Ramaco Resources(METCB) - 2024 Q2 - Quarterly Results

Financial Performance - For Q2 2024, the Company reported adjusted EBITDA of $28.8 million, a 19% increase from Q1 2024's$ 24.2 million[2] - Net income for Q2 2024 was $5.5 million, up 173% from$ 2.0 million in Q1 2024, with Class A diluted EPS at $0.08 compared to$ 0.00 in Q1 2024[2] - Revenue for the three months ended June 30, 2024, was $155,315,000, an increase of 12.9% compared to$ 137,469,000 for the same period in 2023[34] - Net income for the six months ended June 30, 2024, was $7,573,000, down 76.9% from$ 32,813,000 for the same period in 2023[34] - Operating income for the three months ended June 30, 2024, was $5,415,000, a decrease of 46.1% compared to$ 10,046,000 for the same period in 2023[34] - Total revenue for Q2 2024 was $155,315,000, down from$ 172,676,000 in Q1 2024 but up from $137,469,000 in Q2 2023[43] Production and Sales - Overall production for the second quarter of 2024 was 901,000 tons, a 3% increase year-over-year[19] - Total sales commitments for 2024 are 4.0 million tons, exceeding the low-end of production guidance, with 2.8 million tons committed at an average realized price of$ 155 per ton[4] - The Company anticipates third quarter coal shipments of 900,000 to 1,050,000 tons and expects to exit the year with a run rate above 5 million tons[6] - The Company has committed 1.25 million tons of its 2025 production at an average price above $150 per ton, primarily from multi-year index-linked export contracts[4] - Tons sold in Q2 2024 were 915, a slight decrease from 929 in Q1 2024 and an increase from 715 in Q2 2023[43] Costs and Expenses - Non-GAAP cash cost per ton sold decreased by$ 10 to $108 per ton, while production increased by 7% to over 900,000 tons[3] - Cash costs were$ 108 per ton sold, a 2% decrease from the same period in 2023, resulting in cash margins of $35 per ton, down from$ 55 per ton year-over-year[20] - Total costs and expenses for the three months ended June 30, 2024, were $149,900,000, an increase of 17.6% from$ 127,423,000 for the same period in 2023[34] - Cost of sales for Q2 2024 was $122,770,000, down from$ 139,713,000 in Q1 2024 and up from $99,199,000 in Q2 2023[44] - Non-GAAP cash cost of sales for Q2 2024 was$ 98,469,000, compared to $109,465,000 in Q1 2024 and$ 78,897,000 in Q2 2023[44] Capital and Liquidity - The company had liquidity of $71.3 million as of June 30, 2024, up from$ 62.8 million in the same period of 2023[23] - Capital expenditures for the quarter totaled $21.4 million, a decrease from$ 24.5 million in the same period of 2023, with expectations for a meaningful decline in the second half of 2024[23] - Capital expenditures for the six months ended June 30, 2024, were $32,833,000, down from$ 48,016,000 for the same period in 2023[38] - Proceeds from borrowings for the six months ended June 30, 2024, were $96,500,000, compared to$ 77,500,000 for the same period in 2023[38] Operational Developments - The prep plant at Maben is expected to be fully operational in Q4 2024, reducing trucking costs by approximately $40 per ton[5] - The Company is progressing on its rare earth and critical mineral project at the Brook Mine, with a techno-economic analysis being prepared by Fluor Corporation[7] - The company operates four active metallurgical coal mining complexes and is developing a rare earth and coal mine in Wyoming, with significant discoveries announced in 2023[30] Tax and Financial Ratios - The effective tax rate for the quarter was 26%, excluding a favorable impact of discrete tax items[24]