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Ramaco Resources(METC) - 2024 Q3 - Quarterly Report
METCRamaco Resources(METC)2024-11-08 21:54
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Revenue Performance - The company sold 2.9 million tons of coal during the first nine months of 2024, generating 495.4millioninrevenue,aslightincreasefrom495.4 million in revenue, a slight increase from 490.8 million in the same period of 2023[96]. - Revenue for the three months ended September 30, 2024, was 167.4million,approximately10167.4 million, approximately 10% lower than the same period in 2023, driven by a 13% decrease in revenue per ton sold from 188 to 164[103].−CoalsalesrevenuefortheninemonthsendedSeptember30,2024was164[103]. - Coal sales revenue for the nine months ended September 30, 2024 was 495.4 million, approximately 1% higher than the same period in 2023, driven by a 16% increase in tons sold[111]. - Non-GAAP revenue (FOB mine) for the three months ended September 30, 2024, was 138,829,000,downfrom138,829,000, down from 156,533,000 in the prior year, reflecting a decrease of 17,704,000[138].−Non−GAAPrevenue(FOBmine)fortheninemonthsendedSeptember30,2024,was17,704,000[138]. - Non-GAAP revenue (FOB mine) for the nine months ended September 30, 2024, was 414,317,000, slightly down from 416,185,000inthesameperiodof2023,adecreaseof416,185,000 in the same period of 2023, a decrease of 1,868,000[138]. Cost and Expenses - The cost of sales for the three months ended September 30, 2024, was 134.7million,downfrom134.7 million, down from 144.6 million in the same period of 2023, reflecting a decrease in total cost of sales per ton sold from 145to145 to 132[102]. - Cost of coal sales for the nine months ended September 30, 2024 totaled 397.2million,a12397.2 million, a 12% increase compared to 354.4 million for the same period in 2023[113]. - Non-GAAP cash cost of sales for the three months ended September 30, 2024, was 104,573,000,comparedto104,573,000, compared to 112,803,000 in the same period of 2023, a decrease of 8,230,000[139].−Non−GAAPcashcostpertonsold(FOBmine)was8,230,000[139]. - Non-GAAP cash cost per ton sold (FOB mine) was 102 for the three months ended September 30, 2024, down from 113inthesameperiodof2023,adecreaseof113 in the same period of 2023, a decrease of 11[139]. Profitability - The company reported a net loss of 239,000forthethreemonthsendedSeptember30,2024,comparedtoanetincomeof239,000 for the three months ended September 30, 2024, compared to a net income of 19.5 million in the same period of 2023[101]. - The company’s adjusted EBITDA for the nine months ended September 30, 2024, was 76.6million,downfrom76.6 million, down from 123.7 million in the same period of 2023, impacted by softening global metallurgical coal markets[100]. - Adjusted EBITDA for the three months ended September 30, 2024, was 23,617,000,adecreasefrom23,617,000, a decrease from 45,407,000 in the same period of 2023[135]. - Adjusted EBITDA for the nine months ended September 30, 2024, was 76,596,000,comparedto76,596,000, compared to 123,675,000 in the same period of 2023, a decrease of 47,079,000[135].MarketConditions−Theglobalmetallurgicalcoalmarkethassoftenedin2024duetoconstrainedeconomicgrowthandincreasedsteelexportsfromChina,impactingpricinganddemand[95].−Thecompanyanticipatescontinuedvolatilityinmetallurgicalcoalpricesduetomacroeconomicconditionsandexpectslimitedglobalinvestmentinnewcokingcoalproductioncapacitytosupportfuturemarketrecovery[95].ProductionandResources−Thecompanyhas59millionreservetonsand1,119millionmeasuredandindicatedresourcetonsofhigh−qualitymetallurgicalcoal,withplanstogrowannualproductiontoapproximately7millioncleantonsinthemediumterm[93].−Thecompanyexpectstosatisfyapproximately3647,079,000[135]. Market Conditions - The global metallurgical coal market has softened in 2024 due to constrained economic growth and increased steel exports from China, impacting pricing and demand[95]. - The company anticipates continued volatility in metallurgical coal prices due to macroeconomic conditions and expects limited global investment in new coking coal production capacity to support future market recovery[95]. Production and Resources - The company has 59 million reserve tons and 1,119 million measured and indicated resource tons of high-quality metallurgical coal, with plans to grow annual production to approximately 7 million clean tons in the medium term[93]. - The company expects to satisfy approximately 36% of its outstanding performance obligations of 1.7 million tons in Q4 2024, with an average fixed sales price of 151 per ton[97]. Cash Flow and Financing - Cash flows provided by operating activities were 97.0millionduringthefirstninemonthsof2024,primarilydrivenbynetearningsadjustedfornon−cashexpenses[123].−Interestexpense,netwas97.0 million during the first nine months of 2024, primarily driven by net earnings adjusted for non-cash expenses[123]. - Interest expense, net was 4.5 million for the nine months ended September 30, 2024, a decrease from 7.3millionforthesameperiodin2023[117].−TheeffectivetaxratefortheninemonthsendedSeptember30,2024was287.3 million for the same period in 2023[117]. - The effective tax rate for the nine months ended September 30, 2024 was 28%, compared to 21% for the same period in 2023[118]. - The company had 22.9 million of cash and cash equivalents and 57.9millionofremainingavailabilityunderitsRevolvingCreditFacilityasofSeptember30,2024[122].−ThecompanyenteredintoanamendedcreditagreementtoextendthematuritydateandincreasethesizeofitsexistingRevolvingCreditFacilityto57.9 million of remaining availability under its Revolving Credit Facility as of September 30, 2024[122]. - The company entered into an amended credit agreement to extend the maturity date and increase the size of its existing Revolving Credit Facility to 200 million, with an accordion feature for an additional 75million[121].−Thecompanyanticipateslowercapitalspendinginthefourthquarterof2024asmostoftheannualgrowthcapitalexpendituresoccurredinthefirsthalfof2024[124].CapitalExpenditures−Capitalexpenditurestotaled75 million[121]. - The company anticipates lower capital spending in the fourth quarter of 2024 as most of the annual growth capital expenditures occurred in the first half of 2024[124]. Capital Expenditures - Capital expenditures totaled 57.9 million, including $12.3 million for the Maben preparation plant, which was commissioned in October 2024[124].