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Dec 31, 2021
Ramaco Q4 2021 Earnings Report
Reported quarterly net income and adjusted EBITDA increase compared to the previous quarter.
Key Takeaways
Ramaco Resources, Inc. reported a strong fourth quarter and full year 2021, marked by record quarterly net income and Adjusted EBITDA. The company's net income and Adjusted EBITDA for the fourth quarter were significantly higher than the previous year. Looking forward, Ramaco is focused on increasing met coal production and returning capital to shareholders.
Quarterly net income was $18.6 million (EPS of $0.42) for Q4 2021.
Adjusted EBITDA was $31.6 million for the fourth quarter of 2021.
Company has booked 1.7 million tons of metallurgical coal for 2022 domestic delivery at $196 per short ton FOB mine.
Company sold an additional 0.5 million tons of metallurgical coal primarily to export customers at an average FOB mine price of roughly $270 per short ton.
Ramaco
Ramaco
Forward Guidance
Ramaco Resources anticipates a strong year in 2022, with increased production, record earnings, and substantial free cash flow. The company plans to allocate capital to shareholders through dividends and potential share buybacks.
Positive Outlook
- Guiding to 3.2 million tons of production at the midpoint of guidance for full-year 2022.
- Locked in roughly 2.3 million tons of total sales for 2022 delivery at an average of $206 per short ton FOB mine.
- Expects to recognize immediate accretion from both avoided royalty payments and further cost reduction.
- Expects the strongest year of financial and operational performance since the company started.
- Plans to deploy free cash flow by giving increasing amounts of capital back to shareholders.
Challenges Ahead
- Mine costs are projected to increase roughly $15 per ton above the $70 per ton level in 2021, primarily due to higher sales related costs.
- Forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Ramaco Resources’ control.
- Unexpected delays in current mine development activities could impact future production.
- Failure of sales commitment counterparties to perform could affect revenue.
- Increased government regulation of coal in the United States or internationally could impact operations.