#United States #Ramaco Resources #Lexington #Critical Minerals #Brook Mine

Ramaco Resources Reports Q3 2025 Results

Ramaco Resources, Inc. has revealed its financial performance for the third quarter of 2025. The detailed report highlights both challenges and developments as the company pivots towards rare earth and critical minerals.

Financial Overview

In the third quarter of 2025, Ramaco recorded a net loss of $13.3 million, translating to a diluted earnings per share (EPS) of $(0.25). The company reported an adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) of $8.4 million for the quarter. This indicates a strategic focus on maintaining financial health amidst a difficult market environment.

Notably, the cash cost per ton sold was $97, reflecting a $6 decrease from the previous quarter. This puts Ramaco's cash costs within the first quartile of the U.S. cost curve, enabling the company to manage cash margins effectively even as domestic metallurgical coal prices fluctuated. The firm recorded a 15% improvement in cash margins per ton compared to the prior quarter, proving its resilience in cost management despite market pressures.

Transition Towards Critical Minerals

Ramaco is in the process of transitioning from being primarily a coal producer to incorporating rare earth and critical minerals into its business model, with particular focus on the Brook Mine located in Wyoming. This shift is significant as it aligns with U.S. objectives to reduce dependence on foreign minerals critical for national security and technological advancement.

The company’s board has authorized the establishment of a national public-private strategic critical mineral terminal. This initiative aims to stockpile rare earth oxides to support both domestic and governmental demand. Ramaco's intent to broaden its business base will culminate in sustaining a dual-platform operation, containing both metallurgical coal and critical minerals production.

Brook Mine Developments

Recent announcements indicate an increase in the planned feedstock production at the Brook Mine to approximately 5 million tons per year, while enhancing annual commercial production of rare earth oxides to around 3,400 tons, marking a 175% surge from previous estimates. This expansion is poised to place Ramaco as a major player in the critical minerals sector within the United States.

In addition to the anticipated economic benefits of producing key minerals such as gallium and germanium, the Brook Mine has been recognized for its potential to become a primary resource and processing facility for these in-demand materials. The heavy and medium magnetic rare earth elements produced at Brook are expected to supply vital sectors like defense and advanced manufacturing.

Sales and Market Commitments

Currently, Ramaco's metallurgical coal sales commitments for 2025 total 3.9 million tons, achieving 100% of the high end of the production guidance range. Sales to North American clients achieved an average fixed price of $151 per ton while export shipments netted an average of $107 per ton. This trade strategy is essential for Ramaco as it navigates ongoing challenges within the metallurgical coal market.

The company's fourth quarter guidance reflects a downward adjustment in anticipated production due to idling some operations in the current market scenario. Nevertheless, Ramaco continues to uphold rigorous cost management protocols, showcasing a strategic decision-making process amid fluctuating coal prices.

Management Insight and Future Steps

Chairman and CEO Randall Atkins emphasized the firm’s financial resilience, highlighting an unprecedented liquidity level reaching $272 million, with a net cash position exceeding $77 million. This robust financial backing is critical as Ramaco forges ahead in its dual-platform approach focusing on both coal and critical minerals.

Atkins reiterated the company's commitment to becoming a leader in the domestic production of rare earth minerals, paving the way for energizing market position, enhanced supply chain security for the United States, and sustained shareholder value over the long term.

Conclusion

The financial results for Q3 2025 indicated a mixed performance for Ramaco Resources due to external market conditions and its gradual transition towards critical minerals production. As the company maneuvers through current uncertainties, its strategic initiatives around the Brook Mine and overall business model adaptation are pivotal in establishing itself as an integrated, forward-looking entity.