Core Thesis - Ramaco Resources, Inc. is facing skepticism regarding its rare-earth ambitions, particularly in scandium oxide, which is projected to generate over US$500 million in EBITDA by 2028, despite the current coal business providing steady cash flow [2][4] Financial Projections - The company's model anticipates scandium oxide sales at US$3,750/kg with annual production of 179 tons, leading to projected revenues of US$611 million, which are deemed unrealistic given the global market conditions [3] - Current market prices for scandium are around US$600–700/kg, with total annual production under 40 tons, suggesting that Ramaco's revenue projections are significantly inflated [3] Operational Status - The rare-earth project is still in the pilot stage, lacking current output or revenue diversification beyond coal, and there are no binding customer contracts or significant government funding to support the ambitious projections [2][3] - The full-scale facility for the mine is years away, and any deviations in price or yield could drastically reduce projected returns [4] Valuation Insights - Ramaco's coal operations generated Q3 2025 revenue of US$121 million and adjusted EBITDA of US$8.4 million, with a standalone coal valuation estimated at US$12–15 per share, plus an additional US$8–10 for the rare-earth venture [4] - The fair value of the stock is suggested to be between US$20–25 per share, contrasting with current market prices that may overstate speculative upside [4] Market Performance - The stock price of Ramaco Resources has appreciated approximately 4% since previous bullish coverage, indicating some realization of the growth trajectory and rare-earth optionality, but valuation risks remain due to unrealistic assumptions about scandium [5]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest now [1][13] - The energy demands of AI technologies are highlighted, with data centers consuming as much energy as small cities, leading to concerns about power grid strain and rising electricity prices [2][3] Investment Opportunity - A specific company is presented as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for supporting the anticipated surge in energy demand from AI data centers [3][7] - This company is characterized as a "toll booth" operator in the AI energy boom, benefiting from the increasing need for energy as AI technologies expand [4][5] Market Position - The company is noted for its unique position in the market, being debt-free and holding a significant cash reserve, which is approximately one-third of its market capitalization [8][10] - It also has a substantial equity stake in another AI-related company, providing investors with indirect exposure to multiple growth opportunities in the AI sector [9][10] Strategic Advantages - The company is involved in large-scale engineering, procurement, and construction (EPC) projects across various energy sectors, including nuclear energy, which is crucial for America's future power strategy [7][8] - The current political climate, particularly the push for onshoring and increased U.S. LNG exports, positions this company favorably to capitalize on these trends [6][14] Future Outlook - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, making investments in AI a strategic move for future growth [12] - The potential for significant returns is emphasized, with projections suggesting over 100% upside within the next 12 to 24 months [15]

Group 1 - Ramapa Ramco Resources is collaborating with the government to establish a strategic critical minerals terminal in Wyoming aimed at facilitating the discovery and marketplace for rare earths in the United States [1][2] - The company plans to create a physical warehouse and storage terminal for rare earths, which currently does not exist in the U.S., to store and sell these materials to third parties [2][3] - The initiative is likened to a "Fort Knox for rare earths," with the company working alongside Goldman Sachs to develop this facility [3] Group 2 - The company has raised approximately $600 million for building the commercial facility, which is expected to take about a year or more to complete [4][5] - The timeline for the U.S. to challenge China's dominance in rare earth production and sales is projected to be several years [5][6] - The recent meeting between the presidents of the U.S. and China has led to some restrictions on rare earth sales from China, particularly for military purposes, but the long-term implications remain uncertain [7]

Core Insights - Ramaco Resources, Inc. is set to feature its Chairman and CEO, Randall W. Atkins, in an interview on Fox Business, highlighting the company's strategic position in the U.S. critical mineral industry amid China's restrictions on rare earths [1][2] Company Overview - Ramaco Resources 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 [3] - The company has four active metallurgical coal mining complexes in Central Appalachia and is in the initial stages of production for a rare earth and coal mine near Sheridan, Wyoming [3] - In 2023, Ramaco discovered a major deposit of primary magnetic rare earths and critical minerals at its Wyoming mine, which is significant for the U.S. mining landscape [3] Project Highlights - The Brook Mine project in Sheridan, Wyoming, is notable as the first new rare earth mine developed in the U.S. in over 70 years and the first new coal mine in Wyoming in more than 50 years [2] - The interview will provide updates on the Brook Mine project, emphasizing its importance in the context of U.S. mineral independence [2]

Core Viewpoint - MP Materials provided testimony before Congress regarding the challenges posed by China to the domestic rare-earth industry [1] Group 1: Company Insights - MP Materials emphasized the importance of strengthening the U.S. rare-earth supply chain to reduce dependency on China [1] - The company highlighted its role in producing rare-earth materials and its efforts to expand domestic production capabilities [1] Group 2: Industry Context - The rare-earth industry is critical for various sectors, including technology and defense, and faces significant competition from China [1] - Congressional discussions are focused on policies to support the growth of the domestic rare-earth industry and mitigate risks associated with reliance on foreign sources [1]

Core Viewpoint - Lowey Dannenberg P.C. is investigating Ramaco Resources Inc. for potential violations of federal securities laws following allegations of data manipulation related to its Brook Mine project [1][2]. Group 1: Allegations and Investigations - Wolfpack Research released a report on October 23, 2025, claiming that Ramaco's Brook Mine was a "hoax" and that the company manipulated data to misrepresent the profitability of its rare earths project [2]. - Investors who suffered losses exceeding $50,000 in Ramaco securities are encouraged to participate in the investigation [2]. Group 2: About Lowey Dannenberg - Lowey Dannenberg is a national law firm that represents institutional and individual investors who have experienced financial losses due to corporate fraud and violations of federal securities and antitrust laws [3]. - The firm has a strong track record in prosecuting multi-million-dollar lawsuits and has recovered billions for investors in the past [3].

Core Insights - Ramaco Resources, an aspiring rare-earths miner, is raising capital through convertible debt, which has negatively impacted its stock price early Wednesday [1] Company Summary - Ramaco Resources is actively seeking to raise capital via convertible debt instruments [1] - The announcement of this capital-raising effort has exerted downward pressure on the company's stock [1] Industry Context - The rare-earths mining sector is experiencing fluctuations in stock performance due to capital-raising activities by companies like Ramaco Resources [1]

Core Viewpoint - Ramaco Resources, Inc. has announced the pricing of a public offering of $300 million in 0% convertible senior notes due 2031, with net proceeds expected to be approximately $290.9 million, plus an additional $45 million for over-allotments [1][8]. Group 1: Offering Details - The offering consists of $300 million aggregate principal amount of convertible senior notes, with total net proceeds of approximately $290.9 million [1]. - The underwriters have the option to purchase up to an additional $45 million in notes to cover over-allotments [1]. - No new shares of Class A common stock will be issued in this offering, and Ramaco will not receive any proceeds from the concurrent delta offering [1]. Group 2: Concurrent Delta Offering - Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC will offer shares of Class A common stock borrowed from third parties to facilitate hedging transactions for purchasers of the notes [2]. - The initial offering price for the Class A common stock is set at $24.25 per share, with subsequent sales occurring at prevailing market prices [2]. - The concurrent delta offering is scheduled to settle on November 7, 2025, and is contingent upon the completion of the notes offering [2]. Group 3: Company Overview - Ramaco Resources, Inc. operates and develops metallurgical coal in southern West Virginia and southwestern Virginia, and is also involved in producing coal, rare earth elements, and critical minerals in Wyoming [4]. - The company has four active metallurgical coal mining complexes in Central Appalachia and is developing a rare earth and coal mine near Sheridan, Wyoming [4].

Core Viewpoint - Ramaco Resources, Inc. has announced a public offering of $300 million in 0% convertible senior notes due 2031, with net proceeds expected to be approximately $290.9 million, aimed at funding various strategic initiatives including a rare earth elements project [1][2]. Offering Details - The notes will settle on November 7, 2025, and underwriters have an option to purchase an additional $45 million to cover over-allotments [1][2]. - Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC are the book-running managers for the offering, with several firms acting as co-managers [3]. Financial Structure - The notes will be senior, unsecured obligations that do not bear regular interest, and the principal will not accrete [4]. - Noteholders can convert their notes under specific conditions, with an initial conversion rate of 30.5460 shares per $1,000 principal amount, equating to a conversion price of approximately $32.74 per share, representing a 35% premium over the public offering price of $24.25 [5]. Redemption and Repurchase Rights - The notes are redeemable at Ramaco's option starting November 6, 2028, if the stock price exceeds 130% of the conversion price for a specified period [6]. - In the event of a "fundamental change," noteholders may require Ramaco to repurchase their notes for cash at the principal amount plus any accrued interest [7]. Capped Call Transactions - Ramaco has entered into capped call transactions to cover the shares underlying the notes, with an initial cap price of approximately $54.56 per share, a 125% premium over the public offering price [8][10]. - These transactions are designed to reduce potential dilution of Ramaco's Class A common stock upon conversion of the notes [11]. Concurrent Offering - Ramaco is also conducting a concurrent delta offering of 2,245,126 shares of Class A common stock at a price of $24.25 per share, with no new shares being issued and no proceeds going to Ramaco [14]. - The completion of the notes offering is contingent upon the successful completion of the concurrent delta offering [14]. Company Overview - Ramaco Resources, Inc. operates in metallurgical coal and is developing projects in rare earth elements and critical minerals, with operational offices in West Virginia and Wyoming [18].

Core Points - Ramaco Resources, Inc. plans to offer $300 million in convertible senior notes due 2031, with an option for underwriters to purchase an additional $45 million for over-allotments [1][2] - Concurrently, Goldman Sachs and Morgan Stanley will facilitate a separate offering of Ramaco's Class A common stock to hedge transactions related to the notes offering [2][3] - The completion of both offerings is interdependent, meaning the notes offering is contingent on the successful completion of the concurrent stock offering [2][3] Company Overview - Ramaco Resources, Inc. operates and develops metallurgical coal in southern West Virginia and southwestern Virginia, and is also involved in producing coal, rare earth elements, and critical minerals in Wyoming [4] - The company has four active metallurgical coal mining complexes in Central Appalachia and is in the initial stages of production for a rare earth and coal mine near Sheridan, Wyoming [4]