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)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 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 (State or other jurisdi ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Exact name of registrant as specified in its charter) Delaware 38-4018838 (State or other jurisdiction of incorporation or organization) (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Comm ...