Ramaco Resources(METC)2025-05-12 16:00Financial Data and Key Metrics Changes - In Q1 2025, adjusted EBITDA was 29 million in Q4 2024, with a net loss of 4 million in Q4 2024 [31] - Class A EPS showed a loss of 0.06 in Q4 [31] - Key U.S. metallurgical coal indices fell 3% in Q1 compared to Q4, while the Australian benchmark index dropped approximately 9% during the same period [32] Business Line Data and Key Metrics Changes - Company-wide production reached a quarterly record of 1 million tons, annualizing to 4 million tons, despite losing about 150,000 tons due to adverse weather conditions [8][41] - Cash cost per ton sold was under 190.5 per ton, up from a recent low of 152 per ton [50] Company Strategy and Development Direction - The company is focused on not forcing production into a weak market, maintaining the option to increase production if market conditions improve [10] - Plans to expand production by an additional 2 million tons are in place, contingent on market clarity, with a potential increase in production capacity from the Maven Low Vol Complex and Berwind Complex [11] - The Brookline Rare Earth project is seen as a significant opportunity, with plans to initiate large-scale mining in June and construction of a pilot plant expected to begin later in the summer [23][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about potential market recovery, citing recent increases in Australian benchmark prices and anticipated supply cuts from higher-cost producers [12] - The company is well-positioned to withstand near-term market weakness due to strong liquidity and a solid balance sheet [39] - Management remains cautious about the current market conditions but is optimistic about the long-term potential of the critical minerals market [30] Other Important Information - The company has appointed Mike Wolichuk as Executive Vice President to oversee the Critical Minerals project, bringing over 30 years of experience in the field [15] - The Brook Mine is projected to produce approximately 1,400 metric tons of critical mineral oxides per year, with over 95% of expected revenue derived from a basket of seven rare earth elements and critical minerals [22] Q&A Session Summary Question: What is the guidance for sales mix and cost improvements moving into the second half? - Management indicated that Q2 sales guidance implies a pickup in the back half of the year, with costs expected to be at the higher end of the range due to lower tonnage [64][65] Question: Could the Brook Mine be included in the Fast 41 projects for federal benefits? - Management clarified that the Brook Mine was not included as it already has permits, but they are exploring federal assistance for financing and procurement [68][71] Question: Is there a desire to bring in a financing or operating partner for the Brook Mine? - Management stated they are not seeking a joint venture partner and plan to finance the project independently, leveraging existing partnerships for development [76][77] Question: What is the breakdown of CapEx for sustaining versus growth projects? - Management noted a reduction in CapEx guidance, with a focus on maintenance CapEx and deferring some growth projects due to current market conditions [82][83] Question: What are the implications of met coal being declared a potential critical mineral? - Management expressed hope for federal support but noted that immediate benefits are uncertain; they anticipate potential assistance with permitting [88][90]