Lexington, KY – February 12, 2024 – Ramaco Resources, Inc. (NASDAQ: METC, METCB), a leading operator of high-quality, low-cost metallurgical coal, unveiled positive operational and financial updates today, highlighting a successful 2023 and an optimistic outlook for 2024.
Thriving Q4 and Record-Setting 2023:
- Q4 2023: Anticipated net income of $28-30 million (Adjusted EPS $0.65-$0.68), representing a nearly 50% increase from Q3. Adjusted EBITDA is projected to reach $56-$58 million.
- Full-year 2023: Net income expected to settle in the range of $80-$82 million (Adjusted EPS $1.85-$1.88), and Adjusted EBITDA projected at $180-$182 million, marking the company’s second-best financial year ever.
- Record-breaking sales: Ramaco sold a record 3.5 million tons of coal in 2023 at an average price of $169 per ton, exceeding 2022 levels by over 40%.
- Streamlined costs: Cash mine costs for the full year and Q4 are expected to be approximately $109 per ton and $107 per ton, respectively.
2024 Outlook Brighter Than Ever:
- Surging sales commitments: Secured an additional 1.8 million tons for export in 2024, pushing total commitments to 3.8 million tons, a remarkable 90% increase from previous guidance.
- Revised guidance: Reflecting robust market demand, Ramaco has increased its 2024 sales guidance to 4.2-4.6 million tons and production guidance to 4.0-4.4 million tons.
- Potential for further growth: The company believes an annualized sales run-rate of 5 million tons by year-end 2024 is achievable, driven by potential sales of additional purchased coal and carryover inventory.
Strategic Investment in Maben Complex:
- Plant acquisition: Ramaco recently acquired an existing coal preparation plant for $3 million, with plans to relocate it to the Maben Complex.
- Cost reduction: This move aims to significantly reduce overall trucking costs associated with current Maben raw coal production.
- Future potential: The plant also provides the optionality to support future deep mine development at Maben if the company chooses to pursue it.
- Operational by Q4 2024: The relocated and expanded plant is expected to be operational by the fourth quarter of 2024, further lowering mine cash costs.
Looking Ahead:
Ramaco Resources is capitalizing on strong market demand and executing strategic investments to solidify its position as a leading metallurgical coal producer. With a robust performance in 2023 and an optimistic outlook for 2024, the company is well-positioned for continued growth and success.
