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 September 30, 2021 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 ( ...

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 June 30, 2021 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 (State ...

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 | Delaware | 38-4018838 | | --- | --- | | (State or other jurisdiction | (I.R.S. Employer | | of incorporation or organization) | Identification No.) | 250 West Main Street, Suite 1800 Lexington, Kentucky 40507 (Address of principal executive offices) (Zip code) (859) 244-7455 (Registrant's telephone number, i ...

Table of Contents TABLE OF CONTENTS Page PART I | ITEM 1. | Business | 4 | | --- | --- | --- | | ITEM 1A. | Risk Factors | 21 | | ITEM 1B. | Unresolved Staff Comments | 50 | | ITEM 2. | Properties | 50 | | ITEM 3. | Legal Proceedings | 52 | | ITEM 4. | Mine Safety Disclosures | 53 | | | PART II | | | ITEM 5. | Market for Registrant's Common Equity and Related Shareholder Matters | 54 | | ITEM 6. | Selected Financial Data | 54 | | | Management's Discussion and Analysis of Financial Condition and Results of | ...

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 September 30, 2020 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 | 38-40188 ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, stockholders' equity, and cash flows, along with detailed notes explaining the company's business, significant accounting policies, debt, equity, commitments, revenue, income taxes, earnings per share, and related party transactions [Unaudited Condensed Consolidated Balance Sheets](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet (in thousands) | Metric | June 30, 2020 | December 31, 2019 | | :-------------------------------- | :------------ | :---------------- | | **Assets** | | | | Total current assets | $54,175 | $44,323 | | Property, plant and equipment – net | $183,145 | $178,202 | | Total Assets | $242,101 | $226,813 | | **Liabilities** | | | | Total current liabilities | $27,837 | $26,411 | | Total liabilities | $65,568 | $56,730 | | **Stockholders' Equity** | | | | Total stockholders' equity | $176,533 | $170,083 | | Total Liabilities and Stockholders' Equity | $242,101 | $226,813 | [Unaudited Condensed Consolidated Statements of Operations](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (in thousands, except per share) | Metric | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Six months ended June 30, 2020 | Six months ended June 30, 2019 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $36,374 | $65,761 | $78,310 | $123,221 | | Total costs and expenses | $40,673 | $52,872 | $81,468 | $102,083 | | Operating income (loss) | $(4,299) | $12,889 | $(3,158) | $21,138 | | Other income | $8,504 | $194 | $9,714 | $492 | | Net income | $2,652 | $10,613 | $4,614 | $17,496 | | Basic EPS | $0.06 | $0.26 | $0.11 | $0.43 | | Diluted EPS | $0.06 | $0.26 | $0.11 | $0.43 | [Unaudited Condensed Consolidated Statements of Stockholders' Equity](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Condensed Consolidated Statements of Stockholders' Equity (in thousands) | Metric | Common Stock | Additional Paid-in Capital | Retained Earnings (Deficit) | Total Stockholders' Equity | | :--------------------------- | :----------- | :------------------------- | :-------------------------- | :------------------------- | | Balance at January 1, 2020 | $410 | $154,957 | $14,716 | $170,083 | | Stock-based compensation | $17 | $906 | — | $923 | | Net income | — | — | $1,962 | $1,962 | | Balance at March 31, 2020 | $427 | $155,863 | $16,678 | $172,968 | | Restricted stock surrendered | $(1) | $(192) | — | $(193) | | Stock-based compensation | — | $1,106 | — | $1,106 | | Net income | — | — | $2,652 | $2,652 | | Balance at June 30, 2020 | $426 | $156,777 | $19,330 | $176,533 | | Balance at January 1, 2019 | $401 | $150,926 | $(10,218) | $141,109 | | Stock-based compensation | $7 | $887 | — | $894 | | Net income | — | — | $6,883 | $6,883 | | Balance at March 31, 2019 | $408 | $151,813 | $(3,335) | $148,886 | | Stock-based compensation | $1 | $1,059 | — | $1,060 | | Net income | — | — | $10,613 | $10,613 | | Balance at June 30, 2019 | $409 | $152,872 | $7,278 | $160,559 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Six months ended June 30, 2020 | Six months ended June 30, 2019 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net cash from operating activities | $6,833 | $13,031 | | Purchases of property, plant and equipment | $(18,019) | $(19,737) | | Net cash from financing activities | $15,528 | $5,213 | | Net change in cash and cash equivalents | $4,342 | $(1,493) | | Cash and cash equivalents, end of period | $11,207 | $5,887 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [NOTE 1—BUSINESS](index=12&type=section&id=NOTE%201%E2%80%94BUSINESS) - The company is an operator and developer of high-quality, low-cost metallurgical coal in southern West Virginia, southwestern Virginia, and southwestern Pennsylvania[31](index=31&type=chunk) - The COVID-19 pandemic has adversely affected the company, leading to customer delays/curtailments reducing 2020 contracted sales volumes by **up to 12%**[33](index=33&type=chunk) - In response to COVID-19, the company implemented a two-week operational furlough for **203 employees**, temporary **30% executive salary reductions** for certain executives, partial closure of the Berwind mine affecting **44 jobs**, and reduction/deferral of non-essential capital expenditures[35](index=35&type=chunk)[37](index=37&type=chunk) - The company borrowed an additional **$13.2 million** under two promissory notes to improve liquidity and limit employee furloughs[36](index=36&type=chunk) [NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=14&type=section&id=NOTE%202%E2%80%94SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) - The company classifies highly-liquid instruments with original maturity of three months or less as cash equivalents[42](index=42&type=chunk) - Self-insured losses for workers' compensation claims are accrued based on estimates, with an estimated aggregate liability of **$1.2 million** at June 30, 2020[43](index=43&type=chunk) - The SBA Paycheck Protection Program Loan (PPP Loan) is accounted for as an in-substance government grant, with proceeds initially recognized as deferred income liability and subsequently reduced as income is recognized over the period related costs are incurred[44](index=44&type=chunk) - Sales to four customers accounted for **approximately 73% of total revenue** for the three months ended June 30, 2020, and sales to two customers accounted for **approximately 50%** for the six months ended June 30, 2020[48](index=48&type=chunk) - The company adopted ASU 2016-13 (Financial Instruments—Credit Losses) and ASU 2018-15 (Internal-Use Software) effective January 1, 2020, with no material impact on consolidated financial statements[49](index=49&type=chunk)[50](index=50&type=chunk) [NOTE 3—PROPERTY, PLANT AND EQUIPMENT](index=16&type=section&id=NOTE%203%E2%80%94PROPERTY%2C%20PLANT%20AND%20EQUIPMENT) Property, Plant and Equipment (in thousands) | Metric | June 30, 2020 | December 31, 2019 | | :-------------------------------- | :------------ | :---------------- | | Plant and equipment | $154,337 | $142,773 | | Construction in process | $6,650 | $11,986 | | Capitalized mine development cost | $67,831 | $58,773 | | Less: accumulated depreciation and amortization | $(45,673) | $(35,330) | | Total property, plant and equipment, net | $183,145 | $178,202 | Depreciation and Amortization (in thousands) | Metric | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Six months ended June 30, 2020 | Six months ended June 30, 2019 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Depreciation of plant and equipment | $4,240 | $3,416 | $8,415 | $6,436 | | Amortization of capitalized mine development costs | $1,101 | $1,406 | $1,928 | $2,502 | | Total depreciation and amortization | $5,341 | $4,822 | $10,343 | $8,938 | [NOTE 4—DEBT](index=18&type=section&id=NOTE%204%E2%80%94DEBT) - The company has a Revolving Credit Facility with KeyBank, amended on February 20, 2020, consisting of a **$10.0 million term loan** and **up to $30.0 million revolving line of credit**, maturing December 31, 2023[54](index=54&type=chunk)[55](index=55&type=chunk) - As of June 30, 2020, **$8.0 million** was outstanding on the Revolving Credit Facility with **$22.0 million** remaining availability, and the Term Loan had an outstanding principal balance of **$8.3 million**[55](index=55&type=chunk)[56](index=56&type=chunk) - An Equipment Financing Loan of approximately **$4.7 million** was entered into on April 16, 2020, with an outstanding principal balance of **$4.5 million** at June 30, 2020[58](index=58&type=chunk) [NOTE 5—SBA PAYCHECK PROTECTION PROGRAM LOAN](index=18&type=section&id=NOTE%205%E2%80%94SBA%20PAYCHECK%20PROTECTION%20PROGRAM%20LOAN) - On April 20, 2020, the company received **approximately $8.4 million** from a PPP Loan, used to retain employees, maintain payroll, and make lease, interest, and utility payments[59](index=59&type=chunk) - The PPP Loan matures on April 16, 2022, bears **1% interest**, and may be forgiven by the SBA based on documented expenditures for payroll, rent, mortgage interest, and utilities[60](index=60&type=chunk)[61](index=61&type=chunk) - **Approximately $7.3 million** of PPP Loan proceeds used for eligible expenses through June 30, 2020, has been recognized as other income, with the remaining **$1.1 million** presented as deferred income[64](index=64&type=chunk)[65](index=65&type=chunk) [NOTE 6—EQUITY](index=20&type=section&id=NOTE%206%E2%80%94EQUITY) - The company has a stock-based compensation plan with **3.3 million shares** available for future awards at June 30, 2020[66](index=66&type=chunk) - Compensation expense related to restricted stock awards totaled **$1.1 million** and **$2.0 million** for the three and six months ended June 30, 2020, respectively[68](index=68&type=chunk) Restricted Awards Activity | Metric | Shares | Weighted Average Grant Date Fair Value | | :-------------------------- | :------- | :------------------------------------- | | Outstanding at December 31, 2019 | 1,628,241 | $6.32 | | Granted | 1,763,172 | $3.04 | | Vested | (419,844) | $6.17 | | Forfeited | — | — | | Outstanding at June 30, 2020 | 2,971,569 | $4.40 | [NOTE 7—COMMITMENTS AND CONTINGENCIES](index=20&type=section&id=NOTE%207%E2%80%94COMMITMENTS%20AND%20CONTINGENCIES) - As of June 30, 2020, the company had **$15.1 million** in reclamation bonding requirements supported by surety bonds and **$0.3 million** in surety bonds for performance obligations[70](index=70&type=chunk) - Contingent liabilities under take-or-pay transportation arrangements totaled **$4.1 million**, expiring March 31, 2021[71](index=71&type=chunk) - The company is involved in litigation against Federal Insurance Company and ACE American Insurance Company regarding an insurance claim for a partial silo structural failure in November 2018, with a trial scheduled for December 8, 2020[74](index=74&type=chunk) [NOTE 8—REVENUE](index=22&type=section&id=NOTE%208%E2%80%94REVENUE) Disaggregated Revenue (in thousands) | Metric | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Six months ended June 30, 2020 | Six months ended June 30, 2019 | | :---------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Domestic revenues | $20,686 | $39,544 | $51,218 | $76,116 | | Export revenues | $15,688 | $26,217 | $27,092 | $47,105 | | Total revenues | $36,374 | $65,761 | $78,310 | $123,221 | - As of June 30, 2020, outstanding performance obligations for the remainder of 2020 included **approximately 0.8 million tons** at an average fixed price of **$93/ton** and **0.1 million tons** with index-based pricing[75](index=75&type=chunk) - **0.2 million tons** of the fixed-price contracts at **$91/ton** may not ship in 2020 due to material adverse change and force majeure notices[75](index=75&type=chunk) [NOTE 9—INCOME TAXES](index=22&type=section&id=NOTE%209%E2%80%94INCOME%20TAXES) - The effective tax rate for the three and six months ended June 30, 2020, excluding a discrete item for restricted stock awards, was **21%** and **16%**, respectively[77](index=77&type=chunk) - The effective tax rate for the three and six months ended June 30, 2019, was **17%** each period[77](index=77&type=chunk) [NOTE 10—EARNINGS PER SHARE](index=24&type=section&id=NOTE%2010%E2%80%94EARNINGS%20PER%20SHARE) Earnings Per Share (in thousands, except per share amounts) | Metric | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Six months ended June 30, 2020 | Six months ended June 30, 2019 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $2,652 | $10,613 | $4,614 | $17,496 | | Weighted average shares used to compute basic EPS | 42,704 | 40,869 | 42,232 | 40,737 | | Dilutive effect of share-based awards | — | 96 | — | 73 | | Weighted average shares used to compute diluted EPS | 42,704 | 40,965 | 42,232 | 40,810 | | Basic EPS | $0.06 | $0.26 | $0.11 | $0.43 | | Diluted EPS | $0.06 | $0.26 | $0.11 | $0.43 | [NOTE 11—RELATED PARTY TRANSACTIONS](index=24&type=section&id=NOTE%2011%E2%80%94RELATED%20PARTY%20TRANSACTIONS) - The company acquired coal reserves and surface rights through mineral leases and surface rights agreements with Ramaco Coal, LLC, a related party[80](index=80&type=chunk) - Royalties paid to Ramaco Coal, LLC totaled **$1.1 million** and **$2.3 million** for the three and six months ended June 30, 2020, respectively[80](index=80&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance and condition, highlighting the impact of the COVID-19 pandemic on revenue, costs, and liquidity, detailing operational responses, financial results for the quarter and six-month periods, and the company's capital resources and non-GAAP financial measures [Overview](index=25&type=section&id=Overview) - The company is a metallurgical coal operator with a **265-million-ton reserve base** and plans to grow production to **4-4.5 million clean tons**, subject to market conditions[83](index=83&type=chunk) - The COVID-19 pandemic significantly impacted Q2 2020 results, leading to a global economic slowdown, reduced demand, and lower spot prices for metallurgical coal[85](index=85&type=chunk)[87](index=87&type=chunk) - Customer contractual obligations for 2020 sales volumes are expected to be reduced by **up to 12%** due to COVID-19[86](index=86&type=chunk) - Company responses include a two-week employee furlough, **30% executive salary reductions**, partial closure of the Berwind mine (affecting **44 jobs**), and deferral of non-essential capital expenditures[88](index=88&type=chunk)[89](index=89&type=chunk)[94](index=94&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Consolidated Statement of Operations Data (in thousands) | Metric | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Six months ended June 30, 2020 | Six months ended June 30, 2019 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $36,374 | $65,761 | $78,310 | $123,221 | | Total costs and expenses | $40,673 | $52,872 | $81,468 | $102,083 | | Operating income (loss) | $(4,299) | $12,889 | $(3,158) | $21,138 | | Other income | $8,504 | $194 | $9,714 | $492 | | Net income | $2,652 | $10,613 | $4,614 | $17,496 | | Adjusted EBITDA | $10,811 | $19,093 | $19,228 | $32,778 | - Net income and Adjusted EBITDA in Q2 2020 were **75%** and **43% lower**, respectively, than Q2 2019, due to lower realized pricing and volumes[95](index=95&type=chunk) [Three Months Ended June 30, 2020 Compared to Three Months Ended June 30, 2019](index=28&type=section&id=Three%20Months%20Ended%20June%2030%2C%202020%20Compared%20to%20Three%20Months%20Ended%20June%2030%2C%202019) Coal Sales Revenue (Three Months Ended June 30, in thousands) | Metric | 2020 | 2019 | Increase (Decrease) | | :-------------------- | :----- | :----- | :------------------ | | Company Produced Revenue | $36,374 | $62,516 | $(26,142) | | Company Produced Tons Sold | 362 | 499 | (137) | | Purchased from Third Parties Revenue | $— | $3,245 | $(3,245) | | Purchased from Third Parties Tons Sold | — | 26 | (26) | - Coal sales revenue decreased by **42%** to **$36.4 million** in Q2 2020, driven by lower sales volumes (**31% decrease**) and a **22% decline** in revenue per ton sold (FOB mine) to **$91/ton**[96](index=96&type=chunk)[97](index=97&type=chunk) - Cost of sales decreased to **$30.1 million** in Q2 2020 due to lower sales volumes, while cash cost per ton sold (FOB mine) slightly increased to **$74**[99](index=99&type=chunk) - Other income increased significantly to **$8.5 million** in Q2 2020, primarily due to the recognition of **$7.3 million** from the anticipated forgiveness of the PPP Loan[102](index=102&type=chunk) [Six Months Ended June 30, 2020 Compared to Six Months Ended June 30, 2019](index=31&type=section&id=Six%20Months%20Ended%20June%2030%2C%202020%20Compared%20to%20Six%20Months%20Ended%20June%2030%2C%202019) Coal Sales Revenue (Six Months Ended June 30, in thousands) | Metric | 2020 | 2019 | Increase (Decrease) | | :-------------------- | :----- | :----- | :------------------ | | Company Produced Revenue | $78,310 | $115,216 | $(36,906) | | Company Produced Tons Sold | 778 | 942 | (164) | | Purchased from Third Parties Revenue | $— | $8,005 | $(8,005) | | Purchased from Third Parties Tons Sold | — | 61 | (61) | - Coal sales revenue decreased by **32%** to **$78.3 million** for the six months ended June 30, 2020, due to lower sales volumes (**22% decrease**) and a **17% decline** in revenue per ton sold (FOB mine) to **$92/ton**[107](index=107&type=chunk) - Cost of sales decreased to **$61.1 million**, primarily due to lower sales volumes, while cash cost per ton sold (FOB mine) decreased to **$70**[109](index=109&type=chunk) - Other income increased to **$9.7 million**, largely driven by the **$7.3 million** recognized from the anticipated forgiveness of the PPP Loan[112](index=112&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) - At June 30, 2020, the company had **$9.8 million** in cash and cash equivalents and **$22.0 million** available under existing credit agreements[117](index=117&type=chunk) - Significant cash uses in the first six months of 2020 included **$18.0 million in capital expenditures**, primarily for mine development and infrastructure[118](index=118&type=chunk) - Net borrowings of **$16.3 million** were made to increase cash position and fund capital expenditures during the COVID-19 pandemic[120](index=120&type=chunk) - The company believes current cash, operating cash flows, and available credit will be sufficient to meet capital and operating plans, but is also exploring further capital expenditure reductions and alternative financing[119](index=119&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk) - The company's indebtedness includes a Revolving Credit Facility (**$8.0 million outstanding**, **$22.0 million available**), a Term Loan (**$8.3 million outstanding**), and an Equipment Financing Loan (**$4.5 million outstanding**), all in compliance with covenants[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk) - The **$8.4 million PPP Loan** was received on April 20, 2020, to support employment and payroll, with a significant portion expected to be forgiven[127](index=127&type=chunk)[129](index=129&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk) [Off-Balance Sheet Arrangements](index=36&type=section&id=Off-Balance%20Sheet%20Arrangements) - As of June 30, 2020, the company had no material off-balance sheet arrangements[134](index=134&type=chunk) [Non-GAAP Financial Measures](index=36&type=section&id=Non-GAAP%20Financial%20Measures) - Adjusted EBITDA is defined as net income plus net interest expense, stock-based compensation, depreciation and amortization expenses, and any transaction-related costs, used to evaluate operating performance[136](index=136&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Metric | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Six months ended June 30, 2020 | Six months ended June 30, 2019 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $2,652 | $10,613 | $4,614 | $17,496 | | Depreciation and amortization | $5,341 | $4,822 | $10,343 | $8,938 | | Interest expense, net | $293 | $302 | $572 | $609 | | Income taxes | $1,260 | $2,168 | $1,370 | $3,525 | | EBITDA | $9,546 | $17,905 | $16,899 | $30,568 | | Stock-based compensation | $1,106 | $1,060 | $2,029 | $1,954 | | Accretion of asset retirement obligation | $159 | $128 | $300 | $256 | | Adjusted EBITDA | $10,811 | $19,093 | $19,228 | $32,778 | - Non-GAAP revenue per ton (FOB mine) and cash cost per ton sold are presented to allow comparison with other coal companies and monitor coal price/cost changes excluding transportation costs[138](index=138&type=chunk)[140](index=140&type=chunk) Non-GAAP Revenue per Ton Sold (FOB mine) (in thousands, except per ton amounts) | Metric | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Six months ended June 30, 2020 | Six months ended June 30, 2019 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Revenue | $36,374 | $65,761 | $78,310 | $123,221 | | Less: Transportation costs | $(3,454) | $(4,737) | $(6,560) | $(12,087) | | Non-GAAP revenue (FOB mine) | $32,920 | $61,024 | $71,750 | $111,134 | | Tons sold | 362 | 525 | 778 | 1,003 | | Revenue per ton sold (FOB mine) | $91 | $116 | $92 | $111 | Non-GAAP Cash Cost per Ton Sold (FOB mine) (in thousands, except per ton amounts) | Metric | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Six months ended June 30, 2020 | Six months ended June 30, 2019 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cost of sales | $30,134 | $43,219 | $61,069 | $84,225 | | Less: Transportation costs | $(3,181) | $(4,737) | $(6,307) | $(12,019) | | Non-GAAP cash cost of sales | $26,953 | $38,482 | $54,762 | $72,206 | | Tons sold | 362 | 525 | 778 | 1,003 | | Cash cost per ton sold | $74 | $73 | $70 | $72 | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section refers to the company's Annual Report on Form 10-K for detailed quantitative and qualitative disclosures regarding market risk - Quantitative and qualitative disclosures about market risk are included in Item 7A of the Annual Report on Form 10-K for the year ended December 31, 2019[142](index=142&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the effectiveness of the company's disclosure controls and procedures and reports on any changes in internal control over financial reporting [Disclosure Controls and Procedures](index=38&type=section&id=Disclosure%20Controls%20and%20Procedures) - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2020, at a reasonable assurance level[143](index=143&type=chunk)[144](index=144&type=chunk) [Changes in Internal Control over Financial Reporting](index=40&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) - There were no significant changes in the company's internal control over financial reporting during the quarter ended June 30, 2020, that materially affected or are reasonably likely to materially affect it[146](index=146&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) This section states that the company is involved in routine litigation but does not expect any material adverse effects on its financial condition, cash flows, or results of operations - The company may be subject to routine litigation, but management believes no pending matters will have a material adverse effect on financial condition, cash flows, or results of operations[149](index=149&type=chunk) [Item 1A. Risk Factors](index=41&type=page&id=Item%201A.%20Risk%20Factors) This section updates the risk factors, primarily focusing on the adverse impacts of the COVID-19 pandemic on business operations, customer demand, and financial condition, as well as risks associated with customer concentration and potential challenges to the company's Paycheck Protection Program loan eligibility - The global spread of COVID-19 has created significant volatility, uncertainty, and economic disruption, leading to a slowdown in the global economy, declines in metallurgical coal prices, and reduced demand for steel[152](index=152&type=chunk)[153](index=153&type=chunk) - Company actions in response to COVID-19 include employee furloughs, executive salary reductions, partial mine closure, and capital expenditure deferrals[154](index=154&type=chunk) - Two customers have declared material adverse change or force majeure, reducing or delaying planned metallurgical coal purchases by **up to 12%** of total contracted sales volumes for 2020[156](index=156&type=chunk) - The company has **two customers accounting for approximately 50% of total revenue** for the six months ended June 30, 2020, posing a risk if purchases are significantly reduced[159](index=159&type=chunk)[161](index=161&type=chunk) - There is a risk that the federal government or private plaintiffs may challenge the company's eligibility for the **$8.4 million PPP Loan**, potentially leading to civil and criminal penalties if certifications are deemed not in good faith[162](index=162&type=chunk)[164](index=164&type=chunk) [Item 4. Mine Safety Disclosures](index=45&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that information regarding mine safety violations and other regulatory matters is provided in Exhibit 95.1 of this Quarterly Report - Mine safety disclosures are included in **Exhibit 95.1** to this Quarterly Report[166](index=166&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed or furnished with the Quarterly Report, including certifications, mine safety disclosures, and XBRL documents - The report includes certifications from the CEO and CFO (Sections **302** and **906** of Sarbanes-Oxley Act), Mine Safety Disclosure (**Exhibit 95.1**), and various XBRL taxonomy documents[168](index=168&type=chunk) [SIGNATURES](index=47&type=section&id=SIGNATURES) - The report is signed by Michael D. Bauersachs, President and Chief Executive Officer, and Jeremy R. Sussman, Chief Financial Officer, on **August 6, 2020**[173](index=173&type=chunk)

[FORM 10-Q Filing Information](index=1&type=section&id=FORM%2010-Q%20Filing%20Information) Details the company's Q1 2020 Form 10-Q filing, registrant status, and outstanding common stock - Ramaco Resources, Inc. filed its Form 10-Q for the quarterly period ended March 31, 2020[2](index=2&type=chunk) - As of May 12, 2020, the registrant had **42,713,347 shares** of common stock outstanding[4](index=4&type=chunk) Registrant Status | Status | Indication | | :-------------------- | :--------- | | Large accelerated filer | ☐ | | Accelerated filer | ☐ | | Non-accelerated filer | ☐ | | Smaller reporting company | ☒ | | Emerging growth company | ☒ | [Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) Outlines the inherent risks and uncertainties associated with the report's forward-looking statements - The report includes forward-looking statements based on management's current expectations and assumptions, which are subject to various risks and uncertainties[9](index=9&type=chunk) - Key risks include the impact of the **COVID-19 global pandemic**, anticipated production levels, economic conditions in the metallurgical coal and steel industries, and the ability to obtain additional financing[10](index=10&type=chunk) - Investors are cautioned not to place undue reliance on forward-looking statements as **actual results could differ materially and adversely**[11](index=11&type=chunk) [PART I. FINANCIAL INFORMATION](index=7&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) Presents the company's Q1 2020 unaudited financial statements, management analysis, and risk disclosures [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) Provides unaudited condensed consolidated financial statements and accompanying notes for Q1 2020 [Unaudited Condensed Consolidated Balance Sheets](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Summarizes the company's assets, liabilities, and stockholders' equity as of March 31, 2020 Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | March 31, 2020 | December 31, 2019 | Change | | :-------------------------- | :------------- | :---------------- | :----- | | Cash and cash equivalents | $15,319 | $5,532 | +$9,787 | | Total current assets | $58,140 | $44,323 | +$13,817 | | Property, plant and equipment – net | $181,896 | $178,202 | +$3,694 | | Total Assets | $244,659 | $226,813 | +$17,846 | | Total current liabilities | $28,652 | $26,411 | +$2,241 | | Long-term debt, net | $22,295 | $9,614 | +$12,681 | | Total liabilities | $71,691 | $56,730 | +$14,961 | | Total stockholders' equity | $172,968 | $170,083 | +$2,885 | [Unaudited Condensed Consolidated Statements of Operations](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Details the company's revenues, expenses, and net income for the first quarter of 2020 Condensed Consolidated Statements of Operations Highlights (Three months ended March 31, in thousands) | Metric | 2020 | 2019 | Change (YoY) | | :---------------------------------- | :---------- | :---------- | :----------- | | Revenue | $41,935 | $57,460 | -$15,525 (-27.0%) | | Total costs and expenses | $40,794 | $49,210 | -$8,416 (-17.1%) | | Operating income | $1,141 | $8,250 | -$7,109 (-86.2%) | | Income before tax | $2,072 | $8,241 | -$6,169 (-74.9%) | | Net income | $1,962 | $6,883 | -$4,921 (-71.5%) | | Basic Earnings per common share | $0.05 | $0.17 | -$0.12 (-70.6%) | | Diluted Earnings per common share | $0.05 | $0.17 | -$0.12 (-70.6%) | [Unaudited Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Outlines the changes in the company's equity accounts during the first quarter of 2020 Condensed Consolidated Statements of Stockholders' Equity Highlights (in thousands) | Metric | Balance at Jan 1, 2020 | Stock-based compensation | Net income | Balance at Mar 31, 2020 | | :-------------------- | :--------------------- | :----------------------- | :--------- | :---------------------- | | Common Stock | $410 | $17 | — | $427 | | Additional Paid-in Capital | $154,957 | $906 | — | $155,863 | | Retained Earnings | $14,716 | — | $1,962 | $16,678 | | Total Stockholders' Equity | $170,083 | $923 | $1,962 | $172,968 | Stockholders' Equity Changes (Three months ended March 31, in thousands) | Metric | 2020 | 2019 | | :-------------------- | :---------- | :---------- | | Stock-based compensation | $923 | $894 | | Net income | $1,962 | $6,883 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash inflows and outflows from operating, investing, and financing activities for Q1 2020 - Net cash from operating activities significantly improved in Q1 2020, primarily due to a positive change in accounts receivable of **$4.8 million**, compared to a negative change of **$16.6 million** in Q1 2019[22](index=22&type=chunk) Condensed Consolidated Statements of Cash Flows Highlights (Three months ended March 31, in thousands) | Metric | 2020 | 2019 | Change (YoY) | | :---------------------------------- | :---------- | :---------- | :----------- | | Net cash from operating activities | $6,416 | $(6,077) | +$12,493 | | Purchases of property, plant and equipment | $(8,900) | $(8,199) | -$701 | | Net cash from financing activities | $12,386 | $9,078 | +$3,308 | | Net change in cash and cash equivalents and restricted cash | $9,902 | $(5,198) | +$15,100 | | Cash and cash equivalents and restricted cash, end of period | $16,767 | $2,182 | +$14,585 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations of the company's business, accounting policies, and specific financial items [NOTE 1—DESCRIPTION OF BUSINESS](index=11&type=section&id=NOTE%201—DESCRIPTION%20OF%20BUSINESS) Describes the company's corporate structure and its focus on metallurgical coal operations - Ramaco Resources, Inc. is a Delaware corporation, formed in October 2016, operating and developing high-quality, low-cost metallurgical coal[24](index=24&type=chunk) - The company's principal corporate offices are located in Lexington, Kentucky[24](index=24&type=chunk) [NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=11&type=section&id=NOTE%202—SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Details the accounting principles and policies applied in the preparation of the financial statements - Interim financial statements are unaudited and prepared under SEC rules, with certain disclosures condensed or omitted compared to full GAAP statements[25](index=25&type=chunk) - The company is self-insured for workers' compensation claims, with an estimated aggregate liability of **$1.2 million** at March 31, 2020[28](index=28&type=chunk) - Sales to three customers accounted for approximately **73% of total revenue** for the three months ended March 31, 2020, indicating significant customer concentration[31](index=31&type=chunk) [NOTE 3—PROPERTY, PLANT AND EQUIPMENT](index=12&type=section&id=NOTE%203—PROPERTY,%20PLANT%20AND%20EQUIPMENT) Presents the composition of and changes in the company's fixed assets and related depreciation Property, Plant and Equipment, Net (in thousands) | Category | March 31, 2020 | December 31, 2019 | Change | | :-------------------------- | :------------- | :---------------- | :----- | | Plant and equipment | $145,347 | $142,773 | +$2,574 | | Construction in process | $14,144 | $11,986 | +$2,158 | | Capitalized mine development cost | $62,737 | $58,773 | +$3,964 | | Less: accumulated depreciation and amortization | $(40,332) | $(35,330) | -$5,002 | | Total property, plant and equipment, net | $181,896 | $178,202 | +$3,694 | Depreciation and Amortization (Three months ended March 31, in thousands) | Category | 2020 | 2019 | Change (YoY) | | :---------------------------------- | :---------- | :---------- | :----------- | | Depreciation of plant and equipment | $4,175 | $3,019 | +$1,156 (+38.3%) | | Amortization of capitalized mine development costs | $827 | $1,097 | -$270 (-24.6%) | | Total depreciation and amortization | $5,002 | $4,116 | +$886 (+21.5%) | [NOTE 4—DEBT](index=12&type=section&id=NOTE%204—DEBT) Details the company's credit facilities, outstanding debt balances, and covenant compliance - The Revolving Credit Facility, amended on February 20, 2020, consists of a **$10.0 million** term loan and up to **$30.0 million** revolving line of credit[37](index=37&type=chunk) - The company was in compliance with all debt covenants as of March 31, 2020[41](index=41&type=chunk) Debt Balances and Availability (as of March 31, 2020, in millions) | Debt Instrument | Outstanding Balance | Remaining Availability | | :---------------------- | :------------------ | :--------------------- | | Revolving Credit Facility | $16.5 | $13.5 | | Term Loan | $9.1 | N/A | [NOTE 5—EQUITY](index=14&type=section&id=NOTE%205—EQUITY) Discloses information on stock-based compensation plans, restricted stock activity, and unrecognized costs - As of March 31, 2020, **3.3 million shares** were available under the stock-based compensation plan for future awards[42](index=42&type=chunk) - There was **$8.8 million** of total unrecognized compensation cost related to unvested restricted stock, to be recognized over a weighted-average period of 2.3 years[44](index=44&type=chunk) Restricted Stock Activity (in thousands, except per share amounts) | Metric | Shares | Weighted Average Grant Date Fair Value | | :------------------------ | :---------- | :------------------------------------- | | Outstanding at Dec 31, 2019 | 1,628,241 | $6.32 | | Granted | 1,714,152 | $3.06 | | Outstanding at Mar 31, 2020 | 3,342,393 | $4.65 | [NOTE 6—COMMITMENTS AND CONTINGENCIES](index=14&type=section&id=NOTE%206—COMMITMENTS%20AND%20CONTINGENCIES) Outlines the company's financial commitments, bonding requirements, and ongoing litigation - Total reclamation bonding requirements were **$13.3 million** as of March 31, 2020, supported by surety bonds[46](index=46&type=chunk) - Commitments under take-or-pay arrangements for coal transportation totaled **$5.1 million** through March 31, 2021[47](index=47&type=chunk) - The company is in litigation regarding a partial structural failure at its Elk Creek plant in November 2018, with a trial scheduled for December 8, 2020[49](index=49&type=chunk) [NOTE 7—REVENUE](index=16&type=section&id=NOTE%207—REVENUE) Provides a breakdown of coal sales revenue by domestic and export markets - Two customers accounted for approximately **56% of total revenue** during Q1 2020, and their contractual obligations may be delayed or curtailed due to COVID-19[57](index=57&type=chunk) Coal Sales Revenue (Three months ended March 31, in thousands) | Category | 2020 | 2019 | Change (YoY) | | :-------------------- | :---------- | :---------- | :----------- | | Domestic revenues | $30,532 | $36,571 | -$6,039 (-16.5%) | | Export revenues | $11,403 | $20,889 | -$9,486 (-45.4%) | | Total revenues | $41,935 | $57,460 | -$15,525 (-27.0%) | [NOTE 8—INCOME TAXES](index=16&type=section&id=NOTE%208—INCOME%20TAXES) Explains the company's effective tax rate and the factors contributing to its change year-over-year - The lower effective tax rate in Q1 2020 (**5% vs. 16%** in Q1 2019) is primarily due to state taxes, permanent differences for non-deductible expenses, and depletion expense differences[52](index=52&type=chunk) Effective Tax Rate (Three months ended March 31) | Period | Effective Tax Rate | | :-------------------- | :----------------- | | March 31, 2020 | 5% | | March 31, 2019 | 16% | [NOTE 9—EARNINGS PER SHARE](index=17&type=section&id=NOTE%209—EARNINGS%20PER%20SHARE) Presents the calculation of basic and diluted earnings per share for the first quarter - Diluted EPS for Q1 2020 excludes **937,424 anti-dilutive stock options**[53](index=53&type=chunk) Earnings Per Share (Three months ended March 31, in thousands, except per share amounts) | Metric | 2020 | 2019 | Change (YoY) | | :---------------------------------- | :---------- | :---------- | :----------- | | Net income | $1,962 | $6,883 | -$4,921 (-71.5%) | | Weighted average shares used to compute basic EPS | 41,760 | 40,604 | +1,156 (+2.8%) | | Basic EPS | $0.05 | $0.17 | -$0.12 (-70.6%) | | Diluted EPS | $0.05 | $0.17 | -$0.12 (-70.6%) | [NOTE 10—RELATED PARTY TRANSACTIONS](index=17&type=section&id=NOTE%2010—RELATED%20PARTY%20TRANSACTIONS) Discloses transactions and agreements with related parties, including royalty payments - The company has mineral lease and surface rights agreements with Ramaco Coal, LLC, a related party[54](index=54&type=chunk) Related Party Royalties (in thousands) | Metric | March 31, 2020 | December 31, 2019 | | :-------------------- | :------------- | :---------------- | | Production royalty payables | $400 | $500 | | Metric | Three months ended March 31, 2020 | Three months ended March 31, 2019 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Royalties paid | $1,200 | $1,300 | [NOTE 11—SUBSEQUENT EVENTS](index=17&type=section&id=NOTE%2011—SUBSEQUENT%20EVENTS) Details significant events after the reporting period, including COVID-19 impacts and financing activities - The COVID-19 pandemic led to declining demand and spot price reductions for metallurgical coal, limiting spot sales and increasing inventories in Q1 2020[56](index=56&type=chunk) - Two major customers (**56% of Q1 2020 revenue**) notified the company of potential delays or curtailments in contractual purchases due to COVID-19[57](index=57&type=chunk) - In response, the company implemented a two-week operational furlough for 182 employees at Elk Creek (recalled by May 1, 2020), temporarily reduced executive salaries by **30%**, and deferred non-essential capital expenditures[58](index=58&type=chunk)[61](index=61&type=chunk)[67](index=67&type=chunk) - On April 20, 2020, the company received an **$8.4 million** Paycheck Protection Program (PPP) Loan to retain employees and cover payroll, lease, and utility payments[63](index=63&type=chunk) - On April 16, 2020, the company secured a **$4.7 million** equipment loan for financing existing equipment and anticipated future capital expenditures[66](index=66&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's analysis of Q1 2020 financial performance, liquidity, and the impact of COVID-19 [Overview](index=21&type=section&id=Overview) Presents the company's business focus, reserve base, and production goals amid challenging market conditions - Ramaco Resources, Inc. is a metallurgical coal operator and developer with a **265-million-ton reserve base** as of December 31, 2019[69](index=69&type=chunk) - The company aims to grow production to more than **4-4.5 million clean tons** of metallurgical coal, subject to market conditions[69](index=69&type=chunk) - Q1 2020 results were negatively impacted by continued weakness in the metallurgical industry and the emerging COVID-19 outbreak[71](index=71&type=chunk) [Impact of the Coronavirus Disease 2019 (COVID-19) Pandemic on Our Business](index=21&type=section&id=Impact%20of%20the%20Coronavirus%20Disease%202019%20(COVID-19)%20Pandemic%20on%20Our%20Business) Details the adverse effects of the COVID-19 pandemic on demand, pricing, and company operations - The COVID-19 pandemic led to declining demand and spot price reductions for metallurgical coal, resulting in increased inventories in Q1 2020[73](index=73&type=chunk) - Two major customers (**56% of Q1 2020 revenue**) notified the company of potential delays or curtailments in contractual purchases due to COVID-19[74](index=74&type=chunk) - In response, the company implemented operational furloughs, executive salary reductions, and deferred non-essential capital expenditures[75](index=75&type=chunk)[78](index=78&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Compares Q1 2020 financial results to Q1 2019, highlighting key performance drivers - Net income and Adjusted EBITDA significantly decreased in Q1 2020 compared to Q1 2019, primarily due to lower realized pricing and sales volumes, partially offset by improved cash cost of sales[79](index=79&type=chunk) Consolidated Statement of Operations Data (Three months ended March 31, in thousands) | Metric | 2020 | 2019 | Change (YoY) | | :-------------------- | :---------- | :---------- | :----------- | | Revenue | $41,935 | $57,460 | -$15,525 (-27.0%) | | Operating income | $1,141 | $8,250 | -$7,109 (-86.2%) | | Net income | $1,962 | $6,883 | -$4,921 (-71.5%) | | Adjusted EBITDA | $8,417 | $13,686 | -$5,269 (-38.5%) | [Three Months Ended March 31, 2020 Compared to Three Months Ended March 31, 2019](index=25&type=section&id=Three%20Months%20Ended%20March%2031,%202020%20Compared%20to%20Three%20Months%20Ended%20March%2031,%202019) Provides a detailed comparative analysis of coal sales, costs, and expenses for Q1 2020 versus Q1 2019 - The decline in sales volumes and realized pricing in 2020 is primarily due to reduced worldwide demand, exacerbated by the COVID-19 pandemic[82](index=82&type=chunk) Coal Sales Performance (Three months ended March 31, in thousands, except tons) | Metric | 2020 | 2019 | Change (YoY) | | :-------------------- | :---------- | :---------- | :----------- | | Company Produced Coal sales revenue | $41,935 | $52,700 | -$10,765 (-20.4%) | | Company Produced Tons sold | 416 | 443 | -27 (-6.1%) | | Purchased from Third Parties Coal sales revenue | $0 | $4,760 | -$4,760 (-100%) | | Purchased from Third Parties Tons sold | 0 | 35 | -35 (-100%) | | Overall Revenue per ton sold (FOB mine) | $93 | $105 | -$12 (-11.4%) | Cost of Sales and Expenses (Three months ended March 31, in thousands) | Metric | 2020 | 2019 | Change (YoY) | | :-------------------- | :---------- | :---------- | :----------- | | Cost of sales | $30,934 | $41,006 | -$10,072 (-24.6%) | | Cash cost per ton sold (FOB mine) | $67 | $68 | -$1 (-1.5%) | | Depreciation and amortization | $5,002 | $4,116 | +$886 (+21.5%) | | Selling, general and administrative | $4,717 | $3,960 | +$757 (+19.1%) | | Other income | $1,210 | $298 | +$912 (+306.0%) | [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses the company's liquidity position, cash flow activities, and capital management strategies - The company believes current cash, operating cash flow, and available credit will meet future capital and liquidity requirements, but is reviewing further capital expenditure reductions and alternative financing due to COVID-19 uncertainty[91](index=91&type=chunk)[93](index=93&type=chunk) Liquidity Position (as of March 31, 2020, in millions) | Metric | Amount | | :-------------------- | :----- | | Cash and cash equivalents | $15.3 | | Available under credit agreements | $13.5 | Cash Flow Activities (Three months ended March 31, 2020, in millions) | Activity | Amount | | :-------------------- | :----- | | Cash flows from operating activities | $6.4 | | Net borrowings | $12.4 | | Capital expenditures | $(8.9) | [Indebtedness](index=27&type=section&id=Indebtedness) Details the terms of the company's credit facilities and recent loan agreements - The Revolving Credit Facility (amended Feb 2020) includes a **$10.0 million** term loan and up to **$30.0 million** revolving line of credit, secured by personal property assets[94](index=94&type=chunk) - On April 20, 2020, the company received an **$8.4 million PPP Loan** to retain employees and cover payroll, lease, and utility payments[98](index=98&type=chunk)[99](index=99&type=chunk)[101](index=101&type=chunk) - An additional **$4.7 million equipment loan** was secured on April 16, 2020, for general corporate purposes and future capital expenditures[101](index=101&type=chunk) Debt Outstanding (as of March 31, 2020, in millions) | Debt Instrument | Outstanding Balance | | :---------------------- | :------------------ | | Revolving Credit Facility | $16.5 | | Term Loan | $9.1 | [Off-Balance Sheet Arrangements](index=29&type=section&id=Off-Balance%20Sheet%20Arrangements) Confirms the absence of material off-balance sheet arrangements as of the reporting date - As of March 31, 2020, the company had no material off-balance sheet arrangements[102](index=102&type=chunk) [Non-GAAP Financial Measures](index=29&type=section&id=Non-GAAP%20Financial%20Measures) Defines and reconciles non-GAAP measures like Adjusted EBITDA and cash cost per ton to their GAAP equivalents - Adjusted EBITDA is defined as net income plus net interest expense, stock-based compensation, depreciation and amortization expenses, and any transaction-related costs[104](index=104&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (Three months ended March 31, in thousands) | Metric | 2020 | 2019 | | :-------------------- | :---------- | :---------- | | Net income | $1,962 | $6,883 | | Depreciation and amortization | $5,002 | $4,116 | | Interest expense, net | $279 | $307 | | Income taxes | $110 | $1,358 | | EBITDA | $7,353 | $12,664 | | Stock-based compensation | $923 | $894 | | Accretion of asset retirement obligation | $141 | $128 | | Adjusted EBITDA | $8,417 | $13,686 | Non-GAAP Revenue and Cash Cost per Ton Sold (Three months ended March 31, in thousands, except per ton amounts) | Metric | 2020 (Total) | 2019 (Total) | | :-------------------- | :----------- | :----------- | | Non-GAAP revenue (FOB mine) | $38,749 | $50,110 | | Tons sold | 416 | 478 | | Revenue per ton sold (FOB mine) | $93 | $105 | | Non-GAAP cash cost of sales | $27,748 | $33,724 | | Cash cost per ton sold | $67 | $71 | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Refers to the company's Annual Report on Form 10-K for detailed market risk disclosures - Quantitative and qualitative disclosures about market risk are included in Item 7A of the Annual Report on Form 10-K for the year ended December 31, 2019[110](index=110&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms the effectiveness of disclosure controls and the status of internal financial reporting controls [Disclosure Controls and Procedures](index=30&type=section&id=Disclosure%20Controls%20and%20Procedures) States management's conclusion on the effectiveness of the company's disclosure controls - Management concluded that disclosure controls and procedures were effective as of March 31, 2020, at the reasonable assurance level[112](index=112&type=chunk) [Changes in Internal Control over Financial Reporting](index=32&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) Reports on any significant changes to internal controls over financial reporting during the quarter - There were no significant changes in the system of internal control over financial reporting during the quarter ended March 31, 2020[114](index=114&type=chunk) [PART II. OTHER INFORMATION](index=33&type=section&id=PART%20II.%20OTHER%20INFORMATION) Provides additional non-financial information on legal proceedings, risk factors, and mine safety [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) Discloses the status of litigation and its potential impact on the company's financial condition - Management believes no pending litigation, disputes, or claims will have a material adverse effect on the company's financial condition, cash flows, or results of operations[117](index=117&type=chunk) - For a description of legal proceedings, refer to Note 6 to the Condensed Consolidated Financial Statements[117](index=117&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) Updates risk factors, emphasizing the adverse impacts of the COVID-19 pandemic on the business - The COVID-19 pandemic is adversely affecting the business, operations, and financial condition, causing a significant slowdown in the global economy and declines in metallurgical coal prices and demand for steel[120](index=120&type=chunk) - Customer concentration is a significant risk, with two of the three largest customers (**56% of Q1 2020 revenue**) notifying the company of potential delays or curtailments due to COVID-19[121](index=121&type=chunk)[127](index=127&type=chunk) - The company's **$8.4 million Paycheck Protection Program (PPP) Loan** may be challenged regarding eligibility, potentially leading to significant legal fees and civil/criminal penalties[129](index=129&type=chunk)[131](index=131&type=chunk) - The full impact of COVID-19 on the business, cash flows, liquidity, financial condition, and results of operations remains uncertain[125](index=125&type=chunk) [Item 4. Mine Safety Disclosures](index=37&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Refers to an exhibit for detailed information on mine safety violations and regulatory matters - Information concerning mine safety violations or other regulatory matters is included in Exhibit 95.1 to this Quarterly Report[132](index=132&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the Form 10-Q, including agreements, certifications, and disclosures - Exhibits include promissory notes for the PPP Loan and an equipment loan, restricted stock award agreements, and amendments to the Credit and Security Agreement[134](index=134&type=chunk) - Certifications from the Chief Executive Officer and Chief Financial Officer (pursuant to Sections 302 and 906 of Sarbanes-Oxley Act) and Mine Safety Disclosure are filed or furnished[134](index=134&type=chunk) [SIGNATURES](index=40&type=section&id=SIGNATURES) Contains the official signatures of the company's certifying officers for the report - The report was signed on May 12, 2020, by Michael D. Bauersachs (President and Chief Executive Officer) and Jeremy R. Sussman (Chief Financial Officer)[139](index=139&type=chunk)

Part I [Business](index=4&type=section&id=Item%201.%20Business) Ramaco Resources is a pure-play metallurgical coal producer with 242 million tons of reserves, focusing on low-cost production for North American and international steel markets, operating under extensive regulations - Ramaco is a pure-play metallurgical coal company with **242 million tons** of high-quality metallurgical coal reserves across four properties: Elk Creek, Berwind, RAM Mine, and Knox Creek[16](index=16&type=chunk) - The company's strategy focuses on developing its properties to reach **4-4.5 million clean tons of production by 2023**, maintaining a low-cost production profile, and upholding a conservative capital structure[21](index=21&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) 2019 Sales and Customer Concentration | Metric | Value | | :--- | :--- | | Total Tons Sold (2019) | 1.95 million tons | | Sales to North American Markets | 75% | | Sales to Export Markets | 25% | | Revenue from Top 2 Customers | ~42% of total revenue | - The company's operations are subject to extensive federal, state, and local regulations governing environmental protection (SMCRA, CWA, CAA), mine safety (MSHA), and other areas, which involve significant compliance costs and permitting requirements[62](index=62&type=chunk)[63](index=63&type=chunk)[65](index=65&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant business, regulatory, and corporate risks, including development delays, steel industry dependence, price volatility, environmental compliance, and control by significant stockholders - Business risks include incomplete property development, high dependency on the steel industry, volatile metallurgical coal prices, and operational hazards such as the **2018 silo failure** at the Elk Creek plant[119](index=119&type=chunk)[122](index=122&type=chunk)[147](index=147&type=chunk) - The company's customer base is highly dependent on the steel industry, with a novel coronavirus outbreak noted as a potential risk that could reduce demand for metallurgical coal[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk) - Extensive environmental regulations, particularly those related to greenhouse gas emissions, water discharge (CWA), and air quality (CAA), could increase operating costs, reduce coal demand, and restrict operations[193](index=193&type=chunk)[195](index=195&type=chunk)[207](index=207&type=chunk) - Significant stockholders (Yorktown and ECP) collectively own approximately **64% of common stock**, giving them control over stockholder approvals, and the company is a "controlled company" under NASDAQ rules[229](index=229&type=chunk)[244](index=244&type=chunk) [Unresolved Staff Comments](index=76&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[245](index=245&type=chunk) [Properties](index=76&type=section&id=Item%202.%20Properties) As of December 31, 2019, Ramaco controlled approximately 114,662 acres with **242 million tons** of primarily metallurgical coal reserves, verified by independent firms - At December 31, 2019, the company owned or controlled approximately **113,095 acres** of coal minerals in Virginia and West Virginia and **1,567 acres** in Pennsylvania[246](index=246&type=chunk) Coal Reserves by Project (as of Dec 31, 2019) | Project | Location | Mining Method | Proven (M tons) | Probable (M tons) | Total (M tons) | Status | Typical Met Coal Quality | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Elk Creek | WV | Underground, Highwall, Surface | 55 | 37 | 93 | Producing | High Volatile A, A/B, B | | Berwind | WV, VA | Underground | 30 | 19 | 50 | Producing | Low Volatile | | RAM Mine | PA | Underground | 2 | 3 | 5 | 2022 | High Volatile C | | Knox Creek | VA | Highwall, Underground | 81 | 14 | 94 | Producing | High Volatile A | | **Total** | | | **168** | **74** | **242** | | | - Economic recoverability of reserves was assessed using a three-year average historical benchmark price of approximately **$88/short ton** for semi-soft coking coal and **$104/short ton** for premium hard coking coal[255](index=255&type=chunk)[257](index=257&type=chunk) [Legal Proceedings](index=81&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in routine litigation, including a lawsuit against its insurer for a 2018 silo collapse, but expects no material adverse effects - The company is involved in routine litigation but does not expect any material adverse effects from pending cases[259](index=259&type=chunk) - The company filed a lawsuit against its insurer, Federal Insurance Company, seeking a declaratory judgment for coverage of a partial silo collapse that occurred on **November 5, 2018**[39](index=39&type=chunk)[428](index=428&type=chunk) [Mine Safety Disclosures](index=81&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures, as required by the Dodd-Frank Act, are included in Exhibit 95.1 of this annual report - Mine safety disclosures required by Section 1503(a) of the Dodd-Frank Act are included in Exhibit 95.1 to this annual report[260](index=260&type=chunk) Part II [Market for Registrant's Common Equity and Related Shareholder Matters](index=82&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%20and%20Related%20Shareholder%20Matters) The company's common stock trades on NASDAQ under "METC", with **37 holders of record** as of February 20, 2020, and no cash dividends have been paid - Common stock is listed on the NASDAQ Global Select Market under the symbol **"METC"**[263](index=263&type=chunk) - As of **February 20, 2020**, there were **37 holders of record**[263](index=263&type=chunk) - The company has never declared or paid cash dividends on its common stock[264](index=264&type=chunk) [Selected Financial Data](index=82&type=section&id=Item%206.%20Selected%20Financial%20Data) Selected historical financial data from 2015-2019 shows significant revenue growth to **$230.2 million** and net income of **$24.9 million** in 2019, with total assets reaching **$226.8 million** Selected Historical Financial Data (In thousands) | | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Income Statement Data:** | | | | | | | Revenue | $230,213 | $227,574 | $61,036 | $5,216 | $— | | Operating income (loss) | $29,532 | $24,096 | $(15,893) | $(7,530) | $(2,333) | | Net income (loss) | $24,934 | $25,074 | $(15,417) | $(7,515) | $(2,335) | | **Balance Sheet Data:** | | | | | | | Total Assets | $226,813 | $188,244 | $148,098 | $119,209 | $20,352 | | Total stockholders' equity | $170,083 | $141,109 | $113,397 | $83,788 | $6,660 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=84&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2019, revenue was **$230.2 million** with **$24.9 million** net income, **Adjusted EBITDA grew 31%** to **$55.4 million**, and **2020 sales contracts secured for 1.5 million tons** at **$93.29/ton** 2019 vs 2018 Performance Highlights (In thousands, except per ton data) | Metric | 2019 | 2018 | | :--- | :--- | :--- | | Revenue | $230,213 | $227,574 | | Net Income | $24,934 | $25,074 | | Adjusted EBITDA | $55,382 | $42,169 | | Total Tons Sold | 1,950 | 2,148 | | Company Produced Tons Sold | 1,872 | 1,721 | | Avg. Realized Price/Ton (Company Produced) | $109 | $92 | | Cash Cost/Ton (Company Produced) | $73 | $63 | - Metallurgical coal markets weakened in 2019 due to Chinese import restrictions and global economic concerns, with the emerging coronavirus outbreak noted as a new uncertainty for **2020 demand**[272](index=272&type=chunk)[273](index=273&type=chunk) - As of December 31, 2019, the company had fixed-price forward sales contracts for **1.5 million tons** of metallurgical coal for **2020** at an average price of **$93.29/ton FOB mine**[298](index=298&type=chunk) - Total liquidity as of December 31, 2019 was **$21.8 million**, consisting of cash and availability under its Revolving Credit Facility, with capital expenditures for **2020** anticipated to be between **$25 million and $30 million**[308](index=308&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=95&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is metallurgical coal price volatility, managed by cost control, with limited interest rate risk and indirect foreign exchange exposure - The company's primary market risk is from the volatility of metallurgical coal prices, which it manages by controlling mining costs rather than using derivatives[326](index=326&type=chunk) - Interest rate risk is considered low due to the company's limited debt position[327](index=327&type=chunk) - Foreign exchange risk is indirect; although sales are denominated in U.S. dollars, a stronger dollar can make the company's coal less competitive against non-U.S. suppliers[328](index=328&type=chunk) [Financial Statements and Supplementary Data](index=96&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited consolidated financial statements for 2017-2019, detailing financial position, operations, and cash flows, with **2019 total assets of $226.8 million** and **net income of $24.9 million** Consolidated Balance Sheet Highlights (In thousands) | | Dec 31, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | Total Current Assets | $44,323 | $35,019 | | Property, Plant and Equipment, net | $178,202 | $149,205 | | **Total Assets** | **$226,813** | **$188,244** | | Total Current Liabilities | $26,411 | $29,845 | | Total Liabilities | $56,730 | $47,135 | | **Total Stockholders' Equity** | **$170,083** | **$141,109** | Consolidated Income Statement Highlights (In thousands) | | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | Revenue | $230,213 | $227,574 | $61,036 | | Operating Income (Loss) | $29,532 | $24,096 | $(15,893) | | **Net Income (Loss)** | **$24,934** | **$25,074** | **$(15,417)** | - In 2019, sales to two customers accounted for approximately **42% of total revenue**, with their outstanding balance representing **58% of total accounts receivable** at year-end[388](index=388&type=chunk) - The company leases most of its coal reserves from Ramaco Coal, LLC, a related party, with royalty payments to this affiliate totaling **$9.0 million** in 2019[430](index=430&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=122&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants regarding accounting principles, practices, or financial disclosure - None[446](index=446&type=chunk) [Controls and Procedures](index=122&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2019, with no material changes reported - Management concluded that the company's disclosure controls and procedures were effective as of **December 31, 2019**[447](index=447&type=chunk) - Management's assessment concluded that internal control over financial reporting was effective as of **December 31, 2019**[448](index=448&type=chunk) [Other Information](index=122&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[451](index=451&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=123&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the **2020 Proxy Statement** - Information is incorporated by reference from the **2020 Proxy Statement**[454](index=454&type=chunk) [Executive Compensation](index=123&type=section&id=Item%2011.%20Executive%20Compensation) Information concerning executive compensation is incorporated by reference from the **2020 Proxy Statement** - Information is incorporated by reference from the **2020 Proxy Statement**[455](index=455&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=123&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership of beneficial owners and management is incorporated by reference from the **2020 Proxy Statement** - Information is incorporated by reference from the **2020 Proxy Statement**[456](index=456&type=chunk) [Certain Relationships and Related Persons Transactions](index=123&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Persons%20Transactions) Information concerning certain relationships and related person transactions is incorporated by reference from the **2020 Proxy Statement** - Information is incorporated by reference from the **2020 Proxy Statement**[457](index=457&type=chunk) [Principal Accountant Fees and Services](index=123&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the **2020 Proxy Statement** - Information is incorporated by reference from the **2020 Proxy Statement**[458](index=458&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=124&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements, schedules, and exhibits, including organizational documents, material contracts, incentive plans, and CEO/CFO certifications - The report includes the Consolidated Financial Statements and the Report of Independent Registered Public Accounting Firm[461](index=461&type=chunk) - Key exhibits filed include the Amended and Restated Certificate of Incorporation, various mineral lease agreements with affiliates, credit agreements with KeyBank, and the Long-Term Incentive Plan[461](index=461&type=chunk)[464](index=464&type=chunk)[472](index=472&type=chunk) - Certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act are included as exhibits[472](index=472&type=chunk)

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 September 30, 2019 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 | ...

[Filing Information](index=1&type=section&id=Filing%20Information) Details the company's quarterly report filing, including key identification numbers and stock information - RAMACO RESOURCES, INC. filed its Quarterly Report on Form 10-Q for the period ended June 30, 2019[2](index=2&type=chunk) Filing Details | Indicator | Value | | :--- | :--- | | Commission File Number | 001‑38003 | | State of Incorporation | Delaware | | IRS Employer ID No. | 38‑4018838 | | Common Stock Trading Symbol | METC | | Exchange | NASDAQ Global Select Market | | Shares Outstanding (as of Aug 3, 2019) | 40,942,581 | | Filer Status | Smaller reporting company, Emerging growth company | [Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) Warns investors about risks in forward-looking statements, as actual results may differ materially - This report contains forward-looking statements subject to risks, uncertainties, and assumptions related to coal development, production, gathering, and sale; investors are cautioned that actual results may differ materially[9](index=9&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk) - Key areas of forward-looking statements include anticipated production levels, costs, sales volumes, revenues, timing of capital projects, economic conditions in the steel and metallurgical coal industries, estimated coal reserves, financing, and compliance with regulations[10](index=10&type=chunk) [PART I. FINANCIAL INFORMATION](index=7&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) Presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) Presents Ramaco Resources, Inc.'s unaudited condensed consolidated financial statements and accompanying notes [Unaudited Condensed Consolidated Balance Sheets](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Details the company's financial position, including assets, liabilities, and stockholders' equity at period-end Condensed Consolidated Balance Sheets (In thousands) | (In thousands) | June 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **Assets** | | | | Total current assets | $49,837 | $35,019 | | Property, plant and equipment – net | $164,193 | $149,205 | | Total Assets | $218,137 | $188,244 | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $31,228 | $29,845 | | Long-term debt, net | $10,002 | $4,474 | | Total liabilities | $57,578 | $47,135 | | Total equity | $160,559 | $141,109 | | Total Liabilities and Stockholders' Equity | $218,137 | $188,244 | [Unaudited Condensed Consolidated Statements of Operations](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Presents the company's revenues, costs, expenses, net income, and earnings per share for the periods Condensed Consolidated Statements of Operations (In thousands) | (In thousands) | Three months ended June 30, 2019 | Three months ended June 30, 2018 | Six months ended June 30, 2019 | Six months ended June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $65,761 | $65,278 | $123,221 | $121,221 | | Total cost and expenses | $52,872 | $54,631 | $102,083 | $104,954 | | Operating income | $12,889 | $10,647 | $21,138 | $16,267 | | Net income | $10,613 | $10,204 | $17,496 | $15,470 | | Basic earnings per share | $0.26 | $0.25 | $0.43 | $0.39 | | Diluted earnings per share | $0.26 | $0.25 | $0.43 | $0.38 | [Unaudited Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Presents changes in the company's equity, including common stock, paid-in capital, and retained earnings Condensed Consolidated Statements of Stockholders' Equity (In thousands) | (In thousands) | Common Stock | Additional Paid-in Capital | Retained Earnings (Deficit) | Total Equity | | :--- | :--- | :--- | :--- | :--- | | Balance at January 1, 2019 | $401 | $150,926 | $(10,218) | $141,109 | | Equity-based compensation | $8 | $1,946 | — | $1,954 | | Net income | — | — | $17,496 | $17,496 | | Balance at June 30, 2019 | $409 | $152,872 | $7,278 | $160,559 | | Balance at January 1, 2018 | $396 | $148,293 | $(35,292) | $113,397 | | Equity-based compensation | $5 | $1,240 | — | $1,245 | | Net income | — | — | $15,470 | $15,470 | | Balance at June 30, 2018 | $401 | $149,533 | $(19,822) | $130,112 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Reports cash inflows and outflows from operating, investing, and financing activities for the periods Condensed Consolidated Statements of Cash Flows (In thousands) | (In thousands) | Six months ended June 30, 2019 | Six months ended June 30, 2018 | | :--- | :--- | :--- | | Net cash from operating activities | $13,114 | $8,111 | | Net cash from investing activities | $(19,737) | $(22,278) | | Net cash from financing activities | $5,213 | $14,144 | | Net change in cash and cash equivalents | $(1,410) | $(23) | | Cash and cash equivalents, end of period | $5,541 | $5,911 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Detailed explanations and disclosures on accounting policies, significant transactions, and financial balances - Ramaco Resources, Inc. operates as a developer and operator of high-quality, low-cost metallurgical coal in southern West Virginia, southwestern Virginia, and southwestern Pennsylvania[22](index=22&type=chunk) - The company adopted ASU 2016-02, Leases, on January 1, 2019, resulting in the recognition of **$0.3 million** in right-of-use assets and lease liabilities[35](index=35&type=chunk) Property, Plant and Equipment (In thousands) | Category | June 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Plant and equipment | $130,218 | $109,911 | | Construction in process | $10,252 | $12,066 | | Capitalized mine development cost | $48,413 | $43,037 | | Less accumulated depreciation and amortization | $(24,690) | $(15,809) | | Total property, plant and equipment, net | $164,193 | $149,205 | - The company entered into a Credit Facility on November 2, 2018, consisting of a **$10.0 million** term loan and a **$30.0 million** revolving line of credit; as of June 30, 2019, the outstanding principal balance of the Term Loan was **$7.1 million**, and **$8.0 million** was outstanding on the Revolving Credit Facility[40](index=40&type=chunk)[42](index=42&type=chunk) - Total compensation costs recognized for stock-based compensation were **$1.1 million** for the three months ended June 30, 2019, and **$2.0 million** for the six months ended June 30, 2019[45](index=45&type=chunk)[46](index=46&type=chunk) Revenue Disaggregation (In thousands) | Category | Three months ended June 30, 2019 | Three months ended June 30, 2018 | Six months ended June 30, 2019 | Six months ended June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | | Domestic revenues | $39,544 | $34,376 | $76,116 | $60,074 | | Export revenues | $26,217 | $30,902 | $47,105 | $61,147 | | Total revenues | $65,761 | $65,278 | $123,221 | $121,221 | - Income tax expense for the three months ended June 30, 2019, was **$2.2 million** (**17.0% effective rate**), up from **$0.6 million** (**5.9% effective rate**) in the prior year; for the six months, it was **$3.5 million** (**16.8%**) compared to **$1.4 million** (**8.2%**)[55](index=55&type=chunk) - The company has related party transactions including mineral lease and surface rights agreements with Ramaco Coal, LLC, and a Mutual Services Agreement for shared employee services[58](index=58&type=chunk)[60](index=60&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion and analysis of financial performance, operations, liquidity, and capital resources [Business Overview](index=20&type=section&id=Business%20Overview) Provides an overview of the company's core metallurgical coal business and relevant market conditions - Ramaco Resources, Inc. primarily sells metallurgical coal, with a **248-million-ton** reserve base as of December 31, 2018, and plans to grow production to over **4.0 million clean tons** in the next 3-4 years[62](index=62&type=chunk) - Metallurgical coal markets were strong in Q2 2019 but faced uncertainty in Q3 2019 due to China port restrictions and trade disputes, leading to a meaningful drop in prices[63](index=63&type=chunk) [Second Quarter 2019 Overview](index=20&type=section&id=Second%20Quarter%202019%20Overview) Summarizes key operational achievements and financial highlights for the second quarter of 2019 - The company completed remediation work on its Elk Creek plant silos, returning to full processing capacity by early August 2019[65](index=65&type=chunk) Q2 2019 Performance Highlights (In millions) | Metric | Q2 2019 | Q1 2019 Change | | :--- | :--- | :--- | | Revenue | $65.8 | +14% | | Clean Tons Produced | 476,000+ | N/A | | Net Income | $10.6 | +4% (YoY) | | EBITDA | $19.1 | +28% (YoY) | [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Analyzes the company's revenue, cost of sales, operating income, and net income for the periods Consolidated Statement of Operations Data (In thousands) | Metric | 3 Months Ended June 30, 2019 | 3 Months Ended June 30, 2018 | 6 Months Ended June 30, 2019 | 6 Months Ended June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $65,761 | $65,278 | $123,221 | $121,221 | | Cost of coal sales | $43,219 | $47,860 | $84,225 | $92,191 | | Operating income | $12,889 | $10,647 | $21,138 | $16,267 | | Net income | $10,613 | $10,204 | $17,496 | $15,470 | | Adjusted EBITDA | $19,093 | $14,933 | $32,778 | $24,154 | - For the three months ended June 30, 2019, revenue increased by approximately **$0.5 million** year-over-year due to higher realized prices, despite decreased sales of purchased coal; cost of sales decreased by **$4.7 million** primarily due to lower purchased-coal sales volume[67](index=67&type=chunk)[68](index=68&type=chunk) - Cash cost per ton sold for company-produced coal increased to approximately **$71** in Q2 2019 from **$56** in Q2 2018, driven by higher sales-related costs and adverse roof conditions at the Eagle mine[69](index=69&type=chunk) - For the six months ended June 30, 2019, revenue increased by approximately **$2.0 million** year-over-year; cost of sales decreased by **$8.0 million** due to lower purchased-coal sales volume; cash cost per ton for produced coal rose to **$69** from **$60**[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk) - Depreciation and amortization costs increased for both periods due to growth and expanded operations; selling, general and administrative expenses also rose, mainly due to increased stock-based compensation[71](index=71&type=chunk)[72](index=72&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) [Non-GAAP Financial Measures](index=23&type=section&id=Non-GAAP%20Financial%20Measures) Presents and reconciles non-GAAP financial measures, including Adjusted EBITDA, revenues, and cash cost per ton - Adjusted EBITDA is presented as a supplemental non-GAAP measure to evaluate operating performance, defined as net income (loss) plus net interest expense, stock-based compensation, depreciation and amortization, and transaction-related costs[83](index=83&type=chunk)[84](index=84&type=chunk) Adjusted EBITDA Reconciliation (In thousands) | Metric | 3 Months Ended June 30, 2019 | 3 Months Ended June 30, 2018 | 6 Months Ended June 30, 2019 | 6 Months Ended June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | | Net income | $10,613 | $10,204 | $17,496 | $15,470 | | EBITDA | $17,905 | $14,115 | $30,568 | $22,662 | | Adjusted EBITDA | $19,093 | $14,933 | $32,778 | $24,154 | Non-GAAP Revenues per Ton Sold (FOB mine) | Category | 3 Months Ended June 30, 2019 | 3 Months Ended June 30, 2018 | 6 Months Ended June 30, 2019 | 6 Months Ended June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | | Company Produced | $116 | $91 | $110 | $91 | | Purchased Coal | $123 | $101 | $125 | $101 | | Total | $116 | $93 | $111 | $93 | Non-GAAP Cash Cost per Ton Sold (FOB mine) | Category | 3 Months Ended June 30, 2019 | 3 Months Ended June 30, 2018 | 6 Months Ended June 30, 2019 | 6 Months Ended June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | | Company Produced | $70.76 | $56 | $69 | $60 | | Purchased Coal | $122 | $100 | $114 | $95 | | Total | $73 | $64 | $72 | $67 | [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses the company's cash flow, capital expenditures, debt, and ability to meet financial obligations Cash Flow Data (In thousands) | Metric | Six months ended June 30, 2019 | Six months ended June 30, 2018 | | :--- | :--- | :--- | | Cash flows from operating activities | $13,114 | $8,111 | | Cash flows from investing activities | $(19,737) | $(22,278) | | Cash flows from financing activities | $5,213 | $14,144 | | Net change in cash and cash equivalents | $(1,410) | $(23) | - Net cash from operating activities increased due to changes in operating assets and liabilities; net cash used in investing activities decreased, with capital expenditures totaling **$19.7 million** in H1 2019[90](index=90&type=chunk)[91](index=91&type=chunk) - Cash flows from financing activities in H1 2019 were **$5.2 million**, primarily from net borrowings of **$5.5 million**; the company's liquidity as of June 30, 2019, was **$26.7 million**[92](index=92&type=chunk)[95](index=95&type=chunk) - Management believes current cash, operating cash flow, and the Revolving Credit Facility will be sufficient for capital expenditures and operating plans, but future liquidity could be impacted by various market and operational risks[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk) [Off-Balance Sheet Arrangements](index=28&type=section&id=Off-Balance%20Sheet%20Arrangements) Confirms the absence of any material off-balance sheet arrangements impacting the company's financial position - As of June 30, 2019, the company had no material off-balance sheet arrangements[100](index=100&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's exposure to market risk has not materially changed since December 31, 2018, as referenced in its Annual Report on Form 10-K - The company's market risk exposure has not materially changed since December 31, 2018[101](index=101&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2019; no material internal control changes - The company's disclosure controls and procedures were effective as of June 30, 2019, providing reasonable assurance for timely and accurate reporting[102](index=102&type=chunk) - No significant changes in internal control over financial reporting occurred during the quarter ended June 30, 2019[104](index=104&type=chunk) [PART II. OTHER INFORMATION](index=29&type=section&id=PART%20II.%20OTHER%20INFORMATION) Provides additional information not in financial statements, covering legal proceedings, risk factors, and exhibits [Item 1. Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) Management believes no pending litigation or claims will materially affect the company's financial condition - Management believes no pending litigation, disputes, or claims will have a material adverse effect on the company's financial condition, cash flows, or results of operations[107](index=107&type=chunk) [Item 1A. Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes to risk factors have occurred since those described in the Annual Report[108](index=108&type=chunk) [Item 4. Mine Safety Disclosures](index=29&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Information regarding mine safety violations and regulatory matters is included in Exhibit 95.1 of this Quarterly Report - Mine safety disclosures are provided in Exhibit 95.1 of this report[109](index=109&type=chunk) [Item 6. Exhibits](index=29&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the Quarterly Report, including certifications, mine safety, and XBRL documents - Exhibits include certifications from the CEO and CFO (Sections 302 and 906 of Sarbanes-Oxley Act), Mine Safety Disclosure (Exhibit 95.1), and various XBRL Taxonomy Extension Documents[111](index=111&type=chunk)[112](index=112&type=chunk) [SIGNATURES](index=31&type=section&id=SIGNATURES) Confirms the official signing and submission of the quarterly report by executive and financial officers - The report was signed on August 13, 2019, by Michael D. Bauersachs, President and Chief Executive Officer, and Jeremy R. Sussman, Chief Financial Officer[114](index=114&type=chunk)[116](index=116&type=chunk)