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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 8, 2024

Ramaco Resources, Inc.

(Exact name of Registrant as specified in its Charter)

Delaware

001-38003

38-4018838

(State or other jurisdiction of

(Commission

(IRS Employer

incorporation)

File No.)

Identification No.)

250 West Main Street, Suite 1900

Lexington, Kentucky 40507

(Address of principal executive offices)

Registrant’s Telephone Number, including area code: (859) 244-7455

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

    

Trading Symbol(s)

    

Name of each exchange on which registered

Class A Common Stock, $0.01 par value

METC

NASDAQ Global Select Market

Class B Common Stock, $0.01 par value

METCB

NASDAQ Global Select Market

9.00% Senior Notes due 2026

METCL

NASDAQ Global Select Market

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Item 2.02.Results of Operations and Financial Condition.

On May 8, 2024, Ramaco Resources, Inc. (the “Company”) issued a press release reporting its financial and operating results for the first quarter of 2024 (the “Earnings Release”). A copy of the Earnings Release is attached hereto as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

None of the information furnished in this Item 2.02 will be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, nor will it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”).

Item 7.01.Regulation FD Disclosure.

The information set forth in Item 2.02 above and in Exhibit 99.1 to this Current Report on Form 8-K is incorporated herein by reference.

None of the information furnished in this Item 7.01 will be deemed “filed” for the purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that section, nor will it be incorporated by reference into any filing under the Securities Act.

Item 9.01.Financial Statements and Exhibits.

(d) Exhibits.

Exhibit
Number

    

Exhibit Description

99.1

Earnings Release issued by Ramaco Resources, Inc., dated May 8, 2024

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

RAMACO RESOURCES, INC.

By: 

/s/ Randall W. Atkins

Name: 

Randall W. Atkins

Title: 

Chairman and Chief Executive Officer

Date:May 8, 2024

Exhibit 99.1

RAMACO RESOURCES REPORTS

FIRST QUARTER 2024 RESULTS

LEXINGTON, KY., May 8, 2024 -- Ramaco Resources, Inc. (NASDAQ: METC, METCB, “Ramaco” or the “Company”), a leading operator and developer of high-quality, low-cost metallurgical coal, today reported financial results for the three months ended March 31, 2024.

FIRST QUARTER 2024 HIGHLIGHTS

For the three months ended March 31, 2024, the Company had adjusted earnings before interest, taxes, depreciation, amortization, certain non-operating expenses, and equity-based compensation (“Adjusted EBITDA”, a non-GAAP measure), of $24.2 million, compared to $58.5 million in the fourth quarter of 2023. (See “Reconciliations of Non-GAAP Measure” below.)

For the three months ended March 31, 2024, the Company had net income of $2.0 million, compared to $30.0 million in the fourth quarter of 2023. Class A EPS was $0.00 for the three months ended March 31, 2024, compared to $0.60 for the three months ended December 31, 2023.

First quarter of 2024 results were negatively impacted by a combination of lower index pricing, especially in March, and higher mine costs. The Company shipped over half of its export tons in March, when indices were at their lows. In addition, first quarter of 2024 mine costs were impacted by challenging geology and labor constraints at Elk Creek, both of which are expected to improve throughout the second quarter, and especially in the back half of 2024.

The Board declared a quarterly cash dividend of $0.2376 per share on the CORE Resources Class B shares. This will be payable on June 15, 2024, to shareholders of record on June 1, 2024. The payout level of the Class B dividend based on royalties and infrastructure income has remained steady for the past few quarters. The Board also approved and declared a quarterly Class A common stock cash dividend of $0.1375 per share for the second quarter of 2024, which is payable on June 15, 2024, to shareholders of record on June 1, 2024.

The Company recently closed an agreement to both extend and increase the size of its existing Revolver facility with KeyBank, NA and a bank syndicate. The new facility increases the Revolver from $125 million to $200 million with an accordion feature to increase the ultimate size by an additional amount of $75 million to $275 million. The term of the new facility is five years, increased from an original three years.

MARKET COMMENTARY / 2024 OUTLOOK

The Company is maintaining all full-year 2024 guidance, which can be seen in the “Financial Guidance” section of today’s press release.

The Company has 1.4 million tons committed to North American customers at an average realized price of $167 per ton, and 0.7 million tons mostly already shipped and sold to seaborne customers at an average realized price of $150 per ton, for a total of 2.1 million tons committed at an average realized price of $162 per ton. The Company has an additional 2.0 million tons committed at mostly index-linked pricing for delivery to export customers, bringing total 2024 sales commitments to 4.2 million tons. This would equate to 100% of the midpoint of 2024 production guidance.

The Company notes that its 4 main growth initiatives for 2024 remain on track and on budget. The additions of the Ram 3 surface / highwall mine and the third section at the Stonecoal Alma mine should ultimately add roughly 600,000 tons to overall 2024 Elk Creek production on an annualized basis, with both beginning to ramp up by mid-year 2024. The addition of the third section at the Berwind mine should ultimately add roughly 300,000 tons of low vol production on an annualized basis, with first production during the fourth quarter of

1


2024. Costs at these new mines are anticipated to be roughly $90-95 per ton on a combined basis. Lastly, we continue to anticipate the prep plant at Maben to be fully operational before year-end 2024, which will reduce current trucking costs of approximately $40 per ton.

The Company anticipates second quarter shipments of 850,000 – 950,000 tons of coal and expects an increasing sales cadence throughout 2024. As noted above, Ramaco anticipates adding almost 1 million tons of annualized production compared to current run-rates before year-end 2024. Overall mine costs are expected to meaningfully decline in the back half of 2024, as volumes are anticipated to be materially above levels in the first half of 2024.

The Company continues to progress on additional mining and chemical testing at its critical mineral Brook Mine in Sheridan, Wyoming. The Company continues to anticipate the completion of its techno economic analysis of the project within 2024.

MANAGEMENT COMMENTARY

Randall Atkins, Ramaco Resources’ Chairman and Chief Executive Officer commented, “Our first quarter results were clearly below our expectations. This was due to the combination of lower prices throughout the quarter and especially in March, as well as higher than expected mine costs from challenging geology and labor conditions at Elk Creek. I am confident, however, that results will improve throughout the year. We are on track to increase our production levels from executing on our growth plan, working to reduce costs and continuing our strong 2024 marketing against largely committed sales for the balance of the year.

There are similarities about the start to this year that we have seen before. In 2023, we had the dynamic where the second half of the year was significantly stronger than the first half of the year. This was due not only to seasonal influences of steel markets, but importantly also from an operational standpoint. We went from being a 3 to a 4 million ton per annum company in the second half with resulting positive financial impact. Ironically, in 2024 an analogous situation may play out.

By this fourth quarter, we hope to be producing almost a million tons more on an annualized basis. It is our goal to exit 2024 at almost a 5 million ton per annum sales and production rate, as well as reduce our cost profile to at or below $100 per ton cash mine costs. We anticipate the second half overall cost decline to come not only from this increased production but also changes in mine geology, labor and productivity.

In terms of the met markets, prices fell meaningfully by about $55 per ton, or 20% throughout the first quarter of 2024 on the back of muted global demand. This drop accelerated almost $30 per ton or 12% in March alone. Specifically, U.S. high vol A indices ended the first quarter more than $55 per ton below fourth quarter of 2023 average prices. The large price drop occurring in March, unfortunately hit when we shipped the majority of our first quarter index priced export shipments.

Since March, pricing appears to have recently stabilized. There are perhaps several reasons including renewed buying activity from Asian steel mills, coupled with the closure of some higher cost, mostly high vol U.S. mines which are losing money at current price levels. The closure of these mines has somewhat loosened the labor pool in the Appalachian area which will hopefully help us on both hiring and wage cost fronts.

Looking forward, we expect the market to largely “crab walk” in Q2 as prices remain range bound. Fortunately, we have already essentially placed all of our coal sales for the year at guidance levels. There are reasons, however, for some optimism in the second half as Asian markets look to rebound and recover some lost momentum and softening in U.S. production begins to impact markets. We are even now seeing some increased sales interest over the last few weeks.

On our critical minerals front, we continue to make progress in terms of initial mine development and related chemical testing of our rare earth elements and critical minerals at the Brook Mine in Wyoming. We are continuing deeper and more core drilling as well as chemical sequential digestion to help determine appropriate processing techniques. We anticipate the completion of our techno economic analysis this year to evaluate the overall commercial aspects of the opportunity.

2


As a reminder, in March Weir International, Inc. issued a revised technical exploration report regarding Ramaco’s rare earth opportunity. In terms of its key findings, both the reported rare earth tonnage volume and concentration estimates essentially doubled since Weir's initial May 2023 Report. Importantly, a number of material lithologies showed maximum ppm concentrations exceeding 9,000 ppm, including from coal. In addition, over 10% of the Brook Mine deposit was estimated to contain gallium and germanium, two high value critical minerals recently banned by China.

Lastly, we recently closed an agreement to both extend and increase the size of our existing Revolver with a banking syndicate led by KeyBank, NA. The new facility increases the Revolver from $125 million to $200 million with an accordion feature to increase the ultimate size by an additional amount of $75 million to $275 million. As we look to further growth in production over the coming years, we now welcome the additional flexibility of a larger facility to meet normal operating requirements. The term of the new facility has also been extended to five years, from an original three years. We view the successful closing of this facility as another testament to our strong credit standing and conservative financial metrics.

In summary, we had a challenging quarter. We will move beyond it. We look forward to improving our operational and financial results throughout the remainder of the year as we execute on both our metallurgical coal production growth strategy, while advancing the commercial development of our Brook Mine REE and critical mineral project.”

Key operational and financial metrics are presented below:

Key Metrics

1Q24

4Q23

Chg.

1Q23

Chg.

Total Tons Sold ('000)

929

988

(6)%

757

23%

Revenue ($mm)

$

172.7

$

202.7

(15)%

$

166.4

4%

Cost of Sales ($mm)

$

139.7

$

139.4

0%

$

110.5

26%

Non-GAAP Pricing of Tons Sold ($/Ton) 1

$

155

$

175

(11)%

$

188

(18)%

Non-GAAP Cash Cost of Sales ($/Ton) 1

$

118

$

107

10%

$

109

8%

Non-GAAP Cash Margins on Tons Sold ($/Ton)

$

37

$

68

(46)%

$

79

(53)%

Net Income ($mm)

$

2.0

$

30.0

(93)%

$

25.3

(92)%

Diluted EPS - Class A Common Stock

$

(0.00)

$

0.60

(100)%

$

0.57

(100)%

Adjusted EBITDA ($mm) 1

$

24.2

$

58.5

(59)%

$

48.3

(50)%

Capex ($mm)

$

18.7

$

18.0

4%

$

23.5

(20)%

Adjusted EBITDA less Capex ($mm)

$

5.4

$

40.5

(87)%

$

24.7

(78)%

(1) See “Reconciliation of Non-GAAP Measures”

Differences may occur due to rounding.

FIRST QUARTER 2024 PERFORMANCE

In the following paragraphs, all references to “quarterly” periods or to “the quarter” refer to the first quarter of 2024, unless specified otherwise.

Year over Year Quarterly Comparison

Overall production in the quarter was 844,000 tons, up 1% from the same period of 2023. The Elk Creek complex produced 467,000 tons, down 24% from 611,000 tons last year. The decline was due to both challenging geology and labor constraints, both of which we believe are largely behind us as of this month. The Berwind, Knox Creek, and Maben complexes increased production to a record 377,000 tons in the quarter, up 69% from 223,000 tons for the same period last year.

Quarterly pricing was $155 per ton, which was 18% lower compared to $188 per ton in the first quarter of 2023. This mirrored the year-over-year decline in U.S. metallurgical coal price indices. Cash mine costs were $118 per ton sold, excluding transportation costs, alternative mineral development costs, and idle mine costs, which was an 8% increase from the same period in 2023. As a result of the above, cash margins were $37 per ton during the quarter, down from $79 per ton in the same period of 2023. This was based on non-GAAP revenue (FOB mine) and non-GAAP cash cost of sales (FOB mine).

3


Quarter over Quarter Comparison

First quarter of 2024 production was 844,000 tons, up 13% compared with the fourth quarter of 2023, largely due to the lack of vacation periods in the first quarter of 2024. Total quarterly sales volume of 929,000 tons was down from 988,000 tons in the fourth quarter of 2023, with the decline in the first quarter of 2024 due to a lower inventory reduction compared to the fourth quarter of 2023.

The realized price of $155 per ton during the first quarter of 2024 was down 11% from $175 per ton in the fourth quarter 2023 reflecting weaker market conditions and lower index pricing in the first quarter of 2024. First quarter of 2024 cash costs of $118 per ton compared to $107 per ton in the fourth quarter of 2023. Correspondingly, cash margins were $37 per ton during the first quarter of 2024, decreasing from $68 per ton in the fourth quarter of 2023, based on non-GAAP revenue (FOB mine) and non-GAAP cash cost of sales (FOB mine).

BALANCE SHEET AND LIQUIDITY

As of March 31, 2024, the Company had liquidity of $95.8 million, consisting of $30.5 million of cash plus $65.3 million of availability under our revolving credit facility. Liquidity was up 46% from $65.4 million in the same period of 2023.

On March 31, 2024, accounts receivable hit record quarter-end levels of $103.5 million, up $32.4 million from $71.1 million as of March 31, 2023. The increase is reflective of the material increases in both overall and seaborne sales. First quarter of 2024 capital expenditures totaled $18.7 million. This was down from $23.5 million in the same period of 2023, and up slightly from $18.0 million in the fourth quarter of 2023.

The Company’s effective quarterly tax rate was 21%. For the first quarter of 2024, the Company recognized income tax expense of $0.5 million.

The following summarizes key sales, production and financial metrics for the periods noted:

Three months ended

March 31, 

December 31,

March 31, 

In thousands, except per ton amounts

    

2024

    

2023

    

2023

Sales Volume (tons)

 

929

 

988

 

757

Company Production (tons)

 

  

 

  

 

  

Elk Creek Mining Complex

 

467

 

412

 

611

Berwind Mining Complex (includes Knox Creek and Maben)

 

377

 

333

 

223

Total

 

844

 

745

 

834

Per Ton Financial Metrics (a)

 

  

 

  

 

  

Average revenue per ton

$

155

$

175

$

188

Average cash costs of coal sold

118

107

109

Average cash margin per ton

$

37

$

68

$

79

Capital Expenditures

$

18,730

$

17,980

$

23,546


(a)Metrics are defined and reconciled under “Reconciliation of Non-GAAP Measures.”

4


FINANCIAL GUIDANCE

(In thousands, except per ton amounts and percentages)

    

Full-Year

Full-Year

2024 Guidance

2023

 

  

Company Production (tons)

 

4,000 - 4,400

3,174

Sales (tons) (a)

 

4,200 - 4,600

3,455

Cash Costs Per Ton Sold (b)

$

105 - 111

$

110

Other

Capital Expenditures (c)

$

53,000 - 63,000

$

82,904

Selling, general and administrative expense (d)

$

38,000 - 42,000

$

35,926

Depreciation, depletion, and amortization expense

$

62,000 - 68,000

$

54,252

Interest expense, net

$

4,000 - 5,000

$

8,903

Effective tax rate (e)

20 - 25%

21%

Idle Mine Costs

$

0

$

3,978

(a)Includes purchased coal.
(b)Excludes transportation costs, alternative mineral development costs, and idle mine costs.
(c)Excludes capitalized interest for 2023.
(d)Excludes stock-based compensation.
(e)Normalized to exclude discrete items.

Committed 2024 Sales Volume(a)

(In millions, except per ton amounts)

    

2024

Volume

    

Average Price

North America, fixed priced

 

1.4

$

167

Seaborne, fixed priced

 

0.7

$

150

Total, fixed priced

 

2.1

$

162

Index priced

 

2.0

  

Total committed tons

 

4.2

(a)Amounts as of April 30, 2024 and include purchased coal. Totals may not add due to rounding. Does not include committed sales expected to be fulfilled in later years.

ABOUT RAMACO RESOURCES

Ramaco Resources, Inc. is an operator and developer of high-quality, low-cost metallurgical coal in southern West Virginia, and southwestern Virginia. Its executive offices are in Lexington, Kentucky, with operational offices in Charleston, West Virginia and Sheridan, Wyoming. The Company currently has four active metallurgical coal mining complexes in Central Appalachia and one development rare earth and coal mine near Sheridan, Wyoming in the initial stages of production. In 2023, the Company announced that a major rare earth deposit of primary magnetic rare earths was discovered at its mine near Sheridan, Wyoming. Contiguous to the Wyoming mine, the Company operates a carbon research and pilot facility related to the production of advanced carbon products and materials from coal. In connection with these activities, it holds a body of roughly 60 intellectual property patents, pending applications, exclusive licensing agreements and various trademarks. News and additional information about Ramaco Resources, including filings with the Securities and Exchange Commission, are available at http://www.ramacoresources.com. For more information, contact investor relations at (859) 244-7455.

5


FIRST QUARTER 2024 CONFERENCE CALL

Ramaco Resources will hold its quarterly conference call and webcast at 9:00 AM Eastern Time (ET) on Thursday, May 9, 2024. An accompanying slide deck will be available at https://www.ramacoresources.com/investors/investor-presentations/ immediately before the conference call.

To participate in the live teleconference on May 9, 2024:

Domestic Live: (877) 317-6789

International Live: (412) 317-6789

Conference ID: Ramaco Resources First Quarter 2024 Results

Web link: Click Here

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this news release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent Ramaco Resources’ expectations or beliefs concerning guidance, future events, anticipated revenue, future demand and production levels, macroeconomic trends, the development of ongoing projects, costs and expectations regarding operating results, and it is possible that the results described in this news release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Ramaco Resources’ control, which could cause actual results to differ materially from the results discussed in the forward-looking statements. These factors include, without limitation, unexpected delays in our current mine development activities, the ability to successfully ramp up production at the Berwind and Knox Creek complexes, failure of our sales commitment counterparties to perform, increased government regulation of coal in the United States or internationally, the further decline of demand for coal in export markets and underperformance of the railroads, the expected benefits of the Ramaco Coal and Maben acquisitions to the Company’s shareholders, the anticipated benefits and impacts of the Ramaco Coal and Maben acquisitions, and the Company's ability to successfully develop the Brook Mine, including whether the increase in the Company's exploration target and estimates for such mine are realized. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, Ramaco Resources does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Ramaco Resources to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements found in Ramaco Resources’ filings with the Securities and Exchange Commission (“SEC”), including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The risk factors and other factors noted in Ramaco Resources’ SEC filings could cause its actual results to differ materially from those contained in any forward-looking statement.

6


Ramaco Resources, Inc.
Unaudited Consolidated Statements of Operations

Three months ended March 31, 

In thousands, except per share amounts

    

2024

    

2023

    

Revenue

 

$

172,676

 

$

166,360

 

Costs and expenses

Cost of sales (exclusive of items shown separately below)

 

139,713

 

110,549

Asset retirement obligations accretion

 

354

 

350

Depreciation, depletion, and amortization

 

15,220

 

11,852

Selling, general, and administrative

 

14,114

 

11,742

Total costs and expenses

 

169,401

 

134,493

Operating income

 

3,275

 

31,867

Other income (expense), net

 

629

 

1,247

Interest expense, net

 

(1,332)

 

(2,309)

Income before tax

 

2,572

 

30,805

Income tax expense

 

540

 

5,548

Net income

$

2,032

$

25,257

Earnings per common share

Basic - Single class (through 6/20/2023)

$

N/A

$

0.57

Basic - Class A

$

(0.00)

$

Total

$

(0.00)

$

0.57

Basic - Class B

$

0.24

$

Diluted - Single class (through 6/20/23)

$

N/A

$

0.57

Diluted - Class A

$

(0.00)

$

Total

$

(0.00)

$

0.57

Diluted - Class B

$

0.23

$

7


Ramaco Resources, Inc.

Unaudited Consolidated Balance Sheets

In thousands, except per-share amounts

    

March 31, 2024

    

December 31, 2023

Assets

 

  

 

  

Current assets

 

  

 

  

Cash and cash equivalents

$

30,503

$

41,962

Accounts receivable

 

103,539

 

96,866

Inventories

 

41,280

 

37,163

Prepaid expenses and other

 

7,286

 

13,748

Total current assets

 

182,608

 

189,739

Property, plant, and equipment, net

 

466,253

 

459,091

Financing lease right-of-use assets, net

 

17,148

 

10,282

Advanced coal royalties

 

3,410

 

2,964

Other

 

4,592

 

3,760

Total Assets

$

674,011

$

665,836

Liabilities and Stockholders' Equity

 

  

 

  

Liabilities

 

  

 

  

Current liabilities

 

  

 

  

Accounts payable

$

59,694

$

51,624

Accrued liabilities

 

49,657

 

52,225

Current portion of asset retirement obligations

 

110

 

110

Current portion of long-term debt

 

28,227

 

56,534

Current portion of financing lease obligations

8,541

 

5,456

Insurance financing liability

 

2,238

 

4,037

Total current liabilities

 

148,467

 

169,986

Asset retirement obligations, net

 

29,197

 

28,850

Long-term debt, net

 

24,739

 

349

Long-term financing lease obligations, net

8,543

 

4,915

Senior notes, net

33,412

 

33,296

Deferred tax liability, net

 

52,424

 

54,352

Other long-term liabilities

 

4,961

 

4,483

Total liabilities

 

301,743

 

296,231

Commitments and contingencies

 

 

Stockholders' Equity

 

  

 

  

Preferred stock, $0.01 par value

 

 

Class A common stock, $0.01 par value

443

440

Class B common stock, $0.01 par value

88

 

88

Additional paid-in capital

 

279,962

 

277,133

Retained earnings

 

91,775

 

91,944

Total stockholders' equity

 

372,268

 

369,605

Total Liabilities and Stockholders' Equity

$

674,011

$

665,836

8


Ramaco Resources, Inc.

Unaudited Statement of Cash Flows

Three months ended March 31, 

In thousands

    

2024

    

2023

Cash flows from operating activities

 

  

 

  

Net income

$

2,032

$

25,257

Adjustments to reconcile net income to net cash from operating activities:

Accretion of asset retirement obligations

 

354

 

350

Depreciation, depletion, and amortization

 

15,220

 

11,852

Amortization of debt issuance costs

 

207

 

149

Stock-based compensation

 

4,702

 

2,937

Other

(23)

Deferred income taxes

 

(1,928)

 

2,154

Changes in operating assets and liabilities:

Accounts receivable

 

(6,673)

 

(29,925)

Prepaid expenses and other current assets

 

6,462

 

4,779

Inventories

 

(4,117)

 

(5,998)

Other assets and liabilities

 

(494)

 

(823)

Accounts payable

 

6,301

 

13,902

Accrued liabilities

 

3,145

 

(3,272)

Net cash from operating activities

 

25,188

 

21,362

Cash flow from investing activities:

Capital expenditures

 

(18,730)

 

(23,546)

Other

65

1,182

Net cash used for investing activities

(18,665)

(22,364)

Cash flows from financing activities

Proceeds from borrowings

 

51,500

 

45,000

Payments of dividends

(8,319)

(5,556)

Repayment of borrowings

 

(55,417)

 

(24,145)

Repayment of Ramaco Coal acquisition financing - related party

(10,000)

Repayments of insurance financing

(1,799)

(1,433)

Repayments of equipment finance leases

(2,077)

(1,746)

Shares surrendered for withholding taxes

(1,870)

(115)

Net cash used financing activities

 

(17,982)

 

2,005

Net change in cash and cash equivalents and restricted cash

 

(11,459)

 

1,003

Cash and cash equivalents and restricted cash, beginning of period

 

42,781

 

36,473

Cash and cash equivalents and restricted cash, end of period

$

31,322

$

37,476

9


Reconciliation of Non-GAAP Measures

Adjusted EBITDA

Adjusted EBITDA is used as a supplemental non-GAAP financial measure by management and external users of our financial statements, such as industry analysts, investors, lenders, and rating agencies. We believe Adjusted EBITDA is useful because it allows us to evaluate our operating performance more effectively.

We define Adjusted EBITDA as net income plus net interest expense; equity-based compensation; depreciation, depletion, and amortization expenses; income taxes; certain non-operating expenses (charitable contributions), and accretion of asset retirement obligations. Its most comparable GAAP measure is net income. A reconciliation of net income to Adjusted EBITDA is included below. Adjusted EBITDA is not intended to serve as a substitute for GAAP measures of performance and may not be comparable to similarly-titled measures presented by other companies.

Q1

Q4

Q1

(In thousands)

    

2024

2023

2023

Reconciliation of Net Income to Adjusted EBITDA

 

  

 

  

Net income

$

2,032

$

30,038

$

25,257

Depreciation, depletion, and amortization

 

15,220

 

14,401

 

11,852

Interest expense, net

 

1,332

 

1,630

 

2,309

Income tax expense

 

540

 

8,829

 

5,548

EBITDA

 

19,124

 

54,898

 

44,966

Stock-based compensation

 

4,702

 

3,199

 

2,937

Accretion of asset retirement obligations

 

354

 

354

 

350

Adjusted EBITDA

$

24,180

$

58,451

$

48,253

Non-GAAP revenue and cash cost per ton

Non-GAAP revenue per ton (FOB mine) is calculated as coal sales revenue less transportation costs including demurrage costs, divided by tons sold. Non-GAAP cash cost per ton sold (FOB mine) is calculated as cash cost of coal sales less transportation costs, alternative mineral development costs, and idle and other costs, divided by tons sold. We believe revenue per ton (FOB mine) and cash cost per ton (FOB mine) provide useful information to investors as these enable investors to compare revenue per ton and cash cost per ton for the Company against similar measures made by other publicly-traded coal companies and more effectively monitor changes in coal prices and costs from period to period excluding the impact of transportation costs, which are beyond our control, and alternative mineral costs, which are more developmentally focused currently. The adjustments made to arrive at these measures are significant in understanding and assessing the Company’s financial performance. Revenue per ton sold (FOB mine) and cash cost per ton sold (FOB mine) are not measures of financial performance in accordance with GAAP and therefore should not be considered as a substitute for revenue and cost of sales under GAAP. The tables below show how we calculate non-GAAP revenue and cash cost per ton:

10


Non-GAAP revenue per ton

(In thousands, except per ton amounts)

Q1 2024

Q4 2023

Q1 2023

 

  

 

 

  

Revenue

$

172,676

$

202,729

$

166,360

Less: Adjustments to reconcile to Non-GAAP revenue (FOB mine)

 

  

 

Transportation

 

(28,285)

 

(30,287)

 

(24,446)

Non-GAAP revenue (FOB mine)

$

144,391

$

172,442

$

141,914

Tons sold

 

929

 

988

 

757

Revenue per ton sold (FOB mine)

$

155

$

175

$

188

Non-GAAP cash cost per ton

(In thousands, except per ton amounts)

Q1 2024

Q4 2023

Q1 2023

 

  

 

 

  

Cost of sales

$

139,713

$

139,410

$

110,549

Less: Adjustments to reconcile to Non-GAAP cash cost of sales

 

  

 

 

  

Transportation costs

 

(28,876)

 

(31,272)

 

(24,481)

Alternative mineral development costs

(1,135)

(1,107)

(980)

Idle and other costs

(237)

(1,041)

(2,559)

Non-GAAP cash cost of sales

$

109,465

$

105,990

$

82,529

Tons sold

 

929

 

988

 

757

Cash cost per ton sold (FOB mine)

$

118

$

107

$

109

We do not provide reconciliations of our outlook for cash cost per ton to cost of sales in reliance on the unreasonable

efforts exception provided for under Item 10(e)(1)(i)(B) of Regulation S-K. We are unable, without unreasonable efforts, to forecast certain items required to develop the meaningful comparable GAAP cost of sales. These items typically include non-cash asset retirement obligation accretion expenses, mine idling expenses and other non-recurring indirect mining expenses that are difficult to predict in advance in order to include a GAAP estimate.

# # #

11


v3.24.1.u1
Document and Entity Information
May 08, 2024
Document Type 8-K
Document Period End Date May 08, 2024
Entity File Number 001-38003
Entity Registrant Name Ramaco Resources, Inc.
Entity Tax Identification Number 38-4018838
Entity Incorporation, State or Country Code DE
Entity Address, Address Line One 250 West Main Street
Entity Address, Adress Line Two Suite 1900
Entity Address, City or Town Lexington
Entity Address, State or Province KY
Entity Address, Postal Zip Code 40507
City Area Code 859
Local Phone Number 244-7455
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001687187
Amendment Flag false
Class A Common Stock  
Title of 12(b) Security Class A Common Stock, $0.01 par value
Trading Symbol METC
Security Exchange Name NASDAQ
Class B Common Stock  
Title of 12(b) Security Class B Common Stock, $0.01 par value
Trading Symbol METCB
Security Exchange Name NASDAQ
9.00% Senior Notes due 2026  
Title of 12(b) Security 9.00% Senior Notes due 2026
Trading Symbol METCL
Security Exchange Name NASDAQ

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