Slide 1: Investor Presentation Second Quarter 2023
INVESTOR PRESENTATION Second Quarter 2023 1
Slide 2: Disclaimer
DISCLAIMER Forward Looking Statements: The information in this presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities We caution you that these forward-looking statements are subject to a number of risks, uncertainties and assumptions, which Act of 193
Slide 3: Ramaco at a Glance
RAMACO AT A GLANCE Key Highlights Dual Class Structure The Path Forward Key US Supplier of “Pure play” metallurgical coal company Two Ways to Play We expect continued Critical Materials production and free cash flow Metallurgical coal is a key component in the production Ramaco is a low-cost, “pure
Slide 4: Ramaco Resources Business Lines
RAMACO RESOURCES BUSINESS LINES Multiple Ways to Invest in our Businesses; Each With Unique Value Characteristics Ramaco Resources recently distributed a new class of common stock, the Class B common stock (Ticker: METCB). This was distributed to existing shareholders to provide holders with direct
Slide 5: Ramaco Track Record of Performance
RAMACO TRACK RECORD OF PERFORMANCE Strong 5-year track record of consistent execution Total coal production (in millions of tons) Revenue (in $MM) Since initial production began in 2017, METC has $566 2.7 consistently executed on 2.2 its plan to grow production 1.8 1.9 1.7 and generate strong free $
Slide 6: Medium-Term Potential to More Than Double Production
MEDIUM-TERM POTENTIAL TO MORE THAN DOUBLE PRODUCTION Ramaco annual production (in millions of tons) 6.5 The Company anticipates reaching its original goal of achieving 4 million tons of annualized sales in 4Q23. 4.5 We have the ability to increase 3.25 production to over 5 million tons by 2024, shou
Slide 7: Metallurgical Quality Breakdown
METALLURGICAL QUALITY BREAKDOWN Production growth is focused to create a long-term, high value portfolio. Almost 80% of production at our anticipated 6.5 million ton1 level is expected to be higher quality Low Vol, Mid Vol, and High Vol A coal, with the flexibility to pivot production based on marke
Slide 8: Global Coal Sales
GLOBAL COAL SALES Ramaco coal has been sold in almost 20 countries, having recently increased its Asian footprint Sweden Finland UK Canada Netherlands Poland Belgium Germany Ukraine Czech Republic Romania South Korea Italy Turkey USA Spain Japan India Indonesia Brazil South Africa 8
Slide 9: Second Quarter Highlights
SECOND QUARTER HIGHLIGHTS Continued Productions Growth; Mining Approved at Brook Mine; METCB Distribution Second Quarter Highlights and Commentary Approval to Begin Mining at Brook Mine – Our Board approved ~$2.5 million of spend towards additional mine development to commence in 4Q23 at our rare ea
Slide 10: Second Quarter Overview
SECOND QUARTER OVERVIEW Continued execution drove strong production; transportation issues and inflation pressured results Strong execution led to record Chg. vs Chg. 2023 2022 Chg. coal production; however, 2Q23 1Q23 1Q 2Q22 YoY YTD YTD YoY transportation issues impacted Total Tons Sold (000) 715 7
Slide 11: Second Quarter Performance Review
SECOND QUARTER PERFORMANCE REVIEW Strong growth profile coupled with solid balance sheet remains core to our principles Total coal production (000s of tons) Total coal sales (000s of tons) Second quarter production was a record 834 876 757 715 675 876,000 tons, up 32% YoY, on the back of 666 658 695
Slide 12: Low Cash Mine Costs; Strong Margins
LOW CASH MINE COSTS; STRONG MARGINS Recent coal price weakness highlights the importance of our low-cost platform 2022 Met Coal Cash Costs 1 Strong Quarterly Margins ($MM) Our mine costs are among the industry’s lowest. Despite industry-wide inflationary $140 $250 Realized Price Per Short Ton FOB Mi
Slide 13: Key Second Quarter Variance Tables
KEY SECOND QUARTER VARIANCE TABLES Lower index prices and transportation issues negatively impacted the quarter. Relative to our internal projections after 1Q23, actual 2Q23 Adjusted EBITDA1 and Net Income came in $29 mm and $26 mm respectively less than we had Key Variance Table: Actual Vs. Interna
Slide 14: Second Quarter Peer Earnings Analysis
SECOND QUARTER PEER EARNINGS ANALYSIS 2Q23 was challenging for the industry on the back of lower pricing and general inflationary pressures Ramaco (METC) Warrior (HCC) Arch (ARCH)1 Peabody (BTU)1 Alpha (AMR)1 2Q23 results were challenging across the peer group driven by Q2 Q1 Chg Q2 Q1 Chg Q2 Q1 Chg
Slide 15: Rare Earth Elements (REE) Potential
RARE EARTH ELEMENTS (“REE”) POTENTIAL
Slide 16: Ramaco's REE Deposit
RAMACO’S REE DEPOSIT Potentially transformative discovery REE Background: What Are REEs?: Rare earth elements (REEs) are critical minerals essential to the energy transition. They are used in many applications such as electric vehicles, wind turbines, smartphones, and defense applications. Almost 90
Slide 17: Key Highlights from Weir International's July 2023 Update: Technical Report Summary
KEY HIGHLIGHTS FROM WEIR INTERNATIONAL’S JULY 2023 UPDATE TO ITS MAY 2, 2023 TECHNICAL REPORT SUMMARY We believe Ramaco’s Brook Mine has 3 distinct advantages: Brook Mine Estimated TREO Concentration & Distribution (%) The majority of its estimated REEs are found in clay, which are generally much TR
Slide 18: Key Highlights from Weir International's July 2023 Update: Exploration Report
KEY HIGHLIGHTS FROM WEIR INTERNATIONAL’S JULY 2023 UPDATE TO ITS MAY 2, 2023 EXPLORATION REPORT 23% of the total estimated REO basket consists of primary magnetic REOs of neodymium, praseodymium, dysprosium and terbium. An additional 6% of the estimated REO basket consists of secondary magnetic REOs
Slide 19: 2023 Ramaco Resources Guidance
2023 RAMACO RESOURCES GUIDANCE Full-Year Full-Year Committed 2023 Sales Volume(f) Volume Avg Price 2023 Guidance 2022 (In millions, except per ton amounts) Company Production (tons) Elk Creek Mining Complex 2,200 - 2,400 2,033 Berwind & Knox Creek Mining Complex 800 - 1,100 651 North America, fixed
Slide 20: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES (In thousands) Q2 2023 Q1 2023 Q2 2022 Adjusted EBITDA and Net Debt are used as supplemental non-GAAP financial measures by Reconciliation of Net Income to Adjusted EBITDA management and external users of our financial Net Income $ 7,556 $ 25,257 $ 33,280 statemen
Slide 21: Contact and Investor Relations
250 West Main Street, Suite 1900 Lexington, Kentucky 40507 Investor Relations: info@ramacometc.com 859-244-7455 21