Ramaco Resources Reports Strong Q4 2024 Results

Ramaco Resources ( (METC) ) has released its Q4 earnings. Here is a breakdown of the information Ramaco Resources presented to its investors.

Ramaco Resources, Inc. is a prominent operator in the metallurgical coal industry, primarily focusing on high-quality, low-cost production in Central Appalachia, and is also venturing into rare earth and critical minerals development in Wyoming. In its latest earnings report, Ramaco Resources highlighted a strong fourth quarter performance for 2024, achieving its highest Adjusted EBITDA despite facing the lowest coal price indices of the year. The company reported a record sale of over 1.1 million tons and the lowest cash costs for the year, showcasing its operational efficiency.

Key financial metrics from the report indicate a 24% increase in Adjusted EBITDA to $29.2 million in the fourth quarter compared to the previous quarter, alongside a significant reduction in cash costs per ton sold, which declined by 6% to $96. The company also saw a substantial increase in net income, reaching $3.9 million for the quarter, a dramatic improvement from a slight loss in the third quarter. Despite a challenging market environment with declining coal prices, Ramaco maintained robust cash margins per ton sold at $33.

Looking ahead to 2025, Ramaco Resources has secured sales commitments for 3.5 million tons, equating to 80% of its production guidance midpoint. The company plans to increase production and reduce costs further, with new mining operations and the commissioning of the Maben prep plant contributing to these goals. Additionally, Ramaco is making progress on its rare earth and critical minerals project in Wyoming, with plans to commence full-scale mining by mid-year.

In conclusion, while the metallurgical coal market faces ongoing challenges, Ramaco Resources remains optimistic about potential price increases later in 2025. The company continues to focus on operational efficiency and strategic growth, positioning itself to capitalize on future market opportunities and expand its footprint in the rare earth minerals sector.