Ramaco Resources(US:METC)2025-03-11 13:00Financial 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]