Company Overview - Ramaco Resources, Inc. operates and develops high-quality, low-cost metallurgical coal in southern West Virginia and southwestern Virginia, and is also a developing producer of coal, rare earth, and critical minerals in Wyoming [1] - The company has four active metallurgical coal mining complexes in Central Appalachia and one coal mine and rare earth development project near Sheridan, Wyoming, which is in the initial stages of production [1] - In 2023, a major deposit of primary magnetic rare earths and critical minerals was discovered at the Wyoming mine [1] Intellectual Property and Research - Ramaco Resources holds approximately 76 intellectual property patents, pending applications, exclusive licensing agreements, and various trademarks related to its operations [1] - The company operates a carbon research and pilot facility focused on producing advanced carbon products and materials from coal [1] Communication and Investor Relations - Additional information about Ramaco Resources, including filings with the Securities and Exchange Commission, is available on its website [1] - Investor relations can be contacted via email or phone for further inquiries [2]

Company Overview - Ramaco Resources (METC) shares increased by 6.1% to close at $12.2, with a notable trading volume, reflecting a 26.2% gain over the past four weeks [1] - The company is well-positioned due to its high-quality met coal production, primarily utilized in steel making, supported by robust infrastructure and a diversified customer base [2][3] Financial Performance - Ramaco is expected to report a quarterly loss of $0.25 per share, a significant year-over-year decline of 412.5%, with revenues projected at $129.29 million, down 16.8% from the previous year [4] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating a lack of upward earnings estimate revisions [5] Competitive Advantage - The company's favorable reserve geology allows for low cash production costs per ton, providing a competitive edge in the market [3] - Ramaco's extensive experience in acquiring, developing, financing, and operating coal assets enhances its operational efficiency and long-term value [3] Industry Context - Ramaco Resources is part of the Zacks Coal industry, where another company, Alliance Resource Partners (ARLP), has seen a 0.4% increase in its stock price, but has returned -2.4% over the past month [5] - Alliance Resource Partners is expected to report an EPS of $0.61, reflecting a year-over-year decline of 22.8% [6]

Group 1 - Ramaco Resources, Inc. is a low-cost metallurgical coal producer with operations in Appalachia [1] - The company plans to expand into rare earth elements (REEs) and critical minerals through its Brook Mine in Wyoming [1] - Ramaco Resources is noted for its cost-efficiency in the metallurgical coal sector [1]

Core Viewpoint - Current global uncertainty is leading to increased risk aversion among investors, prompting some to consider a more cautious investment approach [1] Group 1: Investment Strategy - The article outlines a versatile investment strategy suitable for various investor profiles, including those focused on dividends, value propositions, or growth opportunities [1]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) For the first quarter ended March 31, 2025, Ramaco Resources reported a net loss of **$9.5 million**, a significant downturn from the **$2.0 million** net income in the same period of 2024, primarily driven by a **22% decrease in revenue** to **$134.7 million** due to lower metallurgical coal prices, while total assets slightly increased to **$685.7 million**, total liabilities grew to **$330.5 million**, and net cash provided by operating activities remained relatively stable at **$26.0 million** Condensed Consolidated Statements of Operations (Unaudited) | In thousands, except per-share amounts | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Revenue** | **$134,656** | **$172,676** | | Total costs and expenses | $146,678 | $169,401 | | Operating (loss) income | $(12,022) | $3,275 | | **Net (loss) income** | **$(9,457)** | **$2,032** | | Basic EPS - Class A | $(0.19) | $(0.00) | | Diluted EPS - Class A | $(0.19) | $(0.00) | Condensed Consolidated Balance Sheets (Unaudited) | In thousands | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $43,466 | $33,009 | | Total current assets | $163,967 | $167,634 | | **Total Assets** | **$685,735** | **$674,686** | | Total current liabilities | $124,361 | $122,428 | | **Total Liabilities** | **$330,487** | **$311,880** | | **Total Stockholders' Equity** | **$355,248** | **$362,806** | Condensed Consolidated Statements of Cash Flows (Unaudited) | In thousands | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$26,039** | **$25,188** | | Net cash used for investing activities | $(22,256) | $(18,665) | | Net cash provided by (used) for financing activities | $6,674 | $(17,982) | | Net change in cash and cash equivalents | $10,457 | $(11,459) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's accounting policies, financial instrument details, and contingencies, highlighting a dual-class stock structure, an amended revolving credit facility, ongoing litigation, revenue concentration, and subsequent events related to dividends and critical minerals initiatives - The company operates as a developer of metallurgical coal in West Virginia and Virginia, and is also pursuing rare earth elements and critical minerals initiatives in Wyoming[30](index=30&type=chunk) - The company has a dual-class stock structure, with Class A common stock tied to metallurgical coal operations and Class B common stock linked to Carbon Ore-Rare Earth (CORE) assets[51](index=51&type=chunk)[53](index=53&type=chunk) - In the silo collapse litigation, a court of appeals reinstated a **$7.7 million** contract damages verdict in the company's favor and remanded the case for a new trial on additional damages, leading to a **$7.8 million gain** recognized in 2023 and an accrued loss recovery asset of **$4.2 million** as of March 31, 2025[83](index=83&type=chunk)[84](index=84&type=chunk) - The company is involved in litigation over the purchase of a Preparation Plant, where a plaintiff claims the seller did not have the right to sell the plant, but the company believes it has meritorious defenses[78](index=78&type=chunk)[79](index=79&type=chunk) - Subsequent to the quarter-end, the company declared a Q2 cash dividend for Class B stock, released a revised Technical Report Summary for its Brook Mine rare earth project, and appointed an Executive VP for Critical Minerals[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) Debt Summary | (In thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Revolving Credit Facility | $16,000 | $— | | Senior Notes, net | $88,356 | $88,135 | | **Total debt** | **$104,663** | **$88,551** | Q1 2025 Revenue by Geography | (In thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | North American revenue | $44,026 | $54,173 | | Export revenue, excluding Canada | $90,630 | $118,503 | | **Total revenue** | **$134,656** | **$172,676** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **22% year-over-year revenue decline** to softening global metallurgical coal markets and lower prices, which offset a **2% increase in sales volume**, resulting in Adjusted EBITDA falling to **$9.8 million** from **$24.2 million** in Q1 2024, while the company maintains strong liquidity with **$43.5 million** in cash and **$74.9 million** available on its recently upsized **$200 million** credit facility, and is advancing its rare earth element initiatives in Wyoming - Global metallurgical coal markets softened in 2024 and into 2025, with slower steel market growth, particularly in China, leading to reduced prices for metallurgical coal[114](index=114&type=chunk) - Production increased to **1.0 million tons** in Q1 2025 from **0.8 million tons** in Q1 2024, with full-year 2025 production expected to be between **3.9 and 4.3 million tons**[121](index=121&type=chunk) - The company is advancing its rare earth elements (REE) project at the Brook Mine in Wyoming, with plans to begin construction of a pilot processing facility in mid to late 2025, supported by a **$6.1 million** matching grant[122](index=122&type=chunk) Q1 2025 vs Q1 2024 Performance Summary | (In thousands, except per ton) | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $134,656 | $172,676 | $(38,020) | | Tons sold | 946 | 929 | 17 | | Total revenue per ton sold (GAAP) | $142 | $186 | $(44) | | Cost of sales | $114,132 | $139,713 | $(25,581) | | Total cost of sales per ton sold (GAAP) | $121 | $150 | $(29) | | **Adjusted EBITDA** | **$9,788** | **$24,180** | **$(14,392)** | Reconciliation of Net Income to Adjusted EBITDA | (In thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net (loss) income | $(9,457) | $2,032 | | Depreciation, depletion, and amortization | 17,542 | 15,220 | | Interest expense, net | 2,230 | 1,332 | | Income tax (benefit) expense | (4,290) | 540 | | Stock-based compensation | 3,361 | 4,702 | | Accretion of asset retirement obligation | 402 | 354 | | **Adjusted EBITDA** | **$9,788** | **$24,180** | [Quantitative and Qualitative Disclosures about Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section refers to the disclosures provided in Item 7A, "Quantitative and Qualitative Disclosures about Market Risk," of the company's Annual Report on Form 10-K for the year ended December 31, 2024 - Disclosures about market risk are included in the company's Annual Report and have not materially changed[159](index=159&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were not effective as of March 31, 2025, due to a previously reported material weakness in internal control over financial reporting related to an insufficiency of appropriately qualified and trained professionals, for which the company is actively executing a remediation plan - Management concluded that disclosure controls and procedures were not effective at the reasonable assurance level as of the end of the quarter[160](index=160&type=chunk) - A material weakness was identified related to an insufficiency of appropriately qualified and trained professionals to perform necessary control activities[162](index=162&type=chunk) - The company is executing a remediation plan, including hiring qualified personnel and engaging external firms, to address the material weakness, with these efforts continuing through the first quarter of 2025[163](index=163&type=chunk)[164](index=164&type=chunk) [PART II. OTHER INFORMATION](index=31&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company states that it is involved in routine litigation incidental to its business and expects no pending legal matters to have a material adverse effect on its financial condition, referring to Note 7 of the Condensed Consolidated Financial Statements for detailed descriptions - The company is not involved in any legal proceedings that are expected to have a material adverse effect on its financial condition; for details, refer to Note 7 of the financial statements[169](index=169&type=chunk) [Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) The company states there have been no material changes to its risk factors from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024, advising investors to consider the risk factors detailed in that report and other SEC filings - There have been no material changes in the company's risk factors from those described in the Annual Report[171](index=171&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None[172](index=172&type=chunk) [Defaults Upon Senior Securities](index=31&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[172](index=172&type=chunk) [Mine Safety Disclosures](index=31&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Information regarding mine safety violations and other regulatory matters as required by the Dodd-Frank Act is included in Exhibit 95.1 of this Quarterly Report - Mine safety disclosures are provided in Exhibit 95.1 to the report[172](index=172&type=chunk) [Other Information](index=31&type=section&id=Item%205.%20Other%20Information) The company reported that none of its directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the quarter - No directors or executive officers have adopted or terminated a Rule 10b5-1 trading arrangement during the reporting period[173](index=173&type=chunk) [Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report, including CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, Mine Safety Disclosures, and XBRL data files - The report includes certifications from the CEO and CFO, mine safety disclosures, and XBRL data files as exhibits[177](index=177&type=chunk)

Financial Data and Key Metrics Changes - In Q1 2025, adjusted EBITDA was $10 million, down from $29 million in Q4 2024, with a net loss of $9 million compared to a net income of $4 million in the previous quarter [33] - Class A EPS showed a loss of $0.19 in Q1 versus a gain of $0.06 in Q4 [33] - Key U.S. metallurgical coal indices fell 3% in Q1 compared to Q4, while the Australian benchmark index dropped approximately 9% during the same period [34] Business Line Data and Key Metrics Changes - Company-wide production reached a quarterly record of 1 million tons, annualizing to 4 million tons, despite losing about 150,000 tons due to adverse weather conditions [10][32] - Cash cost per ton sold remained under $100 for the second consecutive quarter, positioning the company in the first quartile of U.S. coal met producers [10][32] Market Data and Key Metrics Changes - The metallurgical coal market remains under pressure, primarily due to weak steel mill profitability and strong Chinese steel exports, which have negatively impacted global steel prices [53][54] - The Australian premium low vol index increased to $190.5 per ton, up from a recent low of $166 in late March, driven by supply disruptions and steady restocking demand [51] Company Strategy and Development Direction - The company is reducing its 2025 production and sales guidance due to weak market conditions, with anticipated production now between 3.9 million to 4.3 million tons [37] - Plans to expand production by an additional 2 million tons are in place, contingent on improved market conditions [13] - The Brook Mine project is positioned to become a significant critical mineral producer, with plans to initiate large-scale mining in June 2025 [24][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about potential market recovery, citing recent increases in Australian benchmark prices and anticipated supply cuts from higher-cost producers [14][30] - The company remains focused on controlling production costs and maintaining operational efficiency despite challenging market conditions [30][40] Other Important Information - The company has appointed Mike Wolichuk as Executive Vice President to oversee the Critical Minerals project, bringing over 30 years of experience in the field [17][18] - A $6.1 million matching fund grant from the Wyoming Energy Authority has been awarded to support pilot plant development [29] Q&A Session Summary Question: What is the guidance for sales mix and cost improvements moving into the second half? - Management indicated that Q2 sales guidance implies a pickup in the back half of the year, with expectations for improved market conditions [62][63] Question: Could the Brook Mine be included in the Fast 41 projects for federal assistance? - Management clarified that the Brook Mine did not qualify for fast tracking as it already has permits, but they are exploring federal assistance options [66][68] Question: Is there a desire to bring in a financing or operating partner for the Brook Mine? - Management stated they are not seeking a joint venture partner and plan to finance the project independently [72][73] Question: What is the breakdown of CapEx for sustaining versus growth projects? - Management confirmed that the CapEx guidance was reduced, with a focus on maintenance CapEx and deferring some growth projects due to current market conditions [79][80] Question: What are the implications of met coal being declared a potential critical mineral? - Management expressed hope for federal support but noted that immediate financial assistance is not expected [86][87]

Financial Data and Key Metrics Changes - In Q1 2025, adjusted EBITDA was $10 million, down from $29 million in Q4 2024, with a net loss of $9 million compared to a net income of $4 million in Q4 2024 [31] - Class A EPS showed a loss of $0.19 in Q1 versus a gain of $0.06 in Q4 [31] - Key U.S. metallurgical coal indices fell 3% in Q1 compared to Q4, while the Australian benchmark index dropped approximately 9% during the same period [32] Business Line Data and Key Metrics Changes - Company-wide production reached a quarterly record of 1 million tons, annualizing to 4 million tons, despite losing about 150,000 tons due to adverse weather conditions [8][41] - Cash cost per ton sold was under $100 for the second consecutive quarter, placing the company in the first quartile of U.S. metallurgical coal producers [8][33] - The company is reducing its 2025 production guidance to between 3.9 million to 4.3 million tons, down from previous expectations of 4.2 million to 4.6 million tons [36] Market Data and Key Metrics Changes - The metallurgical coal market remains under pressure, driven by weak steel mill profitability and strong Chinese steel exports, which have negatively impacted global steel prices [53][54] - The Australian premium low vol index increased to $190.5 per ton, up from a recent low of $166, driven by supply disruptions and steady restocking demand [51] - Domestic end users are taking shipments at a consistent rate, with commitments of 3.7 million tons at an average fixed price of $152 per ton [50] Company Strategy and Development Direction - The company is focused on not forcing production into a weak market, maintaining the option to increase production if market conditions improve [10] - Plans to expand production by an additional 2 million tons are in place, contingent on market clarity, with a potential increase in production capacity from the Maven Low Vol Complex and Berwind Complex [11] - The Brookline Rare Earth project is seen as a significant opportunity, with plans to initiate large-scale mining in June and construction of a pilot plant expected to begin later in the summer [23][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about potential market recovery, citing recent increases in Australian benchmark prices and anticipated supply cuts from higher-cost producers [12] - The company is well-positioned to withstand near-term market weakness due to strong liquidity and a solid balance sheet [39] - Management remains cautious about the current market conditions but is optimistic about the long-term potential of the critical minerals market [30] Other Important Information - The company has appointed Mike Wolichuk as Executive Vice President to oversee the Critical Minerals project, bringing over 30 years of experience in the field [15] - The Brook Mine is projected to produce approximately 1,400 metric tons of critical mineral oxides per year, with over 95% of expected revenue derived from a basket of seven rare earth elements and critical minerals [22] Q&A Session Summary Question: What is the guidance for sales mix and cost improvements moving into the second half? - Management indicated that Q2 sales guidance implies a pickup in the back half of the year, with costs expected to be at the higher end of the range due to lower tonnage [64][65] Question: Could the Brook Mine be included in the Fast 41 projects for federal benefits? - Management clarified that the Brook Mine was not included as it already has permits, but they are exploring federal assistance for financing and procurement [68][71] Question: Is there a desire to bring in a financing or operating partner for the Brook Mine? - Management stated they are not seeking a joint venture partner and plan to finance the project independently, leveraging existing partnerships for development [76][77] Question: What is the breakdown of CapEx for sustaining versus growth projects? - Management noted a reduction in CapEx guidance, with a focus on maintenance CapEx and deferring some growth projects due to current market conditions [82][83] Question: What are the implications of met coal being declared a potential critical mineral? - Management expressed hope for federal support but noted that immediate benefits are uncertain; they anticipate potential assistance with permitting [88][90]

Ramaco Resources (METC) came out with a quarterly loss of $0.19 per share versus the Zacks Consensus Estimate of a loss of $0.29. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 34.48%. A quarter ago, it was expected that this company would post a loss of $0.11 per share when it actually produced earnings of $0.06, delivering a surprise of 154.55%.Over the last four quarters, the company ha ...

Financial Performance & Growth - Ramaco's revenue reached $666 million in 2024[11] - Adjusted EBITDA was $106 million in 2024[11] - Net income was $11 million in 2024[11] - Sales volume was 4 million tons in 2024[11] - Net debt to adjusted EBITDA ratio was less than 0.7x[11] - Cash costs per ton decreased by 17% from $118 in 1Q24 to $98 in 1Q25[14, 26] - The company anticipates growing production at least 10% in 2025 compared to 2024[46] 2025 Guidance - The company projects production between 3900 thousand tons and 4300 thousand tons in 2025[34] - Sales are guided between 4100 thousand tons and 4500 thousand tons[34] - Capital expenditures are estimated between $55 million and $65 million[34] Rare Earth Elements (REE) & Critical Minerals Potential - The Brook Mine has a significant percentage of magnetic REEs and is rich in gallium, germanium, and scandium[59] - Over 40% of the total estimated REO basket consists of primary magnetic REOs, gallium, germanium, and scandium[60]

[First Quarter 2025 Highlights](index=1&type=section&id=FIRST%20QUARTER%202025%20HIGHLIGHTS) Ramaco reported a net loss of $9.5 million and Adjusted EBITDA of $9.8 million in Q1 2025, achieving record production and top-tier cash margins despite challenging market conditions Q1 2025 Key Financial Results | Metric | Value | Change vs Q1 2024 | | :--- | :--- | :--- | | Net Income (million USD) | $(9.5) | Down from $2.0 million | | Adjusted EBITDA (million USD) | $9.8 | Down 60% | | Diluted EPS (Class A) (USD) | $(0.19) | Down from $(0.00) | | Non-GAAP Cash Cost per Ton (USD/ton) | $98 | Down 17% | | Non-GAAP Cash Margin per Ton (USD/ton) | $24 | Down 35% | | Non-GAAP Realized Sales Price (USD/ton) | $122 | Down 21% | - Achieved a quarterly production record, with output annualizing to **4.0 million tons**, despite weather-related disruptions causing a loss of approximately **0.1 million tons**[6](index=6&type=chunk) - Total sales commitments for 2025 stand at **3.7 million tons**, representing over **90%** of the midpoint of production guidance. Of this, **2.2 million tons** are committed at a combined average fixed price of **$141 per ton**[6](index=6&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.1811 per share** on Class B common stock[6](index=6&type=chunk)[10](index=10&type=chunk) - Significant progress was made on the Brook Mine rare earth element (REE) project, with plans to start large-scale carbon ore mining in June 2025 and a pilot processing facility by Fall 2025. An updated technical report estimates the TREO deposit at approximately **1.7 million tons**[8](index=8&type=chunk)[10](index=10&type=chunk) [Management Commentary](index=5&type=section&id=MANAGEMENT%20COMMENTARY) Management highlighted Ramaco's operational outperformance in a challenging market, strategic production adjustments, and significant progress on the rare earth elements project [Metallurgical Coal Business Review](index=5&type=section&id=Metallurgical%20Coal%20Business%20Review) Ramaco achieved top-tier cash margins and realized prices in Q1 despite a weak metallurgical coal market, strategically lowering 2025 production guidance while maintaining expansion flexibility - Achieved the **highest cash margins per ton** and the **highest realized sales price** among its publicly traded peer group in Q1 2025[14](index=14&type=chunk) - Strategically reducing 2025 production and sales guidance to avoid selling into the current "oversold and underpriced spot market"[17](index=17&type=chunk) - Maintains the option to increase production to an exit run-rate above **5 million tons per annum** and has plans for a **2 million ton expansion** at the Maben and Berwind complexes, which would take overall production to **6.5-7.0 million tons** over 24-36 months once initiated[18](index=18&type=chunk)[19](index=19&type=chunk) [Rare Earths and Critical Minerals (REE/CM) Business Update](index=5&type=section&id=Rare%20Earths%20and%20Critical%20Minerals%20%28REE%2FCM%29%20Business%20Update) Ramaco is advancing its Brook Mine REE/CM project, with large-scale ore mining starting June 2025, an updated 1.7 million ton TREO estimate, and a target for commercial oxide production by 2028 - The Brook Mine will be the first new rare earth mine in the U.S. in over 70 years, with large-scale production of ore beginning in June 2025[23](index=23&type=chunk) - Hired Michael Woloschuk from Fluor Corporation as Executive Vice President for Critical Minerals to oversee the Brook Mine's development[24](index=24&type=chunk) - An updated technical report from Weir estimates the deposit at **1.7 million tons of TREO**, with average concentrations of **450-570 ppm** and hydrometallurgical tests showing primary recoveries over **80%**[25](index=25&type=chunk)[28](index=28&type=chunk) - The commercial development timeline targets pilot operations producing concentrate in 2026 and full-scale oxide production by 2028 or earlier[29](index=29&type=chunk) [Corporate and Board Updates](index=6&type=section&id=Corporate%20and%20Board%20Updates) Former U.S. Senator Joe Manchin has been appointed as an independent director to Ramaco's Board, bringing valuable experience for coal operations and rare earths initiatives - Former U.S. Senator Joe Manchin has been appointed to the Board of Directors as the newest independent director[31](index=31&type=chunk) [Financial and Operational Performance](index=7&type=section&id=Financial%20and%20Operational%20Performance) Ramaco achieved record Q1 2025 production of 989,000 tons with improved cash costs, but revenue and margins declined due to lower realized pricing, ending the quarter with $118.4 million in liquidity [Key Financial Metrics Summary](index=7&type=section&id=Key%20Financial%20Metrics%20Summary) Q1 2025 profitability declined significantly, with a net loss of $9.5 million and Adjusted EBITDA of $9.8 million, primarily due to a 21% year-over-year decrease in revenue per ton Q1 2025 Key Metrics vs. Prior Periods | Key Metrics | 1Q25 | 4Q24 | Chg. | 1Q24 | Chg. | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Tons Sold (k tons) | 946 | 1,122 | (16)% | 929 | 2% | | Revenue (million USD) | $134.7 | $170.9 | (21)% | $172.7 | (22)% | | Non-GAAP Cash Margins (USD/Ton) | $24 | $33 | (27)% | $37 | (35)% | | Net Income (Loss) (million USD) | $(9.5) | $3.9 | (344)% | $2.0 | (575)% | | Diluted EPS - Class A | $(0.19) | $0.06 | (400)% | $(0.00) | (3,778)% | | Adjusted EBITDA (million USD) | $9.8 | $29.2 | (66)% | $24.2 | (60)% | | Capex (million USD) | $20.3 | $11.9 | 70% | $18.7 | 8% | [Quarterly Performance Analysis](index=7&type=section&id=Quarterly%20Performance%20Analysis) Q1 production increased 17% year-over-year to a record 989,000 tons with cash costs improving 17% to $98/ton, though realized pricing fell 21% to $122/ton - **Year-over-Year:** Overall production increased **17%** to a record **989,000 tons**, while cash costs decreased **17%** to **$98 per ton**. Realized pricing fell **21%** to **$122 per ton**[38](index=38&type=chunk)[39](index=39&type=chunk) - **Sequential Quarter:** Production rose **4%** from Q4 2024. Realized pricing fell **5%** from **$129 to $122 per ton**, reflecting weaker market indices. Cash costs were stable at **$98 per ton** compared to **$96** in Q4 2024[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) [Balance Sheet and Liquidity](index=8&type=section&id=Balance%20Sheet%20and%20Liquidity) Ramaco's liquidity reached $118.4 million as of March 31, 2025, comprising $43.5 million in cash and $74.9 million in credit facility availability, with quarterly capital expenditures at $20.3 million - Total liquidity was **$118.4 million** as of March 31, 2025, consisting of **$43.5 million** in cash and **$74.9 million** in credit facility availability[44](index=44&type=chunk) - Quarterly capital expenditures were **$20.3 million**, up from **$18.7 million** in Q1 2024[45](index=45&type=chunk) [2025 Outlook and Guidance](index=9&type=section&id=2025%20Outlook%20and%20Guidance) Ramaco updated its 2025 guidance, lowering production and sales volumes, tightening cost forecasts, and reducing capital expenditures, with 3.7 million tons already committed [Updated Financial Guidance](index=9&type=section&id=Updated%20Financial%20Guidance) Ramaco revised its 2025 guidance, lowering production and sales volumes, reducing cost per ton and capital expenditures, but increasing SG&A due to higher legal expenses Full-Year 2025 Guidance | Metric | 2025 Guidance | Prior Guidance / Note | | :--- | :--- | :--- | | Production (k tons) | 3,900 - 4,300 | Down from 4,200 - 4,600k | | Sales (k tons) | 4,100 - 4,500 | Down from 4,400 - 4,800k | | Cash Costs Per Ton Sold (USD/ton) | $96 - $102 | Down from $97 - $103 | | Capital Expenditures (million USD) | $55 - $65 | Down from $60M - $70M | | SG&A Expense (million USD) | $36 - $40 | Up from $34M - $38M | | DD&A Expense (million USD) | $71 - $76 | Down from $73M - $78M | [Committed Sales Volume](index=10&type=section&id=Committed%20Sales%20Volume) As of March 31, 2025, Ramaco secured sales commitments for 3.7 million tons, including 2.2 million tons at a fixed average price of $141 per ton Committed 2025 Sales Volume (as of March 31, 2025) | Category | Volume (million tons) | Average Price (USD/ton) | | :--- | :--- | :--- | | North America, fixed priced | 1.6 | $152 | | Seaborne, fixed priced | 0.6 | $111 | | **Total, fixed priced** | **2.2** | **$141** | | Index priced | 1.5 | N/A | | **Total committed tons** | **3.7** | N/A | [Consolidated Financial Statements (Unaudited)](index=12&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) The unaudited financial statements for Q1 2025 show a net loss of $9.5 million, total assets of $685.7 million, and $26.0 million in net cash from operating activities [Consolidated Statements of Operations](index=12&type=section&id=Consolidated%20Statements%20of%20Operations) Ramaco reported a net loss of $9.5 million in Q1 2025, a reversal from prior year's income, driven by a 22% decrease in revenue to $134.7 million Q1 2025 vs Q1 2024 Statement of Operations (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue (USD thousands) | $134,656 | $172,676 | | Total costs and expenses (USD thousands) | $146,678 | $169,401 | | Operating (loss) income (USD thousands) | $(12,022) | $3,275 | | Net (loss) income (USD thousands) | $(9,457) | $2,032 | [Consolidated Balance Sheets](index=13&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to $685.7 million, total liabilities rose to $330.5 million due to credit facility draw, and total stockholders' equity decreased to $355.2 million Balance Sheet Summary (in thousands) | Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets (USD thousands) | $163,967 | $167,634 | | **Total Assets (USD thousands)** | **$685,735** | **$674,686** | | Total Current Liabilities (USD thousands) | $124,361 | $122,428 | | **Total Liabilities (USD thousands)** | **$330,487** | **$311,880** | | **Total Stockholders' Equity (USD thousands)** | **$355,248** | **$362,806** | [Consolidated Statement of Cash Flows](index=14&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) Q1 2025 saw net cash from operating activities at $26.0 million, net cash used for investing at $22.3 million, and a net increase in cash of $10.5 million for the quarter Q1 2025 vs Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from operating activities (USD thousands) | $26,039 | $25,188 | | Net cash used for investing activities (USD thousands) | $(22,256) | $(18,665) | | Net cash provided by (used for) financing activities (USD thousands) | $6,674 | $(17,982) | | **Net change in cash (USD thousands)** | **$10,457** | **$(11,459)** | [Reconciliation of Non-GAAP Measures](index=15&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section reconciles non-GAAP financial measures, including Adjusted EBITDA, non-GAAP revenue per ton, and cash cost per ton, to their GAAP equivalents by adjusting for specific non-operating and non-cash items [Adjusted EBITDA Reconciliation](index=15&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA for Q1 2025 was $9.8 million, a significant decrease from prior periods, reconciled from a net loss of $9.5 million by adding back non-cash and non-operating items Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net (loss) income (USD thousands) | $(9,457) | $3,858 | $2,032 | | Depreciation, depletion, and amortization (USD thousands) | 17,542 | 16,706 | 15,220 | | Interest expense, net (USD thousands) | 2,230 | 1,614 | 1,332 | | Income tax (benefit) expense (USD thousands) | (4,290) | 2,212 | 540 | | Stock-based compensation (USD thousands) | 3,361 | 4,211 | 4,702 | | **Adjusted EBITDA (USD thousands)** | **$9,788** | **$29,196** | **$24,180** | [Non-GAAP Revenue and Cash Cost Per Ton Reconciliation](index=15&type=section&id=Non-GAAP%20Revenue%20and%20Cash%20Cost%20Per%20Ton%20Reconciliation) Non-GAAP revenue (FOB mine) for Q1 2025 was $115.6 million ($122 per ton) and non-GAAP cash cost was $92.8 million ($98 per ton), derived by adjusting GAAP figures for transportation and other specific costs Q1 2025 Non-GAAP Revenue & Cost per Ton (in thousands) | Metric | GAAP Value (USD thousands) | Adjustments (USD thousands) | Non-GAAP Value (USD thousands) | Per Ton (USD) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $134,656 | $(19,042) | $115,614 | $122 | | Cost of Sales | $114,132 | $(21,369) | $92,763 | $98 |