Ramaco Resources, Inc. · NASDAQ:METC
Ramaco Resources — Kentucky Professional Engineers in Mining Seminar 2017
29 slides from Ramaco Resources's conference presentation, Sep 15, 2017
Slide 1: Kentucky Professional Engineers In Mining Seminar
2017 September 15 Kentucky Professional Engineers In Mining Seminar Keynote Speaker Michael D. Bauersachs President & CEO of Ramaco Resources, Inc.
Slide 2: Disclaimer
Disclaimer Forward Looking Statements The information in this presentation includes “forward-looking statements.” All statements, other than statements of historical fact included in this presentation, regarding our strategy, future operations, financial position, estimated revenues and losses, proj
Slide 3: Introduction
KY RAMACO RESOURCES Introduction 2
Slide 4: Coal Mining Industry
Coal Mining Industry What Have We Learned As An Industry? Overpaying for assets at the top of the market cycle usually doesn't end well. Growth for the sake of growth has been the undoing of many coal companies in the coal sector A subset of growth has historically included layering in too much de
Slide 5: Coal Mining Industry – RAMACO Case Study
Coal Mining Industry – RAMACO Case Study RAMACO Resources – What did we do differently? We acquired non-accretive assets with geologic advantages. These type of transactions can likely be acquired for less consideration. We focused on acquiring metallurgical coal. We chose to fund our developments
Slide 6: Coal Mining Industry – RAMACO IPO
Coal Mining Industry – RAMACO IPO Why did RAMACO Resources pursue a Public Offering ? We get a lot of question about why RAMACO pursued a public offering so early in their development process, especially since they had already raised the development capital required to develop it’s initial mining pr
Slide 7: Coal Mining Industry – Raising Capital
Coal Mining Industry – Raising Capital Raising Capital is Difficult! Prior to our recent success, we had multiple failures. While we had very supportive private equity partners, they reached a point where they required some sort of “Mark” that allowed new Yorktown funds to make an additional investm
Slide 8: Mike, Again, congratulations in sticking to your deal
Coal Mining Industry It helps ones confidence when an industry legend believes in your ability to execute. Mike, Again, congratulations in sticking to your deal on Elk Creek and getting it started. You’ll do well in 2017. Morgan 7
Slide 9: Overview
KY RAMACO RESOURCES Overview 8
Slide 10: Overview
Overview “Pure play” metallurgical coal company with 237 million tons of high quality metallurgical coal reserves (more than a 50-year production life) and advantaged geology leading to low cash costs (NASDAQ: METC) At A Glance Large 237 million ton met coal reserve base with attractive quality char
Slide 11: Environmental, Health & Safety
Environmental, Health & Safety Ramaco is committed to complying with both regulatory and its own high standards for environmental and employee health and safety requirements Ramaco’s comprehensive health and safety program focuses on its core belief that all accidents and occupational illnesses are
Slide 12: Key Recent & Upcoming Milestones
Key Recent & Upcoming Milestones Management continues to deliver on key company milestones to enhance shareholder value Key Dates December 2011: April 2012: August 2015: September 2016: December 2016: February 2017: September 2017: Ramaco acquires Ramaco acquires Ramaco acquires Ramaco raises $90M C
Slide 13: Three Key Slides
KY RAMACO RESOURCES Three Key Slides
Slide 14: Low Cost U.S. Met Coal Producer
Low Cost U.S. Met Coal Producer U.S. Domestic Met Coal U.S. Seaborne Met Coal Total Cash Cost Curve 20171 (FOB mine) Total Cash Cost Curve 20172 (FOB port) $140 $140 $120 $120 3 $100 $100 $ per ton $ per ton 3 $80 $80 $60 $60 $40 $40 $20 $20 $0 $0 – 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,00
Slide 15: Geology Advantages and Higher Productivity Drive Lower Cash Costs
Geology Advantages and Higher Productivity Drive Lower Cash Costs Overview Illustrative Geologic Advantage Thicker coal seams result in a comparatively high clean-ton- per-foot and ton-per-employee hour productivity profile SHALE Near-or-above drainage seams enable drift access for underground devel
Slide 16: Clean, Unlevered Balance Sheet
Clean, Unlevered Balance Sheet Ramaco is currently debt free and fully funded for our 2017 and 2018 capital program Existing assets acquired strategically on a debt free basis and with limited environmental liabilities No long-term third party liabilities gives Ramaco a “cleaner” coal production sto
Slide 17: Properties and Development Update
Properties and Development Update 16
Slide 18: Ramaco Resources Property Control Map
Ramaco Resources Property Control Map 17
Slide 19: Elk Creek Mining Complex
Elk Creek Mining Complex Elk Creek Update ▪ 98 million tons of High Vol. ▪ The Alma Deep Mine has been converted to a company mine. Currently two sections are operating. The section designated for long term ▪ Relatively thick coal seams at deep production is now fully relocated to areas where we ant
Slide 20: Elk Creek Facilities Update
Elk Creek Facilities Update Preparation Plant Components Raw Coal Silos, Preparation Plant & Clean Coal Stacking Tube 19
Slide 21: Elk Creek Deep Mines Update
Elk Creek Deep Mines Update New No. 2 Gas Mine Face Up Active Alma Deep Mine Active Eagle Deep Mine 20
Slide 22: Elk Creek Surface Mine Update
Elk Creek Surface Mine Update Elk Creek Surface Mine Elk Creek Highwall Miner 21
Slide 23: Berwind Mine Site
Berwind Mine Site Berwind Update ▪ 72 million tons of Low Vol. ▪ Cost Advantage to SunCoke’s Jewel ▪ Upon receipt of our mining permit, we initiated development work at our Coke Plant new Berwind face-up. ▪ Targeted Pocahontas #4 Seam has ▪ The Berwind face-up is in process, and we are coordinating
Slide 24: Knox Creek Prep Plant, Reserves and Jewell Properties
Knox Creek Prep Plant, Reserves and Jewell Properties Knox Creek and Jewell Update ▪ 61 million tons of High Vol. A ▪ Processing Plant will wash both Berwind and Knox Creek coal ▪ Purchasing and reselling third party coal ▪ The preparation plant continues to operate, and is washing coal that we sinc
Slide 25: Northern Appalachian Operations
Northern Appalachian Operations RAM Mine Update ▪ 5.6 million tons of High Vol. Pittsburgh Seam ▪ We continue to pursue a mining permit for this reserve, and have been ▪ 2019 production planned encouraged by some recent indications that issuance may occur before years end. ▪ Low mine cost and 6 mile
Slide 26: Final Comments
KY RAMACO RESOURCES Final Comments
Slide 27: Coal Mining Industry – A Few Trump Comments
Coal Mining Industry – A Few Trump Comments Trump Administration Impact I think that we have a new opportunity under a Trump Administration to advance our common cause of perpetuating and possibly growing our business. Industry leaders who are focused on preserving what remains of our coal fired pow
Slide 28: Coal Mining Industry – Forward Looking Themes
Coal Mining Industry – Forward Looking Themes Some Possible Themes for the Future of Coal Companies will likely be less about growth and more about distributing free cash flow to shareholders. Companies will likely limit their amount of debt and liabilities. Companies will refocus their efforts on f
Slide 29: Ramaco Resources, Inc.
Ramaco Resources, Inc. 250 West Main Street, Suite 1800 Lexington, Kentucky 40507
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