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Dec 31, 2019
Ramaco Q4 2019 Earnings Report
Reported increased sales volume and revenue, but net income and EPS decreased compared to Q4 2018.
Key Takeaways
Ramaco Resources reported Q4 2019 financial results, with revenue increasing by 3% year-over-year to $45.6 million. However, net income decreased to $1.9 million, or $0.05 per diluted share, compared to $3.4 million, or $0.08 per diluted share in Q4 2018. Adjusted EBITDA increased to $9.0 million from $7.0 million in the same period last year.
Adjusted EBITDA was $9.0 million, 28% above the same period in 2018.
Realized pricing of $104/ton on Company produced coal was in excess of 110% of the Platts Index.
Ended 2019 with an industry-leading net debt position of just $7.4 million.
2020 guidance reflects a meaningful expected reduction in cash costs, capital expenditures, and SG&A relative to 2019 levels.
Forward Guidance
The company expects production of 1.8 to 2.1 million tons in 2020. Cash costs, capital expenditures, and SG&A are all expected to be lower in 2020 as compared to 2019.
Positive Outlook
- McDonald reserves are expected to have the same geologic advantages and low costs that are being experienced in our Elk Creek mines.
- SEC compliant reserve study of the McDonald tracts added over 21 million proven and probable reserves to our Elk Creek reserve base.
- Cash costs would be in the mid $60s per ton range at a 150,000 ton annualized run-rate should they begin mining.
- Existing deep mine permit could also be started in late 2020 and provide a similar production impact.
- Production of 1.8 to 2.1 million tons is expected, which, at the midpoint, represents the fourth consecutive year of production growth for Ramaco.
Challenges Ahead
- Shipments are expected to be lower in the first quarter, due to the usual dock closures on the Great Lakes.
- A greater proportion of business being sold on the Lakes in 2020 compared to 2019.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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