Slide 1: Ramaco Resources 1st Quarter 2021 Investor Presentation
May Ramaco Resources 2021 1st Quarter 2021 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
KY 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 Net income was $4.1 million (EPS of $0.10), while adjusted EBITDA was $11.5 million for the first quarter of 2021. Adjusted EBITDA was our second best first quarter for the Company since our inception, driven by the first quarter that the Company has recorded sub-$60 per ton
Slide 7: Long-term potential to roughly double production
Long-term potential to roughly double production Ramaco annual production (in millions of tons) Majority of Berwind development capex is in our rear-view ~4.0-4.5 mirror. The Feb. 2021 announcement to move forward with the Berwind slope project to get to the advantaged Poca #4 seam should yield ~0
Slide 8: Clear path to adding ~2 million tons of permitted growth
Clear path to adding ~2 million tons of permitted growth In Feb. 2021, our Board of Directors gave the “green light” to our Phase #1 growth expansion. This is expected to add ~1 million tons per year of incremental production compared to our current ~2 million ton per year production base at Elk Cre
Slide 9: First quartile cash mine costs; 2021 guidance improved
First quartile cash mine costs; 2021 guidance improved Met coal cash costs ($/short ton FOB mine) (1) First quarter 2021 cash costs at our $120 $110 flagship Elk Creek complex came in $110 at $55/ton. Company-wide first $100 quarter 2021 cash costs came in at $90 $80 $59/ton. This puts Ramaco clea
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 0.2x 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%: In Feb. 2021, our Board of Directors 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 pr
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 roughly 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) A number of Ramaco’s U.S. “met coal” peers actually produce more thermal 100% 100% coal than met coal. 90% 80% 70% Ramaco is one of only two U.S. 60% publicly traded pure-play met coal 50% 40% companies, based on 202
Slide 16: U.S. Met coal spot prices have rebounded meaningfully
U.S. Met coal spot prices have rebounded meaningfully U.S. Met Coal Spot Price (1) As of May 11, 2021, U.S. High Vol A $250 met coal spot prices have risen 18% $225 YTD, mainly on the back of increased global economic activity, $200 in part due to large global economic $175 stimulus. Prices are up
Slide 17: Met coal arb wide open due to Australia/China trade war
Met coal arb wide open due to Australia/China trade war Arb currently over $80/ton: As of May 11, 2021, the traditional metallurgical coal arb (Australian pricing versus Chinese pricing) is over $80/ton, which Met Coal Arb Into China (1) is not far off the all-time record. This means it is that mu
Slide 18: Domestic steel market roaring back and breaking records
Domestic steel market roaring back and breaking records U.S. Steel Prices (1) $1,600 As of May 11, 2021, U.S. hot rolled $1,450 steel prices have risen roughly $1,300 220% since this time last year, to an $1,150 all-time record of over $1,500/ton. $1,000 This is on the back of strong $850 automoti
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
KY 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
KY RAMACO RESOURCES Appendix 21
Slide 23: 2021 Guidance
2021 Guidance 2020 2021 Guidance Actuals (In thousands, except per ton amounts) Company Production Elk Creek 1,950 - 2,050 1,548 Triad 75 - 175 — Berwind 25 - 75 147 Big Creek 50 - 100 — Total 2,100 - 2,400 1,695 Sales Mix (a) Metallurgical 2,100 - 2,350 1,749 Steam 25 - 75 — Total 2,125 - 2,425 1,7
Slide 24: 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 25: Ramaco Resources, Inc.
Ramaco Resources, Inc. 250 West Main Street, Suite 1800 Lexington, Kentucky 40507 INVESTOR RELATIONS: info@ramacocoal.com 859-244-7455