Ramaco Resources (METC) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 was the strongest operationally and financially, with record tons sold, lowest cash costs, and record liquidity, despite weak met coal pricing and challenging market conditions.

• Full-year 2024 revenue was $666 million, net income $11 million, adjusted EBITDA $106 million, and sales volume 4.0 million tons.

• The company is a low-cost, pure play metallurgical coal producer with a strong growth pipeline and a rare earth elements project at Brook Mine, advancing with pilot mining and plant construction set for 2024 and a $6.1 million grant.

• Production and sales reached record levels in Q4 2024, with an annualized run-rate of 4.5 million tons.

• Conservative balance sheet maintained with industry-leading cost control, reducing cash costs per ton by almost 20% from Q1 to Q4 2024.

Financial highlights

• Q4 2024 Adjusted EBITDA was $29.2 million, up from $24 million in Q3; net income was $4 million versus break-even in Q3.

• Q4 2024 revenue was $170.9 million, down 16% year-over-year; full-year revenue was $666.3 million, down 4%.

• Q4 2024 cash costs per ton were $96, down from $118 in Q1 2024, the lowest among peers.

• Liquidity at year-end was $138 million, up over 50% year-on-year, with no revolver drawn.

• Dividends paid in 2024 totaled $33 million.

Outlook and guidance

• 2025 production guidance is 4.2–4.8 million tons, with 3.5 million tons already contracted, 1.9 million at a fixed price of $145/ton.

• Cash cost per ton guidance for 2025 is $97–$103; Q1 costs expected at the high end due to severe weather.

• Capital expenditures for 2025 are projected at $60–$70 million.

• Effective tax rate guidance raised to 25–30%, but minimal cash taxes expected.

• Q2 2025 shipments projected to rise by over one-third sequentially.