Financial Performance - For Q3 2024, Ramaco Resources reported adjusted EBITDA of $23.6 million, down from $28.8 million in Q2 2024, and net income of $(0.2) million compared to $5.5 million in Q2 2024 and $19.5 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 $186,966,000 for the same period in 2023[51]. - Net income for the nine months ended September 30, 2024, was $7,334,000, down 86% from $52,275,000 in the same period of 2023[56]. - Operating income for the three months ended September 30, 2024, was $1,594,000, significantly lower than $16,081,000 for the same period in 2023[51]. - Net income for Q3 2024 was $(239,000), a significant decrease compared to $5,541,000 in Q2 2024 and $19,462,000 in Q3 2023[60]. - 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]. - 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]. - The company reported a total of $495,403,000 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 $168 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 $148 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 $102 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 $93 per ton in September, reflecting a 25% reduction throughout the year[10][19]. - Cash costs per ton sold were $102, a 10% decrease from $113 in Q3 2023 and down from $108 in Q2 2024[32][36]. - Cash margins were $34 per ton, down from $44 per ton in Q3 2023, reflecting a decrease in profitability[33]. - The company anticipates average annual mine costs of $90-95 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 $16.9 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 $80.8 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, down from $64,924,000 in the same period of 2023[56]. Asset and Liability Management - Total current assets decreased to $146,673,000 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 $22,864,000 from $41,962,000, a decline of 45.5%[54]. - Total liabilities decreased to $283,571,000 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 $4,509,000 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 – $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].
Ramaco Resources(METCB) - 2024 Q3 - Quarterly Results