Ramaco Resources, Inc. reported its financial results for the third quarter and the first nine months of 2024, revealing a mixed performance amid challenging market conditions. For the three months ended September 30, 2024, the company generated revenue of $167.4 million, a decrease from $187.0 million in the same period of 2023. However, for the nine months ended September 30, 2024, revenue slightly increased to $495.4 million from $490.8 million year-over-year.

The company's total costs and expenses for the third quarter of 2024 were $165.8 million, down from $170.9 million in the prior year, while for the nine-month period, expenses rose to $485.1 million from $432.8 million. Operating income for the third quarter fell to $1.6 million from $16.1 million in 2023, and for the nine months, it decreased to $10.3 million from $58.0 million. The net loss for the third quarter was $(239,000), a significant decline from a net income of $19.5 million in the same quarter of 2023. For the nine months, net income was $7.3 million, down from $52.3 million in the previous year.

The decline in profitability was attributed to a softening in global metallurgical coal markets, particularly due to reduced demand from China, which affected coal price indices. The company reported a decrease in revenue per ton sold, which fell from $188 to $164 for the third quarter year-over-year. Despite this, the total tons sold increased to 1.0 million in Q3 2024 from 996,000 in Q3 2023.

Strategically, Ramaco Resources has made significant moves, including amending its Revolving Credit Facility to extend the maturity to May 2029 and increasing the initial commitment to $200 million. The company also reported a decrease in total debt to $77.2 million as of September 30, 2024, down from $90.2 million at the end of 2023. Additionally, the company is exploring rare earth and critical minerals deposits in Wyoming, with plans for a demonstration processing facility expected to begin construction in mid to late 2025.

Cash flows from operating activities for the first nine months of 2024 were $97.0 million, driven by net earnings adjusted for non-cash expenses. The company declared total cash dividends of $24.5 million during this period, compared to $18.0 million in the same period of 2023. Ramaco Resources continues to focus on its operational resilience and strategic growth despite the current market challenges.