Ramaco Resources lowers FY25 CapEx view to $55M-$65M from $60M-$70M

The company says, “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. FY25 production is now anticipated to come in at 3.9M-4.3M tons versus prior expectations of 4.2M-4.6M tons. FY25 sales are now anticipated to come in at 4.1M-4.5M tons versus prior expectations of 4.4M-4.8M 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 $36M-$40M from $34M-$38M, largely due to increased legal expenses related to the lawsuit against Chubb N.A., which is anticipated to go to trial this summer. In addition, DD&A guidance declines to $71M-$76M from $73M-$78M, resulting from the changes to production and capital expenditure mentioned before.”