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RAMACO RESOURCES REPORTS FOURTH QUARTER AND FULL-YEAR 2024 RESULTS
METCRamaco Resources(METC) Prnewswire·2025-03-10 20:40

Core Viewpoint - Ramaco Resources, Inc. reported strong operational and financial results for Q4 and full-year 2024, achieving record sales and improved cash costs despite a challenging market environment for metallurgical coal [1][7][10]. Financial Performance - Adjusted EBITDA for Q4 2024 was 29.2million,a2429.2 million, a 24% increase from Q3 2024, and a significant decline of 50% year-over-year [7][26]. - Net income for Q4 2024 was 3.9 million, compared to a loss of 0.2millioninQ32024,markinga 1,7000.2 million in Q3 2024, marking a ~1,700% increase [7][26]. - Total tons sold in Q4 2024 reached 1.1 million, a 10% increase from Q3 2024 and a 14% increase year-over-year [26][30]. Production and Costs - The company experienced a 25% decline in costs throughout 2024, with cash costs per ton sold decreasing to 96, down from 102inQ32024[4][30].−ProductionforQ42024was954,000tons,a28102 in Q3 2024 [4][30]. - Production for Q4 2024 was 954,000 tons, a 28% increase from the same period in 2023, driven by the Elk Creek complex [29][30]. - The Elk Creek complex produced a record 672,000 tons, up 63% year-over-year [29]. Market Commentary and Outlook - Total sales commitments for 2025 are currently at 3.5 million tons, equating to 80% of the midpoint of production guidance [3]. - U.S. metallurgical coal indices fell by 12 per ton quarter-over-quarter in Q4 2024, representing a 6% decline [7][30]. - Despite weak steel demand, there are expectations for potential price increases in the second half of 2025 due to supply-side constraints [13][14]. Rare Earths and Critical Minerals - The company is progressing on its rare earth and critical minerals project at the Brook Mine in Wyoming, with minimal costs incurred since acquisition [8][21]. - A 6.1millionmatchinggrantfromtheWyomingEnergyAuthorityhasbeenreceivedtosupportthedevelopmentofthepilotplant[24].−Preliminarytestingresultscontinuetoconfirmtheproject′sfeasibility,withfurtherupdatesexpectedinQ22025[22][23].BalanceSheetandLiquidity−AsofDecember31,2024,thecompanymaintainedrecordliquidityof6.1 million matching grant from the Wyoming Energy Authority has been received to support the development of the pilot plant [24]. - Preliminary testing results continue to confirm the project's feasibility, with further updates expected in Q2 2025 [22][23]. Balance Sheet and Liquidity - As of December 31, 2024, the company maintained record liquidity of 137.8 million, a 50% increase from the previous year [34]. - Capital expenditures for Q4 2024 totaled 11.9million,downfrom11.9 million, down from 18 million in Q4 2023, reflecting the completion of growth projects [35]. Guidance - The company anticipates production for 2025 to be between 4.2 million and 4.6 million tons, with cash costs per ton sold expected to range from 97to97 to 103 [37][38]. - The effective tax rate is projected to be between 25% and 30% for 2025 [38].