Ramaco Resources(METC) - 2024 Q2 - Quarterly Report

Revenue and Sales Performance - The company sold 1.8 million tons of coal in the first half of 2024, generating $328.0 million in revenue, a 7.9$303.8 million in the same period of 2023[78]. - Revenue from North American markets accounted for 33% of total revenue, while export markets contributed 67% in the first half of 2024[78]. - Revenue for the three months ended June 30, 2024, was $155.3 million, a 13$137.5 million in the same period of 2023, driven by a 28% increase in tons sold[84]. - Coal sales revenue for the six months ended June 30, 2024, was $328.0 million, approximately 8$131,097,000, an increase of $13,359,000 from$117,738,000 in the same period of 2023[109]. - Non-GAAP revenue (FOB mine) for the six months ended June 30, 2024, was $275,488,000, an increase of$15,836,000 from $259,652,000 in the same period of 2023[109]. Pricing and Cost Analysis - The average fixed sales price for outstanding performance obligations is$165 per ton, with 1.0 million tons under fixed pricing and 2.4 million tons under index-based pricing[79]. - Revenue per ton sold decreased from $192 in Q2 2023 to$170 in Q2 2024, reflecting an 11% decline due to pricing variability[84]. - Non-GAAP revenue per ton sold (FOB mine) decreased to $143 in the three months ended June 30, 2024, down from$165 in the same period of 2023, a decrease of $22[109]. - Cost of sales for the three months ended June 30, 2024, was$122,770,000, an increase of $23,571,000 from$99,199,000 in the same period of 2023[110]. - Non-GAAP cash cost of sales for the three months ended June 30, 2024, was $98,469,000, reflecting an increase of$19,572,000 from $78,897,000 in the same period of 2023[110]. - Non-GAAP cash cost per ton sold (FOB mine) was$108 for the three months ended June 30, 2024, a slight decrease of $2 from$110 in the same period of 2023[110]. Operational and Financial Metrics - Cash flows provided by operating activities were $59.6 million during the first six months of 2024, driven primarily by net earnings adjusted for non-cash expenses[97]. - Capital expenditures totaled$40.1 million, including expenditures related to the preparation plant and expansion of the Maben complex[99]. - The Company had $27.6 million of cash and cash equivalents and$43.7 million available under its Revolving Credit Facility as of June 30, 2024[97]. - The Company anticipates capital expenditures to decline in the second half of 2024 as growth capital expenditures associated with certain mines have already occurred[99]. - Adjusted EBITDA for the three months ended June 30, 2024, was $28,798,000, compared to$30,014,000 for the same period in 2023, reflecting a decrease of $1,216,000[108]. - Adjusted EBITDA for the six months ended June 30, 2024, was$52,978,000, compared to $78,267,000 for the same period in 2023, indicating a significant decrease[108]. Tax and Interest Expenses - Interest expense, net was$2.8 million for the six months ended June 30, 2024, compared to $4.8 million for the same period in 2023, largely due to the repayment of related-party debt[93]. - The effective tax rate for the six months ended June 30, 2024, was 24.5$1,455,000 for the six months ended June 30, 2024, compared to $8,016,000 in the same period of 2023[108]. Future Plans and Market Outlook - The company continues to assess its rare earth and critical minerals deposit in Wyoming, with plans to complete a techno-economic analysis later this year[80]. - The company anticipates constructing a demonstration processing facility for rare earth elements in 2025[80]. - The overall outlook for the metallurgical coal market remains uncertain due to global economic conditions and pricing pressures, particularly from China[77]. - Export volumes increased by 39$0.1375 per share of Class A common stock and $0.2246 per share of Class B common stock for the third quarter of 2024[101].