RAMACO RESOURCES REPORTS THIRD QUARTER 2024 RESULTS

LEXINGTON, Ky., Nov. 4, 2024 /PRNewswire/ — Ramaco Assets, Inc. (NASDAQ: METC, METCB, “Ramaco” or the “Company”), is a important operator and developer of top of the range, cheap metallurgical coal in Central Appalachia and life developer of uncommon earth and demanding minerals in Wyoming. Nowadays it reported monetary effects for the 3 months and 9 months ended September 30, 2024.

THIRD QUARTER 2024 HIGHLIGHTS

• For the quarter ended September 30, 2024, the Corporate had adjusted profits sooner than hobby, taxes, depreciation, amortization, positive non-operating bills, and equity-based reimbursement (“Adjusted EBITDA”, a non-GAAP measure), of $23.6 million, in comparison to $28.8 million in the second one quarter of 2024. (See “Reconciliation of Non-GAAP Measures” beneath.)

• For the quarter ended September 30, 2024, the Corporate had web source of revenue of $(0.2) million, in comparison to $5.5 million in the second one quarter of 2024 and $19.5 million within the 3rd quarter of 2023. Elegance A diluted EPS was once $(0.03) for the quarter ended September 30, 2024, in comparison to $0.08 for the quarter ended June 30, 2024 and $0.40 for the quarter ended September 30, 2023. Except for the one-time closure of the Corporate’s Knox Creek Jawbone mine (mentioned beneath), web source of revenue would had been roughly $1 million and Elegance A diluted EPS would had been $0.00.

• Non-GAAP coins price in step with ton offered declined quarterly by means of $6 in step with ton within the 3rd quarter of 2024 to $102 in step with ton, as manufacturing larger by means of 8% to 972,000 lots sequentially in spite of one fewer paintings past within the 3rd quarter. (See “Reconciliation of Non-GAAP Measures” beneath.) Moreover, non-GAAP coins prices in step with ton offered had been beneath $100 in step with ton in each August and September, as our cheap Ram Refuse. 3 mine and the 3rd division at our Stonecoal Alma mine reached complete manufacturing. 3rd quarter of 2024 coins prices have declined by means of $16 in step with ton since first quarter of 2024 coins prices.

• Because of each advanced productiveness and persevered will increase in manufacturing, 3rd quarter gross sales of one,023,000 lots and 3rd quarter manufacturing of 972,000 lots had been each quarterly information.
• U.S. metallurgical coal indices fell $15 in step with ton, or 7% on reasonable within the 3rd quarter of 2024 as opposed to the second one quarter, and $25 in step with ton, or 12% as opposed to the 3rd quarter of 2023. Era to hour indices have fallen by means of $85 in step with ton or 32%. Regardless of those declines, non-GAAP coins margins in step with ton offered¹ this quarter remained at $34 in step with ton, or 25%, unwell simply $1 in step with ton sequentially, on account of the Corporate’s forged operational efficiency. 

MARKET COMMENTARY / 2025 OUTLOOK

Gross sales and Advertising:

• For 2024, general gross sales loyalty are 4.1 million lots as of September 30, which equates to greater than 100% of the majestic terminate of 2024 manufacturing steerage. 1.3 million lots are dedicated to North American shoppers at a mean learned mounted worth of $168 in step with ton. As well as, 2.0 million already shipped lots had been dedicated to seaborne shoppers at a mean learned index-based mounted worth of $135 in step with ton. General, in the course of the 3rd quarter 3.3 million lots had been dedicated at a mean learned worth of $148 in step with ton, with the exception of the have an effect on of any demurrage. The Corporate has 0.8 million lots of unpriced index export industry dedicated for supply within the fourth quarter of 2024.

• For 2025, general gross sales loyalty are actually 2.7 million lots as of early November, of which 1.6 million lots are mounted worth at $152 in step with ton offered to most commonly North American shoppers. As of this hour, a portion of the Corporate’s larger priced uniqueness coal has now not but been dedicated, in-line with conventional buyer gross sales cadence. We wait for those life gross sales will lift the entire 2025 mounted worth reasonable.

Manufacturing:

• The Corporate’s 4 major manufacturing expansion tasks for 2024 stay on the right track and on finances. Those come with:
  • The addition of 600,000 mixed annualized majestic vol lots from the Elk Creek complicated’s Ram 3 floor / highwall mine and the 3rd division on the Stonecoal Alma mine. Either one of those mines had been at complete manufacturing as of September 2024.
  • The fee of the prep plant at Maben in past due October, in-line with expectancies. This will likely shed trucking prices at this complicated by means of roughly $40 in step with ton.
  • The addition of 300,000 lots of annualized low vol manufacturing on the 3rd division on the Berwind mine. First manufacturing must start sooner than year-end 2024.
  • The Corporate anticipates reasonable annual mine prices of $90-95 in step with ton on a mixed foundation at these types of unutilized mines.
• The Corporate started proactively lowering larger price manufacturing within the tide pricing situation. In October, the Knox Creek Jawbone mine was once closed, which was once each nearing terminate of mine day and the Corporate’s simplest loss making mine.
• On a per thirty days foundation, mine prices dropped from $120 in step with ton in March to $93 in step with ton in September or more or less a 25% abatement right through the 12 months.

Steerage:

• General manufacturing and gross sales steerage is being decreased by means of 0.2 million lots on the midpoint to three.7 – 3.9 million lots and three.9 – 4.1 million lots, respectively.
• Those discounts in steerage could have a minimum have an effect on to total profits. The Corporate’s up to date steerage can also be revealed within the “Financial Guidance” division of this press loose.
• The midpoint of full-year 2024 coins price steerage is being decreased to $106 – $109 in step with ton offered as opposed to the prior $105 – $111 in step with ton. In crease with this up to date coins price steerage, total mine prices on a normalized foundation are expected to go the 12 months beneath the $100 in step with ton space. Next adjusting for 2 weeks of holiday sessions within the fourth quarter, the Corporate anticipates coins prices to be indistinguishable in each the 3rd and fourth quarter of 2024.
• The high-end of 2024 gross sales steerage remainder at more or less a 5 million ton in step with annum go run fee.
• The midpoint of money promoting, common, and administrative steerage is decreased by means of 10%, from $40 million to $36 million.   
• The Corporate continues to move on backup mining and trying out at its uncommon earth and demanding mineral Brook Mine in Sheridan, Wyoming. We wait for that The Fluor Company will lend a initial techno-economic research of the mission in early December. Fluor can be i’m busy going forward design and engineering for the industrial demonstration processing facility which Ramaco hopes to start out establishing in 2025.

MANAGEMENT COMMENTARY

Randall Atkins, Ramaco Assets’ Chairman and Government Officer commented, “The story backdrop behind Ramaco’s and the entire met coal industry’s results this year is directly tied to the continuing export of China’s overproduction of metal, each to the evolved and growing international. This has led international metal firms to each lower to their very own manufacturing and to shed the associated fee they’re prepared to pay for his or her met coal feedstock.

Regardless of that macro headwind, Ramaco’s 3rd quarter operational effects had been our most powerful operational quarter of the 12 months. In easy phrases, we acted on the ones disciplines shall we regulate and succeeded in each lowering prices and extending manufacturing for the second one consecutive quarter. We wait for the similar certain operational move after quarter as we terminate the 12 months.

Our monetary effects had been decrease this quarter than in the second one quarter because of the $15 in step with ton sequential abatement in U.S. met coal indices impacting income. Each the U.S. low vol and majestic vol indices fell quarterly by means of more or less 7% on reasonable within the 3rd quarter and by means of more or less 32% for the reason that get started of the 12 months. Regardless of this persevered abatement in pricing, we each produced and shipped a file quantity of coal within the 3rd quarter.

Our sturdy operational and productiveness execution additionally resulted in some other massive sequential abatement in coins prices that averaged within the mid $90 in step with ton space for each August and September. Certainly, our mine prices have declined by means of more or less 25% in the course of the 12 months. Money margins in step with ton additionally held stable close the $34 in step with ton stage or 25% in each the second one and 3rd quarters in spite of declining costs.

We predict operational effects must once more toughen within the fourth quarter, as our manufacturing and gross sales keep growing. We wait for a gross sales build up within the fourth quarter to lend a year-end go run fee in huge of five million lots on the majestic terminate of steering, with coins prices additionally beneath $100 in step with ton on a normalized foundation, with the exception of the holiday sessions.

Our 4 major 2024 expansion tasks stay each on the right track and on finances.

• The majestic vol additions at our Elk Creek complicated must in the long run upload more or less 600,000 annualized lots to total 2024 Elk Creek manufacturing. Those are from the Ram 3 floor / highwall mine and the 3rd division on the Stonecoal Alma mine, that have been each absolutely on-line as of September.
• The prep plant at our low vol Maben complicated was once commissioned on generation and on finances on the terminate of October and can shed tide trucking prices by means of roughly $40 in step with ton at this complicated.
• The addition within the fourth quarter of the 3rd division on the major Berwind low vol mine will in the long run upload more or less 300,000 annualized lots of manufacturing.
• Importantly, all of those unutilized mines are expected to have reasonable mine prices within the $90-95 in step with ton space on a mixed foundation.

At the provide aspect, there was once possibly a silver lining to the ongoing abatement in met coal pricing. Upper price U.S. met coal manufacturing is starting to come offline and rationalize. U.S. Mine Protection & Fitness Management knowledge means that 3rd quarter U.S. metallurgical coal manufacturing fell by means of greater than 8% sequentially. This may equate to a 6+ million-ton annual abatement. Absent significant pricing development we wait for manufacturing will proceed to say no additional within the fourth quarter. Those dislocations might develop alternatives for us as we journey ahead. We’re already now eye it at the hiring entrance.

At the call for aspect, as we stay up for 2025 it’s conceivable that Chinese language metal exports could also be limited in lots of international markets by means of price lists. This may occasionally spice up metal and met coal pricing in our conventional markets. The Chinese language govt may additionally enact extra competitive fiscal stimulus measures, which may have indistinguishable doable to toughen pricing. We will wait and spot.

I’m happy to document on how our ahead 2025 gross sales secure has been stuffed up to now. General 2025 gross sales loyalty are actually as much as 2.7 million lots, of which 1.6 million lots are mounted worth at $152 in step with ton to most commonly North American shoppers. Within the close life we predict additionally to govern the residue of our conventional higher-priced annual uniqueness coal home industry for 2025.

On our uncommon earth and demanding minerals entrance on the Brook Mine in Wyoming, we proceed to create sturdy move. As an commentary, the trying out complexity of essential mineral industrial construction could be very other from metallurgical coal. We’re lucky to have an array of skilled teams to help us which can be fascinated about our uncommon earth trying out, mine making plans and processing design.

We’re within the complex phases of finishing our initial techno-economic document with the Fluor Company. We predict it to be finalized in a while to study at our Board assembly in early December. Finally, we proceed to devise towards graduation of the development of our uncommon earth demonstration facility in mid to past due 2025. We predict to create additional bulletins in this total move later the Board assembly.

In abstract, we predict to go the 12 months on a robust observe with each file annual gross sales and manufacturing or even decrease normalized mine prices. We are actually smartly located on ahead coal gross sales into 2025 and sit up for with a bit of luck more potent seasonal pricing markets as we begin the 12 months. Our uncommon earth construction remainder a significant distinctive transformational alternative as we methodically journey towards with a bit of luck starting to notice its industrial doable within the unutilized 12 months. General, we proceed to transition into turning into a fair greater low price met coal manufacturer, with the hopeful addition of an exhilarating uncommon earth and demanding mineral life doable.” 

Key operational and fiscal metrics are offered beneath (unaudited):

THIRD QUARTER 2024 PERFORMANCE

In please see paragraphs, all references to “quarterly” sessions or to “the quarter” please see the 3rd quarter of 2024, until specified in a different way.

Era over Era Quarterly Comparability

General manufacturing within the quarter was once 972,000 lots, up 35% from the similar duration of 2023. The Elk Creek complicated produced 639,000 lots, up 59% from closing 12 months. The 3rd quarter of 2024 benefited from each forged total operational and productiveness execution, in addition to the a hit ramp-up of the unutilized Ram 3 floor/highwall mine and the 3rd division at our Stonecoal Alma mine. The Berwind, Knox Creek, and Maben complexes larger manufacturing to 333,000 lots within the quarter, up 5% from the similar duration closing 12 months.

Quarterly pricing was once $136 in step with ton, which was once 13% decrease in comparison to $157 in step with ton within the 3rd quarter of 2023. The abatement was once because of the year-over-year trim in each U.S. and international metallurgical coal worth indices. Money prices had been $102 in step with ton offered, with the exception of transportation prices, backup mineral construction prices, and lazy mine prices, which was once a ten% trim from the similar duration in 2023.

On account of the above, coins margins had been $34 in step with ton all the way through the quarter, unwell from $44 in step with ton in the similar duration of 2023. This was once in accordance with non-GAAP income (FOB mine) and non-GAAP coins price of gross sales (FOB mine).

Sequential Quarter Comparability

3rd quarter of 2024 manufacturing was once 972,000 lots, up from the second one quarter by means of 8%. This was once because of higher productiveness and the manufacturing will increase on the Corporate’s Ram 3 floor/highwall and Stonecoal Alma mines which started generating in June. Quarterly gross sales quantity of one,023,000 lots was once up from 915,000 lots in the second one quarter. This was once because of the aforementioned manufacturing build up.

Learned quarterly pricing of $136 in step with ton was once unwell 5% from $143 in step with ton in the second one quarter. This mirrored weaker marketplace statuses and decrease index pricing as key U.S. metallurgical coal indices fell more or less 7% within the 3rd quarter as opposed to the second one quarter. They’re now unwell 32% for the reason that terminate of 2023. Regardless of the sequential abatement in pricing, revenues larger 8% to $167 million from the second one to the 3rd quarter.

Quarterly coins prices of $102 in step with ton in comparison to $108 in step with ton in the second one quarter of 2024. The continuing significant price development resulted from an build up in manufacturing because of higher productiveness and the manufacturing build up at Elk Creek. Quarterly coins margins had been $34 in step with ton or 25%, reducing very rather in spite of the $7 in step with ton let fall in learned pricing from the second one quarter of 2024. Those figures are in accordance with non-GAAP income (FOB mine) and non-GAAP coins price of gross sales (FOB mine).

BALANCE SHEET AND LIQUIDITY

As of September 30, 2024, the Corporate had liquidity of $80.8 million, consisting of $22.9 million of money plus $57.9 million of availability beneath our revolving credit score facility. Liquidity was once up from $71.3 million in the second one quarter of 2024.

Quarterly capital expenditures totaled $17.8 million. This larger from $16.9 million for a similar duration of 2023 and diminished from $21.4 million for the second one quarter of 2024. Era to hour capital expenditures are $54.9 million, with the exception of the $3 million acquire worth of the Maben preparation plant.

We wait for capital expenditures will abatement meaningfully within the fourth quarter 2024, as opposed to the primary 3 quarters of 2024. This abatement comes from the crowning glory of the Corporate’s Ram 3 floor / highwall and Stonecoal Alma mines that accomplished complete manufacturing in September. Expansion capital expenditures related to the ones mines have now already been incurred. The Corporate expects 2024 capital expenditures to come back in against the majestic terminate of the former steerage space, in large part because of timing, and updates steerage accordingly.

The Corporate’s 12 months to hour efficient tax fee was once 18%. For the 3rd quarter of 2024, the Corporate identified source of revenue tax expense of $0.1 million.

Refer to summarizes key gross sales, manufacturing and fiscal metrics for the sessions famous (unaudited):

ABOUT RAMACO RESOURCES

Ramaco Assets, Inc. is an operator and developer of top of the range, cheap metallurgical coal in southern West Virginia, and southwestern Virginia and a growing manufacturer of uncommon earth and demanding minerals in Wyoming. Its government workplaces are in Lexington, Kentucky, with operational workplaces in Charleston, West Virginia and Sheridan, Wyoming. The Corporate lately has 4 energetic metallurgical coal mining complexes in Central Appalachia and one construction uncommon earth and coal mine close Sheridan, Wyoming within the preliminary phases of manufacturing. In 2023, the Corporate introduced {that a} primary warehouse of number one magnetic uncommon earths and demanding minerals was once found out at its mine close Sheridan, Wyoming. Contiguous to the Wyoming mine, the Corporate operates a carbon analysis and pilot facility alike to the manufacturing of complex carbon merchandise and fabrics from coal. In reference to those actions, it holds a frame of more or less 60 highbrow detail patents, pending packages, unique licensing pledges and diverse logos. Information and backup details about Ramaco Assets, together with filings with the Securities and Alternate Fee, are to be had at http://www.ramacoresources.com. For more info, touch investor family members at (859) 244-7455.

THIRD QUARTER 2024 CONFERENCE CALL

Ramaco Assets will conserve its quarterly convention name and webcast at 9:00 AM Jap While (ET) on Tuesday, November 5, 2024. An accompanying slide deck will likely be to be had at https://www.ramacoresources.com/investors/investor-presentations/ in an instant sooner than the convention name.

To take part within the are living teleconference on November 5, 2024:

Home Reside: (877) 317-6789
Global Reside: (412) 317-6789
Convention ID: Ramaco Assets 3rd Quarter 2024 Effects
Internet hyperlink: Click Here

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Positive statements contained on this information loose represent “forward-looking statements” throughout the that means of the Personal Securities Litigation Reform Function of 1995. Those forward-looking statements constitute Ramaco Assets’ expectancies or ideals regarding steerage, life occasions, expected income, life call for and manufacturing ranges, macroeconomic developments, the advance of ongoing tasks, prices and expectancies referring to working effects, and it’s conceivable that the effects described on this information loose is probably not accomplished. Those forward-looking statements are matter to dangers, uncertainties and alternative elements, a lot of which can be out of doors of Ramaco Assets’ regulate, which might reason unedited effects to range materially from the effects mentioned within the forward-looking statements. Those elements come with, with out limitation, surprising delays in our tide mine construction actions, the power to effectively ramp up manufacturing at our complexes in keeping with the Corporate’s expansion tasks, failure of our gross sales loyalty counterparties to accomplish, larger govt legislation of coal in the USA or across the world, the additional abatement of call for for coal in export markets and underperformance of the railroads, the predicted advantages of the Ramaco Coal and Maben acquisitions to the Corporate’s shareholders, the expected advantages and affects of the Ramaco Coal and Maben acquisitions, and the Corporate’s skill to effectively manufacture the Brook Mine, together with whether or not the rise within the Corporate’s exploration goal and estimates for such mine are learned. Any forward-looking commentary speaks simplest as of the hour on which it’s made, and, except for as required by means of legislation, Ramaco Assets does now not adopt any legal responsibility to replace or revise any forward-looking commentary, whether or not on account of unutilized knowledge, life occasions or in a different way. Unutilized elements emerge from generation to generation, and it isn’t conceivable for Ramaco Assets to are expecting all such elements. When taking into account those forward-looking statements, you must book in thoughts the danger elements and alternative cautionary statements present in Ramaco Assets’ filings with the Securities and Alternate Fee (“SEC”), together with its Annual File on Mode 10-Ok and Quarterly Studies on Mode 10-Q. The chance elements and alternative elements famous in Ramaco Assets’ SEC filings may just reason its unedited effects to range materially from the ones contained in any forward-looking commentary.

Reconciliation of Non-GAAP Measures (Unaudited)

Adjusted EBITDA

Adjusted EBITDA is impaired as a supplemental non-GAAP monetary measure by means of control and exterior customers of our monetary statements, reminiscent of business analysts, traders, lenders, and ranking companies. We imagine Adjusted EBITDA turns out to be useful as it lets in us to guage our working efficiency extra successfully.

We outline Adjusted EBITDA as web source of revenue plus web hobby expense; equity-based reimbursement; depreciation, depletion, and amortization bills; source of revenue taxes; positive alternative non-operating pieces (source of revenue tax consequences and charitable contributions), and accretion of asset leaving responsibilities. Its maximum similar GAAP measure is web source of revenue. A reconciliation of web source of revenue to Adjusted EBITDA is incorporated beneath. Adjusted EBITDA isn’t meant to grant as an alternative choice to GAAP measures of efficiency and will not be similar to in a similar way titled measures offered by means of alternative firms.

Non-GAAP income and coins price in step with ton

Non-GAAP income in step with ton (FOB mine) is calculated as coal gross sales income much less transportation prices together with demurrage prices, divided by means of lots offered. Non-GAAP coins price in step with ton offered (FOB mine) is calculated as coins price of coal gross sales much less transportation prices, backup mineral construction prices, and lazy and alternative prices, divided by means of lots offered. We imagine income in step with ton (FOB mine) and coins price in step with ton (FOB mine) lend helpful knowledge to traders as those allow traders to check income in step with ton and coins price in step with ton for the Corporate in opposition to indistinguishable measures made by means of alternative publicly-traded coal firms and extra successfully observe adjustments in coal costs and prices from duration to duration with the exception of the have an effect on of transportation prices, which can be past our regulate, and backup mineral prices, which can be extra developmentally centered lately. The changes made to reach at those measures are important in working out and assessing the Corporate’s monetary efficiency. Earnings in step with ton offered (FOB mine) and coins price in step with ton offered (FOB mine) aren’t measures of monetary efficiency in keeping with GAAP and subsequently must now not be regarded as as an alternative choice to income and value of gross sales beneath GAAP. The tables beneath display how we calculate non-GAAP income and coins price in step with ton:

We don’t lend reconciliations of our outlook for coins price in step with ton to price of gross sales in reliance at the unreasonable efforts exception supplied for less than Merchandise 10(e)(1)(i)(B) of Legislation S-Ok. We’re not able, with out unreasonable efforts, to forecast positive pieces required to manufacture the significant similar GAAP price of gross sales. This stuff generally come with non-cash asset leaving legal responsibility accretion bills, mine idling bills and alternative non-recurring oblique mining bills which are tricky to are expecting in journey to deliver to incorporate a GAAP estimate.

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SOURCE Ramaco Assets, Inc.