#USA #Ramaco Resources #METC #Lexington #Brook Mine

Ramaco Resources Reports Second Quarter Results for 2025

Overview
Ramaco Resources, Inc., a significant player in the metallurgical coal sector, has provided its financial performance update for the second quarter of 2025. Based in Lexington, Kentucky, the company operates primarily in Central Appalachia and is expanding its operations into rare earth and critical minerals through the Brook Mine in Wyoming. This report outlines their financial highlights, future strategies, and operational updates.

Financial Highlights

For the second quarter ending June 30, 2025, Ramaco incurred a net loss of $14.0 million, translating to a Class A diluted earnings per share (EPS) of $0.29. Despite this loss, the company posted an adjusted EBITDA of $9.0 million, signifying operational resilience amidst market challenges. The non-GAAP cash cost per ton sold fell to $103, a modest decline from the previous year, indicating effective cost management in line with market conditions.

Production Achievements

Remarkably, Ramaco achieved a production milestone of nearly 1 million tons, marking a consistent quarterly production record and a commendable 11% increase from the prior year’s figures. The Elk Creek complex was a major contributor, producing 688,000 tons, showcasing a 35% increase year-on-year. However, production levels at other complexes were impacted by the idling of higher-cost operations like the Big Creek Jawbone mine.

Market Commitments and Outlook

Ramaco has successfully secured sales commitments totaling 3.9 million tons by mid-2025, demonstrating strong demand for its metallurgical coal. With a keen focus on limiting lower-priced exports due to unstable market conditions, Ramaco anticipates a full-year production ranging from 3.9 to 4.3 million tons, with adjusted sales projections pointing towards the lower end of their previous guidance.

Rare Earths and Strategic Development

In a notable pivot towards diversified operations, Ramaco is keenly developing its Brook Mine, which hosts rare earth elements essential for modern technologies and defense. Mining at the Brook Mine commenced in June 2025, with significant amounts of gallium, germanium, and scandium being identified. The company plans to construct a pilot processing facility for these critical minerals, aiming for initial production by 2026, accelerated at the request of U.S. governmental authorities.

Industry Commentary

Chairman and CEO Randall Atkins remarked on the company’s strategic direction amidst competitive pressures, noting, “Ramaco is evolving into a dual-platform company,” emphasizing the synergy between its metallurgical coal and rare earth operations. The significant investment in human resources, now exceeding 1,000 employees across four states, highlights the company’s commitment to community development and environmental stewardship.

The recent ribbon-cutting ceremony at the Brook Mine, marked by the participation of significant government figures, symbolizes a historic moment in the U.S. mining landscape, being the first new rare earth mine in over 70 years.

Conclusion

As Ramaco Resources steers towards a dual focus on metallurgical coal and rare earths, the company is poised to be a critical player in fostering a robust supply chain for these essential minerals in the U.S. While the second quarter showcased financial resilience, the strategic initiatives in rare earth production mark a keen awareness of market demands and national security needs, setting the stage for potential growth and sustainability.

Key performance metrics and forecasts will be closely monitored as the company navigates the unprecedented mining landscape and aims to rebuild its financial stability for the long term.