Slide 1: Ramaco Resources 4th Quarter 2020 Investor Presentation
February 2021 Ramaco Resources 4th Quarter 2020 Investor Presentation
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: Key Investment Highlights
\~RAMACO RESOURCES Key Investment Highlights 2
Slide 4: Ramaco overview
Ramaco overview “Pure play” metallurgical coal company, currently with ~262 million tons of high quality metallurgical coal reserves (more than a 50-year production life), low net debt, no legacy liabilities, low AROs, and advantaged geology leading to low (NASDAQ: METC) cash costs. At a glance Mark
Slide 5: Investment highlights
Investment highlights Sustainable, low cash cost met coal platform, with minimal net debt, AROs, and no legacy liabilities 1 Portfolio of Large ~262 million ton met coal reserve base with attractive quality characteristics across High-Vol. and Low-Vol. high-quality, long- segments lived assets 2 L
Slide 6: YTD financial highlights
YTD financial highlights Despite 2020 EBITDA being negatively impacted by $6.4 million as a result of over 200,000 tons subject to force majeure notices from our two largest customers, we ended the year with roughly the same level of liquidity compared to where we started, without either diluting ou
Slide 7: Long-term potential to more than double production
Long-term potential to more than double production Ramaco annual production (in millions of tons) Majority of Berwind development capex is in our rear-view ~4.0-4.5 mirror. This week’s announcement to move forward with the ~6-month slope project to get to the advantaged Poca #4 seam should yield ~
Slide 8: Clear path to adding ~2 million tons of permitted growth
Clear path to adding ~2 million tons of permitted growth We recently gave the “green light” to our Phase #1 growth expansion. This is expected to add ~1 million tons per year of incremental production compared to our current ~2 million ton per year production base at Elk Creek. This represents a ~50
Slide 9: Ramaco's insider ownership is among the highest, while cash mine costs are anticipated to improve
Ramaco’s insider ownership is among the highest, while cash mine costs are anticipated to improve closer to historical levels in 2021 Met coal cash costs ($/short ton FOB mine) (1) While 2020 cash costs came in $120 $109 above historical levels, it was a $110 challenging year in which to $100 oper
Slide 10: Ramaco has a best-in-class balance sheet
Ramaco has a best-in-class balance sheet Net Debt / EBITDA(1) 3.0x 2.5x Ramaco has by far the lowest net debt to EBITDA ratio in the coal 2.0x space. 1.5x 1.0x 0.5x 0.3x Management is committed to 0.0x maintain a “low debt-low ARO” Ramaco Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 posture to allo
Slide 11: Operations + Met Coal Market Overview
Operations + Met Coal Market Overview 10
Slide 12: Berwind and Big Creek investment highlights
Berwind and Big Creek investment highlights Two New Mines To Increase Production Capacity By ~50% Our Board of Directors recently approved the expenditure to open two new mines – Berwind and Big Creek, which are expected to add almost one million tons per year of additional low and mid-vol product
Slide 13: Met coal asset portfolio with competitive advantages
Met coal asset portfolio with competitive advantages Central Appalachian operations Elk Creek Berwind Knox Creek ─ ~113 million tons of High Vol. Met reserves ─ ~50 million tons of Low Vol. Met ─ ~94 million tons of High Vol. A reserves ─ 20+ year reserve life in relatively thick coal reserves
Slide 14: Metallurgical quality breakdown
Metallurgical quality breakdown Growth is focused to create a long term - high value portfolio with almost two-thirds of annual 2022-23 production being higher quality blends of Low Vol., Mid Vol., and High Vol. A coal. Berwind and Big Creek mines will provide a material uplift to Ramaco’s overall m
Slide 15: Ramaco is a pure-play met coal producer
Ramaco is a pure-play met coal producer Met Coal As A % Of Total Production (1) 100% Many of Ramaco’s U.S. “met coal” 100% peers actually produce more thermal 90% 80% coal than met coal. 70% 60% 50% Ramaco is one of only two U.S. 40% publicly traded pure-play met coal 30% 20% companies, based on
Slide 16: Met coal spot prices & forward curve rebounded meaningfully
Met coal spot prices & forward curve rebounded meaningfully Met Coal Spot Price (1) $300 $275 As of Feb 17, 2021, Australian met $250 coal spot benchmark prices have $225 risen 36% YTD, mainly on the back $200 of increased global economic $175 $150 activity, in part due to large global $125 econom
Slide 17: Met coal arb remains wide open
Met coal arb remains wide open Arb currently over $80/ton: As of February 2, 2021, the metallurgical coal arb is just over $80/ton, which is not far off the Met Coal Arb Into China (1) recent all-time record. This means it is that much cheaper for a Chinese steel mill to import coal compared to bu
Slide 18: Domestic steel market roaring back
Domestic steel market roaring back U.S. Steel Prices (1) $1,300 $1,150 Since August 2020, U.S. hot rolled steel prices have risen over 150% to $1,000 an all-time record of $1,200/ton. This $850 is on the back of strong automotive and housing demand, amid near- $700 record low inventories. $550 $40
Slide 19: Supply rationalization accelerates
Supply rationalization accelerates Supply underinvestment continues, and is likely to get worse: Met coal capex estimated to have fallen over Global Met Coal Capex (1) 75% below peak 2012 levels in 2020. o High cost of capital for many producers. $18 o ESG pressure continues, and is getting $16 st
Slide 20: Safety & Environmental
\~RAMACO RESOURCES Safety & Environmental 19
Slide 21: 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 believes that all accidents and occupational illnesses are preventable: Ramaco’s COVID-19 Response Non-Contact tempe
Slide 22: Appendix
\~RAMACO RESOURCES Appendix 21
Slide 23: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures Adjusted EBITDA is used as a supplemental non-GAAP financial measure by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We believe Adjusted EBITDA is useful because it allows us to more
Slide 24: Ramaco Resources, Inc.
Ramaco Resources, Inc. 250 West Main Street, Suite 1800 Lexington, Kentucky 40507 INVESTOR RELATIONS: info@ramacocoal.com 859-244-7455