Business
RAMACO RESOURCES REPORTS FOURTH QUARTER AND FULL-YEAR 2022 RESULTS
LEXINGTON, Ky., March 8, 2023 /PRNewswire/ -- Ramaco Resources, Inc. (NASDAQ: METC, "Ramaco" or the "Company"), a leading operator and developer of
About this update from Ramaco Resources, Inc.
[{"type":"text","content":"LEXINGTON, Ky., March 8, 2023 /PRNewswire/ -- Ramaco Resources, Inc. (NASDAQ: METC, \"Ramaco\" or the \"Company\"), a leading operator and developer of high-quality, low-cost metallurgical coal, today reported financial results for the three months and twelve months ended December 31, 2022.\nFOURTH QUARTER 2022 HIGHLIGHTS(all comparisons are versus the prior-year period unless otherwise noted):\nNet income of $14.4 million (diluted EPS of $0.32) compared to $18.6 million (diluted EPS of $0.42) in fourth quarter of 2021. Adjusted EBITDA was $31.9 million, up modestly compared to $31.6 million in the fourth quarter of 2021.Compared to expectations set in early December 2022, the Company's net income and Adjusted EBITDA were affected by extreme cold temperatures that caused approximately 150,000 tons of shipments to be pushed into January 2023 due to negative rail and port performance, as well as a 50% drop during December 2022 in API2 index pricing on a large seaborne met coal sale for thermal use into Europe. FULL-YEAR 2022 HIGHLIGHTS (all comparisons are versus the prior-year period unless otherwise noted)\nNet income of $116 million (diluted EPS of $2.60) and Adjusted EBITDA of $205 million, were 192% and 159%, respectively, above the prior highest-year on record.Net income was negatively affected by $8 million (diluted EPS of $0.17) from idle costs at the Company's Berwind mine related to its closure since an ignition in July 2022. 2022 Adjusted EBITDA was similarly negatively affected by $9.5 million, including $4.4 million in the fourth quarter.MARKET COMMENTARY / 2023 OUTLOOK\nThe Company expects that approximately two thirds of its 2023 production at the high end of guidance will be sold as mostly floating index priced export business to take advantage of any upward pricing environment. At the mid point of guidance, approximately 2.6 million tons, or 79% of forecasted 2023 production, is now contracted. Of this contracted production, 1.6 million tons or 63% is fixed price business at $200 per ton, with the balance priced against index.Following an ignition event in July 2022, the Berwind No. 1 mine was re-opened last November for rehabilitation efforts. On March 1, 2023, the mine returned to coal production one month ahead of schedule. It is now expected to achieve normalized levels of production by the third quarter of 20...