Slide 1: 4th Quarter 2019 Earnings Release
February 2020 Ramaco Resources 4th Quarter 2019 Earnings Release
Slide 2: Disclaimer
Disclaimer The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complet
Slide 3: Key Investment Highlights
MN RAMACO RESOURCES Key Investment Highlights 2
Slide 4: Ramaco overview
Ramaco overview “Pure play” metallurgical coal company, currently with ~265 million tons of high quality metallurgical coal reserves (more than a 50-year production life), low debt, low ARO liabilities, and advantaged geology leading to low cash costs (NASDAQ: METC) At a glance Market summary § Larg
Slide 5: Met coal asset portfolio with competitive advantages
Met coal asset portfolio with competitive advantages Central Appalachian operations § Elk Creek § Berwind § Knox Creek ─ ~114 million tons of High Vol. Met reserves as ─ ~50 million tons of Low Vol. Met ─ ~95 million tons of High Vol. A of today reserves ─ ~650 raw tons/hr processing plant ─ 20+ yea
Slide 6: Investment highlights
Investment highlights Sustainable, low cash cost met coal platform, with minimal net debt and legacy liabilities 1 Portfolio of § Large ~265 million ton met coal reserve base with attractive quality characteristics across High-Vol. and Low-Vol. high-quality, long- segments lived assets 2 § Productio
Slide 7: 2019 financial highlights
2019 financial highlights Adjusted EBITDA was a record $55.4 million for full-year 2019, which was up 31% YoY Key Metrics 4Q19 3Q19 Change 4Q18 Change 2019 2018 Change Sales of Company Produced Tons ('000) 420 510 -18% 315 33% 1,872 1,721 9% Revenue ($mm) $ 45.6 $ 61.4 -26% $ 44.2 3% $ 230.2 $ 227.6
Slide 8: Ramping production prudently
Ramping production prudently Ramaco annual production (in millions of tons) ü Continued development of the Berwind deep mine ~4.0-4.5 ü 2021 expected to see a material step up from 2020 production, as it should benefit from a full year of production in the advantaged Poca #4 seam ü Potential additio
Slide 9: Metallurgical quality breakdown
Metallurgical quality breakdown Growth is focused to create a quality portfolio with over two-thirds of annual production eventually being high quality Low Vol. and High Vol. A coal 2020 Production Outlook Long-Term Production Outlook (1) Thermal, Low-Vol, Thermal 4% 10% 2% Low-Vol High-Vol B 20% 31
Slide 10: Solid annual priced commitments for 2020
Solid annual priced commitments for 2020 ~1.5 million tons committed for 2020, which represents almost 80% of total production at the midpoint of guidance. Of that , ~1.4 million tons have fixed prices at a ~$93/ton average Domestic, fixed price business (1) Export, fixed price business (1) (in 000s
Slide 11: Ramaco's cash costs remain among the lowest in the industry
Ramaco’s cash costs remain among the lowest in the industry, while insider ownership is among the highest 2019 met coal cash costs ($/short ton FOB mine) (1) $120 $110 $110 $100 ü We believe Ramaco is firmly in the $88 $90 first quartile of U.S. metallurgical $74 $80 coal cash costs. $70 $66 $67 $68
Slide 12: Ramaco has a best-in-class balance sheet
Ramaco has a best-in-class balance sheet Debt / EBITDA(1) 2.5x 2.0x ü Ramaco has limited debt, mostly to manage receivables 1.5x 1.0x 0.5x 0.2x ü Management is focused on maintaining a strong financial 0.0x Ramaco Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 position to allow full flexibility throughou
Slide 13: Met Coal Market Overview
MN RAMACO RESOURCES Met Coal Market Overview 12
Slide 14: Met coal spot prices up almost 25% from 2H19 lows
Met coal spot prices up almost 25% from 2H19 lows Met Coal Spot Price (1) $300 $275 $250 ü As of Feb. 19, met coal spot prices were up roughly 25% from their $225 2H19 lows. The Australian $200 benchmark spot price as of Feb. 19 $175 was $159/metric ton FOB port $150 $125 $100 Jan-18 Apr-18 Jul-18 O
Slide 15: Supply rationalization continues
Supply rationalization continues Supply underinvestment continues: § Met coal capex remains ~70% below peak 2012 levels Global Met Coal Capex (1) o High cost of capital for many producers $16 o ESG pressure continue, and are getting worse $14 $12 $10 $8 $6 Supply rationalization occurring rapidly: $
Slide 16: Met coal arb remains wide open
Met coal arb remains wide open Arb currently close to $25/ton: § As of mid-Feb., the metallurgical coal arb is almost $25/ton, which means it is that much Met Coal Arb Into China (1) cheaper for a Chinese steel mill to import coal $350 compared to buying domestically $300 $250 $200 Arb should suppor
Slide 17: Steel pricing up over 20% from 2H19 lows
Steel pricing up over 20% from 2H19 lows U.S. Steel Prices (1) $950 $900 $850 ü As of Feb. 19, U.S. hot rolled steel $800 prices were up over 20% from their $750 2H19 lows. Hot rolled prices sit at $700 $650 $575/ton as of Feb. 19 $600 $550 $500 $450 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19
Slide 18: Ramaco is essentially a pure-play met coal producer
Ramaco is essentially a pure-play met coal producer Met Coal As A % Of Total Production (1) 100% 97% 90% ü The majority of Ramaco’s U.S. “met 80% coal” peers actually produce more 70% 60% thermal coal than met coal. Ramaco 50% is one of two players that produce 40% 95% or more met coal as a % of tot
Slide 19: Safety & Environmental
MN RAMACO RESOURCES Safety & Environmental 18
Slide 20: 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 21: Appendix
MN RAMACO RESOURCES Appendix 20
Slide 22: 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 23: Ramaco Resources, Inc. contact
Ramaco Resources, Inc. 250 West Main Street, Suite 1800 Lexington, Kentucky 40507 POINT OF CONTACT: Jeremy Sussman Chief Financial Officer jrs@ramacocoal.com | 859-244-7455