Core Insights - Ramaco Resources, Inc. has appointed former U.S. Senator Joseph Manchin III as an independent member of its Board of Directors effective April 18, 2025, bringing significant experience in energy policy and economic development [1][2]. Company Overview - Ramaco Resources, Inc. is a leading producer of high-quality, low-cost metallurgical coal in southern West Virginia and southwestern Virginia, and is also developing coal, rare earth, and critical minerals in Wyoming [5]. - The company operates four active metallurgical coal mining complexes in Central Appalachia and is in the initial stages of production at a coal mine and rare earth development site near Sheridan, Wyoming [5]. - In 2023, Ramaco announced the discovery of a major deposit of primary magnetic rare earths and critical minerals at its Wyoming mine [5]. Strategic Importance of Appointment - Senator Manchin's extensive background in national defense and critical mineral supply chains is expected to provide valuable strategic advice as Ramaco advances its rare earth element development in Wyoming [3]. - His advocacy for metallurgical coal and the U.S. mining industry aligns with Ramaco's mission to secure America's energy and industrial future [4]. Leadership Perspective - Randall Atkins, Chairman and CEO of Ramaco, expressed that Senator Manchin's experience and insight will be invaluable as the company expands its role in developing domestically sourced minerals critical to national security [4]. - Senator Manchin highlighted the importance of coal in shaping communities and powering the nation, emphasizing his commitment to supporting Ramaco's initiatives in metallurgical coal production and critical mineral development [4].

Core Viewpoint - Ramaco Resources, Inc. has appointed former U.S. Senator Joseph Manchin III as an independent member of its Board of Directors, effective April 18, 2025, bringing significant experience in energy policy and economic development to the company [1][2]. Group 1: Appointment and Background - Senator Manchin has extensive experience in energy policy, having served as a U.S. Senator, West Virginia Governor, and chairman of the Senate Energy and Natural Resources Committee, making him a strong advocate for the U.S. coal industry [2][3]. - His background includes membership in the Senate Appropriations and Armed Services Committees, further enhancing his understanding of national issues [2]. Group 2: Strategic Importance - Manchin's expertise will be crucial as Ramaco advances its rare earth element development in Wyoming, particularly in the context of national defense and critical mineral supply chains [3]. - His long-standing efforts to develop domestic critical mineral resources align with the company's goals to support America's economic and national security [3]. Group 3: Company Overview - Ramaco Resources operates in southern West Virginia and southwestern Virginia, focusing on high-quality, low-cost metallurgical coal and developing coal, rare earth, and critical minerals in Wyoming [5]. - The company has four active metallurgical coal mining complexes in Central Appalachia and is in the initial stages of production for a coal mine and rare earth development near Sheridan, Wyoming [5]. - In 2023, Ramaco discovered a major deposit of primary magnetic rare earths and critical minerals at its Wyoming mine, indicating significant growth potential [5].

Core Insights - The U.S. is experiencing a surge in electricity demand driven by AI, electric vehicles, and reindustrialization efforts, prompting a political push to revive the coal industry [1][3] - Despite this political revival, the long-term economic viability of coal is questioned, with a significant shift towards renewable energy sources being observed [5][15] Group 1: Coal Industry Developments - President Trump signed an executive order to revive the coal industry, reclassifying coal as a critical mineral and facilitating mining and coal-fired electricity support [2] - Peabody Energy Corporation, the largest U.S. coal producer, saw a 9.21% increase in stock price recently, although its value has dropped nearly 60% since Election Day [4] Group 2: Economic Viability of Coal - The levelized cost of electricity (LCOE) for new coal plants is more than double that of solar, wind, and natural gas, indicating coal's struggle to compete on cost [6] - Coal's share of power generation in advanced economies has been declining since 2007, with U.S. coal consumption falling 4% last year and fossil fuels' share of the electricity mix dropping below 50% for the first time [7][11] Group 3: Renewable Energy Trends - Renewable energy capacity additions surged by 25% last year, with solar expected to account for over half of new generating capacity in the U.S. this year [12] - Renewables are now cheaper than operating most existing coal plants, with 99% of U.S. coal plants potentially replaceable by new solar or wind at a lower cost [13] Group 4: Future Energy Consumption - Electricity consumption by data centers is projected to more than double by 2030, highlighting the need for sustainable energy solutions rather than reliance on coal [14] - The global transition to cleaner energy is underway, and investors are encouraged to follow the data and trends in renewable energy [15]

Group 1: Executive Orders and Industry Support - The CEO of Ramaco Resources, Randall Atkins, will discuss President Trump's recent executive orders that support the U.S. coal industry, emphasizing its importance to national security [2] - The executive orders direct the Department of Energy to promote new technological uses of coal and consider classifying metallurgical coal as a critical mineral [2] - The National Coal Council has been re-established by Secretary of Energy Chris Wright, which had its charter terminated under the previous administration [2] Group 2: Brook Mine Development - Ramaco Resources is developing the Brook Mine in Wyoming, which is the first new critical mineral and rare earth element mine in the U.S. in over 50 years [4] - The Brook Mine is recognized as the largest unconventional deposit of rare earth elements in the United States, containing critical minerals essential for technology and defense [4] - The mine has been highlighted in a Wall Street Journal article, which estimates its potential value at $37 billion [5] 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 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 for a coal mine and rare earth development near Sheridan, Wyoming [6] - In 2023, a significant deposit of primary magnetic rare earths and critical minerals was discovered at the Wyoming mine, alongside a carbon research and pilot facility [6]

Core Insights - High-quality dividend stocks have historically outperformed non-payers, with an annualized return of 9.17% compared to 4.27% over the past 50 years [3] - The current market conditions, including a correction in major indices, make dividend stocks an attractive investment option [4] Group 1: Annaly Capital Management - Annaly Capital Management offers a yield of 13.79%, averaging around 10% over the last two decades, and has declared approximately $27 billion in dividends since its IPO in 1997 [5] - The company is sensitive to interest rate changes, with recent increases in the federal funds rate impacting its net interest margin and book value [6] - The Federal Reserve's current rate-easing cycle may benefit Annaly, allowing it to adjust its asset portfolio for better profitability [7] - Annaly's portfolio primarily consists of agency securities, which provide a safety net and allow for leverage to enhance profitability [8] - With improving yield-curve conditions and historical performance during declining interest rates, Annaly's financial metrics are expected to improve [9] Group 2: Realty Income - Realty Income has a yield of 5.56% and has increased its dividend for 110 consecutive quarters, positioning it well for long-term growth despite recession concerns [11] - The company's portfolio includes 15,621 commercial real estate properties, with 91% being resilient to economic downturns [12] - Realty Income's lessees are primarily brand-name businesses, ensuring consistent traffic and rental income even during economic challenges [12] - The company has a low percentage of lessees failing to pay rent, and its funds from operations are predictable [13] - Realty Income's shares are currently trading at a 22% discount to their five-year average cash flow multiple, indicating potential value [14] Group 3: Alliance Resource Partners - Alliance Resource Partners offers a yield of 10.26%, which has been sustainable despite the industry's challenges [15] - The company has successfully locked in volume and price commitments, ensuring consistent cash flow [17] - Alliance Resource has maintained a conservative approach to production expansion, resulting in a low net debt of $221.4 million [18] - The diversification into oil and natural gas royalties allows the company to benefit from price increases in these commodities [19] - The stock is valued at approximately 8.5 times forward-year earnings, presenting a solid investment opportunity [19]

Financial Data and Key Metrics Changes - In Q4 2024, consolidated revenue was $94.8 million, down from $104.8 million in Q3 and $119.2 million in the prior year period [19] - The net loss for Q4 was $215.8 million, compared to a net income of $1.6 million in Q3 and a net loss of $10.2 million in the prior year period, primarily due to a non-cash impairment charge of approximately $215 million related to the Sunrise coal subsidiary [20] - Operating cash flow increased to $38.9 million in Q4 from an operating cash used of $12.9 million in Q3 [20] - Adjusted EBITDA for Q4 was $6.2 million, down from $9.6 million in Q3 [20] Business Line Data and Key Metrics Changes - Electric sales in Q4 were $69.7 million, down from $71.7 million in Q3 and up from $37.1 million in the prior year period [19] - Coal sales were $23.4 million in Q4, down from $31.7 million in Q3 and $91.7 million in the prior year period, reflecting a strategic reduction in coal production [19] - Hallador Power generated 1,160,000 megawatt hours in Q4, a 5% increase from 1,100,000 megawatt hours in Q3 [17] Market Data and Key Metrics Changes - The forward energy and capacity sales position increased to $685.7 million as of December 31, 2024, compared to $616.9 million at the end of Q3 [21] - Total forward sales book as of December 31, 2024, was $1.6 billion, up from $1.4 billion at the end of Q3 [21] Company Strategy and Development Direction - The company is transitioning from a traditional coal producer to a vertically integrated power producer, aligning with market trends favoring the IPP model [6] - Strategic partnerships are being pursued, including a non-binding term sheet with a global data center developer, which is expected to drive long-term value [6][7] - The company is actively evaluating additional strategic transactions to expand electric operations and enhance scale [14][15] Management's Comments on Operating Environment and Future Outlook - Management noted the ongoing trend of retiring dispatchable generation in favor of non-dispatchable resources, which could enhance the value of Hallador Power [8] - The company anticipates favorable pricing trends for power sales in 2025 and beyond, driven by data center development efforts [10][12] - Management expressed optimism about capturing higher prices and energy volumes in the future, despite current market volatility [13] Other Important Information - The company completed its annual impairment analysis, resulting in a non-cash long-lived asset impairment charge of $215.1 million [9] - Capital expenditures for 2024 totaled $53.4 million, with expectations of approximately $66 million for 2025 [20][21] Q&A Session Summary Question: Regulatory and review process with the grid operator - Management highlighted multiple access requests from developers, indicating a favorable environment for potential sales [24][25] Question: Remaining items before a definitive agreement - Management indicated that while progress has been made, a deal is not finalized until signed, with an exclusivity agreement in place until June [27] Question: Co-firing requirements and capital intensity - Current laws require coal-fired plants to co-fire with natural gas by 2032, and feasibility studies are underway [29] Question: Acquisition of generating assets - Management is exploring opportunities across various states, emphasizing a case-by-case evaluation of potential acquisitions [33][44] Question: Pricing expectations for deals - Management expects to maintain a premium to forward curves due to increasing demand from data centers and hyperscalers [51] Question: Capacity payments in long-term agreements - Capacity payments are expected to cover fixed costs of the plant, estimated at around $60 million [62]

INVESTOR PRESENTATION Fourth Quarter and Full Year 2024 Results 1 DISCLAIMER Forward Looking Statements: The information in this presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements, other than statements of historical fact included in this presentation, regarding our strategy, future operations, financial pos ...

Financial Data and Key Metrics Changes - The fourth quarter of 2024 was the strongest quarter of the year for the company, with adjusted EBITDA of $29 million compared to $24 million in Q3, and net income of $4 million compared to breakeven in Q3 [25][30] - Cash margins remained at $33 per tonne, down just $2 per tonne since Q2, despite a nearly $30 drop in met coal prices between Q2 and Q4 [7][25] - Liquidity at year-end was approximately $140 million, marking a more than 50% increase year-on-year and the highest year-end liquidity in company history [30][31] Business Line Data and Key Metrics Changes - Record tons sold were achieved, with a run rate of 4.5 million tons per annum, the highest level in company history [26][28] - The Maven plant construction was completed, reducing net trucking costs by over $20 per clean ton [33][85] Market Data and Key Metrics Changes - The overall steel demand remains weak, but there are signs of potential price increases in met coal due to supply cuts and increased domestic steel prices [9][14] - The U.S. met coal production is expected to drop by 16 million tons by the end of the year, representing a 20% decrease in supply [10][11] Company Strategy and Development Direction - The company plans to increase future production by adding approximately 2 million tons of low vol production once market conditions improve [15][16] - The rare earth and critical minerals project in Wyoming is progressing, with plans to begin full-scale mining in July [17][18] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about the potential for met coal prices to increase in the second half of the year, despite current market challenges [23][24] - The company is focused on maintaining liquidity to capitalize on opportunities during market distress [15][19] Other Important Information - The company has received a $6 million match fund grant recommendation from the Wyoming Energy Authority for the pilot plant [19][92] - The overall size of the rare earth resource is now estimated at 1.7 million tons, an increase from the previous estimate of 1.5 million tons [19][20] Q&A Session Summary Question: Can you provide details on seaborne volumes and netbacks? - The company noted that current netbacks for high vol coal are around $125 per net ton, with low vol slightly higher [60][61] Question: What is the capital intensity of growth projects? - The company indicated that the total capital guidance is $60 million to $70 million, with about $20 million allocated for growth capital [64][66] Question: How do you see balancing growth and shareholder returns? - Management expressed a cautious approach to growth capital expenditures, waiting for clearer market signals before committing to new projects [90][91]

Financial Data and Key Metrics Changes - The company reported a fourth quarter net income of $7.6 million and a full year net income of $33.7 million, marking a significant recovery from a net loss of $44 million in the previous year [7][23] - Adjusted EBITDA for the fourth quarter increased to $9 million, a 27% rise from $7.1 million in the same quarter of 2023, while full year adjusted EBITDA surged 116% year-over-year to $59.4 million [7][24] Business Line Data and Key Metrics Changes - The Coal Mining segment saw adjusted EBITDA more than quadruple from 2023, with Mississippi Lignite Mining Company receiving $13.6 million in business interruption insurance income [10][11] - North American Mining reported a fourth quarter operating profit of $800,000, recovering from a $600,000 operating loss in the prior year, driven by reduced operating expenses [25] - Minerals Management's fourth quarter operating profit improved to $7.2 million from $2.5 million in 2023, primarily due to the absence of an impairment charge that affected the previous year's results [26] Market Data and Key Metrics Changes - The company anticipates solid customer demand in the Coal Mining segment for 2025, although a reduction in contractually determined per-ton sales price is expected to offset some improvements [29][30] - North American Mining is expected to deliver improved results in 2025, particularly in the second half of the year, based on stable customer demand [31] Company Strategy and Development Direction - The company is focused on expanding its portfolio and diversifying its operations, with a budget of up to $20 million annually for investments aimed at long-term stable cash flow generation [19] - The company is optimistic about its trajectory and believes that 2025 will be a pivotal year as legacy businesses stabilize and new ventures gain traction [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory and business prospects entering 2025, citing favorable macroeconomic trends and increasing demand for electricity [27][28] - The company is preparing to terminate its defined benefit pension plan in 2024, which is expected to eliminate future volatility from pension obligations [32] Other Important Information - The company ended the year with approximately $73 million in cash and $99.5 million in debt, with $99 million available under its revolver [34][35] - In 2024, the company paid $6.6 million in dividends and repurchased approximately 317,000 shares of its Class A Common Stock for $9.9 million [35] Q&A Session Summary Question: On the coal business, the results seem better than they initially appeared due to a $6 million inventory write-down - Management confirmed that inventory write-downs were taken, impacting the EBITDA calculation [38] Question: Is the $10 million EBITDA a reasonable baseline for next year? - Management indicated that while adjustments can be made, the sales price for the coal segment is expected to be lower next year due to contractual terms [41][42] Question: What is the outlook for MLMC volumes? - Management noted that while there were outages affecting volumes, they expect improvements moving forward [46][47] Question: How does the company view the pricing reset and inflation impacts? - Management explained that the pricing formula is complex and tied to various indices, which can lead to fluctuations [60][62] Question: Is there conservatism in the guidance for Mineral Management? - Management acknowledged a conservative approach in their projections for pricing and volume production [64] Question: What is the cash flow outlook for 2025? - Management expects working capital to be a source of cash in 2025, with favorable changes anticipated in trade receivables [105][111]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 2024 was $53 million, an increase from $49 million in Q3 2024 [13] - Coal shipped in Q4 2024 was 4.1 million tons, consistent with Q3 2024 [13] - Net segment realizations decreased to an average of $127.84 per ton in Q4 from $132.76 in Q3 [14] - Cash provided by operating activities was $56.3 million in Q4, down from $189.5 million in Q3 [17] - Total liquidity increased to $519.4 million at the end of Q4 from $507 million at the end of Q3 [17] Business Line Data and Key Metrics Changes - Realizations for metallurgical sales averaged $132.63 per ton in Q4, down from $136.35 in Q3 [15] - Incidental thermal portion realizations decreased to $75.39 per ton in Q4 from $76.33 in Q3 [15] - Coal sales for the Met segment decreased to $108.82 per ton in Q4 from $114.27 in Q3 [15] - SG&A expenses increased to $14.3 million in Q4 from $13.4 million in Q3 [16] Market Data and Key Metrics Changes - Metallurgical coal markets ended 2024 sharply lower, with indices dropping at least 30% [33] - The Australian Premium Low Vol Index fell from $204.75 per metric ton at the start of 2024 to $196.50 by year-end [34] - The U.S. East Coast Low Vol Index decreased slightly from $189 per metric ton to $188 per metric ton during Q4 [34] - The API 2 index for thermal coal decreased from $118.25 per metric ton at the start of Q4 to $113.15 by year-end [35] Company Strategy and Development Direction - The company is open to evaluating M&A opportunities to strengthen its long-term position despite current market challenges [11] - The focus remains on cash preservation and maintaining liquidity in light of market uncertainties [66] - The company aims to protect its franchise and will not consider share repurchases until market conditions improve [66] Management's Comments on Operating Environment and Future Outlook - Management noted that severe weather conditions have impacted production and transportation, affecting Q1 and potentially Q2 results [31][39] - The company anticipates continued challenges in the metallurgical coal market due to weak steel demand and geopolitical uncertainties [36][38] - Management expressed confidence in the long-term demand for metallurgical coal despite current market conditions [12] Other Important Information - The company did not repurchase any shares in Q4 under its buyback program, maintaining approximately 4 million shares outstanding [20] - The Kingston Wildcat Slope development is on track to reach coal seam by late 2025, expected to produce approximately 1 million tons of low-vol coal annually [30] Q&A Session Summary Question: How should we think about the cadence of sales through 2025? - Management indicated that domestic shipments should be roughly pro rata throughout the year, with export shipments expected to increase in the latter half as they catch up from missed shipments [44] Question: Can you break down the cost per ton guidance increase? - Management stated that the $2 increase in the upper range is a precautionary measure to guard against Q1 issues, with some cost impacts already observed in January [47] Question: What are your thoughts on domestic demand given the new administration's tariffs? - Management noted the ability to shift tons between domestic and export markets, but current customer operations are stable without indications of increased blast furnace production [56] Question: What is the target cash level if the market remains weak? - Management aims to maintain a cash level in the $400 to $500 million range while preserving liquidity until market conditions improve [65] Question: Any updates on potential M&A opportunities? - Management acknowledged ongoing processes with certain assets and potential opportunities but emphasized caution regarding cash burn from operations [70] Question: How much supply from Central Appalachia has come out of the market? - Management indicated that some tons have exited the market due to operational interruptions, but it is difficult to quantify the exact amount [75]