Ramaco Resources, Inc. · NASDAQ:METC
Ramaco Resources — Credit Suisse Basic Materials Conference 2017
29 slides from Ramaco Resources's conference presentation, Sep 12, 2017
Slide 1: Ramaco Resources
2017 September 12 Ramaco Resources Credit Suisse Basic Materials Conference
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: Ramaco Overview
Ramaco 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 quali
Slide 5: 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 6: Critical Success Factors for 2018
Critical Success Factors for 2018 Management Focus – Migrating from Capital Deployment to Full Scale Operations Cash Costs Prove Out Our Low Cost Platform. Coal Sales Secure Predictable Base-Load Coal Sales – Dominated by North American Steel & Coke Customers Execution Risk is Decreased if
Slide 7: Ramaco Differentiation (Three Key Slides)
Ramaco Differentiation (Three Key Slides) 6
Slide 8: 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 9: 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 10: 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 11: Ramaco Property Description and Development Update
Ramaco Property Description and Development Update 10
Slide 12: Ramaco Resources Property Control Map
Ramaco Resources Property Control Map 11
Slide 13: 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 mines and production is now fully relocated to areas wh
Slide 14: Elk Creek – Property, Mine, & Infrastructure Location Map
Elk Creek – Property, Mine, & Infrastructure Location Map 13
Slide 15: Elk Creek Stratigraphic Column
Elk Creek Stratigraphic Column 14
Slide 16: Elk Creek Facilities Update
Elk Creek Facilities Update Preparation Plant Components Raw Coal Silos, Preparation Plant & Clean Coal Stacking Tube 15
Slide 17: 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 16
Slide 18: Elk Creek Surface Mine Update
Elk Creek Surface Mine Update Elk Creek Surface Mine Elk Creek Highwall Miner 17
Slide 19: Berwind Mine Site
Berwind Mine Site Berwind Update ▪ 72 million tons of Low Vol. ▪ Cost Advantage to SunCoke’s Jewel Coke Plant ▪ Targeted Pocahontas #4 Seam has advantaged ▪ Upon receipt of our mining permit, we initiated development work at our coal thickness resulting in high clean ton per foot new Berwind faceup.
Slide 20: 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 ▪ The preparation plant continues to operate, and is washing coal that we purchase from third parties. ▪ Purchasing and re
Slide 21: Northern Appalachian Operations
Northern Appalachian Operations RAM Mine Update ▪ 5.6 million tons of High Vol. Pittsburgh Seam ▪ 2019 production planned ▪ We continue to pursue a mining permit for this reserve, and have been encouraged by some recent indications that issuance may occur before ▪ Low mine cost and 6 miles by barge
Slide 22: Ramaco Resources Marketing Discussion
Ramaco Resources Marketing Discussion 21
Slide 23: Ramaco Controls and is Producing Coal with Attractive Characteristics
Ramaco Controls and is Producing Coal with Attractive Characteristics Key Highlights Ramaco Mines and Coal Types Targeted for Production Elk Creek: contains 28 high volatile metallurgical coal seams, all of Knox Creek which contain high-quality coal. All but one seam is accessible Coal Types Elk Cre
Slide 24: Customer Update
Customer Update Customer, Marketing, Production & Cost Update Europe Generally, the metallurgical coal customer base has had good financial performance in 2017, and are signaling continued success. This is obviously also good for coal producers. Virtually all North American business will likely be S
Slide 25: Low Volatile Coal Discussion
Low Volatile Coal Discussion In conjunction with ramping up production at our Berwind Mine, we have taken a closer look at Low Volatile Production in the U.S. The bulk of production of Low Vol. Coal is sourced from Longwalls, many of which have had recent production issues. Following is a graph of L
Slide 26: Key Take-Aways
Key Take-Aways Portfolio of Fully financed high-quality, long- near-term growth lived assets with long-term upside Attractive share price Lowest quartile cost compared to future U.S. profile met coal producer Highly experienced Future dividends to management team shareholders Supportive met coal Cle
Slide 27: Appendix
KY RAMACO RESOURCES Appendix 26
Slide 28: 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 29: Ramaco Resources, Inc. contact
Ramaco Resources, Inc. 250 West Main Street, Suite 1800 Lexington, Kentucky 40507
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