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Sep 30, 2023
Ramaco Q3 2023 Earnings Report
Reported financial results for Q3 2023, highlighting increased shipments and net income.
Key Takeaways
Ramaco Resources reported a strong third quarter with increased shipments and net income. The company shipped 996,000 tons of coal, achieving its guidance. Net income was $19.5 million, and Adjusted EBITDA was $45.4 million. The company also increased its full-year 2023 coal shipment guidance.
Net income reached $19.5 million with Adjusted EPS at $0.45.
Adjusted EBITDA was $45.4 million, including benefits from insurance claim proceeds.
Shipped 996,000 tons of coal, meeting the company's sales guidance.
The company repaid $10 million of debt related to the 2022 Ramaco Coal acquisition.
Ramaco
Ramaco
Forward Guidance
Ramaco Resources increased its full-year 2023 coal shipment guidance and expects cash mine costs to be at the high end of the previous guidance range.
Positive Outlook
- Increased midpoint of full-year 2023 coal shipment guidance to 3.25 – 3.5 million tons.
- Anticipates an ongoing working capital benefit into 2024.
- Berwind mine produced at a half million ton per annum run-rate in September and October.
- Committed 1.3 million tons of coal to North American customers for 2024 at an average price of $167 per ton.
- Mine development commenced at the Brook Mine with an initial goal of obtaining additional quantities of rare earth material.
Challenges Ahead
- Expects cash mine costs to be at the high end of the previous $102 –108 per ton guidance range for both full-year 2023 and the fourth quarter of 2023.
- Anticipates costs coming in at $108 - $112 per ton due to continued inflationary pressure.
- Overall coal inventory levels declined almost 40% from 1.4 million tons to approximately 0.9 million tons.
- Realized price of $157 per ton during the third quarter was down from $163 per ton in the second quarter 2023.
- Cash margins on Company produced coal were $43 per ton during the third quarter, down from $54 per ton in the second quarter of 2023.