Ramaco Resources, Inc. Announces an Increase of its 2022 Dividend by 100%

Rhea-AI Summary

Ramaco Resources (NASDAQ: METC) has announced a 100% increase in its quarterly dividend, raising it from $2.5 million to $5.0 million, reflecting confidence in financial strength. The annual dividend will also increase to $20 million from $10 million. The first payment, set for March 15, 2022, will be approximately $0.11 per share, yielding 3% based on the recent closing price. The company plans to review this dividend level annually, with potential for further capital returns via share buybacks.

Positive

• Dividend increased by 100% to $5.0 million quarterly.
• Annual dividend raised to $20 million, reflecting strong financial position.
• Dividend yield approximately 3% based on recent closing price.
• Plans for annual review with expected increases of 8-10%.

Negative

• None.

LEXINGTON, Ky., Feb. 18, 2022 /PRNewswire/ -- Ramaco Resources, Inc. (NASDAQ: METC) announced that its Board of Directors ("Board") approved a 100% increase in its initial regular quarterly dividend to $5.0 million from the formerly approved $2.5 million quarterly dividend that was announced in December 2021. This will involve a commensurate increase in its annual base dividend to $20 million from $10 million. Specifically, the first quarter dividend will be paid on March 15, 2022, to shareholders of record on March 1, 2022 in the amount of approximately $0.11 per share, which annualizes to approximately $0.45 per share.

Furthermore, the Company has indicated that at the end of each calendar year it would review this cash dividend level with the expectation to annually increase it by 8-10%. While the Company intends to pay regular quarterly cash dividends for the foreseeable future, all subsequent dividends will be reviewed quarterly and declared by the Board at its discretion. The Board also indicated that as part of this annual review and dependent on prevailing circumstances, that the Company will consider a further return of shareholder capital in the form of a share buyback program.

Randall Atkins, Ramaco Resources' Chairman and Chief Executive Officer noted that, "We are delighted to be in an enviable position of financial strength to now double our initial base dividend from $10 million to $20 million in 2022. Indeed, we are doing so before the first dividend was even paid. As we have previously communicated, we view our twin goals today as doubling our met coal production, while simultaneously returning increasing amounts of capital to our shareholders. We are pleased that our first payment next month will be a meaningful one, with a dividend yield of approximately 3% based on yesterday's closing price. We look forward to discussing our 2021 results, our 2022 outlook and our capital return policies in more detail with the investment community on our earnings call later this month."

Ramaco Resources is an operator and developer of high-quality, low-cost metallurgical coal in southern West Virginia, southwestern Virginia and southwestern Pennsylvania. For more information, visit www.ramacoresources.com.

POINT OF CONTACT:
INVESTOR RELATIONS: info@ramacocoal.com or 859-244-7455

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SOURCE Ramaco Resources, Inc.

FAQ

What is the new dividend amount for Ramaco Resources (METC) in 2022?

The new quarterly dividend amount is $5.0 million, which annualizes to $20 million.

When will Ramaco Resources (METC) pay its first dividend in 2022?

The first dividend payment will be on March 15, 2022.

What is the dividend per share for Ramaco Resources (METC) in 2022?

The dividend per share will be approximately $0.11, which annualizes to $0.45.

Is Ramaco Resources (METC) planning to increase dividends in the future?

Yes, the company expects to increase dividends by 8-10% annually.