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Mar 31, 2024
Ramaco Q1 2024 Earnings Report
Ramaco Resources' first quarter results were impacted by lower index pricing and higher mine costs.
Key Takeaways
Ramaco Resources reported a net income of $2.0 million and Class A EPS of $0.00 for the three months ended March 31, 2024. The results were negatively impacted by lower index pricing and higher mine costs. The company is maintaining all full-year 2024 guidance and expects results to improve throughout the year.
Adjusted EBITDA was $24.2 million, compared to $58.5 million in the fourth quarter of 2023.
Net income was $2.0 million, compared to $30.0 million in the fourth quarter of 2023.
Class A EPS was $0.00, compared to $0.60 for the fourth quarter of 2023.
The company has 4.2 million tons committed at an average realized price of $162 per ton.
Ramaco
Ramaco
Forward Guidance
The Company is maintaining all full-year 2024 guidance.
Positive Outlook
- Anticipates second quarter shipments of 850,000 – 950,000 tons of coal
- Expects an increasing sales cadence throughout 2024.
- Anticipates adding almost 1 million tons of annualized production compared to current run-rates before year-end 2024.
- Overall mine costs are expected to meaningfully decline in the back half of 2024
- Volumes are anticipated to be materially above levels in the first half of 2024.
Challenges Ahead
- First quarter results were negatively impacted by a combination of lower index pricing
- First quarter results were negatively impacted by higher mine costs
- Challenging geology at Elk Creek impacted mine costs
- Labor constraints at Elk Creek impacted mine costs
- Prices fell meaningfully by about $55 per ton, or 20% throughout the first quarter of 2024 on the back of muted global demand.