#United States #Metallurgical Coal #Ramaco Resources #Lexington #NASDAQ METC

Ramaco Resources Fourth Quarter and Year 2024 Financial Results

Overview
Ramaco Resources, Inc. is recognized as a prominent developer and operator of cost-effective metallurgical coal in Appalachia. Recently, the company disclosed noteworthy financial results for the final quarter and full year ending December 31, 2024. Despite facing challenges in coal price indices, the period marked significant operational achievements for Ramaco.

Highlights of Q4 and Full-Year 2024 Results
In the fourth quarter of 2024, Ramaco saw a record production level, with over 1.1 million tons sold, even as the company contended with decreased metallurgical coal prices. The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) soared to $29.2 million, reflecting a 24% increase from the preceding quarter. This robust performance occurred despite the dip in coal prices during the fourth quarter, highlighting effective cost management and sales strategies.

The company's cash costs per ton also saw a significant decline, reducing by $6 to $96 per ton – the lowest of 2024. On a yearly basis, costs per ton dropped dramatically from $120 in March to $94 by December, showcasing a nearly 25% reduction over the year. The net income for Q4 reached $3.9 million, a stark contrast to a loss in the previous quarter, representing a remarkable turnaround.

Market Overview and Performance
Coal indices continued to decline, with an $80 per ton decrease year-over-year. However, Ramaco's cash margins held steady at $33 per ton, only slightly lower than previous quarters. This demonstrates the company's resilience and operational efficiency despite ongoing market pressures.

Sales Commitments and Production Outlook for 2025
Looking ahead to 2025, Ramaco confirmed total sales commitments totaling 3.5 million tons as of late February. This includes fixed-price commitments to North American customers, ensuring stable revenue streams despite market fluctuations. The company anticipates a production boost, leveraging recent expansions and operational enhancements which added approximately 1 million annualized tons of low-cost production.

Strategic Initiatives in Rare Earth and Critical Minerals
In addition to its coal operations, Ramaco is actively pursuing development in rare earth and critical minerals at its Brook Mine located in Wyoming. The project is advancing with plans to commence full-scale mining by mid-2025. This dual focus on both coal and critical minerals not only diversifies Ramaco's portfolio but also positions the company to capitalize on growing demand in future markets.

Management Insights
Randall Atkins, Ramaco's Chairman and CEO, expressed pride in the company's ability to navigate a tough market landscape while achieving operational and financial milestones. The management team remains confident about 2025, predicting a potential recovery in coal pricing due to supply constraints and increased domestic demand in response to global market conditions and potential tariff implications.

Conclusion
As Ramaco looks to expand production capabilities and explore innovative projects, its sound financial foundation and strategic position in the coal and mineral markets indicate a promising path forward. With significant liquidity and a commitment to operational excellence, Ramaco Resources is well-positioned to tackle future industry challenges while leveraging opportunities for growth in the coming years.