Ramaco Resources (METC) Q1 2025 earnings summary

Executive summary

• Achieved record quarterly production of 1 million tons in Q1 2025, annualizing to 4 million tons, despite adverse weather and weak met coal markets, with a 2% year-over-year increase in tons sold to 946,000 tons.

• Maintained industry-leading cash margins per ton and realized sales price among public peers, with adjusted EBITDA outperforming larger competitors and a non-GAAP cash cost per ton sold at $98, a $20 per ton improvement year-over-year.

• Advanced the Brook Mine rare earth project, with large-scale mining to begin in June 2025, pilot plant construction in late 2025, and commercial oxide production targeted for H2 2028.

• Added Mike Woloschuk as EVP for Critical Minerals and appointed former Senator Joe Manchin as independent director.

• Shipped metallurgical coal to steelmakers in over 20 countries and is developing the only primary source for gallium, germanium, and scandium globally.

Financial highlights

• Q1 2025 revenue was $134.7 million, down 22% year-over-year, with adjusted EBITDA of $9.8 million and a net loss of $9.5 million; cash costs per ton sold were $98.

• Net debt to adjusted EBITDA was less than 0.7x, reflecting a conservative balance sheet.

• Liquidity stood at $118 million as of March 31, 2025, up nearly 25% year-over-year, with $43.5 million in cash and $74.9 million available under the revolver.

• Capital expenditures for Q1 2025 were $20.3 million, mainly for growth projects.

• Paid $2.5 million in dividends and declared additional Class B dividends based on CORE asset performance.

Outlook and guidance

• 2025 production guidance reduced to 3.9–4.3 million tons (from 4.2–4.6 million); sales guidance lowered to 4.1–4.5 million tons (from 4.4–4.8 million).

• Cost per ton sold guidance for 2025 is $96–$102; CapEx guidance reduced to $55–$65 million.

• 3.7 million tons of 2025 sales already committed, with 2.2 million tons at a fixed average price of $141/ton.

• Optionality to increase production if market conditions improve, with potential to reach a 5 million ton run rate and medium-term potential to double production to over 7 million tons.

• Rare earth pilot production expected in 2026, commercial-scale facility by late 2026, and commercial oxide production in H2 2028.