Ramaco Resources(METC)2025-03-17 21:23Financial Performance - The company reported revenue of $666.3 million for 2024, a decrease of approximately 4% compared to $693.5 million in 2023, despite an increase in coal sales volume from 3.5 million tons to 4.0 million tons [497]. - Net income for 2024 was $11.2 million, significantly lower than $82.3 million in 2023, influenced by decreased metallurgical coal price indices and prior year insurance proceeds [494]. - Adjusted EBITDA for 2024 was $105.8 million, down from $182.1 million in 2023, reflecting the impact of lower coal prices despite increased sales volume [494]. - Total revenue for 2024 was $666.3 million, a decrease of 3.9% from $693.5 million in 2023 [615]. - Operating income decreased significantly to $16.6 million in 2024 from $95.2 million in 2023, reflecting a decline of 82.5% [615]. - Net income for 2024 decreased to $11,192,000 from $82,313,000 in 2023, representing a decline of approximately 86.4% [622]. - Cash flows provided by operating activities decreased by $48.4 million to $112.7 million in 2024 compared to $161.0 million in 2023 [522]. Sales and Production - The average revenue per ton sold decreased by 17% from $201 in 2023 to $167 in 2024, primarily due to volatility in index-based pricing for export sales [498]. - The company produced 3.7 million tons of coal in 2024, an increase from 3.2 million tons in 2023, with expectations for 2025 production volumes between 4.2 and 4.6 million tons [489]. - The company entered into forward sales contracts for approximately 1.5 million tons at an average fixed price of $152 per ton for North American customers [517]. - During 2024, sales to two customers accounted for 22% of total revenue, a decrease from 41% in 2023, indicating improved customer diversification [661]. Capital Expenditures and Investments - Total capital expenditures for 2024 were $68.8 million, down from $82.9 million in 2023, reflecting progress on strategic growth projects [488]. - Capital expenditures for 2024 were $55,236,000, compared to $82,904,000 in 2023, indicating a reduction of about 33.6% [622]. - The Company anticipates capital expenditures of approximately $60-70 million in 2025, including about $20 million for growth capital at the Elk Creek Complex and Berwind mine [551]. - The company continues to explore rare earth elements and critical minerals in Wyoming, with a $6.1 million matching grant received for developing a pilot processing facility expected to begin construction in mid to late 2025 [491]. Costs and Expenses - Cost of sales increased by approximately 8% to $533.3 million in 2024, with cost per ton sold decreasing from $143 in 2023 to $134 in 2024 [500]. - Non-GAAP cash cost per ton sold (FOB mine) improved to $105 in 2024 from $110 in 2023, a decrease of $5 [516]. - Cash paid for interest decreased to $4,756,000 in 2024 from $8,113,000 in 2023, a decline of about 41.5% [622]. - Total depreciation, depletion, and amortization for 2024 was $65.615 million, up from $54.252 million in 2023, reflecting a year-over-year increase of approximately 20.5% [674]. Debt and Financing - Interest expense decreased to approximately $6.1 million in 2024 from $8.9 million in 2023, primarily due to debt repayment from previous acquisitions [507]. - The company completed a debt offering of $57.5 million in Senior Unsecured Notes due 2029, with an interest rate of 8.375% per annum [535]. - The Company had total liabilities for finance leases amounting to $13.7 million, with $6.2 million due in 2025 and $7.5 million due thereafter [540]. - The Company entered into an amended Revolving Credit Facility with a maturity date of May 3, 2029, providing an initial commitment of $200 million and an accordion feature for an additional $75 million [540]. Assets and Liabilities - Total current assets decreased to $167.6 million in 2024 from $189.7 million in 2023, a reduction of 11.6% [613]. - Total liabilities increased to $311.9 million in 2024, up from $296.2 million in 2023, marking a rise of 5.3% [613]. - The total stockholders' equity decreased to $362.8 million in 2024 from $369.6 million in 2023, a decline of 1.9% [613]. - The total liability for asset retirement obligations was $31.1 million at December 31, 2024, reflecting estimates of future reclamation costs [555]. Compliance and Internal Controls - The Company has identified a material weakness in internal control over financial reporting due to insufficient accounting resources [600]. - The Company’s internal control over financial reporting was not effective as of December 31, 2024, based on the criteria established by COSO [598]. - The Company is in compliance with all debt covenants under the Revolving Credit Facility, including maintaining a fixed charge coverage ratio of not less than 1.10:1.00 [544]. Strategic Initiatives - The company plans to focus on new product development and market expansion strategies in the upcoming fiscal year [615]. - The acquisition of Ramaco Coal is expected to reduce royalty expenses and support the company's expansion into advanced carbon products and materials from coal [536]. - The company has ongoing initiatives for the potential recovery of rare earth elements from coal and carbonaceous ore [624]. - The company is involved in collaborative arrangements with government researchers related to Wyoming initiatives [624].