Ramaco Resources(METCB) - 2024 Q3 - Quarterly Report

Revenue and Sales Performance - The company sold 2.9 million tons of coal during the first nine months of 2024, generating $495.4 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 $167.4 million, approximately 10$188 to $164[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]. - Revenue per ton sold decreased 13% from $199 per ton for the nine months ended September 30, 2023, to$173 per ton for the same period in 2024[111]. - Non-GAAP revenue (FOB mine) for the three months ended September 30, 2024, was $138,829,000, down from$156,533,000 in the prior year, reflecting a decrease of $17,704,000[138]. - Non-GAAP revenue (FOB mine) for the nine months ended September 30, 2024, was$414,317,000, slightly down from $416,185,000 in the same period of 2023, a decrease of$1,868,000[138]. Costs and Expenses - Total costs and expenses for the nine months ended September 30, 2024, were $485.1 million, compared to$432.8 million in the same period of 2023, reflecting increased costs of sales[101]. - Cost of coal sales for the nine months ended September 30, 2024, totaled $397.2 million, a 12$354.4 million for the same period in 2023[113]. - Cost of sales for the three months ended September 30, 2024, was $134,731,000, down from$144,635,000 in the same period of 2023, a decrease of $9,904,000[139]. - Non-GAAP cash cost of sales for the three months ended September 30, 2024, was$104,573,000, compared to $112,803,000 in the same period of 2023, a decrease of$8,230,000[139]. - Non-GAAP cash cost of sales for the nine months ended September 30, 2024, was $312,511,000, compared to$274,233,000 in the same period of 2023, an increase of $38,278,000[139]. Profitability and Financial Results - The company reported a net loss of$239,000 for the three months ended September 30, 2024, compared to a net income of $19.5 million in the same period of 2023[100]. - The company’s adjusted EBITDA for the nine months ended September 30, 2024, was$76.6 million, down from $123.7 million in the same period of 2023, impacted by softening coal markets[100]. - Adjusted EBITDA for the three months ended September 30, 2024, was$23,617,000, 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, compared to $123,675,000 in the same period of 2023, a decrease of$47,079,000[135]. Market Conditions and Future Outlook - 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 expects to satisfy approximately 36% of its outstanding performance obligations of 1.7 million tons with fixed sales prices averaging $151 per ton in Q4 2024[97]. - The company continues to assess its potential rare earth and critical minerals deposit in Wyoming, with elevated levels of rare earth elements and plans for a demonstration processing facility by mid to late 2025[98]. - The company is focused on potential acquisitions of reserves or infrastructure to maintain its competitive edge in geology and cost[93]. Cash Flow and Capital Expenditures - Cash flows provided by operating activities were$97.0 million during the first nine months of 2024, primarily driven by net earnings adjusted for non-cash expenses[123]. - Capital expenditures totaled $57.9 million, including$12.3 million for the Maben preparation plant, which was commissioned in October 2024[124]. - 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]. Debt and Financial Position - Interest expense, net, decreased from $7.3 million for the nine months ended September 30, 2023, to$4.5 million for the same period in 2024[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$57.9 million of remaining availability under its Revolving Credit Facility as of September 30, 2024[122]. Securities and Registration - The company filed a shelf registration statement to sell securities at an aggregate initial offering price of up to $400.0 million on September 1, 2023[130].