Core Insights - Ramaco Resources, Inc. has announced the establishment of a national strategic stockpile of rare earth elements and critical minerals at its Brook Mine facility in Wyoming, known as the Strategic Critical Minerals Terminal (SCMT) [1][2][3] Company Initiatives - The SCMT aims to position Ramaco as a vertically integrated producer of critical minerals and rare earth elements in the U.S. [2] - The stockpile will address both private and public needs for secure access to essential materials, leveraging Ramaco's resources and third-party expertise [3][4] - The initiative is expected to provide long-term solutions for extraction, processing, and inventory management, thereby mitigating supply chain risks [3][4] Strategic Advantages - The Brook Mine site offers strategic advantages due to its location and infrastructure, including direct connectivity to the BNSF railroad and proximity to a major interstate highway [5] - This connectivity is anticipated to facilitate efficient transportation and distribution to a wide range of customers, including defense contractors [5] Production Goals - Ramaco plans to increase its annual commercial rare earth and critical mineral oxide production from approximately 1,240 tons to 3,400 tons, representing a 174% increase [10] - The Brook Mine is believed to contain significant quantities of heavy and light rare earth elements, essential for various advanced applications [9][11] Resource Estimates - The latest Technical Report Summary estimates 1.4 million tons of Total Rare Earth Oxide (TREO) at the permitted acreage, with potential for expansion as further exploration occurs [11] - The Brook Mine is recognized as one of the world's primary sources for scandium, gallium, and germanium, which are critical for advanced technologies [9][11] Future Development - Ramaco is committed to strengthening the U.S. critical minerals supply chain and supporting national security through this initiative [11][12] - The company is also expanding its land holdings in Wyoming for future development and mineral storage potential [8]

Financial Data and Key Metrics Changes - Revenue decreased 1% sequentially to $3 billion [11] - Net income attributable to Alcoa increased to $232 million from $164 million in the prior quarter, with earnings per share rising to $0.88 [11] - Adjusted EBITDA was $270 million, reflecting a sequential decrease of $43 million primarily due to increased U.S. Section 232 tariff costs and unfavorable currency impacts [12][13] - Cash flow activities showed a cash balance of $1.5 billion at the end of the quarter, with cash used for operations at $85 million [14] Business Line Data and Key Metrics Changes - In the alumina segment, third-party revenue decreased 9% due to lower volumes and bauxite prices [11] - In the aluminum segment, third-party revenue increased 4% driven by higher average realized prices, despite lower shipments [11] - Adjusted EBITDA for the alumina segment decreased by $72 million, while the aluminum segment saw an increase of $210 million due to higher metal prices [12][13] Market Data and Key Metrics Changes - Alumina prices have declined significantly, with recent prices around $315 per metric ton due to ample supply and refinery expansions [18] - LME aluminum prices rose approximately 7% sequentially, reaching $2,775 per metric ton, influenced by a weaker U.S. dollar and persistent supply tightness [20] - The Midwest premium increased, reaching import parity, reflecting declining inventories and reduced aluminum imports [20] Company Strategy and Development Direction - The company is focused on increasing profitability through higher shipments, improved operations, and strategic investments such as the Massena energy contract [10] - A new long-term energy contract for Massena operations was announced, along with a $60 million investment in anode bake furnace [8] - The company is exploring M&A opportunities across its product line, with no specific focus area currently identified [30] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of safety following a tragic incident at the Alumar smelter, reinforcing safety protocols [5] - The outlook for the fourth quarter includes expectations for improved performance in the alumina segment and potential unfavorable impacts in the aluminum segment due to restart inefficiencies [16] - Management noted that while demand remains steady in packaging and electrical sectors, the automotive sector is weak due to tariff uncertainties [21] Other Important Information - The company is progressing with the development of a gallium plant in Australia, supported by funding from the U.S. and Australian governments [7] - The Kwinana Refinery's permanent closure resulted in significant restructuring charges, but the company anticipates recovering closure costs through land sales [12][98] Q&A Session Summary Question: Capital allocation and M&A opportunities - Management indicated a priority to pay down debt while evaluating returns to shareholders and potential growth options [29][30] Question: U.S.-Australia Alcoa partnership - The partnership was initiated with Japanese entities seeking gallium offtake, providing a supply chain outside of China [34] Question: Canadian-U.S. negotiations regarding aluminum tariffs - Management is providing information to both governments to aid in decision-making regarding trade flows [41] Question: Interest in rolling business - Management confirmed no interest in re-entering the rolling business [57] Question: Gallium project economics and impact on mining permits - The gallium project will not impact ongoing mining permit processes, and the economics are still under negotiation [52] Question: Demand profile and market conditions - Management noted that demand remains stable in certain sectors, with automotive demand being weak, but not indicative of demand destruction [105]

Financial Data and Key Metrics Changes - Revenue decreased 1% sequentially to $3 billion, with the Alumina segment seeing a 9% decrease in third-party revenue due to lower volumes and bauxite prices [16] - Net income attributable to Alcoa was $232 million, up from $164 million in the prior quarter, with earnings per share increasing to $0.88 [17] - Adjusted EBITDA was $270 million, reflecting a sequential decrease of $43 million primarily due to increased U.S. Section 232 tariff costs [18][19] - Year-to-date return on equity was 14.5%, and cash flow activities included a tax refund of $69 million from the Australian Tax Office [21][22] Business Line Data and Key Metrics Changes - In the Alumina segment, third-party revenue decreased 9% due to lower volumes and prices, while the Aluminum segment saw a 4% increase in revenue driven by higher average realized prices [16] - Adjusted EBITDA for the Alumina segment decreased by $72 million, while the Aluminum segment's adjusted EBITDA increased by $210 million due to higher metal prices and lower alumina costs [19] Market Data and Key Metrics Changes - Alumina prices have declined significantly, with recent prices around $315 per metric ton due to ample spot availability and refinery expansions in Indonesia and China [26] - LME prices rose approximately 7% sequentially, recently reaching $2,775 per metric ton, reflecting a combination of factors including a weaker U.S. dollar and persistent supply tightness [29] - The Midwest premium increased during the third quarter, reaching import parity, which reflects declining inventories and reduced aluminum imports [30] Company Strategy and Development Direction - The company is focused on increasing profitability through higher shipments, improved operations, and key investments such as the Messina Energy contract and anode bake furnace [14] - A new long-term energy contract for Messina operations was announced, along with a $60 million investment in the anode bake furnace to enhance operational efficiency [12] - The company is evaluating M&A opportunities across the product line but does not have a specific focus at this time [41] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of safety following a workplace fatality and reiterated their commitment to providing a safe working environment [5][6] - The outlook for the Alumina segment is expected to improve by approximately $80 million in 2025, while the Aluminum segment anticipates unfavorable impacts of about $20 million due to restart inefficiencies [23][24] - Management noted that demand remains steady across Europe and North America, with healthy growth in packaging and electrical sectors, while the automotive sector is weak [31][32] Other Important Information - The company announced a partnership with the U.S. and Australian governments to develop a gallium plant at the Wagerup alumina refinery, which is expected to provide strategic benefits [10][11] - The Kwinana refinery's permanent closure resulted in significant asset retirement obligations, impacting the financial results [8][17] Q&A Session Summary Question: Capital allocation and M&A opportunities - Management indicated that they are close to their net debt target and will prioritize debt repayment while evaluating returns to shareholders and growth options [40][41] Question: U.S.-Australia Alcoa partnership - The partnership was initiated with Japanese entities and aims to establish a gallium supply chain outside of China, with first production expected by 2026 [45][48] Question: Canadian negotiations and domestic capacity expansion - Management is providing information to both U.S. and Canadian governments regarding trade flows and noted that competitive energy prices for long-term contracts in the U.S. are still lacking [54][55] Question: Gallium project economics and mining permitting - The gallium project is not a large investment and will be financed by several governments, with no impact on the ongoing mining permitting process [66][67] Question: Interest in idled assets and data centers - Management confirmed ongoing interest in data centers and AI centers, with significant efforts to market sites with existing electrical infrastructure [120] Question: Demand profile and market conditions - Management does not see significant demand destruction but noted weakness in the automotive sector, attributing it to potential substitution by electric vehicles from China [122]

Joining us now before the earnings call first on CNBC is Alcoa CEO William Opinger. Uh Bill, it's great to have you back on the show. Welcome.>> Thanks, Morgan. How are you. >> Uh doing great.Want to talk to you about what you saw in the quarter and how that sets you up set you up sets you up for the rest of the year. Yo, the year though, especially since it looks like aluminina and aluminum production both increased. Uh but there is some noise because of trade dynamics.>> So let me let me talk about the qu ...