Up 400%, Down 70%: Why a $5 Million Bet on Ramaco Resources Signals Long-Term Conviction

Company Overview - Ramaco Resources operates a portfolio of mining assets across key Appalachian regions, supplying metallurgical coal to major steel producers in the U.S. and abroad. The company generates revenue primarily through the extraction and sale of coal to domestic and international steel producers and coke plants [6] - As of the latest financial data, Ramaco reported a total revenue of $579.5 million and a net income of -$32.9 million, with a dividend yield of 2% [5] Recent Developments - On November 14, Beck Capital Management disclosed a new position in Ramaco Resources, acquiring 151,835 shares valued at approximately $5 million, which accounts for 1.2% of the fund's $433.8 million in U.S. equity holdings [2][3] - The shares of Ramaco Resources were priced at $14.41, reflecting a 34% increase over the past year, outperforming the S&P 500, which increased by 15% during the same period [4] Financial Position - Ramaco's third-quarter results indicate record liquidity of $272 million and a net cash position of over $77 million, marking its strongest balance sheet on record. Cash costs remained competitive at $97 per ton, with adjusted EBITDA reported at $8.4 million despite declining benchmark coal prices [10] - The company is transitioning beyond coal, with plans to accelerate the development of its Brook Mine in Wyoming, aiming to produce approximately 3,400 tons per year of rare earth and critical mineral oxides, representing a 175% increase from prior expectations [11]