RAMACO RESOURCES REPORTS THIRD QUARTER 2024 RESULTS
Ramaco Resources reported its Q3 2024 financial results with Adjusted EBITDA of $23.6 million, down from $28.8 million in Q2 2024. The company posted a net loss of $0.2 million, compared to net income of $5.5 million in Q2 2024. Despite challenging market conditions with U.S. metallurgical coal indices falling 7% in Q3, the company achieved record quarterly production of 972,000 tons and sales of 1,023,000 tons. Cash costs decreased to $102 per ton, with costs below $100 per ton in August and September. For 2024, total sales commitments are 4.1 million tons, with 2025 commitments at 2.7 million tons. The company reduced its 2024 production guidance to 3.7-3.9 million tons.
Ramaco Resources ha riportato i risultati finanziari del terzo trimestre 2024, con un EBITDA rettificato di 23,6 milioni di dollari, in calo rispetto ai 28,8 milioni di dollari del secondo trimestre 2024. L'azienda ha registrato una perdita netta di 0,2 milioni di dollari, rispetto a un utile netto di 5,5 milioni di dollari nel secondo trimestre 2024. Nonostante le difficili condizioni di mercato, con gli indici del carbone metallurgico statunitensi in calo del 7% nel terzo trimestre, l'azienda ha raggiunto una produzione trimestrale record di 972.000 tonnellate e vendite di 1.023.000 tonnellate. I costi in contante sono diminuiti a 102 dollari per tonnellata, con costi al di sotto dei 100 dollari per tonnellata ad agosto e settembre. Per il 2024, gli impegni totali di vendita ammontano a 4,1 milioni di tonnellate, con impegni per il 2025 pari a 2,7 milioni di tonnellate. L'azienda ha ridotto le previsioni di produzione per il 2024 a 3,7-3,9 milioni di tonnellate.
Ramaco Resources presentó sus resultados financieros del tercer trimestre de 2024, con un EBITDA ajustado de 23,6 millones de dólares, una disminución desde los 28,8 millones de dólares en el segundo trimestre de 2024. La compañía reportó una pérdida neta de 0,2 millones de dólares, en comparación con un ingreso neto de 5,5 millones de dólares en el segundo trimestre de 2024. A pesar de las desafiantes condiciones del mercado, con los índices de carbón metalúrgico estadounidense cayendo un 7% en el tercer trimestre, la empresa logró una producción trimestral récord de 972.000 toneladas y ventas de 1.023.000 toneladas. Los costos en efectivo disminuyeron a 102 dólares por tonelada, con costos por debajo de 100 dólares por tonelada en agosto y septiembre. Para 2024, los compromisos totales de venta son de 4,1 millones de toneladas, con compromisos para 2025 de 2,7 millones de toneladas. La empresa redujo su guía de producción para 2024 a 3,7-3,9 millones de toneladas.
Ramaco Resources는 2024년 3분기 재무 결과를 발표했으며, 조정 EBITDA는 2360만 달러로 2024년 2분기 2880만 달러에서 감소했습니다. 이 회사는 2024년 2분기 550만 달러의 순이익에 비해 20만 달러의 순손실을 기록했습니다. 미국의 야금용 석탄 지수가 3분기 동안 7% 하락하는 등 어려운 시장 상황에도 불구하고 회사는 분기 생산량 최고 기록인 972,000톤과 판매량 1,023,000톤을 달성했습니다. 현금 비용은 톤당 102달러로 감소했으며, 8월과 9월에는 톤당 100달러 이하로 평가되었습니다. 2024년 총 판매 약속은 410만 톤이며, 2025년 약속은 270만 톤입니다. 회사는 2024년 생산 가이드를 370만-390만 톤으로 조정했습니다.
Ramaco Resources a publié ses résultats financiers pour le troisième trimestre 2024, avec un EBITDA ajusté de 23,6 millions de dollars, en baisse par rapport à 28,8 millions de dollars au deuxième trimestre 2024. L'entreprise a affiché une perte nette de 0,2 million de dollars, contre un bénéfice net de 5,5 millions de dollars au deuxième trimestre 2024. Malgré des conditions de marché difficiles, avec les indices du charbon métallurgique américain en baisse de 7 % au troisième trimestre, l'entreprise a atteint une production trimestrielle record de 972 000 tonnes et des ventes de 1 023 000 tonnes. Les coûts en espèces ont diminué à 102 dollars par tonne, avec des coûts inférieurs à 100 dollars par tonne en août et septembre. Pour 2024, les engagements de vente totaux sont de 4,1 millions de tonnes, avec des engagements pour 2025 de 2,7 millions de tonnes. L'entreprise a réduit ses prévisions de production pour 2024 à 3,7-3,9 millions de tonnes.
Ramaco Resources hat seine finanziellen Ergebnisse für das dritte Quartal 2024 bekannt gegeben, mit einem bereinigten EBITDA von 23,6 Millionen Dollar, ein Rückgang von 28,8 Millionen Dollar im zweiten Quartal 2024. Das Unternehmen verzeichnete einen Nettoverlust von 0,2 Millionen Dollar, verglichen mit einem Nettogewinn von 5,5 Millionen Dollar im zweiten Quartal 2024. Trotz herausfordernder Marktbedingungen, bei denen die US-Metallkohle-Indizes im dritten Quartal um 7 % sanken, erzielte das Unternehmen eine rekordverdächtige Quartalsproduktion von 972.000 Tonnen und Verkäufen von 1.023.000 Tonnen. Die Bargeldkosten sanken auf 102 Dollar pro Tonne, wobei die Kosten im August und September unter 100 Dollar pro Tonne lagen. Für 2024 betragen die Gesamtverkaufsverpflichtungen 4,1 Millionen Tonnen, während die Verpflichtungen für 2025 bei 2,7 Millionen Tonnen liegen. Das Unternehmen hat seine Produktionsprognose für 2024 auf 3,7-3,9 Millionen Tonnen gesenkt.
- Record quarterly production of 972,000 tons, up 8% from Q2
- Record quarterly sales of 1,023,000 tons
- Cash costs reduced to $102 per ton, down $6 from Q2
- Strong 2024 sales commitments of 4.1 million tons
- 2025 forward sales of 2.7 million tons secured at $152/ton
- Net loss of $0.2 million in Q3 vs $5.5 million profit in Q2
- Adjusted EBITDA declined 18% to $23.6 million vs Q2
- Revenue per ton decreased 5% to $136 from $143 in Q2
- Production guidance reduced by 0.2 million tons
- Class A diluted EPS declined to -$0.03 from $0.08 in Q2
Insights
Ramaco Resources delivered a mixed Q3 2024 performance amid challenging market conditions.
Key positives include record quarterly production of 972,000 tons (up
For 2025, 2.7 million tons are already committed, with 1.6 million tons fixed at
The metallurgical coal market faces significant headwinds from Chinese steel overproduction, leading to widespread pricing pressure. U.S. met coal indices declined
However, potential catalysts for 2025 include possible Chinese steel export restrictions and fiscal stimulus measures. The company's strategic positioning in rare earth minerals development through the Brook Mine project offers diversification potential, with construction of a demonstration facility planned for 2025.
THIRD QUARTER 2024 HIGHLIGHTS
- For the quarter ended September 30, 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
, compared to$23.6 million in the second quarter of 2024. (See "Reconciliation of Non-GAAP Measures" below.)$28.8 million
- For the quarter ended September 30, 2024, the Company had net income of
, compared to$(0.2) million in the second quarter of 2024 and$5.5 million in the third quarter of 2023. Class A diluted EPS was$19.5 million for the quarter ended September 30, 2024, compared to$(0.03) for the quarter ended June 30, 2024 and$0.08 for the quarter ended September 30, 2023. Excluding the one-time closure of the Company's Knox Creek Jawbone mine (discussed below), net income would have been approximately$0.40 and Class A diluted EPS would have been$1 million .$0.00
- Non-GAAP cash cost per ton sold declined quarterly by
per ton in the third quarter of 2024 to$6 per ton, as production increased by$102 8% to 972,000 tons sequentially despite one fewer work week in the third quarter. (See "Reconciliation of Non-GAAP Measures" below.) Furthermore, non-GAAP cash costs per ton sold were below per ton in both August and September, as our low-cost Ram No. 3 mine and the third section at our Stonecoal Alma mine reached full production. Third quarter of 2024 cash costs have declined by$100 per ton since first quarter of 2024 cash costs.$16
- Due to both improved productivity and continued increases in production, third quarter sales of 1,023,000 tons and third quarter production of 972,000 tons were both quarterly records.
U.S. metallurgical coal indices fell per ton, or$15 7% on average in the third quarter of 2024 versus the second quarter, and per ton, or$25 12% versus the third quarter of 2023. Year to date indices have fallen by per ton or$85 32% . Despite these declines, non-GAAP cash margins per ton sold1 this quarter remained at per ton, or$34 25% , down just per ton sequentially, as a result of the Company's solid operational performance.$1
____________________ | |
1 | Non-GAAP cash margin per ton sold is a non-GAAP measure that is equal to Non-GAAP revenue per ton sold (FOB mine) minus Non-GAAP cash cost per ton sold (FOB mine). Management believes these measures allow us to more effectively monitor changes in coal prices and costs from period to period by excluding certain items which are beyond our control. Please see "Reconciliation of Non-GAAP Measures" for more information. |
MARKET COMMENTARY / 2025 OUTLOOK
Sales and Marketing:
- For 2024, total sales commitments are 4.1 million tons as of September 30, which equates to more than
100% of the high end of 2024 production guidance. 1.3 million tons are committed to North American customers at an average realized fixed price of per ton. In addition, 2.0 million already shipped tons were committed to seaborne customers at an average realized index-based fixed price of$168 per ton. Overall, through the third quarter 3.3 million tons have been committed at an average realized price of$135 per ton, excluding the impact of any demurrage. The Company has 0.8 million tons of unpriced index export business committed for delivery in the fourth quarter of 2024.$148
- For 2025, total sales commitments are now 2.7 million tons as of early November, of which 1.6 million tons are fixed price at
per ton sold to mostly North American customers. As of this date, a portion of the Company's higher priced specialty coal has not yet been committed, in-line with traditional customer sales cadence. We anticipate these future sales will raise the total 2025 fixed price average.$152
Production:
- The Company's four main production growth initiatives for 2024 remain on track and on budget. These include:
- The addition of 600,000 combined annualized high vol tons from the
Elk Creek complex's Ram 3 surface / highwall mine and the third section at the Stonecoal Alma mine. Both of these mines were at full production as of September 2024. - The commission of the prep plant at
Maben in late October, in-line with expectations. This will reduce trucking costs at this complex by approximately per ton.$40 - The addition of 300,000 tons of annualized low vol production at the third section at the
Berwind mine. First production should commence before year-end 2024. - The Company anticipates average annual mine costs of
per ton on a combined basis at all these new mines.$90 -95
- The addition of 600,000 combined annualized high vol tons from the
- The Company began proactively reducing higher cost production in the current pricing environment. In October, the Knox Creek Jawbone mine was closed, which was both nearing end of mine life and the Company's only loss making mine.
- On a monthly basis, mine costs dropped from
per ton in March to$120 per ton in September or roughly a$93 25% decline throughout the year.
Guidance:
- Overall production and sales guidance is being reduced by 0.2 million tons at the midpoint to 3.7 – 3.9 million tons and 3.9 – 4.1 million tons, respectively.
- These reductions in guidance will have a minimal impact to overall earnings. The Company's updated guidance can be seen in the "Financial Guidance" section of this press release.
- The midpoint of full-year 2024 cash cost guidance is being reduced to
–$106 per ton sold versus the prior$109 –$105 per ton. In line with this updated cash cost guidance, overall mine costs on a normalized basis are anticipated to exit the year below the$111 per ton range. After adjusting for two weeks of vacation periods in the fourth quarter, the Company anticipates cash costs to be similar in both the third and fourth quarter of 2024.$100 - The high-end of 2024 sales guidance remains at roughly a 5 million ton per annum exit run rate.
- The midpoint of cash selling, general, and administrative guidance is reduced by
10% , from to$40 million .$36 million - The Company continues to progress on additional mining and testing at its rare earth and critical mineral Brook Mine in
Sheridan, Wyoming . We anticipate that The Fluor Corporation will provide a preliminary techno-economic analysis of the project in early December. Fluor will also be engaged in the future design and engineering for the commercial demonstration processing facility which Ramaco hopes to begin constructing in 2025.
MANAGEMENT COMMENTARY
Randall Atkins, Ramaco Resources' Chairman and Chief Executive 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
Despite that macro headwind, Ramaco's third quarter operational results were our strongest operational quarter of the year. In simple terms, we acted on those areas we could control and succeeded in both reducing costs and increasing production for the second consecutive quarter. We anticipate the same positive operational progress next quarter as we end the year.
Our financial results were lower this quarter than in the second quarter due to the
Our strong operational and productivity execution also led to another large sequential decline in cash costs that averaged in the mid
We expect operational results should again improve in the fourth quarter, as our production and sales continue to grow. We anticipate a sales increase in the fourth quarter to provide a year-end exit run rate in excess of 5 million tons at the high end of guidance, with cash costs also below
Our four main 2024 growth initiatives remain both on track and on budget.
- The high vol additions at our
Elk Creek complex should ultimately add roughly 600,000 annualized tons to overall 2024 Elk Creek production. These are from the Ram 3 surface / highwall mine and the third section at the Stonecoal Alma mine, which were both fully online as of September. - The prep plant at our low vol
Maben complex was commissioned on time and on budget at the end of October and will reduce current trucking costs by approximately per ton at this complex.$40 - The addition in the fourth quarter of the third section at the main
Berwind low vol mine will ultimately add roughly 300,000 annualized tons of production. - Importantly, all of these new mines are anticipated to have average mine costs in the
per ton range on a combined basis.$90 -95
On the supply side, there was perhaps a silver lining to the continued decline in met coal pricing. Higher cost
On the demand side, as we look ahead to 2025 it is possible that Chinese steel exports may be restricted in many world markets by tariffs. This may boost steel and met coal pricing in our traditional markets. The Chinese government may also enact more aggressive fiscal stimulus measures, which might have similar potential to improve pricing. We shall wait and see.
I am pleased to report on how our forward 2025 sales book has been filled so far. Total 2025 sales commitments are now up to 2.7 million tons, of which 1.6 million tons are fixed price at
On our rare earth and critical minerals front at the Brook Mine in
We are in the advanced stages of completing our preliminary techno-economic report with the Fluor Corporation. We expect it to be finalized shortly to review at our Board meeting in early December. Lastly, we continue to plan toward commencement of the construction of our rare earth demonstration facility in mid to late 2025. We expect to make further announcements on this overall progress after the Board meeting.
In summary, we expect to exit the year on a strong note with both record annual sales and production and even lower normalized mine costs. We are now well positioned on forward coal sales into 2025 and look forward to hopefully stronger seasonal pricing markets as we start the year. Our rare earth development remains a major unique transformational opportunity as we methodically move toward hopefully beginning to realize its commercial potential in the new year. Overall, we continue to transition into becoming an even larger low cost met coal producer, with the hopeful addition of an exciting rare earth and critical mineral future potential."
Key operational and financial metrics are presented below (unaudited):
Key Metrics | ||||||||||||||||
3Q24 | 2Q24 | Chg. | 3Q23 | Chg. | 2024 YTD | 2023 YTD | Chg. | |||||||||
Total Tons Sold ('000) | 1,023 | 915 | 12 % | 996 | 3 % | 2,867 | 2,467 | 16 % | ||||||||
Revenue ($mm) | $ | 167.4 | $ | 155.3 | 8 % | $ | 187.0 | (10) % | $ | 495.4 | $ | 490.8 | 1 % | |||
Cost of Sales ($mm) | $ | 134.7 | $ | 122.8 | 10 % | $ | 144.6 | (7) % | $ | 397.2 | $ | 354.4 | 12 % | |||
Non-GAAP Revenue of Tons Sold ($/Ton) 1 | $ | 136 | $ | 143 | (5) % | $ | 157 | (13) % | $ | 145 | $ | 169 | (14) % | |||
Non-GAAP Cash Cost of Sales ($/Ton) 1 | $ | 102 | $ | 108 | (6) % | $ | 113 | (10) % | $ | 109 | $ | 111 | (2) % | |||
Non-GAAP Cash Margins on Tons Sold ($/Ton) | $ | 34 | $ | 35 | (3) % | $ | 44 | (23) % | $ | 36 | $ | 58 | (38) % | |||
Net Income (Loss) ($mm) | $ | (0.2) | $ | 5.5 | (104) % | $ | 19.5 | (101) % | $ | 7.3 | $ | 52.3 | (86) % | |||
Diluted EPS - Class A Common Stock | $ | (0.03) | $ | 0.08 | (136) % | $ | 0.40 | (107) % | $ | 0.05 | $ | 1.14 | (96) % | |||
Diluted EPS - Class B Common Stock | $ | 0.06 | $ | 0.18 | (69) % | $ | 0.16 | (65) % | $ | 0.46 | $ | 0.16 | 185 % | |||
Adjusted EBITDA ($mm) 1 | $ | 23.6 | $ | 28.8 | (18) % | $ | 45.4 | (48) % | $ | 76.6 | $ | 123.7 | (38) % | |||
Capex ($mm) 2 | $ | 17.8 | $ | 21.4 | (17) % | $ | 16.9 | 5 % | $ | 57.9 | $ | 64.9 | (11) % | |||
Adjusted EBITDA less Capex ($mm) | $ | 5.8 | $ | 7.4 | (21) % | $ | 28.5 | (80) % | $ | 18.7 | $ | 58.8 | (68) % |
(1) | See "Reconciliation of Non-GAAP Measures." |
(2) | 2024 YTD include |
Differences may occur due to rounding. | |
THIRD QUARTER 2024 PERFORMANCE
In the following paragraphs, all references to "quarterly" periods or to "the quarter" refer to the third quarter of 2024, unless specified otherwise.
Year over Year Quarterly Comparison
Overall production in the quarter was 972,000 tons, up
Quarterly pricing was
As a result of the above, cash margins were
Sequential Quarter Comparison
Third quarter of 2024 production was 972,000 tons, up from the second quarter by
Realized quarterly pricing of
Quarterly cash costs of
BALANCE SHEET AND LIQUIDITY
As of September 30, 2024, the Company had liquidity of
Quarterly capital expenditures totaled
We anticipate capital expenditures will decline meaningfully in the fourth quarter 2024, versus the first three quarters of 2024. This decline comes from the completion of the Company's Ram 3 surface / highwall and Stonecoal Alma mines that achieved full production in September. Growth capital expenditures associated with those mines have now already been incurred. The Company expects 2024 capital expenditures to come in towards the high end of the previous guidance range, largely due to timing, and updates guidance accordingly.
The Company's year to date effective tax rate was
The following summarizes key sales, production and financial metrics for the periods noted (unaudited):
Three months ended | Nine months ended | ||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||
In thousands, except per ton amounts | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||
Sales Volume (tons) | 1,023 | 915 | 996 | 2,867 | 2,467 | ||||||||||
Company Production (tons) | |||||||||||||||
Elk Creek Mining Complex | 639 | 508 | 402 | 1,614 | 1,619 | ||||||||||
Berwind Mining Complex (includes Knox Creek | 333 | 393 | 317 | 1,103 | 810 | ||||||||||
Total | 972 | 901 | 719 | 2,717 | 2,429 | ||||||||||
Per Ton Financial Metrics (a) | |||||||||||||||
Average revenue per ton | $ | 136 | $ | 143 | $ | 157 | $ | 145 | $ | 169 | |||||
Average cash costs of coal sold | 102 | 108 | 113 | 109 | 111 | ||||||||||
Average cash margin per ton | $ | 34 | $ | 35 | $ | 44 | $ | 36 | $ | 58 | |||||
Capital Expenditures (b) | $ | 17,785 | $ | 21,405 | $ | 16,908 | $ | 57,920 | $ | 64,924 |
____________________ | |
(a) | Metrics are defined and reconciled under "Reconciliation of Non-GAAP Measures." |
(b) | 2024 YTD include |
FINANCIAL GUIDANCE | |||||
(In thousands, except per ton amounts and percentages) | |||||
Full-Year | Full-Year | ||||
2024 Guidance | 2023 | ||||
Company Production (tons) | 3,700 - 3,900 | 3,174 | |||
Sales (tons) (a) | 3,900 - 4,100 | 3,455 | |||
Cash Costs Per Ton Sold (b) | $ | 106 - 109 | $ | 110 | |
Other | |||||
Capital Expenditures (c) | $ | 61,000 - 65,000 | $ | 82,904 | |
Selling, general and administrative expense (d) | $ | 34,000 - 38,000 | $ | 35,926 | |
Depreciation, depletion, and amortization expense | $ | 65,000 - 69,000 | $ | 54,252 | |
Interest expense, net | $ | 5,500 - 6,500 | $ | 8,903 | |
Effective tax rate (e) | 20 - | 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. Excludes |
(d) | Excludes stock-based compensation. |
(e) | Normalized to exclude discrete items. |
Committed 2024 Sales Volume(a) | |||||
(In millions, except per ton amounts) (unaudited) | |||||
2024 | |||||
Volume | Average Price | ||||
1.3 | $ | 168 | |||
Seaborne, fixed priced | 2.0 | $ | 135 | ||
Total, fixed priced | 3.3 | $ | 148 | ||
Index priced | 0.8 | ||||
Total committed tons | 4.1 |
(a) | Amounts as of September 30, 2024 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
THIRD QUARTER 2024 CONFERENCE CALL
Ramaco Resources will hold its quarterly conference call and webcast at 9:00 AM Eastern Time (ET) on Tuesday, November 5, 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 November 5, 2024:
Domestic Live: (877) 317-6789
International Live: (412) 317-6789
Conference ID: Ramaco Resources Third 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 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. | ||||||||||||
Unaudited Consolidated Statements of Operations | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||
In thousands, except per share amounts | 2024 | 2023 | 2024 | 2023 | ||||||||
Revenue | $ | 167,411 | $ | 186,966 | $ | 495,403 | $ | 490,795 | ||||
Costs and expenses | ||||||||||||
Cost of sales (exclusive of items shown separately | 134,731 | 144,635 | 397,214 | 354,383 | ||||||||
Asset retirement obligations accretion | 354 | 349 | 1,063 | 1,049 | ||||||||
Depreciation, depletion, and amortization | 17,811 | 14,443 | 48,909 | 39,850 | ||||||||
Selling, general, and administrative | 12,921 | 11,458 | 37,932 | 37,519 | ||||||||
Total costs and expenses | 165,817 | 170,885 | 485,118 | 432,801 | ||||||||
Operating income | 1,594 | 16,081 | 10,285 | 57,994 | ||||||||
Other income (expense), net | (76) | 11,333 | 3,075 | 15,076 | ||||||||
Interest expense, net | (1,696) | (2,447) | (4,509) | (7,274) | ||||||||
Income (loss) before tax | (178) | 24,967 | 8,851 | 65,796 | ||||||||
Income tax expense | 61 | 5,505 | 1,517 | 13,521 | ||||||||
Net income (loss) | $ | (239) | $ | 19,462 | $ | 7,334 | $ | 52,275 | ||||
Earnings (loss) per common share | ||||||||||||
Basic - Single class (through 6/20/2023) | $ | — | $ | — | $ | — | $ | 0.71 | ||||
Basic - Class A | $ | (0.03) | $ | 0.41 | $ | 0.05 | $ | 0.44 | ||||
Total | $ | (0.03) | $ | 0.41 | $ | 0.05 | $ | 1.15 | ||||
Basic - Class B | $ | 0.06 | $ | 0.17 | $ | 0.48 | $ | 0.17 | ||||
Diluted - Single class (through 6/20/23) | $ | — | $ | — | $ | — | $ | 0.70 | ||||
Diluted - Class A | $ | (0.03) | $ | 0.40 | $ | 0.05 | $ | 0.44 | ||||
Total | $ | (0.03) | $ | 0.40 | $ | 0.05 | $ | 1.14 | ||||
Diluted - Class B | $ | 0.06 | $ | 0.16 | $ | 0.46 | $ | 0.16 |
Ramaco Resources, Inc. | ||||||
Unaudited Consolidated Balance Sheets | ||||||
In thousands, except per-share amounts | September 30, 2024 | December 31, 2023 | ||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 22,864 | $ | 41,962 | ||
Accounts receivable | 62,905 | 96,866 | ||||
Inventories | 53,051 | 37,163 | ||||
Prepaid expenses and other | 7,853 | 13,748 | ||||
Total current assets | 146,673 | 189,739 | ||||
Property, plant, and equipment, net | 476,748 | 459,091 | ||||
Financing lease right-of-use assets, net | 12,014 | 10,282 | ||||
Advanced coal royalties | 3,884 | 2,964 | ||||
Other | 6,076 | 3,760 | ||||
Total Assets | $ | 645,395 | $ | 665,836 | ||
Liabilities and Stockholders' Equity | ||||||
Liabilities | ||||||
Current liabilities | ||||||
Accounts payable | $ | 53,783 | $ | 51,624 | ||
Accrued liabilities | 48,378 | 52,225 | ||||
Current portion of asset retirement obligations | 110 | 110 | ||||
Current portion of long-term debt | 383 | 56,534 | ||||
Current portion of financing lease obligations | 6,134 | 5,456 | ||||
Insurance financing liability | — | 4,037 | ||||
Total current liabilities | 108,788 | 169,986 | ||||
Asset retirement obligations, net | 31,325 | 28,850 | ||||
Long-term debt, net | 43,141 | 349 | ||||
Long-term financing lease obligations, net | 6,684 | 4,915 | ||||
Senior notes, net | 33,646 | 33,296 | ||||
Deferred tax liability, net | 54,573 | 54,352 | ||||
Other long-term liabilities | 5,414 | 4,483 | ||||
Total liabilities | 283,571 | 296,231 | ||||
Commitments and contingencies | ||||||
Stockholders' Equity | ||||||
Preferred stock, | — | — | ||||
Class A common stock, | 438 | 440 | ||||
Class B common stock, | 87 | 88 | ||||
Additional paid-in capital | 281,079 | 277,133 | ||||
Retained earnings | 80,220 | 91,944 | ||||
Total stockholders' equity | 361,824 | 369,605 | ||||
Total Liabilities and Stockholders' Equity | $ | 645,395 | $ | 665,836 |
Ramaco Resources, Inc. | ||||
Unaudited Statement of Cash Flows | ||||
Nine months ended September 30, | ||||
In thousands | 2024 | 2023 | ||
Cash flows from operating activities | ||||
Net income | $ | 7,334 | $ | 52,275 |
Adjustments to reconcile net income to net cash from operating activities: | ||||
Accretion of asset retirement obligations | 1,063 | 1,049 | ||
Depreciation, depletion, and amortization | 48,909 | 39,850 | ||
Amortization of debt issuance costs | 664 | 566 | ||
Stock-based compensation | 13,255 | 9,706 | ||
Other | (18) | (4,912) | ||
Deferred income taxes | 221 | 10,048 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable | 33,961 | (22,460) | ||
Prepaid expenses and other current assets | 5,895 | 10,115 | ||
Inventories | (15,888) | (5,269) | ||
Other assets and liabilities | (2,504) | (816) | ||
Accounts payable | 2,576 | 19,253 | ||
Accrued liabilities | 1,515 | 10,071 | ||
Net cash from operating activities | 96,983 | 119,476 | ||
Cash flow from investing activities: | ||||
Capital expenditures | (45,632) | (64,924) | ||
(12,288) | — | |||
Other | (182) | 7,158 | ||
Net cash used for investing activities | (58,102) | (57,766) | ||
Cash flows from financing activities | ||||
Proceeds from borrowings | 136,500 | 95,000 | ||
Proceeds from stock option exercises | 534 | — | ||
Payments of dividends | (24,474) | (18,049) | ||
Repayment of borrowings | (149,921) | (87,225) | ||
Repayment of Ramaco Coal acquisition financing - related party | — | (30,000) | ||
Repayments of insurance financing | (4,032) | (3,848) | ||
Repayments of equipment finance leases | (6,740) | (4,954) | ||
Shares surrendered for withholding taxes | (9,846) | (5,323) | ||
Net cash used financing activities | (57,979) | (54,399) | ||
Net change in cash and cash equivalents and restricted cash | (19,098) | 7,311 | ||
Cash and cash equivalents and restricted cash, beginning of period | 42,781 | 36,473 | ||
Cash and cash equivalents and restricted cash, end of period | $ | 23,683 | $ | 43,784 |
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.
Q3 | Q2 | Q3 | Nine months ended September 30, | ||||||||||
(In thousands) | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||
Reconciliation of Net Income (Loss) to Adjusted EBITDA | |||||||||||||
Net income (loss) | $ | (239) | $ | 5,541 | $ | 19,462 | $ | 7,334 | $ | 52,275 | |||
Depreciation, depletion, and amortization | 17,811 | 15,879 | 14,443 | 48,909 | 39,850 | ||||||||
Interest expense, net | 1,696 | 1,481 | 2,447 | 4,509 | 7,274 | ||||||||
Income tax expense | 61 | 915 | 5,505 | 1,517 | 13,521 | ||||||||
EBITDA | 19,329 | 23,816 | 41,857 | 62,269 | 112,920 | ||||||||
Stock-based compensation | 3,970 | 4,583 | 3,201 | 13,255 | 9,706 | ||||||||
Other non-operating | (36) | 45 | — | 9 | — | ||||||||
Accretion of asset retirement obligations | 354 | 354 | 349 | 1,063 | 1,049 | ||||||||
Adjusted EBITDA | $ | 23,617 | $ | 28,798 | $ | 45,407 | $ | 76,596 | $ | 123,675 |
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) | |||||||||||||||
Q3 | Q2 | Q3 | Nine months ended September 30, | ||||||||||||
(In thousands, except per ton amounts) | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||
Revenue | $ | 167,411 | $ | 155,315 | $ | 186,966 | $ | 495,403 | $ | 490,795 | |||||
Less: Adjustments to reconcile to Non-GAAP | |||||||||||||||
Transportation | (28,582) | (24,218) | (30,433) | (81,086) | (74,610) | ||||||||||
Non-GAAP revenue (FOB mine) | $ | 138,829 | $ | 131,097 | $ | 156,533 | $ | 414,317 | $ | 416,185 | |||||
Tons sold | 1,023 | 915 | 996 | 2,867 | 2,467 | ||||||||||
Non-GAAP revenue per ton sold (FOB mine) | $ | 136 | $ | 143 | $ | 157 | $ | 145 | $ | 169 |
Non-GAAP cash cost per ton (unaudited) | ||||||||||||||
Q3 | Q2 | Q3 | Nine months ended September 30, | |||||||||||
(In thousands, except per ton amounts) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||
Cost of sales | $ | 134,731 | $ | 122,770 | $ | 144,635 | $ | 397,214 | $ | 354,383 | ||||
Less: Adjustments to reconcile to Non-GAAP cash | ||||||||||||||
Transportation costs | (28,551) | (22,872) | (30,254) | (80,299) | (74,467) | |||||||||
Alternative mineral development costs | (1,363) | (1,124) | (1,200) | (3,618) | (2,746) | |||||||||
Idle and other costs | (244) | (305) | (378) | (786) | (2,937) | |||||||||
Non-GAAP cash cost of sales | $ | 104,573 | $ | 98,469 | $ | 112,803 | $ | 312,511 | $ | 274,233 | ||||
Tons sold | 1,023 | 915 | 996 | 2,867 | 2,467 | |||||||||
Non-GAAP cash cost per ton sold (FOB mine) | $ | 102 | $ | 108 | $ | 113 | $ | 109 | $ | 111 |
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-third-quarter-2024-results-302295819.html
SOURCE Ramaco Resources, Inc.
FAQ
What was Ramaco Resources (METC) Q3 2024 production volume?
What were METC's cash costs per ton in Q3 2024?
How many tons has METC committed for 2024 sales?