Ramaco Resources(METCB) - 2024 Q2 - Quarterly Report

Revenue and Sales Performance - The company sold 1.8 million tons of coal in the first six months of 2024, generating $328.0 million in revenue, a 7.9$303.8 million in the same period of 2023[78]. - Revenue for the three months ended June 30, 2024, was $155.3 million, approximately 13$328.0 million, approximately 8% higher than the same period in 2023, driven by a 25% increase in tons sold[90]. - Total revenue for the six months ended June 30, 2024, was $327,991,000, an increase of$24,162,000 from $303,829,000 in the same period of 2023[109]. - The company sold 915,000 tons of coal in Q2 2024, a 28$122.8 million, up from $99.2 million in the same period of 2023, reflecting a$23.6 million increase[83]. - Cost of coal sales totaled $262.5 million for the six months ended June 30, 2024, a 25$209.7 million for the same period in 2023[91]. - Depreciation, depletion, and amortization expense totaled $31.1 million for the six months ended June 30, 2024, compared to$25.4 million for the same period in 2023[92]. - Selling, general, and administrative expenses were $25.0 million for the six months ended June 30, 2024, down from$26.1 million for the same period in 2023[92]. - Non-GAAP cash cost of sales for the three months ended June 30, 2024, was $98,469,000, an increase of$19,572,000 from $78,897,000 in the same period of 2023[110]. Profitability and Income - The net income for the six months ended June 30, 2024, was$7.6 million, compared to $32.8 million for the same period in 2023, reflecting the impact of softening global metallurgical coal markets[82]. - The company reported net income of$5,541,000 for the three months ended June 30, 2024, compared to $7,556,000 for the same period in 2023, indicating a decrease of$2,015,000[108]. - Adjusted EBITDA for the three months ended June 30, 2024, was $28,798,000, compared to$30,014,000 for the same period in 2023, reflecting a decrease of $1,216,000[108]. Pricing and Market Conditions - The average revenue per ton sold decreased from$192 in Q2 2023 to $170 in Q2 2024, a decline of 11$206 per ton for the six months ended June 30, 2023, to $178 per ton for the same period in 2024[90]. - Non-GAAP revenue per ton sold (FOB mine) decreased to$143 in the three months ended June 30, 2024, down from $165 in the same period of 2023, a decrease of$22[109]. Future Outlook and Investments - The company expects to satisfy approximately 62% of its outstanding performance obligations of 1.0 million tons at an average fixed sales price of $165 per ton in the second half of 2024[79]. - The company anticipates growing annual production to approximately 7 million clean tons of metallurgical coal in the medium term, subject to market conditions and capital deployment[75]. - The company is progressing in the assessment of its rare earth and critical minerals deposit in Wyoming, with elevated levels of rare earth elements and plans for a demonstration processing facility in 2025[80]. - Capital expenditures totaled$40.1 million, including expenditures related to the preparation plant and expansion of the Maben complex[99]. Cash Flow and Financial Health - Cash flows provided by operating activities were $59.6 million during the first six months of 2024[97]. - Interest expense, net was$2.8 million for the six months ended June 30, 2024, compared to $4.8 million for the same period in 2023[93]. - The effective tax rate for the six months ended June 30, 2024, was 24.5$108 for the three months ended June 30, 2024, a slight decrease of $2 from$110 in the same period of 2023[110]. Off-Balance Sheet Arrangements - The company had no material changes in off-balance sheet arrangements during the first six months of 2024[106].