#United States #Ramaco Resources #Lexington #Black Coal #Rare Earth Minerals

Ramaco Resources Reports First Quarter 2025 Results

Overview

On May 12, 2025, Ramaco Resources, Inc. (NASDAQ: METC, METCB), a prominent player in metallurgical coal and an emerging developer of rare earth elements, reported its financial results for the first quarter ending March 31, 2025. Despite facing significant market volatility, the company revealed both operational successes and plans for future mineral development.

Financial Highlights

• - Net Income: The company reported a net loss of $9.5 million.
• - Class A Diluted EPS: Recorded at $(0.19) for the quarter.
• - Adjusted EBITDA: Totaled $9.8 million, a decline from previous reports but still showcasing the company's operational strength against competitors.
• - Production Record: First quarter production reached 989,000 tons, an increase of 17% from 2024, with the Elk Creek complex hitting 687,000 tons.
• - Cash Costs: Non-GAAP cash cost per ton sold decreased to $98, a $20 decline compared to the prior year, signaling improved efficiency.

Despite challenging conditions contributing to a $5 per ton quarterly decrease in metallurgical coal prices, Ramaco maintained some of the highest cash margins in its peer group, with margins reaching $24 per ton. This asserts the company's continued operational effectiveness.

Market Analysis and Outlook

Ramaco's analysis suggests ongoing challenges in the U.S. metallurgical coal market, which reflected a 27% decline in pricing compared to Q1 2024. The company proactively re-evaluated its production strategy to align with unfavorable conditions, with forecasts predicting 850,000 to 950,000 tons to be sold in Q2 2025, down from earlier projections.

To enhance profitability, Ramaco announced a revision to its 2025 guidance:

• - Production Output: Expected between 3.9 - 4.3 million tons, adjusted from earlier estimates of 4.2 - 4.6 million tons.
• - Capital Expenditures: Reduced from $60 - 70 million to $55 - 65 million, focusing on existing growth projects initiated in 2024.

Rare Earth and Critical Minerals Development

In addition to its coal operations, Ramaco has made strides in the rare earth and critical minerals sector at its Brook Mine in Wyoming. Significant developments include:

• - Progress in Development and Testing: Planning for large-scale carbon ore mining is underway, slated to commence in June 2025. The initiative follows the grant of a $6.1 million fund to support this innovative project, showcasing governmental support for critical mineral development.
• - New Leadership in Critical Minerals: The recruitment of Michael Woloschuk, former Global Executive Director at Fluor Corporation, to drive the Brook Mine’s operations marks a significant step in enhancing expertise and project efficiency.
• - Initial Production Forecasts: Ramaco anticipates beginning production of rare earth concentrates at a pilot scale by 2026, expanding to commercial scale by 2028, aligning with increasing U.S. demand for rare earth elements impacted by recent export restrictions from China.

Board of Directors’ Strategic Decisions

The board declared a quarterly cash dividend of $0.1811 per share, further confirming Ramaco's commitment to providing returns to shareholders despite current market challenges. Furthermore, the company is also set to release a comprehensive overview of its overall strategies, bolstered by an upcoming Preliminary Economic Analysis from Fluor.

Conclusion

While Ramaco Resources faced tough market conditions in the first quarter of 2025, the combination of operational resilience and strategic pivots in mineral exploration positions the company for future growth. With continued efforts in both metallurgical coal and the vital transition toward rare earths, Ramaco aims to solidify its footprint as a key player in the U.S. mining landscape.