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Ramaco Resources(METCB) - 2024 Q3 - Quarterly Results
METCBRamaco Resources(METCB)2024-11-04 21:15

Financial Performance - For Q3 2024, Ramaco Resources reported adjusted EBITDA of 23.6million,downfrom23.6 million, down from 28.8 million in Q2 2024, and net income of (0.2)millioncomparedto(0.2) million compared to 5.5 million in Q2 2024 and 19.5millioninQ32023[2][3].−RevenueforthethreemonthsendedSeptember30,2024,was19.5 million in Q3 2023[2][3]. - Revenue for the three months ended September 30, 2024, was 167,411,000, a decrease of 10.4% compared to 186,966,000forthesameperiodin2023[51].−NetincomefortheninemonthsendedSeptember30,2024,was186,966,000 for the same period in 2023[51]. - Net income for the nine months ended September 30, 2024, was 7,334,000, down 86% from 52,275,000inthesameperiodof2023[56].−OperatingincomeforthethreemonthsendedSeptember30,2024,was52,275,000 in the same period of 2023[56]. - Operating income for the three months ended September 30, 2024, was 1,594,000, significantly lower than 16,081,000forthesameperiodin2023[51].−NetincomeforQ32024was16,081,000 for the same period in 2023[51]. - Net income for Q3 2024 was (239,000), a significant decrease compared to 5,541,000inQ22024and5,541,000 in Q2 2024 and 19,462,000 in Q3 2023[60]. - Adjusted EBITDA for Q3 2024 was 23,617,000,downfrom23,617,000, down from 28,798,000 in Q2 2024 and 45,407,000inQ32023[60].−Non−GAAPrevenueforQ32024was45,407,000 in Q3 2023[60]. - Non-GAAP revenue for Q3 2024 was 138,829,000, compared to 131,097,000inQ22024and131,097,000 in Q2 2024 and 156,533,000 in Q3 2023[62]. - The company reported a total of 495,403,000inrevenuefortheninemonthsendedSeptember30,2024,comparedto495,403,000 in revenue for the nine months ended September 30, 2024, compared to 490,795,000 for the same period in 2023[62]. Production and Sales - Total production for Q3 2024 was 972,000 tons, a 35% increase from the same period in 2023[31]. - Quarterly sales volume reached 1,023,000 tons, up from 915,000 tons in Q2 2024, reflecting an 8% sequential increase[34]. - Total sales commitments for 2024 reached 4.1 million tons, exceeding the high end of production guidance, with an average realized fixed price of 168pertonforNorthAmericancustomers[6][7].−For2025,totalsalescommitmentsare2.7milliontons,with1.6milliontonsatafixedpriceof168 per ton for North American customers[6][7]. - For 2025, total sales commitments are 2.7 million tons, with 1.6 million tons at a fixed price of 152 per ton, indicating a positive outlook for future sales[8][25]. - Full-year production guidance for 2024 is set between 3,700,000 and 3,900,000 tons, with sales volume guidance between 3,900,000 and 4,100,000 tons[43]. - Committed sales volume for 2024 totals 4.1 million tons, with an average price of 148perton[45].−TonssoldinQ32024were1,023,anincreasefrom915inQ22024and996inQ32023[62].CostManagement−Non−GAAPcashcostpertonsolddecreasedby148 per ton[45]. - Tons sold in Q3 2024 were 1,023, an increase from 915 in Q2 2024 and 996 in Q3 2023[62]. Cost Management - Non-GAAP cash cost per ton sold decreased by 6 to 102perton,withproductionincreasingby8102 per ton, with production increasing by 8% to 972,000 tons, achieving record sales of 1,023,000 tons in Q3 2024[3][4]. - Cash costs have declined from 120 per ton in March to 93pertoninSeptember,reflectinga2593 per ton in September, reflecting a 25% reduction throughout the year[10][19]. - Cash costs per ton sold were 102, a 10% decrease from 113inQ32023anddownfrom113 in Q3 2023 and down from 108 in Q2 2024[32][36]. - Cash margins were 34perton,downfrom34 per ton, down from 44 per ton in Q3 2023, reflecting a decrease in profitability[33]. - The company anticipates average annual mine costs of 90−95pertonfornewproductioninitiatives,includingtheElkCreekcomplexandBerwindmine[9][22].CapitalExpendituresandLiquidity−CapitalexpendituresforQ32024totaled90-95 per ton for new production initiatives, including the Elk Creek complex and Berwind mine[9][22]. Capital Expenditures and Liquidity - Capital expenditures for Q3 2024 totaled 17.8 million, slightly up from 16.9millioninQ32023butdownfrom16.9 million in Q3 2023 but down from 21.4 million in Q2 2024[38]. - The company expects capital expenditures to decline significantly in Q4 2024 due to the completion of new mining projects[39]. - As of September 30, 2024, the company had liquidity of 80.8million,anincreasefrom80.8 million, an increase from 71.3 million in Q2 2024[37]. - Capital expenditures for the nine months ended September 30, 2024, were 45,632,000,downfrom45,632,000, down from 64,924,000 in the same period of 2023[56]. Asset and Liability Management - Total current assets decreased to 146,673,000asofSeptember30,2024,from146,673,000 as of September 30, 2024, from 189,739,000 at the end of December 2023, representing a decline of 22.7%[54]. - Cash and cash equivalents decreased to 22,864,000from22,864,000 from 41,962,000, a decline of 45.5%[54]. - Total liabilities decreased to 283,571,000asofSeptember30,2024,from283,571,000 as of September 30, 2024, from 296,231,000 at the end of December 2023, a reduction of 4.3%[54]. - The company incurred interest expense of 4,509,000fortheninemonthsendedSeptember30,2024,comparedto4,509,000 for the nine months ended September 30, 2024, compared to 7,274,000 for the same period in 2023[51]. Future Initiatives - The company plans to construct a rare earth demonstration facility in mid to late 2025, with a preliminary techno-economic analysis expected in early December[14][27]. - Overall production and sales guidance for 2024 has been reduced by 0.2 million tons, with cash cost guidance adjusted to 106–106 – 109 per ton sold[11][12]. - Ramaco Resources expects to exit 2024 with record annual sales and production, positioning itself as a larger low-cost metallurgical coal producer[28].