Ramaco Resources Reports $11.19 Million Net Income for 2024, Revenue Declines 4%

Ramaco Resources, Inc. reported a net income of $11.19 million for the year ended December 31, 2024, down significantly from $82.31 million in 2023. Revenue for 2024 was $666.3 million, a 4% decrease compared to 2023's $693.5 million, despite a 15% increase in coal sales volume to 4.0 million tons from 3.5 million tons. The decrease in revenue was attributed to a 17% drop in revenue per ton sold, primarily due to lower metallurgical coal price indices resulting from global macroeconomic factors and increased Chinese steel exports. Total costs and expenses increased to $649.7 million in 2024 from $598.3 million in 2023, largely due to increased cost of sales associated with higher sales volume.

Capital expenditures decreased to $68.8 million in 2024 from $82.9 million in 2023, reflecting progress on strategic growth projects. The company's Adjusted EBITDA, a non-GAAP measure, also declined to $105.8 million in 2024 from $182.1 million in 2023, primarily due to lower coal prices. The 2023 figures benefited from insurance proceeds related to previous incidents. The company declared a mix of cash and non-cash dividends in 2024, including a fourth-quarter distribution of Class B stock to both Class A and Class B shareholders. As of December 31, 2024, the company had $33.0 million in cash and cash equivalents and $104.8 million in availability under its Revolving Credit Facility.

Outstanding debt at the end of 2024 totaled $92.4 million, slightly lower than 2023's $90.2 million, reflecting debt repayments offset by new senior note debt issued in the fourth quarter. The company's total assets were $674.7 million, and total liabilities were $311.9 million. The company's significant contractual obligations at year-end included minimum coal lease and royalty obligations of $29.1 million, debt obligations of $92.4 million, and take-or-pay obligations of $16.1 million. The company also noted a material weakness in its internal control over financial reporting related to insufficient accounting resources, resulting in an adverse opinion from its independent auditor.

Ramaco Resources identified a material weakness in its internal control over financial reporting due to insufficient accounting resources. The company is implementing a remediation plan to address this weakness, including hiring additional qualified personnel and enhancing internal controls. The company's outlook for 2025 anticipates full-year production volumes between 4.2 and 4.6 million tons, with the ability to adjust production based on market conditions. The company also continues to evaluate its Wyoming rare earth elements and critical minerals project, anticipating completion of a techno-economic analysis and the commencement of pilot plant construction in mid-to-late 2025. The company received a $6.1 million matching grant from the Wyoming Energy Authority to support this project.