resources, Inc. to Release Fourth Quarter and Full Year 2024 Financial Results on Monday, March 10, 2025 and Host Conference Call and Webcast on Tuesday, March 11, 2025
Prnewswire· 2025-03-07 14:00
Company Overview - Ramaco Resources, Inc. operates and develops high-quality, low-cost metallurgical coal in southern West Virginia and southwestern Virginia [3] - The company has four active metallurgical coal mining complexes in Central Appalachia and is developing a rare earth and coal mine near Sheridan, Wyoming [3] - In 2023, a major rare earth deposit of primary magnetic rare earths was discovered at the Wyoming mine [3] - Ramaco operates a carbon research and pilot facility related to advanced carbon products and materials from coal, holding approximately 60 intellectual property patents and related agreements [3] Financial Reporting - Ramaco Resources will report its fourth quarter and full year 2024 financial results on March 10, 2025, after market close [1] - An investor conference call and webcast will be held on March 11, 2025, at 9:00 a.m. Eastern Time, featuring key executives discussing the financial results [2] Access Information - The earnings news release will be available on the company's investor relations website and through major financial information sites [1] - The conference call can be accessed domestically at 1-877-317-6789 and internationally at 1-412-317-6789 [3]
Ramaco Resources Announces First Quarter Class A Stock Dividend Details
Prnewswire· 2025-03-04 21:05
Core Points - Ramaco Resources, Inc. announced a quarterly Class A common stock dividend of $0.1375 per share for the first quarter of 2025, payable on March 14, 2025, to shareholders of record on February 28, 2025 [2][5] - The dividend will be paid in shares of Class B common stock, with each Class A common stockholder receiving 0.015537 of a share of Class B common stock for each share of Class A held, based on the Class B closing price of $8.85 on February 28, 2025 [3][4] - No fractional shares will be issued; instead, cash will be paid for any fractional shares based on the Class B closing price [5] Company Overview - Ramaco Resources, Inc. operates and develops high-quality, low-cost metallurgical coal in Central Appalachia and is also developing rare earth elements and critical minerals in Wyoming [6] - The company has four active metallurgical coal mining complexes in Central Appalachia and is in the initial stages of production for a coal mine and rare earth development near Sheridan, Wyoming [6] - In 2023, a major deposit of primary magnetic rare earths and critical minerals was discovered at the Wyoming mine, and the company holds approximately 76 intellectual property patents and related agreements [6]
Ramaco Resources(METC) - 2024 Q3 - Earnings Call Transcript
2024-11-05 16:58
Financial Data and Key Metrics Changes - Q3 2024 adjusted EBITDA was $24 million, down from $29 million in Q2 2024, with net income breakeven compared to $6 million in Q2 2024 [9] - Q3 realized price per ton decreased to $136 from $143 in Q2 2024, reflecting a $7 per ton sequential decline [9] - Cash costs improved to $102 per ton in Q3 from $108 in Q2 and $118 in Q1 2024, with cash margins per ton remaining at $34, consistent with Q2 [9][10] Business Line Data and Key Metrics Changes - Record production of 972,000 tons in Q3 2024, up 35% from Q3 2023, and record sales of 1.02 million tons, marking the first time sales exceeded 1 million tons in a single quarter [10] - The closure of the Knox Creek Jawbone mine negatively impacted Q3 results, contributing to a $1 million loss [9] Market Data and Key Metrics Changes - US metallurgical coal indices fell by approximately 7% in Q3 2024, with a $15 per ton decline in US met coal prices sequentially [4][5] - The overall US met coal production decreased by more than 8% sequentially in Q3, equating to a 6 million ton annual decline [6][21] Company Strategy and Development Direction - The company aims to maintain low cash costs and increase production, projecting a year-end run rate exceeding 5 million tons with normalized cash costs below $100 per ton [5][10] - Growth initiatives remain on track, including the Elk Creek complex and the Maben low vol complex, which is expected to reduce trucking costs by approximately $40 per ton [6][8] Management's Comments on Operating Environment and Future Outlook - Management noted that the decline in met coal prices is primarily due to China's overproduction of steel, impacting global pricing [4] - Future macroeconomic measures, such as potential tariffs on Chinese steel exports, could improve pricing for met coal [7] - The company expects to exit 2024 with strong sales and production despite challenging pricing conditions [8] Other Important Information - The company increased 2024 CapEx guidance to $61 million to $65 million, primarily due to the earlier-than-expected commissioning of the Maben prep plant [11] - Liquidity as of September 30 was $81 million, up nearly $10 million from June 30, 2024 [11] Q&A Session Summary Question: Current weakness in met and steel markets - Management acknowledged the current weakness in pricing and discussed the advantages of their low sulfur products in the high vol space [24][25] Question: Variable costs and sensitivity - Management indicated that variable costs closely track market indices, with sales price-related costs also fluctuating accordingly [26][27] Question: Confidence in maintaining sub $100 cost per ton - Management expressed confidence in maintaining a sub $100 cost per ton run rate into next year due to ongoing production growth and cost control measures [28][29] Question: Factors affecting shipment guidance range - Management noted that the guidance range is influenced by logistics and demand, with the high end assuming no carryover tonnage into 2025 [31][32] Question: Volume expectations for 2025 - Management indicated that production guidance for 2025 will be released in early December, with expectations for continued growth based on current production rates [34] Question: Broader supply situation in Central Appalachia - Management estimated that 10% to 15% of mines are currently unsustainable in the current market, with a significant portion of production at risk [36][37] Question: Domestic pricing for next year - Management indicated that additional volumes under fixed price contracts for 2025 are expected to increase the average price above current levels [38][39]
Ramaco Resources (METC) Reports Q3 Loss, Tops Revenue Estimates
ZACKS· 2024-11-04 23:55
Company Performance - Ramaco Resources reported a quarterly loss of $0.03 per share, better than the Zacks Consensus Estimate of a loss of $0.12, and a significant decline from earnings of $0.45 per share a year ago, indicating an earnings surprise of 75% [1] - The company posted revenues of $167.41 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 12.57%, but down from $186.97 million year-over-year [2] - Over the last four quarters, Ramaco Resources has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance - Ramaco Resources shares have declined approximately 41.2% since the beginning of the year, contrasting with the S&P 500's gain of 20.1% [3] - The current Zacks Rank for Ramaco Resources is 4 (Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.01 on revenues of $187.47 million, and for the current fiscal year, it is $0.88 on revenues of $693.59 million [7] - The outlook for the coal industry, where Ramaco Resources operates, is currently in the top 30% of Zacks industries, suggesting potential for better performance compared to lower-ranked industries [8]
Ramaco Resources(METC) - 2024 Q3 - Quarterly Results
2024-11-04 21:15
Financial Performance - For Q3 2024, Ramaco Resources reported adjusted EBITDA of $23.6 million, down from $28.8 million in Q2 2024[2]. - The company had a net income of $(0.2) million for Q3 2024, compared to $5.5 million in Q2 2024 and $19.5 million in Q3 2023[2]. - Revenue for the three months ended September 30, 2024, was $167,411,000, a decrease of 10.4% compared to $186,966,000 for the same period in 2023[51]. - Operating income for the three months ended September 30, 2024, was $1,594,000, down 90.1% from $16,081,000 in the prior year[51]. - Net income for the nine months ended September 30, 2024, was $7,334,000, a decline of 86.0% compared to $52,275,000 for the same period in 2023[51]. - Adjusted EBITDA for Q3 2024 was $23,617,000, down from $28,798,000 in Q2 2024 and $45,407,000 in Q3 2023[60]. - Total revenue for Q3 2024 was $167,411,000, an increase from $155,315,000 in Q2 2024 but a decrease from $186,966,000 in Q3 2023[62]. Production and Sales - Overall production in Q3 2024 was 972,000 tons, a 35% increase from Q3 2023, with the Elk Creek complex producing 639,000 tons, up 59% year-over-year[31]. - Third quarter sales reached a record of 1,023,000 tons, marking a 12% increase from 996,000 tons in Q3 2023[4]. - Sales volume for Q3 2024 was 1,023,000 tons, up from 915,000 tons in Q2 2024, reflecting improved productivity[34]. - Committed sales volume for 2024 totals 4.1 million tons, with an average price of $148 per ton[45]. - Total sales commitments for 2024 stand at 4.1 million tons, exceeding the high end of production guidance[6]. - For 2025, total sales commitments are 2.7 million tons, with 1.6 million tons at a fixed price of $152 per ton[8]. Costs and Expenses - Non-GAAP cash cost per ton sold decreased by $6 to $102 per ton, with production increasing by 8% to 972,000 tons[3]. - Cash costs were $102 per ton sold, a 10% decrease from the same period in 2023, leading to cash margins of $34 per ton, down from $44 per ton in Q3 2023[33][36]. - Cash costs are expected to exit the year below $100 per ton, with a reduction in guidance to $106 – $109 per ton sold[12]. - The company anticipates average annual mine costs of $90-95 per ton for new production initiatives[9]. - Transportation costs for Q3 2024 were $28,551,000, an increase from $22,872,000 in Q2 2024 and $30,254,000 in Q3 2023[63]. - Capital expenditures for Q3 2024 totaled $17.8 million, slightly up from $16.9 million in Q3 2023, with year-to-date capital expenditures at $54.9 million[38]. Liquidity and Assets - As of September 30, 2024, the company had liquidity of $80.8 million, up from $71.3 million in Q2 2024[37]. - Total assets decreased to $645,395,000 as of September 30, 2024, from $665,836,000 at the end of 2023[54]. - Cash and cash equivalents decreased to $22,864,000 as of September 30, 2024, down from $41,962,000 at the end of 2023[54]. - Net cash from operating activities for the nine months ended September 30, 2024, was $96,983,000, compared to $119,476,000 for the same period in 2023[56]. - Total liabilities decreased to $283,571,000 as of September 30, 2024, from $296,231,000 at the end of 2023[54]. - Proceeds from borrowings increased to $136,500,000 for the nine months ended September 30, 2024, compared to $95,000,000 in the same period of 2023[56]. Market Conditions - U.S. metallurgical coal indices fell by $15 per ton, or 7%, in Q3 2024 compared to Q2 2024, and by $25 per ton, or 12%, compared to Q3 2023[5]. - Quarterly pricing was $136 per ton, down 13% from $157 per ton in Q3 2023, attributed to a decrease in U.S. and global metallurgical coal price indices[32]. - Non-GAAP revenue per ton sold (FOB mine) decreased to $136 in Q3 2024 from $143 in Q2 2024 and $157 in Q3 2023[62]. - Non-GAAP revenue for Q3 2024 was $138,829,000, compared to $131,097,000 in Q2 2024 and $156,533,000 in Q3 2023[62]. Future Outlook - Full-year 2024 production guidance is set between 3,700,000 and 3,900,000 tons, with sales volume guidance between 3,900,000 and 4,100,000 tons[43]. - The company anticipates a meaningful decline in capital expenditures in Q4 2024 due to the completion of the Ram 3 and Stonecoal Alma mines[39]. - Progress continues on the rare earth and critical minerals project at the Brook Mine, with a preliminary techno-economic analysis expected in early December[14].
Ramaco Hires Senior Vice President of Technology from DARPA to Support Rare Earth Element and Carbon Product Development
Prnewswire· 2024-09-30 13:00
SHERIDAN, Wyo., Sept. 30, 2024 /PRNewswire/ -- Ramaco Resources, Inc. (NASDAQ: METC) announced today it has hired Dr. Vishnu Sundaresan as senior vice president of Technology to help lead the company's expanding rare earth element (REEs) and carbon products activities. In his role, Dr. Sundaresan will chart Ramaco's technology strategy and oversee the development and implementation of innovative technology solutions to support the company's REE and coal to advanced carbon products growth. Dr. Sundaresan joi ...