#United States #Ramaco Resources #Lexington #Brook Mine #Fluor Corporation

Fluor Corporation's Assessment Validates Brook Mine

In a significant development for the rare earth element (REE) industry, Ramaco Resources, Inc. has announced positive findings from an Independent Preliminary Economic Assessment (PEA) conducted by the Fluor Corporation. The outcome of this assessment confirms both the commercial and technical viability of the Brook Mine, a project situated in Wyoming that is poised to become one of the largest domestic sources of crucial minerals.

Overview of the Brook Mine Project

The Brook Mine project stands out primarily due to its unconventional deposit of rare earth elements, particularly those derived from coal and carbonaceous ore. Fluor's assessment indicates that the project is commercially feasible, with net present values (NPV) calculated at $1.197 billion (using an 8% discount rate) and $898 million (using a 10% discount rate). Additionally, the internal rate of return (IRR) stands at an impressive 38%, showcasing the potential for substantial profitability.

Ramaco Resources has ambitious plans for the Brook Mine, aiming for a production capacity of 2 million tons annually. By 2028, the adjusted EBITDA is projected to reach $134 million, and by 2029, Ramaco expects a steady state EBITDA of $143 million on annual revenues of $378 million. These financial forecasts underline the mine's capability of producing significant volumes of high-demand rare earth oxides, set to scale with the deposit's extensive potential.

Economic Insights and Production Details

The economic analysis from the Fluor report details that the mine is projected to produce 1,242 annual short tons of oxide, which will include critical materials like gallium, germanium, scandium, terbium, dysprosium, neodymium, and praseodymium. This level of production not only supports Ramaco's operational goals but also positions the company as a key player in the U.S. minerals landscape, particularly in reducing dependence on imported rare earth materials from nations like China.

The mine's unique geological profile is advantageous as it consists of soft, friable clay and rock that is associated with coal, leading to lower processing costs and reduced energy consumption compared to traditional hard rock mining operations. This translates into a more efficient extraction process with lower overall capital and operating expenses.

Capital and Operational Projections

Fluor's assessment provides comprehensive estimates for initial capital investment, pegged at $473 million, excluding a 22% contingency. The breakdown is as follows:

• - Mine Development: $30 million
• - Processing Plant: $439 million
• - Infrastructure: $4 million

The total initial capital cost, including contingency, is expected to reach approximately $579 million.

Furthermore, steady state production costs are estimated at $235 million annually, indicating a robust profitability outlook. With a 42-year mine life projected, the Brook Mine is expected to draw less than 4% from the total mineral inventory, highlighting its long-term potential.

Exciting Developments Ahead

Initial mining operations have commenced at the Brook Mine, allowing Ramaco to gather representative ore samples for upcoming pilot scale metallurgical testing. This testing is critical for supporting commercial designs and facilitating product development, with an on-site pilot plant expected to be fully operational by mid-2026.

Chairman and CEO Randall Atkins emphasized the importance of this project not only for Ramaco but also for the national interest, especially as the Brook Mine is anticipated to be one of the only domestic sources of heavy rare earth elements.

Atkins remarked, "This analysis from Fluor validates our continued pursuit of this strategically valuable deposit, and today marks a pivotal moment in enhancing America’s supply chain resilience for critical materials."

Ramaco Resources is committed to providing updates to its shareholders as it progresses toward full-scale commercial operations. The ongoing collaboration with Fluor highlights the industry's confidence in the Brook Mine's potential to reshape the U.S. landscape for rare earth elements, further driving innovation and strategic economic independence in the sector.

Conclusion

In summary, the results of the Fluor Corporation's Independent Preliminary Economic Assessment provide strong validation for Ramaco Resources' Brook Mine project. As demand for critical minerals surges—driven by technology and defense applications—Ramaco stands at the forefront of a vital industry, setting the stage for significant future contributions to both local and national economies.