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Ramaco Resources(METC) - 2022 Q4 - Earnings Call Transcript
2023-03-09 16:48
Ramaco Resources, Inc. (NASDAQ:METC) Q4 2022 Earnings Conference Call March 9, 2023 9:00 AM ET Company Participants Jeremy Sussman - Chief Financial Officer Randy Atkins - Chairman and Chief Executive Officer Chris Blanchard - Chief Operating Officer Jason Fannin - Chief Commercial Officer Conference Call Participants Lucas Pipes - B. Riley Securities David Gagliano - BMO Nathan Martin - The Benchmark Company Operator Good morning, everyone and welcome to the Ramaco Resources Incorporated Fourth Quarter 202 ...
Ramaco Resources(METC) - 2022 Q4 - Earnings Call Presentation
2023-03-09 12:19
RAMACO 4th Quarter 2022 Investor Presentation Ramaco Resources March 2023 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, finan ...
Ramaco Resources(METC) - 2022 Q3 - Quarterly Report
2022-11-09 21:12
[PART I. FINANCIAL INFORMATION](index=7&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) Unaudited financial statements reflect significant growth in assets, revenue, and net income, driven by acquisitions and higher metallurgical coal prices [Unaudited Condensed Consolidated Balance Sheets](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets grew 70.8% to $562.1 million, driven by increased property and equipment, while liabilities rose due to acquisition-related debt Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $141,956 | $86,761 | | **Property, plant and equipment, net** | $403,130 | $227,077 | | **Total Assets** | **$562,132** | **$329,033** | | **Total Current Liabilities** | $150,438 | $46,660 | | **Total Liabilities** | **$263,463** | **$117,959** | | **Total Stockholders' Equity** | **$298,669** | **$211,074** | [Unaudited Condensed Consolidated Statements of Operations](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Revenue and net income surged for the nine-month period, reflecting significantly stronger coal pricing and operational performance Statement of Operations Summary (in thousands, except per-share amounts) | Metric | Q3 2022 | Q3 2021 | Nine Months 2022 | Nine Months 2021 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $136,925 | $76,377 | $430,461 | $195,889 | | **Operating Income** | $36,689 | $8,767 | $132,266 | $17,032 | | **Net Income** | $26,905 | $7,035 | $101,656 | $21,120 | | **Diluted EPS** | $0.60 | $0.16 | $2.27 | $0.48 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased significantly, funding capital expenditures and acquisitions, while financing activities reflected debt and dividend payments Cash Flow Summary for Nine Months Ended September 30 (in thousands) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | **Net cash from operating activities** | $158,799 | $37,757 | | **Net cash from investing activities** | ($111,837) | ($17,642) | | **Net cash from financing activities** | ($21,866) | $20,847 | | **Net change in cash** | $25,096 | $40,962 | [Notes to Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Condensed%20Consolidated%20Financial%20Statements) Key disclosures include the market impact of the Russia/Ukraine conflict, two major acquisitions, a mine ignition incident, and significant customer concentration - The European Union ban on Russian coal has put **upward pressure on international thermal coal prices**, potentially diverting coking coal to thermal markets[34](index=34&type=chunk) - On July 10, 2022, a **material methane ignition occurred at the Berwind mining complex**; the financial impact and restart plan have not yet been determined[47](index=47&type=chunk) - The company completed two major acquisitions in 2022: **Ramaco Coal for approximately $65 million** and **Maben Coal for approximately $30 million**[93](index=93&type=chunk)[98](index=98&type=chunk) - For the nine months ended September 30, 2022, sales to the **top two customers accounted for 40% of total revenue** (23% and 17% respectively)[43](index=43&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Higher coal sales pricing drove significant increases in net income and Adjusted EBITDA, despite rising costs, while liquidity remains strong [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Revenue per ton increased over 90% in Q3 and 121% year-to-date, offsetting higher costs per ton and driving profitability Q3 2022 vs Q3 2021 Performance | Metric | Q3 2022 | Q3 2021 | Change | | :--- | :--- | :--- | :--- | | Revenue | $136.9M | $76.4M | +79% | | Tons Sold (thousands) | 608 | 644 | -6% | | Revenue per ton (FOB mine) | $202 | $105 | +92% | | Cash cost per ton (FOB mine) | $99 | $72 | +37.5% | Nine Months 2022 vs 2021 Performance | Metric | Nine Months 2022 | Nine Months 2021 | Change | | :--- | :--- | :--- | :--- | | Revenue | $430.5M | $195.9M | +120% | | Tons Sold (thousands) | 1,775 | 1,751 | +1.4% | | Revenue per ton (FOB mine) | $217 | $98 | +121% | | Cash cost per ton (FOB mine) | $106 | $68 | +55.9% | [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity with $46.6 million in cash, primarily using funds for capital expenditures, acquisitions, and dividends - At September 30, 2022, the company had **$46.6 million of cash and cash equivalents** and **$22.6 million available under its credit agreements**[140](index=140&type=chunk) - Significant uses of cash in the first nine months of 2022 included **$91.4 million in capital expenditures**, **$22.4 million for acquisitions**, and **$15.0 million in dividend payments**[143](index=143&type=chunk) [Non-GAAP Financial Measures](index=42&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA, a key non-GAAP metric, increased substantially to $50.7 million in Q3 and $172.6 million for the nine-month period Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Metric | Q3 2022 | Q3 2021 | Nine Months 2022 | Nine Months 2021 | | :--- | :--- | :--- | :--- | :--- | | **Net income** | $26,905 | $7,035 | $101,656 | $21,120 | | Depreciation and amortization | $11,435 | $6,751 | $29,898 | $18,861 | | Interest expense, net | $2,255 | $933 | $5,323 | $1,418 | | Income tax expense | $6,596 | $1,588 | $27,068 | $1,650 | | Other adjustments | $3,514 | $1,498 | $8,677 | $4,380 | | **Adjusted EBITDA** | **$50,705** | **$17,805** | **$172,622** | **$47,429** | [Quantitative and Qualitative Disclosures about Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes to the company's market risk profile were reported during the period - Disclosures about market risk are included in Item 7A of the company's Annual Report, with **no new information presented in this quarterly report**[158](index=158&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no significant changes to internal controls during the quarter - The principal executive officer and principal financial officer concluded that the company's **disclosure controls and procedures were effective** as of the end of the period covered by this report[159](index=159&type=chunk) - **No significant changes were made to the internal control over financial reporting** during the quarter ended September 30, 2022[160](index=160&type=chunk) [PART II. OTHER INFORMATION](index=45&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company is appealing a reduced court award of $1.8 million related to a silo failure lawsuit - In a lawsuit over a silo failure, a jury awarded the company $7.7 million in compensatory damages and $25.0 million for inconvenience, which a court later **reduced to a total award of $1.8 million**; the company has appealed this reduction[81](index=81&type=chunk)[82](index=82&type=chunk) [Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the last annual and quarterly filings - The company states there have been **no material changes in its risk factors** from those previously disclosed in its Annual Report and prior Form 10-Q[166](index=166&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable for the reporting period - Not applicable[167](index=167&type=chunk) [Mine Safety Disclosures](index=47&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Required mine safety information is provided in Exhibit 95.1 of the report - Mine safety disclosures required by Section 1503(a) of the Dodd-Frank Act are **provided in Exhibit 95.1**[169](index=169&type=chunk) [Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists all filed exhibits, including credit agreements, officer certifications, and mine safety disclosures - Key exhibits filed include the Second Amendment to the Credit and Security Agreement, **CEO/CFO certifications**, and **Mine Safety Disclosures (Exhibit 95.1)**[174](index=174&type=chunk)
Ramaco Resources(METC) - 2022 Q3 - Earnings Call Presentation
2022-11-08 17:08
E RAMACO 3rd Quarter 2022 Investor Presentation Ramaco Resources November 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, ...
Ramaco Resources(METC) - 2022 Q3 - Earnings Call Transcript
2022-11-08 17:07
Ramaco Resources, Inc. (NASDAQ:METC) Q3 2022 Earnings Conference Call November 8, 2022 9:00 AM ET Corporate Participants Jeremy Sussman - Chief Financial Officer Randy Atkins - Chairman and Chief Executive Officer Chris Blanchard - Chief Operating Officer Jason Fannin - Chief Commercial Officer Conference Call Participants Curt Woodworth - Credit Suisse Lucas Pipes - B. Riley Securities Nathan Martin - The Benchmark Company Operator Good day, and welcome to the Ramaco Resources Incorporated Third Quarter 20 ...
Ramaco Resources(METC) - 2022 Q2 - Quarterly Report
2022-08-09 20:09
(Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the transition period from to Commission File Number: 001-38003 RAMACO RESOURCES, INC. (Exact name of registrant as specified in its charter) Delaware 38-4018838 (State ...
Ramaco Resources(METC) - 2022 Q2 - Earnings Call Presentation
2022-08-09 16:51
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]
Ramaco Resources(METC) - 2022 Q2 - Earnings Call Transcript
2022-08-09 16:48
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 Resources(METC) - 2022 Q1 - Earnings Call Presentation
2022-05-16 00:09
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 ...
Ramaco Resources(METC) - 2022 Q1 - Quarterly Report
2022-05-13 20:11
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 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. (Exact name of registrant as specified in its charter) Delaware 38-4018838 (Stat ...