Ramaco Resources(METC) - 2024 Q3 - Quarterly Results

Financial Performance - For Q3 2024, Ramaco Resources reported adjusted EBITDA of $23.6 million, down from $28.8 million in Q2 2024[2]. - The company had a net income of $(0.2) million for Q3 2024, compared to $5.5 million in Q2 2024 and $19.5 million in Q3 2023[2]. - Revenue for the three months ended September 30, 2024, was $167,411,000, a decrease of 10.4% compared to $186,966,000 for the same period in 2023[51]. - Operating income for the three months ended September 30, 2024, was $1,594,000, down 90.1% from $16,081,000 in the prior year[51]. - Net income for the nine months ended September 30, 2024, was $7,334,000, a decline of 86.0% compared to $52,275,000 for the same period in 2023[51]. - Adjusted EBITDA for Q3 2024 was $23,617,000, down from $28,798,000 in Q2 2024 and $45,407,000 in Q3 2023[60]. - Total revenue for Q3 2024 was $167,411,000, an increase from $155,315,000 in Q2 2024 but a decrease from $186,966,000 in Q3 2023[62]. Production and Sales - Overall production in Q3 2024 was 972,000 tons, a 35% increase from Q3 2023, with the Elk Creek complex producing 639,000 tons, up 59% year-over-year[31]. - Third quarter sales reached a record of 1,023,000 tons, marking a 12% increase from 996,000 tons in Q3 2023[4]. - Sales volume for Q3 2024 was 1,023,000 tons, up from 915,000 tons in Q2 2024, reflecting improved productivity[34]. - Committed sales volume for 2024 totals 4.1 million tons, with an average price of $148 per ton[45]. - Total sales commitments for 2024 stand at 4.1 million tons, exceeding the high end of production guidance[6]. - For 2025, total sales commitments are 2.7 million tons, with 1.6 million tons at a fixed price of $152 per ton[8]. Costs and Expenses - Non-GAAP cash cost per ton sold decreased by $6 to $102 per ton, with production increasing by 8% to 972,000 tons[3]. - Cash costs were $102 per ton sold, a 10% decrease from the same period in 2023, leading to cash margins of $34 per ton, down from $44 per ton in Q3 2023[33][36]. - Cash costs are expected to exit the year below $100 per ton, with a reduction in guidance to $106 – $109 per ton sold[12]. - The company anticipates average annual mine costs of $90-95 per ton for new production initiatives[9]. - Transportation costs for Q3 2024 were $28,551,000, an increase from $22,872,000 in Q2 2024 and $30,254,000 in Q3 2023[63]. - Capital expenditures for Q3 2024 totaled $17.8 million, slightly up from $16.9 million in Q3 2023, with year-to-date capital expenditures at $54.9 million[38]. Liquidity and Assets - As of September 30, 2024, the company had liquidity of $80.8 million, up from $71.3 million in Q2 2024[37]. - Total assets decreased to $645,395,000 as of September 30, 2024, from $665,836,000 at the end of 2023[54]. - Cash and cash equivalents decreased to $22,864,000 as of September 30, 2024, down from $41,962,000 at the end of 2023[54]. - Net cash from operating activities for the nine months ended September 30, 2024, was $96,983,000, compared to $119,476,000 for the same period in 2023[56]. - Total liabilities decreased to $283,571,000 as of September 30, 2024, from $296,231,000 at the end of 2023[54]. - Proceeds from borrowings increased to $136,500,000 for the nine months ended September 30, 2024, compared to $95,000,000 in the same period of 2023[56]. Market Conditions - U.S. metallurgical coal indices fell by $15 per ton, or 7%, in Q3 2024 compared to Q2 2024, and by $25 per ton, or 12%, compared to Q3 2023[5]. - Quarterly pricing was $136 per ton, down 13% from $157 per ton in Q3 2023, attributed to a decrease in U.S. and global metallurgical coal price indices[32]. - Non-GAAP revenue per ton sold (FOB mine) decreased to $136 in Q3 2024 from $143 in Q2 2024 and $157 in Q3 2023[62]. - Non-GAAP revenue for Q3 2024 was $138,829,000, compared to $131,097,000 in Q2 2024 and $156,533,000 in Q3 2023[62]. Future Outlook - Full-year 2024 production guidance 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]. - The company anticipates a meaningful decline in capital expenditures in Q4 2024 due to the completion of the Ram 3 and Stonecoal Alma mines[39]. - Progress continues on the rare earth and critical minerals project at the Brook Mine, with a preliminary techno-economic analysis expected in early December[14].