Revenue and Sales 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 sales volume from 3.5 million tons to 4.0 million tons [497]. - The average revenue per ton sold decreased by 17% from $201 in 2023 to $167 in 2024, driven by volatility in index-based pricing for export sales [498]. - Non-GAAP revenue (FOB mine) decreased to $559.3 million in 2024 from $588.6 million in 2023, a decline of $29.4 million or 5% [515]. - Tons sold increased to 3.99 million in 2024, up by 534,000 tons or 15.5% from 3.46 million tons in 2023 [515]. - Total revenue for 2024 was $666,295, a decrease of 3.9% from $693,524 in 2023 [615]. Income and Profitability - Net income for 2024 was $11.2 million, significantly lower than $82.3 million in 2023, primarily due to decreased metallurgical coal price indices [494]. - Adjusted EBITDA for 2024 was $105.8 million, down from $182.1 million in 2023, reflecting the impact of lower coal prices and macroeconomic factors [494]. - Operating income decreased to $16,636 in 2024, compared to $95,245 in 2023, reflecting a decline of 82.5% [615]. - Net income for 2024 decreased to $11.2 million from $82.3 million in 2023, representing a decline of 86.4% [512]. - The company reported a basic earnings per share of $0.11 for Class A shares in 2024, down from $1.06 in 2023 [615]. 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]. - The Company expects capital expenditures of approximately $60-70 million in 2025, including roughly $20 million for growth capital related to increasing production at the Elk Creek Complex and Berwind mine [551]. - The Company spent $68.8 million on capital additions in 2024, down from $82.9 million in 2023, reflecting substantial progress in production growth initiatives [550]. 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 repaid $38.2 million more in acquisition-related financing in 2023 compared to 2024, resulting in a net cash used for financing activities decrease of $31.7 million [524]. - The Company had no valuation allowance for deferred income taxes as of December 31, 2024 [574]. Assets and Liabilities - Total current assets decreased to $167,634 in 2024 from $189,739 in 2023, a decline of 11.6% [613]. - Total liabilities increased to $311,880 in 2024, up from $296,231 in 2023, an increase of 5.3% [613]. - The Company’s total costs and expenses increased to $649,659 in 2024 from $598,279 in 2023, an increase of 8.6% [615]. - The Company has a total of $158.4 million in significant contractual obligations as of December 31, 2024, with $20.2 million due in the next year [552]. Production and Operational Performance - 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]. - Cost of sales increased by approximately 8% to $533.3 million in 2024, with cost per ton sold decreasing by 6% from $143 in 2023 to $134 in 2024 [500]. - Total inventories increased to $43,358,000 in 2024 from $37,163,000 in 2023, representing a growth of about 16% [633]. Market Conditions and Future Outlook - The company expects metallurgical coal prices to remain volatile in the near term due to macroeconomic conditions and reduced steel demand [498]. - The company is exposed to fluctuations in market pricing due to its shift towards more export sales, which increases revenue volatility [581]. - The company continues to assess its rare earth elements and critical minerals deposit in Wyoming, with plans to begin construction of a pilot processing facility in mid to late 2025 [491]. Internal Controls and Compliance - 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 had no significant uncertain tax positions requiring liability recognition as of December 31, 2024, and 2023, indicating a strong compliance position [655].
Ramaco Resources(METCB) - 2024 Q4 - Annual Report