RAMACO RESOURCES REPORTS FIRST QUARTER 2025 RESULTS
- Record quarterly production annualizing to 4.0 million tons
- Highest cash margins ($24/ton) and realized sales price among peer group
- Cash costs decreased by $20 per ton YoY to $98, remaining in first quartile of U.S. cost curve
- 90% of 2025 production already committed with 2.2M tons at fixed price averaging $141/ton
- Received $6.1M matching grant from Wyoming for Brook Mine REE project
- Brook Mine REE deposit estimated at 1.7M tons with 80%+ recovery rates expected
- Net loss of $9.5 million in Q1 2025
- Reduced 2025 production guidance by 300,000 tons due to weak market conditions
- Metallurgical coal indices fell $65/ton YoY (27% decline)
- Increased legal expenses due to Chubb N.A. lawsuit
- Weather-related production loss of 0.1M tons in Q1 due to extreme conditions
Insights
Ramaco reports mixed Q1 with net loss of $9.5M despite record production, while advancing promising rare earths business amid challenging coal markets.
Ramaco's Q1 results reflect a challenging period for metallurgical coal producers, with the company posting a net loss of $9.5 million ($0.19 per diluted share) despite achieving Adjusted EBITDA of $9.8 million. This divergence between negative net income and positive EBITDA highlights the impact of non-cash expenses on reported results.
The company's operational metrics show remarkable strength in a difficult market environment. Ramaco achieved a record quarterly production annualizing to 4.0 million tons despite weather disruptions. More impressively, they maintained industry-leading performance with the highest cash margins ($24/ton) and realized sales price ($122/ton) among publicly traded peers. Their cash cost per ton sold of $98 represents a $20 improvement year-over-year, positioning them firmly in the first quartile of the U.S. cost curve.
Market conditions remain challenging, with U.S. metallurgical coal indices falling 3% quarter-over-quarter and 27% year-over-year. This market weakness has prompted Ramaco to adjust its 2025 guidance, reducing production targets from 4.2-4.6 million tons to 3.9-4.3 million tons and sales from 4.4-4.8 million tons to 4.1-4.5 million tons. This strategic pivot aims to optimize production and limit lower-priced spot sales, which should enhance margins and free cash flow.
The company's forward sales position is strong, with 3.7 million tons committed (over 90% of production guidance), including 2.2 million tons at fixed prices averaging $141/ton. This provides considerable revenue visibility for 2025, though Q2 sales are projected at just 850,000-950,000 tons as the company navigates weak market conditions.
Despite current coal market challenges, Ramaco's rare earth element (REE) and critical mineral development presents a significant diversification opportunity. The company plans to begin mining operations at its Brook Mine in Wyoming in June 2025, with pilot production of rare earth concentrates expected in 2026 and commercial-scale production targeted for 2028. The estimated deposit of 1.7 million tons of Total Rare Earth Oxide includes critical minerals like scandium, germanium, and gallium—materials that face Chinese export restrictions and are crucial for strategic U.S. interests.
Notably, Ramaco continues to return capital to shareholders, declaring a quarterly cash dividend of $0.1811 per share on Class B common stock, payable June 13, 2025. The company's reduced capex guidance of $55-65 million (down from $60-70 million) reflects disciplined capital allocation in the current environment while maintaining investment in growth initiatives.
FIRST QUARTER 2025 HIGHLIGHTS
- The Company had net income of
$(9.5) $(0.19) $9.8 million
- Non-GAAP cash cost per ton sold was
$98 $20 U.S. cost curve.
- For the first quarter of 2025, the Company's non-GAAP cash margins of
$24 $122
- First quarter of 2025 production was a quarterly record, with overall production annualizing to 4.0 million tons. This occurred despite the Company missing roughly 0.1 million tons of production in January and February due to extreme freezing temperatures and severe flooding in the Central Appalachian region.
- In the first quarter of 2025, adverse market conditions continued from 2024 with
U.S. metallurgical coal indices falling$5 $65 3% on average versus the fourth quarter of 2024 and a decline of27% on average versus the first quarter of 2024.
- Ramaco's Board of Directors approved and declared a quarterly cash dividend of
$0.18 11
MARKET COMMENTARY / 2025 OUTLOOK
Sales and Marketing:
- As of March 31, 2025, total sales commitments currently total 3.7 million tons, which equates to over
90% of the midpoint of 2025 production guidance. 1.6 million tons are committed to North American customers at an average realized fixed price of$152 $111 - Thus, in total, 2.2 million tons are committed at a combined average fixed price of
$141
Guidance:
- Please note the Company has updated several areas of 2025 guidance:
- Based on the Company's continued solid cost performance, 2025 cost per ton sold guidance is lowered to
$96 $102 $97 $103 - The Company has also reduced capital expenditure guidance from
$60 $70 million $55 $65 million - In light of continued weak market conditions, the Company is optimizing overall production and sales. The Company expects to reduce production to limit lower priced spot sales. At current spot prices, the above measures are expected to enhance margins, be accretive to earnings, and provide a net benefit to free cash flow.
- Full-year 2025 production is now anticipated to come in at 3.9 – 4.3 million tons versus prior expectations of 4.2 – 4.6 million tons. Full-year 2025 sales are now anticipated to come in at 4.1 – 4.5 million tons versus prior expectations of 4.4 – 4.8 million tons.
- Anticipating continued weak market conditions in the coal markets, tons sold in the second quarter of 2025 are projected to be 850,000 – 950,000 tons.
- The Company is also modifying both DD&A and cash SG&A guidance. Cash SG&A guidance is increased to
$36 $40 million $34 $38 million $71 $76 million $73 $78 million
Rare Earths and Critical Minerals:
- The Company has made significant progress on testing, mine and process planning on the overall development of the rare earth element ("REE") and critical mineral ("CM") deposit at its Brook Mine in
Sheridan, Wyoming . - The Company intends to commence large scale carbon ore mining of the Brook Mine in June 2025. Construction of a pilot scale concentrate processing facility will commence by this Fall. Spending for both projects are currently reflected in existing guidance for capital expenditures for the year.
- Initial production of rare earth concentrates processed at pilot scale is expected to begin in 2026. The projected development timeline is that the pilot plant will be expanded to a full commercial scale facility late in 2026, with targeting of commercial-scale production of oxides in the second half of 2028.
- The Company announced today that Michael Woloschuk will join Ramaco as Executive Vice President for Critical Minerals from the Fluor Corporation to oversee the Company's development of the Brook Mine and related commercialization of its rare earth and critical mineral operations. Mr. Woloschuk was most recently the Global Executive Director of the Fluor Corporation's worldwide critical mineral division with over 30 years of experience in developing and operating large scale critical mineral mining and processing operations in many areas of the world.
- In March,
Wyoming Governor Mark Gordon announced that Ramaco's Brook Mine project would receive a$6.1 million - The Company is releasing today a revised Technical Report Summary ("TRS") on the Brook Mine property Rare Earth Element Exploration Target prepared by Weir International, Inc., ("Weir") in accordance with the
U.S. Securities and Exchange Commission Regulation S-K 1300 for Mining Property Disclosure. - Weir's TRS report is based on exploration conducted on deposits from only approximately 4,500 permitted acres of the overall 16,000 acres constituting the Brook Mine. Further coring and exploration activities on the remaining approximately 11,500 acres will commence later this year and continue in 2026.
- Weir reports the high range of Total Rare Earth Oxide ("TREO") is now estimated at approximately 1.7 million tons. This is inclusive of the critical minerals of scandium, germanium and gallium, which constitute roughly 0.3 million tons or
17% of the overall deposit.China has imposed significant export restrictions on these and other critical minerals and rare earth elements causing significant implications for global supply chains andU.S. strategic interests. - The Brook Mine deposit has an estimated average grade on an ash basis of between approximately 450-570 parts per million (ppm) and a maximum grade by lithology between approximately 3,300 - 9,600 ppm.
- Based on independent conventional hydrometallurgy testing to date by Hazen Research, Inc. ("Hazen") and Fluor, the primary and secondary levels of recoveries of rare earths are now expected to be above 80 %. The projected rates of recovery of REEs and selective critical minerals are undergoing additional testing to further optimize their levels of recovery and refinement of their processing techniques.
- Based on current resource data and planned processing capacity, the Company projects that the Brook Mine project will commercially produce approximately 1,400 metric tons of critical mineral oxides per year.
- An estimated 565 metric tons or roughly
40% of future production will include purified oxides of seven REEs and CMs including neodymium (Nd), praseodymium (Pr), dysprosium (Dy), gallium (Ga), germanium (Ge), terbium (Tb), and scandium (Sc). Similarly, based on current analysis, we project that over95% of expected revenue and cash flow would be derived from this basket of seven oxide products. - The balance of future production of approximately 837 metric tons will include eleven additional REEs, which are expected to constitute less than
5% of expected revenue and cash flow. - The Company anticipates that before the end of the second quarter the Fluor Corporation will release results of its full Preliminary Economic Analysis ("PEA") of the project. The report has been delayed pending receipt of results from Hazen's testing laboratories. The Company will release a comprehensive overview of its overall development plans for its critical mineral operations once the PEA is released.
Board of Directors Declares Second Quarter Class B Cash Dividend:
- Ramaco's Board of Directors approved and declared a quarterly cash dividend of
$0.18 11 - The Company previously announced that its Board of Directors approved and declared a quarterly Class A dividend of
$0.06 875 - For additional information please see our Current Report on Form 8-K which is expected to be filed with the Securities and Exchange Commission later today.
MANAGEMENT COMMENTARY
Randall Atkins, Ramaco Resources' Chairman and Chief Executive Officer commented, "At this juncture in 2025 we are enduring the challenging market conditions in our core metallurgical coal business yet experiencing some very exciting developments in our emerging rare earth and critical mineral business.
With regard to our met coal business, on a macro level the first quarter saw a continued decline in both
Given market conditions this was a quarter where unfortunately no public company's met coal operations across the industry enjoyed strong results. Despite this, Ramaco's first quarter results continued to show a trajectory of operational strength and sales excellence.
I am proud to say that we enjoyed both the highest cash margins per ton, as well as the highest realized sales price among our publicly traded peer group this quarter, all of whom have already reported Q1 results. Somewhat uniquely given our relative size, Ramaco's Adjusted EBITDA for this quarter was also higher than the met coal results of three of our four larger public met coal peers.
Both overall Company and
These solid operational results occurred despite almost four weeks of challenging weather conditions during the quarter. Freezing temperatures in January and extreme flooding in February in the Central Appalachian region negatively impacted production by roughly 0.1 million tons.
Despite record current quarterly production that annualized to 4.0 million tons, we are reducing our 2025 production and sales guidance. Strategically, given current weak market conditions, we are not going to force tons into the current oversold and underpriced spot market just for the sake of producing more coal.
But realizing the cyclicality of this business, should more positive market conditions warrant, we continue to retain the optionality to increase both production and sales this year, with an ability to exit the year above a 5 million ton per annum run rate. When we see more positive market clarity, we are also poised to greenlight existing and new mine expansion to add over 2 million additional tons of new production.
These increases would come from the 1.5-million-ton deep mine expansion at our
To shift focus, we are strongly encouraged by recent Australian benchmark pricing which has risen almost
As we have said before, we continue to see supply contractions and mine closures in our domestic Central Appalachian markets. We expect the extent and timing of these supply reductions over the coming months to be meaningful as well as to impact both available supply and future pricing.
We are strongly encouraged by the progress that has been made on our emerging rare earth element and critical mineral front at the Brook Mine in
The outlines of our project continue to be further defined as we move forward into large scale production of the coal and rare earth ore beginning in June. We are exceedingly proud that the Brook Mine will be
Over the past two years we have been building a strong management team that we expect will move the Brook Mine project forward from its initial conceptual development phase ultimately into full scale commercial production over the next few years. We have now brought on board an exceptionally experienced individual who will be leading the ultimate commercial development. We are delighted that Michael Woloschuk, who has led Fluor Corporation's global critical mineral practice, will be joining us as an Executive Vice President. Mike brings over three decades of working internationally on some of the largest rare earth and critical mineral projects around the world. We welcome him to our team.
We have now also today released Weir's updated Technical Exploration Report on the Brook Mine's geology. The report has revised the current estimated size of the initial deposit to now 1.7 million tons of total rare earth oxide. As further exploration continues on the remaining two-thirds of the deposit area we expect that the estimated size of the deposit will continue to increase. At an average current annual
Analytically, we have now completed a significant amount of our multi-year primary and secondary geological, chemical and hydrometallurgical third-party testing of our deposit. Given delays in receipt of chemical and metallurgic test results back from independent laboratories the issuance of the Fluor Preliminary Economic Analysis has taken longer than originally expected. With the receipt of final processing test results, we now expect Fluor to release their Preliminary Economic Analysis on the project by the end of this quarter.
However, in advance of that report and based upon the findings of the independent testing to date we have authorized commencement of the large scale mining of ores starting in June and the immediate subsequent development of a pilot processing facility to commence later this summer. Both projects have been fully budgeted into the current existing capital expenditure guidance.
Our confidence to move forward is based both on test results we have received to date and our resulting preliminary economics we have internally developed with guidance from Fluor. The Weir report shows that geologically the size of deposit is exceedingly large at 1.7 million TREO. The rare earth concentrations of our ores now average between 450-570 ppm on an ash basis with maximum concentration grades between 3,300 - 9,600 ppm. The hydrometallurgical tests from Hazen have shown primary recoveries of over
Under our commercial development timeframe, we plan to have our pilot operations producing rare earth concentrate in 2026. We also plan to transition later that year into construction of a full-scale processing facility with the capacity to produce commercial oxides within a two-year timeframe by 2028 or earlier. With the commencement of our active mining this summer, we will also now begin the process of identification and solicitation of potential customers for our eventual commercial production.
As these steps demonstrate we will clearly begin to transition the Company to becoming a commercial producer of both met coal as well as and rare earths and critical minerals.
Lastly, we are pleased and honored to welcome former
As we look to where we sit at this point in the year, our metallurgical mine operations continue to execute very well despite being in a difficult macro coal environment. We hope for improvement in our core met markets as the year progresses.
At the same time, on a highly positive note, we are beginning the process to transition into hopefully becoming a major
Key operational and financial metrics are presented below (unaudited):
Key Metrics | |||||||||
1Q25 | 4Q24 | Chg. | 1Q24 | Chg. | |||||
Total Tons Sold ('000) | 946 | 1,122 | (16) % | 929 | 2 % | ||||
Revenue ($mm) | $ | 134.7 | $ | 170.9 | (21) % | $ | 172.7 | (22) % | |
Cost of Sales ($mm) | $ | 114.1 | $ | 136.1 | (16) % | $ | 139.7 | (18) % | |
Non-GAAP Revenue of Tons Sold ($/Ton) 1 | $ | 122 | $ | 129 | (5) % | $ | 155 | (21) % | |
Non-GAAP Cash Cost of Sales ($/Ton) 1 | $ | 98 | $ | 96 | 2 % | $ | 118 | (17) % | |
Non-GAAP Cash Margins on Tons Sold ($/Ton) | $ | 24 | $ | 33 | (27) % | $ | 37 | (35) % | |
Net Income (Loss) ($mm) | $ | (9.5) | $ | 3.9 | (344) % | $ | 2.0 | (575) % | |
Diluted EPS - Class A Common Stock | $ | (0.19) | $ | 0.06 | (400) % | $ | (0.00) | (3,778) % | |
Diluted EPS - Class B Common Stock | $ | (0.20) | $ | 0.02 | (1,100) % | $ | 0.23 | (187) % | |
Adjusted EBITDA ($mm) 1 | $ | 9.8 | $ | 29.2 | (66) % | $ | 24.2 | (60) % | |
Capex ($mm) | $ | 20.3 | $ | 11.9 | 70 % | $ | 18.7 | 8 % | |
Adjusted EBITDA less Capex ($mm) | $ | (10.5) | $ | 17.3 | (161) % | $ | 5.4 | (293) % | |
(1) See "Reconciliation of Non-GAAP Measures." | |||||||||
Differences may occur due to rounding. | |||||||||
FIRST QUARTER 2025 PERFORMANCE
In the following paragraphs, all references to "quarterly" periods or to "the quarter" refer to the first quarter of 2025, unless specified otherwise.
Year over Year Quarterly Comparison
Quarterly overall production of 989,000 tons was up
Cash costs were
As a result of the above, cash margins were
Sequential Quarter Comparison
First quarter of 2025 production was 989,000 tons, up
Realized quarterly pricing of
Quarterly cash costs of
BALANCE SHEET AND LIQUIDITY
As of March 31, 2025, the Company had liquidity of
Quarterly capital expenditures totaled
For the first quarter of 2025, the Company recognized income tax expense of
The following summarizes key sales, production and financial metrics for the periods noted (unaudited):
Three months ended | |||||||||
March 31, | December 31, | March 31, | |||||||
In thousands, except per ton amounts | 2025 | 2024 | 2024 | ||||||
Sales Volume (tons) | 946 | 1,122 | 929 | ||||||
Company Production (tons) | |||||||||
Elk Creek Mining Complex | 687 | 672 | 467 | ||||||
Berwind Mining Complex (includes Knox Creek and | 302 | 282 | 377 | ||||||
Total | 989 | 954 | 844 | ||||||
Per Ton Financial Metrics (a) | |||||||||
Average revenue per ton | $ | 122 | $ | 129 | $ | 155 | |||
Average cash costs of coal sold | 98 | 96 | 118 | ||||||
Average cash margin per ton | $ | 24 | $ | 33 | $ | 37 | |||
Capital Expenditures | $ | 20,312 | $ | 11,920 | $ | 18,730 | |||
_________________________________ | |||||||||
(a) Metrics are defined and reconciled under "Reconciliation of Non-GAAP Measures." | |||||||||
FINANCIAL GUIDANCE
(In thousands, except per ton amounts and percentages)
Full-Year | Full-Year | ||||
2025 Guidance | 2024 | ||||
Company Production (tons) | 3,900 - 4,300 | 3,671 | |||
Sales (tons) (a) | 4,100 - 4,500 | 3,989 | |||
Cash Costs Per Ton Sold (b) | $ | 96 - 102 | $ | 105 | |
Other | |||||
Capital Expenditures (c) | $ | 55,000 - 65,000 | $ | 68,842 | |
Selling, general and administrative expense (d) | $ | 36,000 - 40,000 | $ | 31,820 | |
Depreciation, depletion, and amortization expense | $ | 71,000 - 76,000 | $ | 65,615 | |
Interest expense, net | $ | 8,000 - 9,000 | $ | 6,123 | |
Effective tax rate (e) | 25 - | 25 % | |||
Idle Mine and Other Costs | $ | 1,000 - 2,000 | $ | 1,529 | |
(a) | Includes purchased coal. |
(b) | Excludes transportation costs, alternative mineral development costs, and idle mine costs. |
(c) | Excludes capitalized interest. Includes |
(d) | Excludes stock-based compensation. |
(e) | Normalized to exclude discrete items. |
Committed 2025 Sales Volume(a)
(In millions, except per ton amounts) (unaudited)
2025 | |||||
Volume | Average Price | ||||
1.6 | $ | 152 | |||
Seaborne, fixed priced | 0.6 | $ | 111 | ||
Total, fixed priced | 2.2 | $ | 141 | ||
Index priced | 1.5 | ||||
Total committed tons | 3.7 | ||||
(a) Amounts as of March 31, 2025 include purchased coal. Totals may not add due to rounding. | |||||
ABOUT RAMACO RESOURCES
Ramaco Resources, Inc. is an operator and developer of high-quality, low-cost metallurgical coal in southern
FIRST QUARTER 2025 CONFERENCE CALL
Ramaco Resources will hold its quarterly conference call and webcast at 11:00 AM Eastern Time (ET) on Monday, May 12, 2025. 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 12, 2025:
Domestic Live: (877) 317-6789
International Live: (412) 317-6789
Conference ID: Ramaco Resources First Quarter 2025 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 our complexes in accordance with the Company's growth initiatives, failure of our sales commitment counterparties to perform, increased government regulation of coal in
Ramaco Resources, Inc. | ||||||
Three months ended March 31, | ||||||
In thousands, except per share amounts | 2025 | 2024 | ||||
Revenue | $ | 134,656 | $ | 172,676 | ||
Costs and expenses | ||||||
Cost of sales (exclusive of items shown separately below) | 114,132 | 139,713 | ||||
Asset retirement obligations accretion | 402 | 354 | ||||
Depreciation, depletion, and amortization | 17,542 | 15,220 | ||||
Selling, general, and administrative | 14,602 | 14,114 | ||||
Total costs and expenses | 146,678 | 169,401 | ||||
Operating (loss) income | (12,022) | 3,275 | ||||
Other income (expense), net | 505 | 629 | ||||
Interest expense, net | (2,230) | (1,332) | ||||
(Loss) income before tax | (13,747) | 2,572 | ||||
Income tax (benefit) expense | (4,290) | 540 | ||||
Net (loss) income | $ | (9,457) | $ | 2,032 | ||
Earnings per common share | ||||||
Basic - Class A | $ | (0.19) | $ | (0.00) | ||
Basic - Class B | $ | (0.20) | $ | 0.24 | ||
Diluted - Class A | $ | (0.19) | $ | (0.00) | ||
Diluted - Class B | $ | (0.20) | $ | 0.23 | ||
Ramaco Resources, Inc. Unaudited Consolidated Balance Sheets | ||||||
In thousands, except per-share amounts | March 31, 2025 | December 31, 2024 | ||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 43,466 | $ | 33,009 | ||
Accounts receivable | 52,122 | 73,582 | ||||
Inventories | 56,123 | 43,358 | ||||
Prepaid expenses and other | 12,256 | 17,685 | ||||
Total current assets | 163,967 | 167,634 | ||||
Property, plant, and equipment, net | 487,872 | 482,019 | ||||
Financing lease right-of-use assets, net | 19,679 | 12,437 | ||||
Advanced coal royalties | 5,129 | 4,709 | ||||
Other | 9,088 | 7,887 | ||||
Total Assets | $ | 685,735 | $ | 674,686 | ||
Liabilities and Stockholders' Equity | ||||||
Liabilities | ||||||
Current liabilities | ||||||
Accounts payable | $ | 59,496 | $ | 48,855 | ||
Accrued liabilities | 53,851 | 61,659 | ||||
Current portion of asset retirement obligations | 1,035 | 1,035 | ||||
Current portion of long-term debt | 307 | 359 | ||||
Current portion of financing lease obligations | 7,307 | 6,218 | ||||
Insurance financing liability | 2,365 | 4,302 | ||||
Total current liabilities | 124,361 | 122,428 | ||||
Asset retirement obligations, net | 30,454 | 30,052 | ||||
Long-term equipment loans | — | 57 | ||||
Long-term borrowing on revolving credit facility | 16,000 | — | ||||
Long-term financing lease obligations, net | 13,203 | 7,517 | ||||
Senior notes, net | 88,356 | 88,135 | ||||
Deferred tax liability, net | 51,359 | 56,027 | ||||
Other long-term liabilities | 6,754 | 7,664 | ||||
Total liabilities | 330,487 | 311,880 | ||||
Commitments and contingencies | ||||||
Stockholders' Equity | ||||||
Preferred stock, | — | — | ||||
Class A common stock, | 444 | 438 | ||||
Class B common stock, | 103 | 95 | ||||
Additional paid-in capital | 306,312 | 292,739 | ||||
Retained earnings | 48,389 | 69,534 | ||||
Total stockholders' equity | 355,248 | 362,806 | ||||
Total Liabilities and Stockholders' Equity | $ | 685,735 | $ | 674,686 | ||
Ramaco Resources, Inc. Unaudited Statement of Cash Flows | |||||||
Three months ended March 31, | |||||||
In thousands | 2025 | 2024 | |||||
Cash flows from operating activities | |||||||
Net (loss) income | $ | (9,457) | $ | 2,032 | |||
Adjustments to reconcile net income to net cash from operating activities: | |||||||
Accretion of asset retirement obligations | 402 | 354 | |||||
Depreciation, depletion, and amortization | 17,542 | 15,220 | |||||
Amortization of debt issuance costs | 353 | 207 | |||||
Stock-based compensation | 3,361 | 4,702 | |||||
Other income | — | (23) | |||||
Deferred income taxes | (4,668) | (1,928) | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 21,460 | (6,673) | |||||
Prepaid expenses and other current assets | 5,429 | 6,462 | |||||
Inventories | (12,765) | (4,117) | |||||
Other assets and liabilities | (1,253) | (494) | |||||
Accounts payable | 9,809 | 6,301 | |||||
Accrued liabilities | (4,174) | 3,145 | |||||
Net cash from operating activities | 26,039 | 25,188 | |||||
Cash flow from investing activities: | |||||||
Capital expenditures | (18,473) | (18,730) | |||||
(1,840) | — | ||||||
Capitalized interest | (527) | (244) | |||||
Other | (1,416) | 309 | |||||
Net cash used for investing activities | (22,256) | (18,665) | |||||
Cash flows from financing activities | |||||||
Proceeds from borrowings | 19,000 | 51,500 | |||||
Payments of debt issuance cost (senior note debt) | (67) | — | |||||
Payments of dividends | (2,476) | (8,319) | |||||
Repayment of borrowings | (3,110) | (55,417) | |||||
Repayments of insurance financing | (1,937) | (1,799) | |||||
Repayments of equipment finance leases | (2,056) | (2,077) | |||||
Shares surrendered for withholding taxes | (2,680) | (1,870) | |||||
Net Provided by (used) for financing activities | 6,674 | (17,982) | |||||
Net change in cash and cash equivalents and restricted cash | 10,457 | (11,459) | |||||
Cash and cash equivalents and restricted cash, beginning of period | 33,823 | 42,781 | |||||
Cash and cash equivalents and restricted cash, end of period | $ | 44,280 | $ | 31,322 | |||
Reconciliation of Non-GAAP Measures (Unaudited)
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 other non-operating items (income tax penalties and 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) | 2025 | 2024 | 2024 | |||||
Reconciliation of Net Income to Adjusted EBITDA | ||||||||
Net (loss) income | $ | (9,457) | $ | 3,858 | $ | 2,032 | ||
Depreciation, depletion, and amortization | 17,542 | 16,706 | 15,220 | |||||
Interest expense, net | 2,230 | 1,614 | 1,332 | |||||
Income tax (benefit) expense | (4,290) | 2,212 | 540 | |||||
EBITDA | 6,025 | 24,390 | 19,124 | |||||
Stock-based compensation | 3,361 | 4,211 | 4,702 | |||||
Other non-operating | — | 193 | — | |||||
Accretion of asset retirement obligations | 402 | 402 | 354 | |||||
Adjusted EBITDA | $ | 9,788 | $ | 29,196 | $ | 24,180 |
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:
Non-GAAP revenue per ton (unaudited)
Q1 | Q4 | Q1 | |||||||
(In thousands, except per ton amounts) | 2025 | 2024 | 2024 | ||||||
Revenue | $ | 134,656 | $ | 170,893 | $ | 172,676 | |||
Less: Adjustments to reconcile to Non-GAAP revenue (FOB mine) | |||||||||
Transportation | (19,042) | (25,945) | (28,285) | ||||||
Non-GAAP revenue (FOB mine) | $ | 115,614 | $ | 144,948 | $ | 144,391 | |||
Tons sold | 946 | 1,122 | 929 | ||||||
Non-GAAP revenue per ton sold (FOB mine) | $ | 122 | $ | 129 | $ | 155 |
Non-GAAP cash cost per ton (unaudited)
Q1 | Q4 | Q1 | ||||||
(In thousands, except per ton amounts) | 2025 | 2024 | 2024 | |||||
Cost of sales | $ | 114,132 | $ | 136,079 | $ | 139,713 | ||
Less: Adjustments to reconcile to Non-GAAP cash cost of sales | ||||||||
Transportation costs | (18,998) | (25,942) | (28,876) | |||||
Alternative mineral development costs | (1,912) | (1,137) | (1,135) | |||||
Idle and other costs | (459) | (742) | (237) | |||||
Non-GAAP cash cost of sales | $ | 92,763 | $ | 108,258 | $ | 109,465 | ||
Tons sold | 946 | 1,122 | 929 | |||||
Non-GAAP cash cost per ton sold (FOB mine) | $ | 98 | $ | 96 | $ | 118 | ||
Non-GAAP cash margins on tons sold | $ | 24 | $ | 33 | $ | 37 |
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.
View original content:https://www.prnewswire.com/news-releases/ramaco-resources-reports-first-quarter-2025-results-302451834.html
SOURCE Ramaco Resources, Inc.
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