Ramaco Resources TodayMETCRamaco Resources$8.86 -2.76 (-23.75%) 52-Week Range$8.17▼$19.20Dividend Yield6.21%P/E Ratio13.63Price Target$17.00Add to WatchlistThe prevailing narrative surrounding coal provides a bleak picture of a fuel source in terminal decline, overshadowed by cleaner, cheaper alternatives and facing mounting pressure from environmentalists and investors. Divestment from coal assets is widespread, and the industry's long-term trajectory appears definitively downward. However, multiple emerg ...

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 [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]

Ramaco Resources (METC) Q4 2024 Earnings Call March 11, 2025 09:00 AM ET Company Participants Jeremy Sussman - Executive VP & CFORandall Atkins - Founder, Chairman & CEOChristopher Blanchard - Executive Vice President of Mine Planning and DevelopmentJason Fannin - EVP & CCO Conference Call Participants Nick Giles - Senior Research AnalystChris LaFemina - Equity Research AnalystNathan Martin - Senior Research Analyst Operator note that this event is being recorded. I would now like to turn the conference ove ...

Financial Performance - In Q4 2024, Ramaco Resources achieved Adjusted EBITDA of $29.2 million, a 24% increase from $23.6 million in Q3 2024[3]. - Net income for Q4 2024 was $3.9 million, a significant increase of approximately 1,700% compared to a loss of $0.2 million in Q3 2024[3]. - Year-end liquidity reached a record $137.8 million, up over 50% from the previous year[32]. - Net income for 2024 was $11,192,000, a significant decrease of 86.4% compared to $82,313,000 in 2023[51]. - Adjusted EBITDA for the year ended December 31, 2024, was $105,792,000, down from $182,126,000 in 2023, reflecting a decline of 41.9%[54]. - The effective tax rate for 2024 was 25%, with Q4 2024 tax expense recognized at $2.2 million[34]. Sales and Production - The company sold over 1.1 million tons of metallurgical coal in Q4 2024, marking a 10% increase compared to Q3 2024[9]. - Overall production for Q4 2024 was 954,000 tons, up 28% from the same period in 2023[26]. - The Elk Creek complex produced a record 672,000 tons, representing a 63% increase year-over-year[27]. - Full-year 2024 production was 3,671,000 tons, with guidance for 2025 set between 4,200,000 and 4,600,000 tons[37]. - Committed sales volume for 2025 is 3.5 million tons, with an average price of $145 per ton[40]. Costs and Margins - Non-GAAP cash cost per ton sold decreased by $6 per ton, or 6%, to $96 per ton in Q4 2024, down from $102 per ton in Q3 2024[3]. - Cash costs were $96 per ton sold, a 10% decrease from the same period in 2023[28]. - Cash margins decreased to $33 per ton, down from $68 per ton in Q4 2023[29]. - The company expects to maintain cash margins of $33 per ton sold in Q4 2024, down just $1 per ton from Q3 2024[10]. - Non-GAAP revenue per ton sold (FOB mine) decreased to $140 in 2024 from $170 in 2023, a decline of 17.6%[55]. - Non-GAAP cash cost per ton sold (FOB mine) was $96 in Q4 2024, compared to $107 in Q4 2023, indicating a reduction of 10.3%[55]. Market Conditions - The metallurgical coal indices declined by $12 per ton, or 6%, in Q4 2024 compared to Q3 2024, and by $80 per ton, or 30%, compared to Q4 2023[3]. - U.S. metallurgical coal pricing fell to $129 per ton, a 26% decrease from $175 per ton in Q4 2023[28]. Capital Expenditures and Assets - Capital expenditures for Q4 2024 totaled $11.9 million, down from $18.0 million in Q4 2023[33]. - Capital expenditures for 2024 were $55,236,000, down from $82,904,000 in 2023, reflecting a decrease of 33.5%[51]. - Total assets increased to $674,686,000 in 2024 from $665,836,000 in 2023, representing a growth of 1.28%[49]. - Total current liabilities decreased to $122,428,000 in 2024 from $169,986,000 in 2023, a reduction of 28%[49]. - Total stockholders' equity decreased to $362,806,000 in 2024 from $369,605,000 in 2023, a decline of 1.9%[49]. Future Outlook - The company anticipates tons sold in Q1 2025 to be between 850,000 and 950,000, with a projected 33% increase in shipments for Q2 2025[7]. - Ramaco plans to commence full-scale mining for rare earth and critical minerals by July 2025, following positive preliminary testing results[20].

Core Viewpoint - Ramaco Resources, Inc. reported strong operational and financial results for Q4 and full-year 2024, achieving record sales and improved cash costs despite a challenging market environment for metallurgical coal [1][7][10]. Financial Performance - Adjusted EBITDA for Q4 2024 was $29.2 million, a 24% increase from Q3 2024, and a significant decline of 50% year-over-year [7][26]. - Net income for Q4 2024 was $3.9 million, compared to a loss of $0.2 million in Q3 2024, marking a ~1,700% increase [7][26]. - Total tons sold in Q4 2024 reached 1.1 million, a 10% increase from Q3 2024 and a 14% increase year-over-year [26][30]. Production and Costs - The company experienced a 25% decline in costs throughout 2024, with cash costs per ton sold decreasing to $96, down from $102 in Q3 2024 [4][30]. - Production for Q4 2024 was 954,000 tons, a 28% increase from the same period in 2023, driven by the Elk Creek complex [29][30]. - The Elk Creek complex produced a record 672,000 tons, up 63% year-over-year [29]. Market Commentary and Outlook - Total sales commitments for 2025 are currently at 3.5 million tons, equating to 80% of the midpoint of production guidance [3]. - U.S. metallurgical coal indices fell by $12 per ton quarter-over-quarter in Q4 2024, representing a 6% decline [7][30]. - Despite weak steel demand, there are expectations for potential price increases in the second half of 2025 due to supply-side constraints [13][14]. Rare Earths and Critical Minerals - The company is progressing on its rare earth and critical minerals project at the Brook Mine in Wyoming, with minimal costs incurred since acquisition [8][21]. - A $6.1 million matching grant from the Wyoming Energy Authority has been received to support the development of the pilot plant [24]. - Preliminary testing results continue to confirm the project's feasibility, with further updates expected in Q2 2025 [22][23]. Balance Sheet and Liquidity - As of December 31, 2024, the company maintained record liquidity of $137.8 million, a 50% increase from the previous year [34]. - Capital expenditures for Q4 2024 totaled $11.9 million, down from $18 million in Q4 2023, reflecting the completion of growth projects [35]. Guidance - The company anticipates production for 2025 to be between 4.2 million and 4.6 million tons, with cash costs per ton sold expected to range from $97 to $103 [37][38]. - The effective tax rate is projected to be between 25% and 30% for 2025 [38].

Company Overview - Ramaco Resources, Inc. operates and develops high-quality, low-cost metallurgical coal in southern West Virginia and southwestern Virginia [3] - The company has four active metallurgical coal mining complexes in Central Appalachia and is developing a rare earth and coal mine near Sheridan, Wyoming [3] - In 2023, a major rare earth deposit of primary magnetic rare earths was discovered at the Wyoming mine [3] - Ramaco operates a carbon research and pilot facility related to advanced carbon products and materials from coal, holding approximately 60 intellectual property patents and related agreements [3] Financial Reporting - Ramaco Resources will report its fourth quarter and full year 2024 financial results on March 10, 2025, after market close [1] - An investor conference call and webcast will be held on March 11, 2025, at 9:00 a.m. Eastern Time, featuring key executives discussing the financial results [2] Access Information - The earnings news release will be available on the company's investor relations website and through major financial information sites [1] - The conference call can be accessed domestically at 1-877-317-6789 and internationally at 1-412-317-6789 [3]

Core Points - Ramaco Resources, Inc. announced a quarterly Class A common stock dividend of $0.1375 per share for the first quarter of 2025, payable on March 14, 2025, to shareholders of record on February 28, 2025 [2][5] - The dividend will be paid in shares of Class B common stock, with each Class A common stockholder receiving 0.015537 of a share of Class B common stock for each share of Class A held, based on the Class B closing price of $8.85 on February 28, 2025 [3][4] - No fractional shares will be issued; instead, cash will be paid for any fractional shares based on the Class B closing price [5] Company Overview - Ramaco Resources, Inc. operates and develops high-quality, low-cost metallurgical coal in Central Appalachia and is also developing rare earth elements 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 major deposit of primary magnetic rare earths and critical minerals was discovered at the Wyoming mine, and the company holds approximately 76 intellectual property patents and related agreements [6]

Revenue Performance - The company sold 2.9 million tons of coal during the first nine months of 2024, generating $495.4 million in revenue, a slight increase from $490.8 million in the same period of 2023[96]. - Revenue for the three months ended September 30, 2024, was $167.4 million, approximately 10% lower than the same period in 2023, driven by a 13% decrease in revenue per ton sold from $188 to $164[103]. - Coal sales revenue for the nine months ended September 30, 2024 was $495.4 million, approximately 1% higher than the same period in 2023, driven by a 16% increase in tons sold[111]. - Non-GAAP revenue (FOB mine) for the three months ended September 30, 2024, was $138,829,000, down from $156,533,000 in the prior year, reflecting a decrease of $17,704,000[138]. - Non-GAAP revenue (FOB mine) for the nine months ended September 30, 2024, was $414,317,000, slightly down from $416,185,000 in the same period of 2023, a decrease of $1,868,000[138]. Cost and Expenses - The cost of sales for the three months ended September 30, 2024, was $134.7 million, down from $144.6 million in the same period of 2023, reflecting a decrease in total cost of sales per ton sold from $145 to $132[102]. - Cost of coal sales for the nine months ended September 30, 2024 totaled $397.2 million, a 12% increase compared to $354.4 million for the same period in 2023[113]. - Non-GAAP cash cost of sales for the three months ended September 30, 2024, was $104,573,000, compared to $112,803,000 in the same period of 2023, a decrease of $8,230,000[139]. - Non-GAAP cash cost per ton sold (FOB mine) was $102 for the three months ended September 30, 2024, down from $113 in the same period of 2023, a decrease of $11[139]. Profitability - The company reported a net loss of $239,000 for the three months ended September 30, 2024, compared to a net income of $19.5 million in the same period of 2023[101]. - The company’s adjusted EBITDA for the nine months ended September 30, 2024, was $76.6 million, down from $123.7 million in the same period of 2023, impacted by softening global metallurgical coal markets[100]. - Adjusted EBITDA for the three months ended September 30, 2024, was $23,617,000, a decrease from $45,407,000 in the same period of 2023[135]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $76,596,000, compared to $123,675,000 in the same period of 2023, a decrease of $47,079,000[135]. Market Conditions - The global metallurgical coal market has softened in 2024 due to constrained economic growth and increased steel exports from China, impacting pricing and demand[95]. - The company anticipates continued volatility in metallurgical coal prices due to macroeconomic conditions and expects limited global investment in new coking coal production capacity to support future market recovery[95]. Production and Resources - The company has 59 million reserve tons and 1,119 million measured and indicated resource tons of high-quality metallurgical coal, with plans to grow annual production to approximately 7 million clean tons in the medium term[93]. - The company expects to satisfy approximately 36% of its outstanding performance obligations of 1.7 million tons in Q4 2024, with an average fixed sales price of $151 per ton[97]. Cash Flow and Financing - Cash flows provided by operating activities were $97.0 million during the first nine months of 2024, primarily driven by net earnings adjusted for non-cash expenses[123]. - Interest expense, net was $4.5 million for the nine months ended September 30, 2024, a decrease from $7.3 million for the same period in 2023[117]. - The effective tax rate for the nine months ended September 30, 2024 was 28%, compared to 21% for the same period in 2023[118]. - The company had $22.9 million of cash and cash equivalents and $57.9 million of remaining availability under its Revolving Credit Facility as of September 30, 2024[122]. - The company entered into an amended credit agreement to extend the maturity date and increase the size of its existing Revolving Credit Facility to $200 million, with an accordion feature for an additional $75 million[121]. - The company anticipates lower capital spending in the fourth quarter of 2024 as most of the annual growth capital expenditures occurred in the first half of 2024[124]. Capital Expenditures - Capital expenditures totaled $57.9 million, including $12.3 million for the Maben preparation plant, which was commissioned in October 2024[124].

Financial Data and Key Metrics Changes - Q3 2024 adjusted EBITDA was $24 million, down from $29 million in Q2 2024, with net income breakeven compared to $6 million in Q2 2024 [9] - Q3 realized price per ton decreased to $136 from $143 in Q2 2024, reflecting a $7 per ton sequential decline [9] - Cash costs improved to $102 per ton in Q3 from $108 in Q2 and $118 in Q1 2024, with cash margins per ton remaining at $34, consistent with Q2 [9][10] Business Line Data and Key Metrics Changes - Record production of 972,000 tons in Q3 2024, up 35% from Q3 2023, and record sales of 1.02 million tons, marking the first time sales exceeded 1 million tons in a single quarter [10] - The closure of the Knox Creek Jawbone mine negatively impacted Q3 results, contributing to a $1 million loss [9] Market Data and Key Metrics Changes - US metallurgical coal indices fell by approximately 7% in Q3 2024, with a $15 per ton decline in US met coal prices sequentially [4][5] - The overall US met coal production decreased by more than 8% sequentially in Q3, equating to a 6 million ton annual decline [6][21] Company Strategy and Development Direction - The company aims to maintain low cash costs and increase production, projecting a year-end run rate exceeding 5 million tons with normalized cash costs below $100 per ton [5][10] - Growth initiatives remain on track, including the Elk Creek complex and the Maben low vol complex, which is expected to reduce trucking costs by approximately $40 per ton [6][8] Management's Comments on Operating Environment and Future Outlook - Management noted that the decline in met coal prices is primarily due to China's overproduction of steel, impacting global pricing [4] - Future macroeconomic measures, such as potential tariffs on Chinese steel exports, could improve pricing for met coal [7] - The company expects to exit 2024 with strong sales and production despite challenging pricing conditions [8] Other Important Information - The company increased 2024 CapEx guidance to $61 million to $65 million, primarily due to the earlier-than-expected commissioning of the Maben prep plant [11] - Liquidity as of September 30 was $81 million, up nearly $10 million from June 30, 2024 [11] Q&A Session Summary Question: Current weakness in met and steel markets - Management acknowledged the current weakness in pricing and discussed the advantages of their low sulfur products in the high vol space [24][25] Question: Variable costs and sensitivity - Management indicated that variable costs closely track market indices, with sales price-related costs also fluctuating accordingly [26][27] Question: Confidence in maintaining sub $100 cost per ton - Management expressed confidence in maintaining a sub $100 cost per ton run rate into next year due to ongoing production growth and cost control measures [28][29] Question: Factors affecting shipment guidance range - Management noted that the guidance range is influenced by logistics and demand, with the high end assuming no carryover tonnage into 2025 [31][32] Question: Volume expectations for 2025 - Management indicated that production guidance for 2025 will be released in early December, with expectations for continued growth based on current production rates [34] Question: Broader supply situation in Central Appalachia - Management estimated that 10% to 15% of mines are currently unsustainable in the current market, with a significant portion of production at risk [36][37] Question: Domestic pricing for next year - Management indicated that additional volumes under fixed price contracts for 2025 are expected to increase the average price above current levels [38][39]