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Sep 30, 2021
Ramaco Q3 2021 Earnings Report
Reported highest third quarter Adjusted EBITDA on record and net income increased significantly.
Key Takeaways
Ramaco Resources reported a strong third quarter in 2021, with net income of $7.0 million and Adjusted EBITDA of $17.8 million, marking the highest third quarter Adjusted EBITDA on record for the Company. The company also strategically concluded 2022 North American sales, booking 1.7 million tons at $196 per short ton, translating to over $325 million in revenue and roughly $190 million in Adjusted EBITDA.
Net income was $7.0 million (EPS of $0.16) for Q3 2021.
Adjusted EBITDA was $17.8 million for Q3 2021, the highest third quarter on record.
The Company has largely concluded 2022 North American sales, with 1.7 million tons booked at $196 per short ton FOB mine.
Board of Directors authorized the initiation of a regular quarterly dividend to be paid beginning in the first quarter of 2022.
Forward Guidance
Ramaco Resources anticipates a period of significant free cash flow generation and commitment to continue a regular return of capital to shareholders.
Positive Outlook
- Doubling of low-cost/high-quality production capacity to meet near and medium-term demand growth
- Continuing period of strong index-based pricing
- Formidable balance sheet
- Impending roll-off of much lower priced 2021 domestic met coal contracts
- Maintaining over 100,000 tons of high-quality met coal production to sell at today’s elevated pricing into the balance of 2021
Challenges Ahead
- Potential appeals and post-trial motions regarding the $32.7 million jury verdict in its lawsuit related to the November 2018 silo failure against Chubb INA Holdings, Inc.
- Risks related to the impact of the COVID-19 global pandemic
- Unexpected delays in current mine development activities
Historical Earnings Impact
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Avg. Return Before/After Earnings
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