Ramaco Resources(METC)2025-03-11 16:42Financial 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 [35][41] - Cash margins remained at $33 per ton, down just $2 per ton since Q2, despite a $30 drop in met coal prices [8][34] - Year-end liquidity reached $138 million, up more than 50% year on year, marking the highest year-end liquidity in company history [41][42] Business Line Data and Key Metrics Changes - Record tons sold were achieved in Q4, with a run rate of 4.5 million tons per annum, the highest level in company history [36] - Cash costs exited 2024 in the mid-nineties per ton range, the best among publicly traded peers [36] Market Data and Key Metrics Changes - Metallurgical coal prices have been under pressure, with a significant drop in prices due to increased steel exports from China [10][62] - Domestic steel prices have shown signs of recovery, with hot-rolled coil prices increasing from less than $700 per ton in Q3 to $940 per ton [11] Company Strategy and Development Direction - The company plans to increase future production by adding approximately 2 million tons of low volatile coal, with expansions at the Maven complex and continued mining in other sections [19][20] - The rare earth and critical minerals project in Wyoming is advancing, with plans for full-scale mining to begin in July [21][23] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about potential price increases in the second half of the year, despite current market challenges [31] - The company is maintaining a high level of liquidity to navigate market uncertainties and to capitalize on potential opportunities [18][19] Other Important Information - The company has received a $6 million matching fund grant recommendation from the Wyoming Energy Authority for the rare earth project [24] - 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 [25] Q&A Session Summary Question: Can you provide insight on the seaborne volumes fixed at $111 per ton and the current netbacks for various qualities? - The $111 figure reflects index-linked prices for January and February, with high vol netbacks around $125 per ton and low vol slightly higher [80][81] Question: What is the capital intensity of your growth projects and what conditions would trigger moving forward? - The current guidance includes about $60 million to $70 million in capital expenditures, with growth capital split between Elk Creek and Berwind [84][90] Question: How do you see balancing growth, shareholder returns, and protecting the business during this downturn? - The company is looking for opportunistic acquisitions in a distressed market while maintaining a modest growth CapEx for 2025 [122][124]