Ramaco Resources, Inc. (METC) Bundle
A Brief History of Ramaco Resources, Inc.
Company Overview
Ramaco Resources, Inc. is a leading producer of metallurgical coal, primarily focused on serving the steel manufacturing industry. As of September 30, 2024, the company reported a total reserve of 59 million tons of metallurgical coal, with an additional 1,119 million measured and indicated resource tons available.
Financial Performance in 2024
During the first nine months of 2024, Ramaco Resources sold 2.9 million tons of coal, generating revenue of $495.4 million. This represents a slight increase from 2.5 million tons sold and $490.8 million in revenue during the same period in 2023. The revenue breakdown shows that 33% came from North American markets, while 67% was from export markets.
| Period | Coal Sold (Million Tons) | Revenue ($ Million) | North American Revenue (%) | Export Revenue (%) |
|---|---|---|---|---|
| 9 Months Ended Sept 30, 2024 | 2.9 | 495.4 | 33 | 67 |
| 9 Months Ended Sept 30, 2023 | 2.5 | 490.8 | 34 | 66 |
Revenue Composition
For the three months ended September 30, 2024, the total revenue was $167.4 million, with $54.1 million from North American sales and $113.3 million from export sales. The revenue for the same period in 2023 was $186.9 million.
| Period | Total Revenue ($ Million) | North American Revenue ($ Million) | Export Revenue ($ Million) |
|---|---|---|---|
| Q3 2024 | 167.4 | 54.1 | 113.3 |
| Q3 2023 | 186.9 | 75.1 | 111.8 |
Cost Structure and Expenses
For the nine months ended September 30, 2024, the cost of sales was $397.2 million, compared to $354.4 million for the same period in 2023. Additionally, depreciation, depletion, and amortization expenses totaled $48.9 million.
| Expense Type | Amount ($ Million) | Previous Year ($ Million) |
|---|---|---|
| Cost of Sales | 397.2 | 354.4 |
| Depreciation, Depletion, and Amortization | 48.9 | 39.9 |
Earnings and Share Performance
Net income for the nine months ended September 30, 2024, was $7.3 million, a decrease from $52.3 million reported in 2023. Earnings per share for Class A common stock was $0.05, while Class B common stock reported earnings of $0.48.
| Class | Earnings ($ Million) | Earnings Per Share ($) |
|---|---|---|
| Class A | 2.1 | 0.05 |
| Class B | 4.1 | 0.48 |
Dividends
Throughout 2024, Ramaco Resources declared cash dividends totaling $24.5 million, with Class A common stock receiving dividends of $0.1375 per share and Class B common stock receiving $0.2246 per share.
| Dividend Type | Amount ($ Million) | Paid Date |
|---|---|---|
| Class A | 6.1 | March 15, 2024 |
| Class B | 2.1 | March 15, 2024 |
Future Outlook
The company anticipates a gradual recovery in metallurgical coal markets, driven by limited global investment in new production capacity and a potential return to economic growth. The company is also exploring rare earth elements and critical minerals initiatives.
A Who Owns Ramaco Resources, Inc. (METC)
Ownership Structure
As of 2024, Ramaco Resources, Inc. (METC) operates with a dual-class share structure, which includes Class A and Class B common stocks. Each class has distinct voting rights and dividend structures.
| Share Class | Voting Rights | Dividend per Share (2024) | Total Shares Outstanding |
|---|---|---|---|
| Class A | 1 vote per share | $0.1375 | 44,000,000 |
| Class B | 10 votes per share | $0.2376 | 8,000,000 |
Major Shareholders
The following table outlines the principal shareholders of Ramaco Resources, Inc., detailing percentage ownership and type of shares held as of 2024.
| Shareholder | Type of Shares | Ownership Percentage |
|---|---|---|
| Yorktown Partners LLC | Class B | 30% |
| Management (Executives and Board Members) | Class A & Class B | 15% |
| Public Investors | Class A | 55% |
Recent Changes in Ownership
In the first nine months of 2024, Ramaco Resources recognized $495.4 million in revenue from coal sales, reflecting a slight increase from $490.8 million in the same period of 2023. The company's financial position has allowed it to maintain dividends, with a total cash dividend of $24.5 million paid out in 2024.
Financial Performance Indicators
Below are key financial performance indicators relevant to the ownership and economic health of Ramaco Resources, Inc. as of September 30, 2024:
| Metric | Value |
|---|---|
| Total Revenue | $495.4 million |
| Net Income | $7.3 million |
| Cash and Cash Equivalents | $22.9 million |
| Debt Outstanding | $77.2 million |
Dividend History
Ramaco Resources has maintained a consistent dividend payout, with the following dividends declared in 2024:
| Date | Class A Dividend | Class B Dividend |
|---|---|---|
| June 15, 2024 | $0.1375 | $0.2376 |
| September 13, 2024 | $0.1375 | $0.2246 |
Market Position
Ramaco Resources remains a significant player in the metallurgical coal market, with a total of 59 million reserve tons and production capacity expected to reach approximately seven million clean tons in the medium term. The company has faced challenges due to fluctuating coal prices, which are influenced by global economic conditions and industry dynamics.
Ramaco Resources, Inc. (METC) Mission Statement
Overview of Mission Statement
Ramaco Resources, Inc. (METC) is committed to being a leader in the metallurgical coal industry, focusing on sustainable practices and innovative technologies. The company aims to produce high-quality metallurgical coal to meet global demand while advancing environmental stewardship and operational efficiency.
Financial Performance Metrics
As of September 30, 2024, Ramaco Resources reported significant financial metrics that reflect its operational performance:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue (in thousands) | $167,411 | $186,966 | $495,403 | $490,795 |
| Cost of Sales (in thousands) | $134,731 | $144,635 | $397,214 | $354,383 |
| Net Income (in thousands) | ($239) | $19,462 | $7,334 | $52,275 |
| Adjusted EBITDA (in thousands) | $23,617 | $45,407 | $76,596 | $123,675 |
Sales and Market Dynamics
During the first nine months of 2024, Ramaco Resources sold 2.9 million tons of coal, generating $495.4 million in revenue. The sales breakdown was 33% from North American markets and 67% from export markets. In comparison, during the same period in 2023, the company sold 2.5 million tons of coal, recognizing $490.8 million in revenue, with 34% from North America and 66% from exports.
Future Commitments and Sales Expectations
As of September 30, 2024, the company had approximately 1.7 million tons of outstanding performance obligations with fixed sales prices averaging $151 per ton, and 1.6 million tons under index-based pricing. The expected fulfillment of these commitments is as follows:
| Year | Percentage of Commitments to be Fulfilled |
|---|---|
| Q4 2024 | 36% |
| 2025 | 63% |
| 2026 | 1% |
Cost Structure and Operational Efficiency
For the nine months ended September 30, 2024, the cost of coal sales totaled $397.2 million, a 12% increase compared to $354.4 million for the same period in 2023. The cost per ton sold decreased from $144 per ton in 2023 to $139 per ton in 2024.
Key components of costs include:
| Cost Category | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|
| Depreciation, Depletion, and Amortization | $48,909 | $39,850 |
| Selling, General, and Administrative Expenses | $37,932 | $37,519 |
Debt and Liquidity Position
As of September 30, 2024, Ramaco Resources had total debt of $77.2 million, down from $90.2 million at the end of 2023. The company maintains a Revolving Credit Facility with a remaining availability of $57.9 million.
| Debt Component | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) |
|---|---|---|
| Revolving Credit Facility | $43,000 | $42,500 |
| Senior Notes, net | $33,646 | $33,296 |
Environmental and Technological Initiatives
Ramaco Resources is actively exploring rare earth and critical minerals deposits in Wyoming, with plans for a demonstration processing facility expected to begin construction in mid to late 2025. The company is also focused on developing new carbon product technologies to enhance the economic and environmental aspects of coal utilization.
How Ramaco Resources, Inc. (METC) Works
Business Overview
Ramaco Resources, Inc. is primarily engaged in the production and sale of metallurgical coal, which is essential for steel manufacturing. The company operates in North America and has a significant presence in export markets. As of September 30, 2024, Ramaco had approximately 59 million reserve tons and 1,119 million measured and indicated resource tons of high-quality metallurgical coal.
Financial Performance
For the nine months ended September 30, 2024, Ramaco reported coal sales revenue of $495.4 million, an increase of approximately 1% compared to $490.8 million for the same period in 2023.
| Metric | 2024 (9 Months) | 2023 (9 Months) | Change |
|---|---|---|---|
| Coal Sales Revenue | $495.4 million | $490.8 million | +1% |
| Coal Sold (tons) | 2.9 million | 2.5 million | +16% |
| Revenue per Ton Sold | $173 | $199 | -13% |
| Cost of Sales | $397.2 million | $354.4 million | +12% |
| Net Income | $7.3 million | $52.3 million | -86% |
Revenue Breakdown
During the first nine months of 2024, 33% of Ramaco's revenue came from North American markets, including Canada, while 67% was generated from export markets. The company experienced a 20% increase in export volumes and a 10% increase in North American volumes during this period.
Cost Structure
The cost of coal sales totaled $397.2 million for the nine months ended September 30, 2024, compared to $354.4 million for the same period in 2023. The cost of sales per ton sold decreased by 3% from $144 per ton to $139 per ton.
| Cost Metrics | 2024 (9 Months) | 2023 (9 Months) | Change |
|---|---|---|---|
| Cost of Sales | $397.2 million | $354.4 million | +12% |
| Cost per Ton Sold | $139 | $144 | -3% |
| Cash Cost per Ton Sold (FOB mine) | $109 | $111 | -2% |
Operating Expenses
For the nine months ended September 30, 2024, depreciation, depletion, and amortization expenses were $48.9 million, up from $39.9 million in 2023. Selling, general, and administrative expenses (SG&A) increased slightly to $37.9 million compared to $37.5 million in the same period last year.
| Operating Expenses | 2024 (9 Months) | 2023 (9 Months) | Change |
|---|---|---|---|
| Depreciation, Depletion, and Amortization | $48.9 million | $39.9 million | +22% |
| SG&A Expenses | $37.9 million | $37.5 million | +1% |
Debt and Liquidity
As of September 30, 2024, Ramaco had total debt of $77.2 million, which included $43 million drawn from its Revolving Credit Facility. The company reported cash and cash equivalents of $22.9 million, along with $57.9 million of remaining availability under its credit facility.
| Debt Metrics | Amount |
|---|---|
| Total Debt | $77.2 million |
| Cash and Cash Equivalents | $22.9 million |
| Remaining Availability (Credit Facility) | $57.9 million |
Market Conditions
The metallurgical coal market has faced challenges in 2024 due to a decrease in global demand and pricing pressures. Notably, U.S. metallurgical coal price indices have fallen by approximately 32% year-to-date as of September 30, 2024, influenced by macroeconomic conditions and reduced steel production in key markets like China.
Future Outlook
Ramaco Resources is currently evaluating its potential rare earth and critical minerals deposits, which may provide additional revenue streams in the future. The company is also progressing with plans to develop a demonstration processing facility slated for construction in mid to late 2025.
How Ramaco Resources, Inc. (METC) Makes Money
Revenue from Coal Sales
Ramaco Resources, Inc. generates its revenue primarily from the sale of metallurgical coal. For the nine months ended September 30, 2024, the company reported coal sales revenue of $495.4 million, which was approximately 1% higher than the $490.8 million reported for the same period in 2023. This increase was attributed to a 16% rise in tons sold, although offset by a decrease in pricing. The company sold 2.9 million tons of coal during this period, compared to 2.5 million tons in the previous year.
| Period | Revenue ($ million) | Tons Sold (million) | Revenue per Ton ($) |
|---|---|---|---|
| 9 Months Ended September 30, 2024 | 495.4 | 2.9 | 173 |
| 9 Months Ended September 30, 2023 | 490.8 | 2.5 | 199 |
Sales Breakdown
Sales distribution reveals that during the nine months of 2024, 33% of the revenue was from North American markets, including Canada, while 67% came from export markets. In contrast, during the same period in 2023, 34% of revenue was from North America and 66% from exports.
Cost of Sales
For the nine months ended September 30, 2024, the cost of coal sales totaled $397.2 million, a 12% increase from $354.4 million in 2023. The cost of sales per ton sold decreased by 3% from $144 per ton in 2023 to $139 per ton in 2024. The cash cost per ton sold (FOB mine) also saw a 2% reduction, falling from $111 per ton in 2023 to $109 per ton in 2024.
| Cost Metrics | 9 Months Ended September 30, 2024 | 9 Months Ended September 30, 2023 |
|---|---|---|
| Cost of Sales ($ million) | 397.2 | 354.4 |
| Cost per Ton Sold ($) | 139 | 144 |
| Cash Cost per Ton Sold (FOB mine) ($) | 109 | 111 |
Depreciation and Amortization
The depreciation, depletion, and amortization expense for the nine months ended September 30, 2024, was $48.9 million, up from $39.9 million in 2023. The increase is linked to additional amortization costs related to the Knox Creek Jawbone mine and overall increases in production and equipment.
Operating Expenses
Selling, general, and administrative (SG&A) expenses for the nine months ended September 30, 2024, were $37.9 million, slightly higher than $37.5 million in 2023. This increase was primarily due to higher stock-based compensation expenses.
Other Income and Interest Expense
Other income for the nine months ended September 30, 2024, was $3.1 million, down significantly from $15.1 million in 2023, which included legal settlements and insurance proceeds. Interest expense for the same period was $4.5 million, compared to $7.3 million in 2023, reflecting the repayment of related-party debt in 2023.
Net Income
Net income for the nine months ended September 30, 2024, was $7.3 million, a decrease from $52.3 million in 2023. This decline reflects the softening of global metallurgical coal markets and reduced pricing for coal sales.
| Financial Metrics | 9 Months Ended September 30, 2024 | 9 Months Ended September 30, 2023 |
|---|---|---|
| Net Income ($ million) | 7.3 | 52.3 |
| SG&A Expenses ($ million) | 37.9 | 37.5 |
| Other Income ($ million) | 3.1 | 15.1 |
| Interest Expense ($ million) | 4.5 | 7.3 |
Future Outlook
The company anticipates continued volatility in metallurgical coal prices, influenced by macroeconomic conditions and global market dynamics. As of September 30, 2024, Ramaco Resources had outstanding performance obligations of approximately 1.7 million tons for contracts with fixed sales prices averaging $151 per ton, excluding freight.
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Resources:
- Ramaco Resources, Inc. (METC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ramaco Resources, Inc. (METC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ramaco Resources, Inc. (METC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.