Ramaco Resources(US:METC)2025-10-27 20:15Financial Performance - The company reported a net loss of $(13.3) million and Class A diluted EPS of $(0.25) for Q3 2025, with Adjusted EBITDA of $8.4 million[5]. - Revenue for Q3 2025 was $121 million, down 21% from Q2 2025 and 28% from Q3 2024, while year-to-date revenue was $408.6 million, an 18% decrease compared to the previous year[36]. - The net loss for Q3 2025 was $13.3 million, a slight improvement from a loss of $14.0 million in Q2 2025, but significantly worse than a profit of $0.2 million in Q3 2024[36]. - Adjusted EBITDA for Q3 2025 was $8.4 million, down 7% from Q2 2025 and a 65% decline from $23.6 million in Q3 2024[36]. - For Q3 2025, the company reported a net loss of $13,308,000 compared to a net loss of $13,974,000 in Q2 2025 and a net income of $7,334,000 in Q3 2024[67]. - Adjusted EBITDA for Q3 2025 was $8,367,000, down from $9,005,000 in Q2 2025 and significantly lower than $76,596,000 in Q3 2024[67]. - Revenue for the three months ended September 30, 2025, was $120,996,000, a decrease of 28% compared to $167,411,000 for the same period in 2024[60]. Production and Sales - The company reported a total of 873,000 tons sold in Q3 2025, a decrease of 19% from Q2 2025 and a 15% decline from Q3 2024[36]. - Full-year 2025 production is now anticipated at 3.7 – 3.9 million tons, down from the previous estimate of 3.9 million tons, with sales expected at 3.8 – 4.1 million tons[16]. - Sales commitments for 2025 total 3.9 million tons, equating to 100% of the midpoint of the production guidance range, with an average realized fixed price of $151 per ton for North American customers[7]. - The Brook Mine's annual production level is now anticipated to be approximately 5 million tons of coal ore, with expected annual commercial production of 3,400 tons of rare earth and critical mineral oxides, a 175% increase from the previous level[7]. Costs and Margins - Non-GAAP cash cost per ton sold was $97, a $6 decline from Q2 2025, with cash margins per ton improving 15% despite a 6% decline in U.S. metallurgical coal indices[5]. - Cash costs per ton sold were $97 in Q3 2025, a 6% decrease from Q2 2025 and a 5% decrease from Q3 2024[36]. - Non-GAAP cash margins on tons sold were $23 in Q3 2025, compared to $20 in Q2 2025 and $34 in Q3 2024[69]. Liquidity and Capital Expenditures - The company ended Q3 2025 with record liquidity of $272 million and a net cash position of over $77 million, enabling acceleration of its transition into a dual-platform critical minerals company[5]. - The company maintained liquidity of $272.4 million as of September 30, 2025, representing a 237% increase compared to the same period in 2024[45]. - Capital expenditures for Q3 2025 totaled $16.6 million, compared to $15.1 million in Q2 2025 and $17.8 million in Q3 2024[47]. Strategic Initiatives - The company plans to establish a national strategic critical mineral terminal (SCMT) to stockpile rare earth and critical mineral oxides produced at the Brook Mine[25]. - The SCMT will provide long-term strategic stockpiling and inventory management solutions, anchoring the company's downstream operations[27]. - The company aims to be the largest upstream producer of rare earth and critical minerals in the U.S., with significant quantities of gallium, germanium, and scandium expected from the Brook Mine[7]. - The Prefeasibility Study by Hatch, Inc. is on schedule for completion in early 2026, with ongoing discussions for future sales of rare earths and critical minerals[7]. Challenges and Risks - The company anticipates challenges in ramping up production at its complexes in accordance with growth initiatives due to various external factors[57]. - The exploration targets at the Brook Mine are based on preliminary economic analysis and are subject to revision with additional data[58]. - The company does not guarantee the conversion of inferred mineral resources into mineral reserves, highlighting the uncertainty in its new initiatives[58]. - The company has made significant investments in developing rare earth capabilities at the Brook Mine, which is a new initiative with heightened risks and uncertainties[58]. Debt and Liabilities - The company reported total liabilities of $322,743,000 as of September 30, 2025, compared to $311,880,000 at the end of 2024[62]. - Total assets increased to $849,655,000 as of September 30, 2025, up from $674,686,000 as of December 31, 2024[62]. - Cash and cash equivalents rose significantly to $193,846,000 as of September 30, 2025, compared to $33,009,000 at the end of 2024[62].