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Dec 31, 2020
Ramaco Q4 2020 Earnings Report
Ramaco Resources experienced a net loss and a decrease in adjusted EBITDA compared to the same quarter last year, but achieved record quarterly sales and export coal sales.
Key Takeaways
Ramaco Resources reported a net loss of $4.7 million for Q4 2020, a significant decline from the net income of $1.9 million in Q4 2019. Adjusted EBITDA also decreased to ($1.4) million from $9.0 million in the prior year quarter. Despite these losses, the company achieved record quarterly sales of 515,000 tons and record export coal sales of over 300,000 tons.
Q4 2020 saw a net loss of $4.7 million, or $0.11 per diluted share, compared to a net income of $1.9 million, or $0.05 per diluted share in Q4 2019.
Adjusted EBITDA was ($1.4) million for Q4 2020, down from $9.0 million in Q4 2019.
Total company produced sales of 515,000 tons for Q4 2020 were a quarterly record, including record export coal sales of over 300,000 tons.
The company ended 2020 with $22.0 million in liquidity, similar to the level at the end of 2019.
Forward Guidance
Ramaco Resources anticipates increased production and sales in 2021, with a focus on metallurgical coal. The company plans to resume growth capital spending, which is expected to positively impact future earning capacity.
Positive Outlook
- U.S. metallurgical coal indices are up well over 50% above their 2020 COVID-induced lows.
- Steel prices are near all-time highs.
- Governments around the world are increasing money supply at the fastest rates ever seen.
- Massive proposed global fiscal stimulus packages aimed at consumption and infrastructure.
- Strengthening demand landscape is dramatically contrasted against very negative supply-constraining conditions.
Challenges Ahead
- Challenges in securing coal-related financing.
- ESG issues.
- Regulatory and permitting challenges.
- The thermal coal overhang in ARO and related legacy liabilities which impact many of our peers.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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