Financial 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[36]. - The company recognized a net loss of $13.3 million in Q3 2025, an improvement of 5% from Q2 2025 but a significant decline from a net income of $7.3 million in Q3 2024[36]. - Adjusted EBITDA for Q3 2025 was $8.4 million, a 7% decrease from Q2 2025 and a 65% decline from Q3 2024[36]. - 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]. - Net loss for the nine months ended September 30, 2025, was $36,741,000, compared to a net income of $7,334,000 for the same period in 2024[64]. Production and Sales - 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]. - 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 to be 3.8 – 4.1 million tons[16]. - 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]. - The average revenue per ton in Q3 2025 was $120, down 2% from Q2 2025 and 12% from Q3 2024[49]. - Total tons sold in Q3 2025 were 873, compared to 1,079 in Q2 2025 and 1,023 in Q3 2024[69]. Costs and Margins - Non-GAAP cash cost per ton sold was $97, a $6 decline from Q2 2025, with cash margins per ton improving by 15% despite a 6% decline in U.S. metallurgical coal indices[5]. - Cash costs for Q3 2025 were $97 per ton, a 6% decrease from Q2 2025 and a 5% decrease from Q3 2024[36]. - Non-GAAP cash margins on tons sold improved to $23 in Q3 2025 from $20 in Q2 2025 but decreased from $34 in Q3 2024[69]. - The company reported a total cost of sales of $101,842,000 in Q3 2025, down from $132,264,000 in Q2 2025 and $133,368,000 in Q3 2024[69]. Liquidity and Capital Expenditures - Record liquidity of $272 million and a net cash position of over $77 million were achieved by the end of Q3 2025, enabling the 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 Brook Mine's annual production level is now anticipated to be approximately 5 million tons of coal ore, with an expected increase in rare earth and critical mineral oxides production to 3,400 tons per year, a 175% increase from the previous level[7]. - The Strategic Critical Minerals Terminal (SCMT) will be developed to stockpile rare earth and critical mineral oxides, anchoring the Company's downstream operations[25]. - The Prefeasibility Study by Hatch, Inc. is on schedule for completion in early 2026, supporting the development of the Brook Mine's processing capabilities[7]. - The company is actively engaging with federal and state officials to enlarge the existing approved Brook Mine permit to accommodate increased feedstock production[13]. - The company is focusing on the rapid commercialization of rare earth elements and critical minerals while keeping growth capital minimal in the metallurgical coal business[34]. Risks and Challenges - 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]. Interest and Other Financial Metrics - The company incurred interest expense of $2,250,000 in Q3 2025, down from $2,818,000 in Q2 2025 and up from $1,696,000 in Q3 2024[67]. - Adjusted EBITDA is used as a supplemental non-GAAP financial measure to evaluate operating performance more effectively[65]. - The company expects to continue monitoring changes in coal prices and costs, emphasizing the importance of non-GAAP measures for financial performance assessment[68].
Ramaco Resources(METCB) - 2025 Q3 - Quarterly Results