Ramaco Resources (METC) Q2 2025 earnings summary

Executive summary

• Transitioned to a dual-platform model, combining metallurgical coal and rare earth/critical minerals, with Brook Mine development in Wyoming and mining commenced in June 2025.

• Brook Mine is the first new rare earth mine in the U.S. in over 70 years, officially opened in July 2025, with commercial production targeted for 2027.

• Q2 2025 saw record production of 1.0 million tons, up 11% year-over-year, but a net loss of $14 million due to lower prices.

• Federal and state government support, including a $6.1M Wyoming Energy Authority grant, is accelerating Brook Mine development.

• Maintains a leading cost position in U.S. met coal, with strong growth since 2017 and a conservative balance sheet.

Financial highlights

• Q2 2025 revenue was $153.0M, down 2% year-over-year; adjusted EBITDA was $9.0M, and net loss was $14.0M.

• Cash cost per ton sold was $103, with 1.1 million tons sold and cash margin per ton at $20.

• Liquidity as of June 30, 2025 was $87.3M, rising to ~$105M by July 31, 2025.

• Completed a $57M public offering of 8.25% Senior Notes due 2030, redeeming $35M of 2026 notes.

• Six-month revenue was $287.6M, with operating cash flow of $21.8M and capex of $35.5M.

Outlook and guidance

• 2025 production and sales guidance trimmed to 3.9–4.3M tons produced and 4.1–4.5M tons sold, with cash cost per ton guidance at $96–$102.

• SG&A guidance for 2025 increased to $39–43M to accelerate Brook Mine development.

• No rare earth revenues expected in 2025; commercial oxide production from Brook Mine targeted for 2027.

• Cautiously optimistic on met coal pricing recovery in H2 2025, driven by Chinese and Indian demand.

• Capital expenditures expected to decline in H2 2025.