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RAMACO RESOURCES REPORTS SECOND QUARTER 2023 RESULTS
LEXINGTON, Ky., Aug. 8, 2023 /PRNewswire/ -- Ramaco Resources, Inc. (NASDAQ: METC, METCB, "Ramaco" or the "Company"), a leading operator and developer of
About this update from Ramaco Resources, Inc.
[{"type":"text","content":"LEXINGTON, Ky., Aug. 8, 2023 /PRNewswire/ -- Ramaco Resources, Inc. (NASDAQ: METC, METCB, \"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 six months ended June 30, 2023.\nSECOND QUARTER 2023 HIGHLIGHTS\nThe Company had net income of $7.6 million (diluted EPS of $0.17) compared to $25.3 million (diluted EPS of $0.57) in the first quarter of 2023. Adjusted earnings before interest, taxes, depreciation, amortization, certain non-operating expenses, and equity-based compensation (\"Adjusted EBITDA\"), a non-GAAP measure, was $30.0 million for the three months ended June 30, 2023. This compared to $48.3 million of Adjusted EBITDA for the three months ended March 31, 2023. (See \"Reconciliation of Non-GAAP Measure\" below.)Both second quarter net income and Adjusted EBITDA were negatively affected by $9 million (EPS of $0.19) and by $11 million respectively, due to transportation issues with the NS and CSX rail companies. Roughly 85,000 tons that were contracted to ship during the quarter were not timely loaded by the rails and pushed to July.The Company now has 3.1 million tons of committed sales, or 95% of 2023 forecast production. Of this amount, 2.2 million tons is fixed price business at an average of $188 per ton, with the balance priced against a floating index.On June 22, the Class B CORE Resources tracking shares (NASDAQ: METCB) began \"regular-way\" trading. Since the CORE Resources shares began trading, the combined fully diluted market capitalization of the METC and METCB shares has increased almost 30%, or roughly $120 million based upon closing prices as of August 8, 2023. The METCB shares have increased over 65% during the same time frame.MARKET COMMENTARY / 2023 OUTLOOK\nOn August 7th, the Company reported that its Board had approved the expenditure of approximately $2.5 million towards additional mine development in the fourth quarter of 2023 to commence at its rare earth element (\"REE\") and coal Brook Mine in Sheridan, Wyoming. The Company also noted that its current Exploration Target is now up 50% to 0.9 – 1.2 million tons of total rare earth oxides (\"TREOs\") from an original Target in May of 0.6 – 0.8 million tons.Based on ongoing diligence, the Company now believes 23% of deposits may conta...