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Ramaco Q4 2024 Earnings Report
Ramaco Resources reported its financial results for the fourth quarter and full-year ended December 31, 2024, highlighting strong operational performance despite challenging market conditions.
Key Takeaways
Ramaco Resources achieved its strongest quarter of the year in terms of Adjusted EBITDA and record quarterly tons sold, despite metallurgical coal price indices being at their weakest for 2024. The company reported a net income of $3.9 million for the quarter and a significant decline in cash cost per ton sold.
Achieved strongest quarter of the year in Adjusted EBITDA ($29.2 million) despite weakest metallurgical coal price indices.
Record quarterly tons sold of over 1.1 million tons, coupled with the lowest quarterly cash costs of 2024 ($96 per ton).
Net income for the fourth quarter was $3.9 million, a significant increase from $(0.2) million in the third quarter.
Cash margins per ton sold held at $33 per ton, demonstrating solid operational performance despite price declines.
Ramaco
Ramaco
Ramaco Revenue by Geographic Location
Revenue by Geographic Location
North America Fixed Price Revenue
CapyFin.comSeaborne Fixed Price Revenue
CapyFin.comIndex Priced Revenue
CapyFin.com Forward Guidance
Ramaco Resources anticipates continued strong operational performance in 2025, with total sales commitments of 3.5 million tons. The company expects minimal cash taxes in 2025 despite an increased expected tax rate. Production and costs are expected to be impacted by challenging weather conditions in Q1 2025, but shipments are anticipated to rise significantly in Q2 2025.
Positive Outlook
- Total sales commitments for 2025 are currently 3.5 million tons, equating to 80% of the midpoint of 2025 production guidance.
- 1.6 million tons are committed to North American customers at an average realized fixed price of $152 per ton.
- Anticipated rise in tons sold by roughly 33% quarter over quarter from Q1 to Q2 2025.
- Continued progress on rare earth and critical mineral development at Brook Mine with minimal cost to shareholders.
- Expectation of minimal cash taxes in 2025 despite an increased expected tax rate.
Challenges Ahead
- Expected tax rate increased by 5% to 25-30%.
- Costs per ton sold are anticipated to be at the high end of the full-year guidance range for Q1 2025.
- Challenging adverse weather conditions in January and historic flooding in mid-February are expected to impact Q1 2025 costs.
- Intent to build inventory ahead of the season opening for Great Lakes shipments in Q2 2025 will impact Q1 costs.
- Overall steel demand remains weak in the near term, potentially impacting prices.