Business
Ramaco Resources, Inc. Announces Increase of its First-Quarter 2023 Cash Dividend and Fourth-Quarter 2022 and Full-Year 2023 Guidance
LEXINGTON, Ky., Dec. 8, 2022 /PRNewswire/ -- Ramaco Resources, Inc. (NASDAQ: METC) ("Ramaco Resources" or the "Company") today announced that its Board of
About this update from Ramaco Resources, Inc.
[{"type":"text","content":"LEXINGTON, Ky., Dec. 8, 2022 /PRNewswire/ -- Ramaco Resources, Inc. (NASDAQ: METC) (\"Ramaco Resources\" or the \"Company\") today announced that its Board of Directors approved a 10% increase in its cash dividend. The Board of Directors declared a quarterly cash dividend of $0.1250 per share of common stock payable in the first quarter of 2023, up from $0.1133 per share of common stock in the fourth quarter of 2022. The first quarter dividend is payable on March 15, 2023, to shareholders of record on March 1, 2023. \nThe Company also announced its financial and operational guidance for the fourth quarter ending December 31, 2022 and for the full calendar year 2023. The Company expects fourth quarter earnings to be in the range of $0.50 to $0.60 per diluted share. The Company reported net earnings of $0.60 per diluted share in the third quarter of 2022 and $0.42 in the fourth quarter of 2021. The Company expects full-year 2022 earnings to be in the range of $2.77 to $2.87 per diluted share. \nThe Company expects fourth quarter 2022 Adjusted EBITDA to be in the range of $40 million to $50 million. This Adjusted EBITDA estimate includes the negative impact of approximately $6 million of Berwind mine idle costs. The Company reported Adjusted EBITDA of $51 million in the third quarter of 2022 and $32 million in the fourth quarter of 2021.\nSince September 30, 2022, US HVA pricing is down over $25 per ton, while API2 pricing is down approximately $50 per ton, which has negatively impacted expected earnings. The Company expects that over 200,000 tons of 2022 shipments remain unpriced and are subject to price fluctuations, primarily in the API2 index.\nThe full-year 2023 guidance includes a material increase in production and sales from 2022 levels. Total 2023 production is expected to be in the range of 3.0-3.5 million tons. The Company expects to ship near current levels in the first quarter of 2023, with a material increase by mid-year when the Elk Creek preparation plant processing capacity expansion becomes fully operational. The expansion will take the complex from a 2 million ton per year run rate to 3 million ton per year run rate. In addition, and in line with previous expectations, the Company expects the Berwind No.1 mine to return to production by April 1, 2023. Ultimately the Company anticipates its 2023 shipments will exc...