Core Viewpoint - Ramaco Resources, Inc. successfully closed a public offering of Class A common stock, raising approximately $200 million to fund its development projects and strategic growth opportunities [1][3]. Group 1: Offering Details - The company sold 10,666,667 shares of Class A common stock at a price of $18.75 per share, resulting in gross proceeds of around $200 million before expenses [1]. - Yorktown Energy Partners, as selling stockholders, granted underwriters a 30-day option to purchase additional shares worth up to $30 million, which was fully exercised [2]. - The sale of additional shares is expected to be completed on August 8, 2025, with no proceeds going to the company from this sale [2]. Group 2: Use of Proceeds - The net proceeds from the offering will be utilized to accelerate the development of the company's rare earth elements and critical minerals project, as well as for strategic growth opportunities and general corporate purposes [3]. Group 3: Company Overview - Ramaco Resources operates in southern West Virginia and southwestern Virginia, focusing on high-quality metallurgical coal and developing rare earth and critical minerals in Wyoming [6]. - The company has four active metallurgical coal mining complexes and is in the initial stages of production for a rare earth and coal mine in Wyoming, where a significant deposit of primary magnetic rare earths was discovered [6].

Core Insights - NACCO Industries reported consolidated revenues of $68.2 million for Q2 2025, a 30% increase compared to Q2 2024, but faced operational challenges leading to a decline in net income and operating profit [2][7][20] - The company anticipates improved profitability in the second half of 2025, despite lower expected full-year results compared to 2024 due to prior year business interruption insurance income [20][21] Financial Performance - Revenues for Q2 2025 were $68,235 thousand, up from $52,345 thousand in Q2 2024, marking a $15,890 thousand increase [2][34] - Operating profit decreased to $(51) thousand in Q2 2025 from $7,366 thousand in Q2 2024, a decline of $7,417 thousand [2][34] - Net income fell to $3,260 thousand in Q2 2025 from $5,972 thousand in Q2 2024, a decrease of $2,712 thousand [2][34] - Diluted EPS decreased to $0.44 in Q2 2025 from $0.81 in Q2 2024 [2][34] - Consolidated EBITDA for Q2 2025 was $9,259 thousand, down from $13,508 thousand in Q2 2024, a decline of $4,249 thousand [2][34] Segment Performance - Utility Coal Mining segment revenues increased to $28,626 thousand in Q2 2025 from $14,996 thousand in Q2 2024, while operating profit decreased to $(1,701) thousand from $(1,142) thousand [6][36] - Contract Mining segment revenues rose to $30,723 thousand in Q2 2025 from $27,920 thousand in Q2 2024, but operating profit fell to $1,010 thousand from $3,085 thousand [13][36] - Minerals and Royalties segment revenues increased to $7,268 thousand in Q2 2025 from $5,593 thousand in Q2 2024, with operating profit decreasing to $5,205 thousand from $7,591 thousand [16][36] Liquidity and Capital Structure - As of June 30, 2025, total debt outstanding was $95.5 million, with total liquidity of $139.9 million, including $49.4 million in cash [4] - The company paid $1.9 million in dividends during Q2 2025 and had $7.8 million remaining under its $20 million share repurchase program [4] Strategic Outlook - NACCO is positioned for growth, focusing on long-term contracts and operational efficiencies to enhance profitability [18][19] - The company plans to invest up to $86 million in capital expenditures in 2025, primarily for business development [28] - The Minerals and Royalties segment is expected to benefit from a recent acquisition of mineral interests valued at $4.2 million, enhancing future cash flows [26]

Financial Performance - Revenue decreased by 25% to $2975 million for the three months ended June 30, 2025, compared to $3965 million in 2024[17] - Net income decreased by 92% to $56 million for the three months ended June 30, 2025, compared to $707 million in 2024[17] - Adjusted EBITDA decreased by 54% to $536 million for the three months ended June 30, 2025, compared to $1159 million in 2024[17] - For the six months ended June 30, 2025, the company recorded a net loss of $26 million, a 101% change compared to a net income of $2077 million in 2024[21] - Revenue decreased by 34% to $5975 million for the six months ended June 30, 2025, from $9000 million in 2024[21] - Adjusted EBITDA decreased by 71% to $931 million for the six months ended June 30, 2025, compared to $3161 million in 2024[21] Production and Sales - Coal production increased by 6% to 2308 thousand short tons for the three months ended June 30, 2025, compared to 2172 thousand short tons in 2024[17] - Coal sales increased by 6% to 2219 thousand short tons for the three months ended June 30, 2025, compared to 2098 thousand short tons in 2024[17] - Coal production increased by 8% to 4562 thousand short tons for the six months ended June 30, 2025, compared to 4223 thousand short tons in 2024[21] - Coal sales increased by 4% to 4391 thousand short tons for the six months ended June 30, 2025, compared to 4227 thousand short tons in 2024[21] Blue Creek Project - The company achieved commercial sales of 239 thousand short tons of Blue Creek steelmaking coal ahead of schedule[10] - The company invested $518 million in the continued development of Blue Creek, bringing the total project-to-date capital expenditures to $8235 million[12] - The longwall startup at Blue Creek is accelerated to early first quarter of 2026[11]

Core Viewpoint - Ramaco Resources, Inc. has announced an upsized underwritten public offering of Class A common stock, aiming to raise approximately $200 million through the sale of 10,666,667 shares at a price of $18.75 per share [1][3]. Offering Details - The offering includes a 30-day option for underwriters to purchase an additional $30 million of Class A common stock at the public offering price [2]. - The offering is expected to close on August 7, 2025, pending customary closing conditions [3]. Use of Proceeds - The net proceeds from the offering will be utilized to accelerate the development of the company's rare earth elements and critical minerals project, pursue strategic growth opportunities, and for general corporate purposes [3]. Company Background - Ramaco Resources, Inc. operates in southern West Virginia and southwestern Virginia, focusing on high-quality, low-cost metallurgical coal and is developing coal, rare earth, and critical minerals in Wyoming [7]. - The company has four active metallurgical coal mining complexes and is in the initial stages of production for a rare earth and coal mine in Wyoming, where a significant deposit of primary magnetic rare earths was discovered [7].

Core Viewpoint - Ramaco Resources, Inc. has initiated a $150 million underwritten public offering of its Class A common stock to fund the development of its rare earth elements and critical minerals project, along with other strategic growth opportunities and general corporate purposes [1][2]. Group 1: Offering Details - The offering includes a 30-day option for underwriters to purchase an additional $22.5 million of Class A common stock at the public offering price, less underwriting discounts [1]. - Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC are the lead joint book-running managers for the offering [3]. - A shelf registration statement for the offered securities was filed with the SEC and became effective on August 5, 2025 [4]. Group 2: Use of Proceeds - The net proceeds from the offering will be used to accelerate the development of the company's rare earth elements and critical minerals project, pursue strategic growth opportunities, and for general corporate purposes [2]. Group 3: Company Overview - Ramaco Resources operates and develops high-quality, low-cost metallurgical coal in southern West Virginia and southwestern Virginia, and is also a developing producer of coal, rare earth, and critical minerals in Wyoming [6]. - The company has four active metallurgical coal mining complexes in Central Appalachia and is in the initial stages of production at a rare earth and coal mine near Sheridan, Wyoming [6]. - In 2023, a major deposit of primary magnetic rare earths and critical minerals was discovered at the Wyoming mine, and the company holds approximately 76 intellectual property patents and related agreements [6].

Financial Performance - The company reported a net loss of $366 million, or $070 per diluted share, but adjusted EBITDA of $1443 million, which included $212 million of fire extinguishment expense at Leer South[7] - Net cash provided by operating activities was $2202 million, and free cash flow was $1311 million[7] - Adjusted EBITDA increased by 17% quarter-over-quarter, rising from $1235 million in Q1 to $1443 million in Q2[14, 15] - Free cash flow increased significantly from $491 million in Q1 to $1311 million in Q2[15] Capital Allocation - The company returned $871 million to investors through share repurchases and dividends in Q2, bringing the year-to-date total to $1937 million[7] - $819 million was invested to repurchase 12 million shares, representing approximately 2% of shares outstanding, at an average price of $6964 per share during Q2[21] - Year-to-date, $1832 million has been invested to repurchase 26 million shares, or about 5% of shares outstanding[21] - As of June 30, 2025, $8168 million remained authorized under the $1 billion share repurchase program[21] Operational Highlights - The company is targeting annual cost savings and operating synergies between $150 million and $170 million following the merger[7, 22] - Powder River Basin segment achieved sales volumes of 126 million tons[16] - High calorific value thermal segment cash cost of coal sold decreased by 8% quarter-over-quarter, from $4278 to $3947 per ton[30]

Core Financial Performance - Core Natural Resources reported a net loss of $36.6 million, or $0.70 per diluted share, for Q2 2025, with revenues totaling $1,102.4 million [1][2] - The company generated net cash provided by operating activities of $220.2 million and free cash flow of $131.1 million during the same period [8][11] - Core returned $87.1 million to stockholders through share buybacks and dividends [2][10] Operational Highlights - The high c.v. thermal coal segment saw an 18% increase in sales volumes compared to Q1 2025, achieving realized coal revenue per ton sold of $60.50 [3][4] - The metallurgical segment's coking coal sales remained stable at 1.9 million tons, with realized coal revenue per ton sold of $114.71 [4] - The Powder River Basin segment reported sales volumes of 12.6 million tons, with realized coal revenue per ton sold of $14.69 [5] Synergy and Cost Management - Core increased its annual synergy target to between $150 million and $170 million, representing a 30% increase at the midpoint compared to initial guidance [6][7] - The company is focused on capturing identified synergies and reducing average operating costs to enhance operating margins [7] Capital Return Strategy - Core's capital return framework aims to return approximately 75% of free cash flow to stockholders, primarily through share repurchases and a quarterly dividend of $0.10 per share [7][10] - As of June 30, 2025, Core had $816.8 million remaining under its $1.0 billion share repurchase program [9] Leer South Mine Update - The Leer South mine is currently not in production due to a longwall outage, with expected costs of $20 million to $30 million for fire extinguishment and idle mine costs in Q3 2025 [15][14] - Core anticipates insurance recoveries exceeding $100 million related to the developments at Leer South [15] Market and Policy Developments - The company is capitalizing on a strong book of committed thermal business amid a gradual recovery in domestic thermal coal demand [16][17] - Recent policy developments under the Trump Administration aim to reduce regulatory burdens on coal power plants and enhance the competitiveness of U.S. coal [19][21]

Financial Data and Key Metrics Changes - In Q2 2025, the company reported a cash cost per ton sold of $103, which is a decrease from $108 in 2024, indicating improved efficiency [22][50] - Adjusted EBITDA for Q2 was $9 million, down from $10 million in Q1, with a net loss of $14 million compared to a loss of $9 million in Q1 [52][54] - The company anticipates full year 2025 production at the low end of the previous range of 3.9 million to 4.3 million tons, and sales at the low end of 4.1 million to 4.5 million tons [54][56] Business Line Data and Key Metrics Changes - The metallurgical coal benchmark prices dropped approximately 25% year-on-year, impacting revenue despite record production levels [20][52] - The company achieved a record level of quarterly production with tons sold reaching 1.1 million in Q2, up from 900,000 in Q1 [51] - The Brook Mine, focused on rare earths and critical minerals, is expected to begin pilot plant operations in the fall, with commercial production anticipated by 2027, accelerated from 2028 [11][32][56] Market Data and Key Metrics Changes - Chinese coking coal prices surged 38% in July, indicating a potential recovery in the market, while U.S. met coal producers have reduced production due to pricing pressures [20][34] - The Australian Premium Low Vol Index increased to $183.2 per ton, reflecting a recovery from earlier lows [35] - The company expects U.S. apparent steel consumption to rebound by 3% to 4% in 2026, supporting met coal pricing [38] Company Strategy and Development Direction - The company is transitioning to a dual platform model, producing both metallurgical coal and rare earths, aiming to enhance its market position and growth trajectory [6][25] - Plans to expand rare earth mine production to exceed the currently permitted 2.5 million tons per annum and to increase oxide processing capacity [7][11] - The company is actively engaging with U.S. government agencies to support the development of its critical minerals business, emphasizing national security [13][66] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding pricing recovery in the met coal market, driven by improved fundamentals in China and India [23][34] - The company is focused on optimizing production and sales strategies to avoid lower-margin spot sales, particularly in Asia [54][87] - Management highlighted the importance of government support for domestic critical mineral production to level the playing field against foreign competition [64][66] Other Important Information - The Brook Mine has a defined TREO base of 1.7 million tons, with ongoing exploration expected to expand reserves [8][10] - The company has received a five-year renewal of its mining permit for the Brook Mine, allowing continued development [48] - The preliminary economic analysis from Fluor indicates a pre-tax net present value of $1.2 billion for the Brook Mine project, with an IRR of 38% [55] Q&A Session Summary Question: Impact on quality mix and sales mix between domestic and export - Management confirmed no expected impact on quality and indicated a sales mix of roughly two-thirds seaborne and one-third domestic [60][61] Question: Estimated savings from the production tax credit - Management estimated savings in the range of $15 million per year on EBITDA from the production tax credit [62] Question: Discussions with the administration regarding price support for critical minerals - Management acknowledged ongoing discussions with the government but did not provide specifics, emphasizing the need for support to counteract foreign pricing manipulation [64][66] Question: Price assumptions for scandium and balancing supply with demand - Management indicated that demand for scandium is expected to grow significantly if a Western source is established, with discussions suggesting potential market growth [70][72] Question: Key growth drivers in the scandium market - Management identified the aerospace industry as a primary end user for scandium, with potential applications in automotive and other sectors [80][81]

Financial Performance & Production - Ramaco reported revenue of $666 million and adjusted EBITDA of $106 million for the key 2024 metrics[11] - The company's sales volume reached 4 million tons[11] - Ramaco's net debt to adjusted EBITDA is less than 1.2x[11] - The company anticipates growing production at least 5% vs 2024[36] Cost Management - Ramaco's cash costs of $101 per ton in 1H25 were among the lowest of its publicly traded peer group[13] - Ramaco's 2Q25 cash costs were $103/ton[23] - The company's low cash costs per ton places it in the first quartile of the US cost curve[24] Rare Earth Elements (REE) Opportunity - The Brook Mine is expected to produce approximately 1,240 tons of rare earths and critical minerals annually[14,75] - Over 40% of the total estimated REO basket consists of primary magnetic REOs, gallium, germanium, and scandium[58] - The Brook Mine's revenue is estimated at $378 million, with $143 million EBITDA (38% margin) at steady state[71,75] - The company estimates a ~$12 billion NPV assuming an 8% discount rate[75]

Financial Data and Key Metrics Changes - The company reported a GAAP net loss attributable to common stockholders of $27.6 million or $0.23 per diluted share, while generating adjusted EBITDA of $93 million [21][22] - Operating cash flow was $23 million, with cash at the end of the quarter amounting to $586 million and nearly $1 billion in liquidity [22][28] Business Line Data and Key Metrics Changes - The Seaborne Thermal segment recorded adjusted EBITDA of $33.5 million with 17% margins, despite a loss of 400,000 tons due to port congestion [22] - The Seaborne Metallurgical segment reported an adjusted EBITDA loss of $9.2 million, with 23% lower average realized prices year over year [23] - The US thermal mines generated $57 million of adjusted EBITDA, demonstrating stable free cash flows and low capital requirements [23] Market Data and Key Metrics Changes - In the US, coal fuel generation increased by 15% compared to 2024, driven by high natural gas prices and growing electricity demand [12] - Customer stockpiles decreased by 15 million tons, an 11% reduction from the previous year, indicating tightening supply and demand fundamentals [13] - Seaborne thermal coal markets are supported by hot summer weather in Asia, leading to reduced stockpiles and stronger bids [15] Company Strategy and Development Direction - The company is accelerating longwall operations at its Centurion mine, targeting startup in February 2026, reflecting strong execution across operations [5][6] - Recent US legislation is expected to provide significant benefits, including a reduction in federal royalty rates from 12.5% to 7%, anticipated to generate $15 million to $20 million in net benefits [8][9] - The company aims to manage the cyclicality of the market to capture outsized free cash flow when prices improve [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the US coal market, citing strong demand and supportive legislation [7][11] - The company noted that while the seaborne price environment remains challenging, it is well-positioned to navigate these conditions [20] - Management highlighted the importance of controlling costs and maintaining a strong balance sheet during cyclical downturns [20] Other Important Information - The company is in discussions regarding the acquisition of assets from Anglo American, with ongoing disagreements over the material adverse change (MAC) status of the Moranbah North mine [29][48] - The company is advancing its rare earth element evaluation program in the Powder River Basin, with initial studies indicating potential elevated levels of rare earth elements [81] Q&A Session Summary Question: Can you provide more details on the MAC situation with Anglo? - Management expressed confidence in their MAC position, citing significant monthly carrying costs and uncertainty regarding the mine's restart [35][36] Question: What is the status of discussions with Anglo? - Management confirmed ongoing respectful discussions but noted a fundamental disagreement over the impact of the MAC [47][48] Question: What should investors expect on August 19 regarding the MAC? - Management stated that the 90-day period to cure the MAC will conclude on that date, at which point they have the right to terminate the agreement [56] Question: Can you clarify the impact of the new royalty rate on costs? - The new royalty rate is included in the guidance, with expected benefits to costs in the second half of the year [68] Question: What is the expected benefit from the production tax credit for Shoal Creek? - The production tax credit is expected to provide savings of over $5 million annually, starting in 2026 [75] Question: How much cash is unrestricted and available to the company? - The company confirmed that the total cash of $586 million is unrestricted and fully available [89]