Ramaco Resources(METCB) - 2024 Q1 - Quarterly Report

Sales Performance - The company sold 0.9 million tons of coal in Q1 2024, generating $172.7 million in revenue, a 4$166.4 million in Q1 2023, driven by a 23% increase in tons sold[108][114] - The average revenue per ton sold decreased by 15% from $220 in Q1 2023 to$186 in Q1 2024, primarily due to variability in index-based pricing for export sales[114] - Non-GAAP revenue (FOB mine) for Q1 2024 was $144,391,000, up from$141,914,000 in Q1 2023, while tons sold increased to 929,000 from 757,000[139] Cost and Expenses - The cost of sales increased by 26% to $139.7 million in Q1 2024, with the cost per ton sold rising 3$146 to $150[115] - Non-GAAP cash cost per ton sold (FOB mine) rose to$118 in Q1 2024 from $109 in Q1 2023, with total cost of sales increasing to$139,713,000 from $110,549,000[140] - Adjusted EBITDA for Q1 2024 was$24.2 million, significantly lower than $48.3 million in Q1 2023, reflecting lower margins on coal sales[112] Financial Position - Cash flows from operating activities were$25.2 million in Q1 2024, driven by net earnings adjusted for non-cash expenses[123] - The company had $30.5 million in cash and cash equivalents as of March 31, 2024, with an additional$65.3 million available under its Revolving Credit Facility[122] - The effective tax rate for Q1 2024 was 21%, compared to 18% in Q1 2023, influenced by state taxes and non-deductible expenses[121] Royalties and Fees - Total royalties for Q1 2024 were $4,054,000, a slight increase from$4,012,000 in Q4 2023, with Ramaco Coal royalties at $2,730,000 compared to$3,276,000 in the previous quarter[125] - Infrastructure fees totaled $6,429,000 in Q1 2024, down from$6,630,000 in Q4 2023, with preparation plants contributing $4,475,000 and rail load-outs contributing$1,954,000[125] Dividends and Capital Expenditures - The company declared cash dividends of $0.1375 per share for Class A and$0.2376 per share for Class B, payable on June 15, 2024[125] - Capital expenditures in Q1 2024 totaled $18.7 million, with expectations to spend approximately$53-63 million for the full year 2024[123] Future Outlook and Risks - Future liquidity may be impacted by macroeconomic conditions, potentially leading to reduced capital expenditures or funding through debt or equity securities[127] - The company filed a shelf registration statement for an aggregate initial offering price of up to $400 million, although there are no immediate plans to raise capital[128] - The company continues to face risks such as late payments from customers and cost overruns in equipment purchases, which could affect cash flow and operational capabilities[128] Strategic Initiatives - The company is assessing its rare earth elements deposit in Wyoming, indicating elevated levels of critical minerals, and is advancing new carbon product technologies[111] - The company had outstanding performance obligations of approximately 1.1 million tons with fixed sales prices averaging$168 per ton, expecting to satisfy 78% of these commitments in 2024[109][110] Adjusted Financial Metrics - Adjusted EBITDA for Q1 2024 was $24,180,000, significantly lower than$48,253,000 in Q1 2023, with net income dropping to $2,032,000 from$25,257,000[137]