• Record Tons Sold: Achieved record tons sold in Q4 2024.
• Cash Cost: Exited the year with cash cost well under $100 per ton.
• Liquidity: Ended the year with record liquidity of approximately $140 million.
• Margins: Q4 margins remained at $33 per ton, despite a $30 drop in met coal prices.
• Adjusted EBITDA: Q4 2024 adjusted EBITDA was $29 million, up from $24 million in Q3.
• Net Income: Q4 net income of $4 million compared to breakeven in Q3.
• Class A EPS: $0.06 gain in Q4 versus a $0.03 loss in Q3.
• Tons Sold: Exited the year at a 4.5 million ton per annum run rate.
• Liquidity at Year-End: $138 million, up more than 50% year-on-year.
• Net Debt to Adjusted EBITDA: 0.5 times on a trailing 12-month basis.
• 2025 Sales Commitment: 3.5 million tons committed for sale, with 1.6 million tons to North American customers at $152 per ton and 1.9 million tons to the seaborne market.

• Warning! GuruFocus has detected 4 Warning Signs with DOUG.

Release Date: March 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ramaco Resources Inc (NASDAQ:METC) achieved record tons sold in Q4 2024, marking the strongest quarter of the year both financially and operationally.
• The company maintained cash costs well under $100 per ton, contributing to strong cash margins of $33 per ton despite a $30 drop in met coal prices.
• Ramaco Resources Inc (NASDAQ:METC) ended the year with record levels of liquidity, approximately $140 million, providing a strong financial position.
• The company is advancing its rare earth and critical minerals project in Wyoming, with plans to begin full-scale mining in July and construct a pilot processing facility in the fall.
• Ramaco Resources Inc (NASDAQ:METC) has a strategic plan to increase future production by adding 2 million tons of low-vol production, positioning itself for growth when market conditions improve.

Negative Points

• The met coal market faced continued pricing headwinds, with a year-long negative pricing environment impacting financial performance.
• Global steel demand remains weak, with Chinese steel exports pressuring global steel mill profits and affecting met coal prices.
• The company experienced operational challenges due to extreme weather events in Q1 2025, including freezing temperatures and historic flooding, impacting costs and production.
• There is uncertainty in the market, leading to a cautious approach in committing new capital to growth projects until pricing stabilizes.
• The rare earth project faces delays due to backlog in receiving third-party chemistry and metallurgic test results, impacting the timeline for economic and CapEx estimates.

Q & A Highlights

Q: Can you provide more details on the seaborne volumes fixed at $111 per ton and where you see the highest return opportunities in the current market? A: Christopher Blanchard, Chief Operating Officer, explained that the $111 figure reflects index-linked prices for January and February, primarily from Asian high-vol contracts that have since ended. The highest returns are seen in the Atlantic market due to freight differentials and near parity with Pacific indices. Current netbacks are around $125 per ton for high-vol and $3 to $5 higher for low-vol.

Q: Regarding growth projects, what is the capital intensity, and what conditions would prompt you to move forward? Is this included in your current CapEx guidance? A: Jeremy Sussman, Chief Financial Officer, stated that the total CapEx guidance is $60 million to $70 million, with about $20 million allocated for growth, split between Elk Creek and Berwind. If market conditions remain weak, CapEx could decrease. Randall Atkins, CEO, added that clarity in market conditions is needed before committing new capital, with modest spending planned for Maben and Berwind expansions.

Q: What is the expected development CapEx for the rare earth project, and what is required for the pilot plant construction? A: Randall Atkins, CEO, mentioned that detailed CapEx and economic information will be provided in the upcoming Fluor techno-economic report. The pilot plant construction will begin later this year, with a $6 million grant from the Wyoming Energy Authority aiding the project. The pilot plant CapEx is included in the current $60 million to $70 million CapEx range.

Q: How sustainable are the recent reductions in unit costs, and could they reverse if met coal prices recover? A: Christopher Blanchard, COO, explained that cost reductions are largely due to transitioning to thicker seams with better geology, which should remain stable. While some sales-related costs may increase with higher prices, structural cost improvements are expected to persist.

Q: Can you clarify the trucking cost savings at the Maben complex and the timeline for further cost reductions? A: Christopher Blanchard, COO, clarified that the $40 per ton trucking cost savings are on a raw basis, with $20 per ton savings realized so far. Additional savings will occur once the rail load-out is built on-site, expected after this calendar year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.