Ramaco Resources ( (METC) ) has released its Q3 earnings. Here is a breakdown of the information Ramaco Resources presented to its investors.
Ramaco Resources, Inc. is a prominent operator and developer of high-quality, low-cost metallurgical coal located in Central Appalachia and is progressing towards becoming a developer of rare earth and critical minerals in Wyoming. The company recently released its financial results for the third quarter of 2024, highlighting a combination of operational achievements and financial challenges.
In the third quarter of 2024, Ramaco Resources reported an adjusted EBITDA of $23.6 million, reflecting a decrease from the previous quarter’s $28.8 million. The company’s net income showed a loss of $0.2 million, significantly down from the $5.5 million profit in the prior quarter, mainly attributed to the closure of the Knox Creek Jawbone mine. Despite these challenges, Ramaco achieved record coal sales and production volumes, with a notable 8% increase in production to 972,000 tons.
Key operational metrics revealed a reduction in non-GAAP cash cost per ton sold to $102, a $6 decrease from the previous quarter, aided by increased production efficiency. Ramaco’s strategic focus remains on expanding production through its Elk Creek and Stonecoal Alma mines, along with the anticipated addition of 300,000 tons from the Berwind mine. The company continues to navigate a challenging pricing environment, with U.S. metallurgical coal indices down 32% year-to-date.
Looking ahead, Ramaco Resources is focused on optimizing operational performance and cost management to conclude 2024 on a strong note. With a robust sales book for 2025 and ongoing development in its rare earth and critical mineral assets, the company is well-positioned to leverage potential market improvements and further grow its production capabilities.
