Ramaco Resources, Inc. · NASDAQ:METC
Ramaco Resources — Q4 2023 Earnings Presentation
17 slides from Ramaco Resources's earnings presentation, Mar 8, 2024
Slide 1: Investor Presentation: Fourth Quarter and Full Year 2023 Results
INVESTOR PRESENTATION Fourth Quarter and Full Year 2023 Results 1
Slide 2: Disclaimer
DISCLAIMER Forward Looking Statements: The information in this presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities We caution you that these forward-looking statements are subject to a number of risks, uncertainties and assumptions, which Act of 193
Slide 3: Ramaco at a Glance
RAMACO AT A GLANCE Key Highlights Dual Class Structure The Path Forward Two Ways to Play Key US Supplier of “Pure play” metallurgical coal company We expect continued This is a key component in steel production, which is METC: Met Coal + production and free cash flow Critical Materials crucial to na
Slide 4: Ramaco Resources Business Lines
RAMACO RESOURCES BUSINESS LINES Multiple ways to invest in our businesses; each with unique value characteristics In mid-2023, Ramaco Resources distributed a new class of common stock, the Class B common stock (Ticker: METCB) to existing shareholders. It provides a direct participation in the financ
Slide 5: Ramaco Track Record of Investor and Financial Performance
RAMACO TRACK RECORD OF INVESTOR AND FINANCIAL PERFORMANCE Strong 5+ year track record of growth and execution Total Shareholder Return 1 Total coal sales (in mm of tons) Since initial production began in 2017, METC has TSR Since TSR 1- 3.5 consistently executed on its Company March 2020 Year plan to
Slide 6: Medium-Term Potential to More Than Double Production
MEDIUM-TERM POTENTIAL TO MORE THAN DOUBLE PRODUCTION Ramaco annual production (in millions of tons) Ramaco recently achieved its original long-term goal of achieving 4 million 7+ tons of annualized sales in 2H23. In 2023, Ramaco almost doubled its production from 1.7 million tons produced in 2020. 4
Slide 7: Metallurgical Quality Breakdown
METALLURGICAL QUALITY BREAKDOWN Production growth is focused to create a long-term, high value portfolio. 80% of production at an anticipated 7+ million ton1 level is expected to be higher quality Low Vol, Mid Vol, and High Vol A coal. The largest increase will come from Low Vol production from our
Slide 8: Global Coal Sales
GLOBAL COAL SALES Ramaco coal has been sold into 20 countries, having recently increased its Asian footprint Sweden Finland UK Canada Netherlands Poland Belgium Germany Ukraine Czech Republic Romania South Korea Italy Turkey USA Spain Japan India Indonesia Brazil South Africa 8
Slide 9: Fourth Quarter Highlights
FOURTH QUARTER HIGHLIGHTS Long-term goal of ~4 Mtpa achieved; Strongest financial quarter of 2024 Fourth Quarter Highlights and Commentary Strongest Quarter of Net Income & Adjusted EBITDA1 in 2023 – 4Q23 was the Company’s strongest financial quarter of the year. While U.S. metallurgical coal price
Slide 10: Fourth Quarter Overview
FOURTH QUARTER OVERVIEW Continued execution drove record sales and strong QoQ increases in net income and Adjusted EBITDA Strong execution led to record Chg. vs Chg. Chg. coal sales, which annualized to ~4 4Q23 3Q23 3Q 4Q22 YoY 2023 2022 YoY million tons per annum in both Total Tons Sold (000) 988 9
Slide 11: Fourth Quarter Performance Review
FOURTH QUARTER PERFORMANCE REVIEW Strong growth coupled with a conservative balance sheet remain our core principles Total coal production (000s of tons) Total coal sales (000s of tons) 876 996 988 4Q23 production of 745,000 tons was up 834 from both 3Q23 production of 719,000 719 745 695 757 675 71
Slide 12: Strong Margins; Positive Macro Backdrop
STRONG MARGINS; POSITIVE MACRO BACKDROP Our margins increased >50% QoQ in the fourth quarter of 2023 on both higher prices and lower costs Strong Quarterly Margins ($ MM) 2023 Met Coal Cash Costs 1 Despite industry-wide inflationary pressures, we are committed to staying $150 $90 $190 Realized Price
Slide 13: Rare Earth Elements (REE) Potential
RARE EARTH ELEMENTS (“REE”) POTENTIAL
Slide 14: Ramaco's REE Deposit
RAMACO’S REE DEPOSIT Potentially transformative discovery; Updated Weir Exploration Target report expected to be released later this month REE Background: What Are REEs?: Rare earth elements (REEs) are critical minerals essential to the energy transition. They are used in many applications such as e
Slide 15: 2024 Ramaco Resources Guidance
2024 RAMACO RESOURCES GUIDANCE Full-Year 2023 2024 Guidance Company Production (tons) 4,000 – 4,400 3,174 Sales (tons)(a) 4,200 – 4,600 3,455 Committed 2024 Sales Volume(e) Volume Avg Price (In millions, except per ton amounts) Cash Costs Per Ton - Company Produced(b) $ 105 – 111 $ 109 North America
Slide 16: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES (In thousands) Q4 2023 Q3 2023 Q4 2022 2023 2022 2021 Adjusted EBITDA and Net Debt are used as supplemental non-GAAP financial measures by management and Reconciliation of Net Income to Adjusted EBITDA external users of our financial statements, such as Net Income
Slide 17: Contact and Investor Relations
250 West Main Street, Suite 1900 Lexington, Kentucky 40507 Investor Relations: info@ramacometc.com 859-244-7455 17