Financial Performance - Alpha Metallurgical Resources reported a net loss of $5.5 million for Q3 2025, compared to a net loss of $5.0 million in Q2 2025 and a net income of $3.8 million in Q3 2024 [3][7] - Adjusted EBITDA for the third quarter was $41.7 million, down from $46.1 million in the previous quarter [3][7] - Operating cash flow decreased to $50.6 million from $53.2 million in the prior quarter [9] Coal Revenues - Total coal revenues for Q3 2025 were $525.2 million, a decrease from $548.7 million in Q2 2025 [3][7] - The metallurgical segment's coal sales realization was $114.94 per ton, down from $119.43 per ton in the previous quarter [4][8] - Tons of coal sold remained stable at 3.9 million tons for both Q3 2025 and Q2 2025 [3][5] Cost Management - The cost of coal sales in the metallurgical segment decreased to $461.6 million in Q3 2025 from $480.0 million in Q2 2025 [6][8] - The average cost of coal sales per ton in the metallurgical segment was $97.27, down from $100.06 in the previous quarter [8] - The company achieved record quarterly cost performance for coal sales, marking a significant achievement in cost reduction [7][2] Liquidity and Capital Resources - As of September 30, 2025, total liquidity was $568.5 million, including cash and cash equivalents of $408.5 million [10] - Capital expenditures for Q3 2025 were $25.1 million, a decrease from $34.6 million in Q2 2025 [9][10] Share Repurchase Program - The board of directors authorized a share repurchase program of up to $1.5 billion, with approximately 6.8 million shares repurchased at a cost of about $1.1 billion as of October 31, 2025 [11][12] 2025 Guidance Adjustments - The company lowered its 2025 guidance range for capital contributions to equity affiliates to between $35 million and $41 million, down from $44 million to $54 million [13] - Approximately 85% of metallurgical coal for 2025 has been committed and priced at an average price of $122.57 per ton [13][14]

Group 1 - The company primarily invests in turnarounds within the natural resource industries, with a typical holding period of 2-4 years, focusing on value for downside protection and upside participation [1] - The portfolio has achieved a compounded annual growth rate of 34% over the last 7 years, indicating strong performance [1] - Warrior Met Coal (HCC) is a U.S. metallurgical coal mining company with two operating mines and a development project, Blue Creek, which is ahead of schedule, starting longwall mining in October 2025 [2] Group 2 - The investment strategy emphasizes companies with quality characteristics that are trading at depressed valuations, allowing for participation in the upside of natural resource investing while mitigating extreme drawdowns [2]

Group 1 - The company primarily invests in turnarounds within the natural resource industries, with a typical holding period of 2-4 years, focusing on value for downside protection and upside participation [1] - The portfolio has achieved a compounded annual growth rate of 34% over the last 7 years, indicating strong performance [1] - Warrior Met Coal (HCC) is a U.S. metallurgical coal mining company with two operating mines and a development project, Blue Creek, which is ahead of schedule, starting longwall mining in October 2025 [2] Group 2 - The investment strategy emphasizes companies with quality characteristics that are trading at depressed valuations, allowing for participation in the upside of natural resource investing while mitigating extreme drawdowns [2]

Financial Performance - Core Natural Resources, Inc. reported net income of $31.6 million, or $0.61 per diluted share, for Q3 2025, with adjusted EBITDA of $141.2 million [1][2] - The company generated net cash provided by operating activities of $87.9 million and free cash flow of $38.9 million during the quarter [8][29] - Revenues for the third quarter totaled $1,002.5 million [1] Operational Highlights - The transition to a more advantageous reserve area at the West Elk mine is expected to enhance performance due to the B-Seam's greater thickness and higher coal quality [2][3] - The metallurgical segment sold 1.9 million tons of coal, achieving realized coal revenue per ton sold for coking coal of $112.94 [4] - In the Powder River Basin segment, sales volumes reached 13.0 million tons, with realized coal revenue per ton sold at $14.09 [5] Capital Return and Shareholder Returns - Core returned $24.6 million to stockholders through share buybacks and dividends, totaling $218.3 million since the capital return program's launch in February [1][8] - The company has committed to returning approximately 75% of free cash flow to stockholders, primarily through share repurchases and a quarterly dividend of $0.10 per share [7][9] Future Outlook - The company anticipates continued robust free cash flow generation supported by cost control efforts and the expected restart of the Leer South longwall [10] - Core is preparing for a significant performance improvement in 2026, leveraging its diverse asset base and favorable market conditions [18] Rare Earth Elements and Critical Minerals - Core has identified elevated concentrations of rare earth elements and critical minerals at its Black Thunder and Coal Creek mines, indicating potential future opportunities [15][16] - The company is initiating an expanded drilling program to further evaluate these resources and is engaging with technology providers for potential future projects [17]

Financial Data and Key Metrics Changes - The company reported a net income of $37 million or $0.70 per diluted share for Q3 2025, compared to $42 million or $0.80 per diluted share in Q3 2024, indicating a decrease in profitability year-over-year [25] - Adjusted EBITDA for Q3 2025 was $71 million, down from $78 million in the same quarter last year, with an adjusted EBITDA margin of 22% compared to 24% in the prior year [25][26] - Total revenues were $329 million in Q3 2025, slightly up from $328 million in the same quarter last year, primarily driven by a 27% increase in sales volume [26] Business Line Data and Key Metrics Changes - The company achieved record quarterly sales volume of 2.4 million short tons in Q3 2025, a 27% increase from 1.9 million short tons in the same quarter last year [17] - Production volume in Q3 2025 was 2.2 million short tons, up 17% from 1.9 million short tons in Q3 2024 [18] - The Blue Creek mine produced 175,000 short tons during Q3 2025, contributing to the overall increase in production volume [18] Market Data and Key Metrics Changes - The primary index, PLV FOB Australia, averaged $166 per short ton in Q3 2025, while the PLV CFR China index price averaged $162 per short ton, recovering from earlier lows [20] - The Australian LVHCC index price averaged $137 per short ton, and the US East Coast HVA index price averaged $141 per short ton during the same period [21] - The company sold 43% of its coal into Europe, 38% into Asia, and 18% into South America in Q3 2025 [17] Company Strategy and Development Direction - The company has raised its full-year 2025 production volume guidance by approximately 10% due to the earlier startup of Blue Creek longwall operations, now expected to produce approximately 1.8 million short tons of high-vol steelmaking coal [5][11] - The acquisition of 58 million short tons of high-quality steelmaking coal reserves is expected to enhance the company's long-term value proposition and extend the life of its core mining operations [6][12] - The company remains focused on operational excellence and strategic investments to drive shareholder value [4][35] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing weak steelmaking coal market conditions due to increased Chinese steel exports and subdued global demand, but expressed confidence in the company's operational successes driving strong financial performance [6][33] - The company anticipates continued pressure on steelmaking coal markets due to additional supply coming online and trade tensions affecting global market sentiment [33][48] - Despite challenges, management remains optimistic about long-term growth trajectories and the potential for new trade agreements to support market conditions [33] Other Important Information - The company achieved a gross price realization of 83% in Q3 2025, down from 93% in the same quarter last year, primarily due to relative index pricing and product mix [23] - Cash cost of sales per short ton was approximately $101 in Q3 2025, down from $123 in the same quarter last year, reflecting effective cost management [28] - Free cash flow was negative $20 million due to capital expenditures and mine development costs, but the company maintains a strong liquidity position with $525 million available [31][32] Q&A Session Summary Question: How should we think about production next year with the early Blue Creek startup? - Management indicated that production numbers will be market-driven and are still being evaluated [37] Question: Can you remind us how you are thinking about capital allocation? - The company plans to return excess free cash flow through dividends and possibly stock buybacks [38] Question: Do you still need incremental workers to ramp up production? - Management confirmed that additional hiring will continue over the next year to support operations [39] Question: How will sales shift quarter over quarter? - The company expects a significant increase in sales volume due to Blue Creek production [40] Question: How does the acquisition influence decisions on adding another longwall? - The acquisition enhances efficiency and control over reserves, making future operations more cost-effective [41] Question: What is the outlook for pricing and realizations going forward? - Management expressed cautious optimism about returning to targeted price realizations, depending on market conditions [49][50]

Third Quarter 2025 Performance - Production volume increased by 17% to 2.249 million short tons compared to 1.917 million short tons in Q3 2024[17] - Sales volume increased by 27% to a record 2.355 million short tons, including 378 thousand short tons from the Blue Creek mine[11, 17] - Average net selling price decreased by 21% to $135.87 per short ton from $171.92 per short ton in Q3 2024[17] - Revenue remained relatively flat at $328.6 million compared to $327.7 million in Q3 2024[17] - Net income decreased by 12% to $36.6 million from $41.8 million in Q3 2024[17] - Cash cost of sales decreased by 18% to $100.73 per short ton from $123.45 per short ton in Q3 2024[12, 17] Nine Months Ended September 30, 2025 Performance - Production volume increased by 11% to 6.811 million short tons compared to 6.140 million short tons in the same period of 2024[19, 21] - Sales volume increased by 11% to 6.746 million short tons compared to 6.088 million short tons in the same period of 2024[19, 21] - Average net selling price decreased by 33% to $133.92 per short ton from $198.48 per short ton in the same period of 2024[19, 21] - Revenue decreased by 25% to $926.1 million from $1.2278 billion in the same period of 2024[19, 21] - Net income decreased significantly by 86% to $34.0 million from $249.5 million in the same period of 2024[19, 21]

Core Viewpoint - Ramaco Resources, Inc. has announced the pricing of a public offering of $300 million in 0% convertible senior notes due 2031, with net proceeds expected to be approximately $290.9 million, plus an additional $45 million for over-allotments [1][8]. Group 1: Offering Details - The offering consists of $300 million aggregate principal amount of convertible senior notes, with total net proceeds of approximately $290.9 million [1]. - The underwriters have the option to purchase up to an additional $45 million in notes to cover over-allotments [1]. - No new shares of Class A common stock will be issued in this offering, and Ramaco will not receive any proceeds from the concurrent delta offering [1]. Group 2: Concurrent Delta Offering - Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC will offer shares of Class A common stock borrowed from third parties to facilitate hedging transactions for purchasers of the notes [2]. - The initial offering price for the Class A common stock is set at $24.25 per share, with subsequent sales occurring at prevailing market prices [2]. - The concurrent delta offering is scheduled to settle on November 7, 2025, and is contingent upon the completion of the notes offering [2]. Group 3: Company Overview - Ramaco Resources, Inc. operates and develops metallurgical coal in southern West Virginia and southwestern Virginia, and is also involved in producing coal, rare earth elements, and critical minerals in Wyoming [4]. - The company has four active metallurgical coal mining complexes in Central Appalachia and is developing a rare earth and coal mine near Sheridan, Wyoming [4].

Core Viewpoint - Ramaco Resources, Inc. has announced a public offering of $300 million in 0% convertible senior notes due 2031, with net proceeds expected to be approximately $290.9 million, aimed at funding various strategic initiatives including a rare earth elements project [1][2]. Offering Details - The notes will settle on November 7, 2025, and underwriters have an option to purchase an additional $45 million to cover over-allotments [1][2]. - Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC are the book-running managers for the offering, with several firms acting as co-managers [3]. Financial Structure - The notes will be senior, unsecured obligations that do not bear regular interest, and the principal will not accrete [4]. - Noteholders can convert their notes under specific conditions, with an initial conversion rate of 30.5460 shares per $1,000 principal amount, equating to a conversion price of approximately $32.74 per share, representing a 35% premium over the public offering price of $24.25 [5]. Redemption and Repurchase Rights - The notes are redeemable at Ramaco's option starting November 6, 2028, if the stock price exceeds 130% of the conversion price for a specified period [6]. - In the event of a "fundamental change," noteholders may require Ramaco to repurchase their notes for cash at the principal amount plus any accrued interest [7]. Capped Call Transactions - Ramaco has entered into capped call transactions to cover the shares underlying the notes, with an initial cap price of approximately $54.56 per share, a 125% premium over the public offering price [8][10]. - These transactions are designed to reduce potential dilution of Ramaco's Class A common stock upon conversion of the notes [11]. Concurrent Offering - Ramaco is also conducting a concurrent delta offering of 2,245,126 shares of Class A common stock at a price of $24.25 per share, with no new shares being issued and no proceeds going to Ramaco [14]. - The completion of the notes offering is contingent upon the successful completion of the concurrent delta offering [14]. Company Overview - Ramaco Resources, Inc. operates in metallurgical coal and is developing projects in rare earth elements and critical minerals, with operational offices in West Virginia and Wyoming [18].

Financial Data and Key Metrics Changes - In Q3 2025, the company generated $31 million of net income, $41 million of operating cash flow, and $42 million of free cash flow [12] - Over the last 12 months, free cash flow totaled $190 million, indicating strong cash generation despite market challenges [4] - The company has retired nearly $130 million of debt over the past 12 months, with only $70 million remaining as of the end of the quarter [10] Business Line Data and Key Metrics Changes - The mineral rights segment generated $41 million of net income, with operating and free cash flow each decreasing by $9 million compared to the prior year due to weaker metallurgical coal markets [12] - The soda ash segment saw a net income decrease of $11 million, with operating and free cash flow each down by $6 million, primarily due to lower international sales prices and weakened demand [13] - The corporate and financing segment improved net income by $3 million, with operating cash flow and free cash flow each improving by $2 million due to reduced debt and lower interest costs [14] Market Data and Key Metrics Changes - Metallurgical coal markets are facing challenges from slowing global growth and soft steel demand, while thermal coal markets are struggling with muted demand due to mild weather and competition from natural gas [4][5] - The soda ash market remains oversupplied, with international prices below cash production costs for most producers, indicating a generational bear market [6][9] Company Strategy and Development Direction - The company continues to manage its operations with a conservative approach, focusing on maintaining a robust free cash flow and improving its capital structure [6][10] - There is an emphasis on long-term sustainability in the soda ash market, with expectations that producers will eventually rationalize supply [7] - The company aims to increase unit holder distributions in the future, contingent on market conditions improving [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the significant headwinds in coal and soda ash markets, with no near-term catalysts for improvement [9][10] - The company believes that most coal operators are struggling to make profits, with many operating at razor-thin margins [5] - The outlook for thermal coal remains cautious, with a belief that North American thermal coal is in long-term secular decline until evidence suggests otherwise [5] Other Important Information - The company did not receive a distribution from Shishajam, Wyoming, in Q3 2025, and does not expect distributions to resume until market conditions improve [8][13] - The carbon-neutral industry continues to face challenges, with significant barriers to CO2 sequestration operations [9] Q&A Session Summary Question: Inquiry about lithium mining leasing in the Smackover region - The company is active in leasing acreage for lithium production in the Smackover formation, with varied activity levels over the years [16][17] Question: Clarification on operating and maintenance expenses - Operating and maintenance expenses include salaries, corporate costs, property taxes, and royalty expenses, with a focus on cost management [19][20][21] Question: Opportunities in natural gas production - The majority of the company's mineral rights are in the Haynesville basin, which is currently active, but oil and gas revenues are not material to the partnership [28] Question: Criteria for unit repurchases - The company aims for a "fortress balance sheet" before considering unit repurchases, prioritizing unit holder distributions and opportunistic acquisitions [34][35] Question: Thermal coal infrastructure capacity for increased demand - Increased power demand from data centers may require significant capital investment in thermal coal infrastructure, but specifics are uncertain [40]

Core Insights - Ramaco Resources, Inc. has announced the establishment of a Strategic Critical Minerals Terminal (SCMT) at its Brook Mine facility in Wyoming, with Goldman Sachs acting as the exclusive structuring agent [1][4] - The SCMT aims to address supply chain risks and ensure access to strategic materials, positioning Ramaco as a leading producer of critical minerals and rare earth elements (REEs) in the U.S. [1][4] Company Overview - Ramaco Resources operates and develops high-quality, low-cost metallurgical coal and is expanding into coal, rare earth, and critical minerals production in Wyoming [5] - The company has four active metallurgical coal mining complexes and is in the initial stages of production for a rare earth and coal mine near Sheridan, Wyoming [5] SCMT Initiative - The SCMT will provide long-term stockpiling, storage, and inventory management solutions for critical minerals and REEs, including tolling and value-added services for third-party producers [2] - The terminal is designed to ensure safe and secure inventory management, making materials available to consumers at market prices [2] Strategic Location - The Brook Mine site is strategically located with direct access to the BNSF railroad and proximity to a major interstate highway, facilitating efficient transportation to defense contractors and industrial consumers [3] Commitment to National Security - The initiative supports the strengthening of America's critical minerals supply chain, national security, and innovation in the rare earths industry [4]