March 11, 2024 - In a recent earnings call, Ramaco Resources (NASDAQ:METC) reported a strong finish to the year with record quarterly earnings and ambitious plans for expansion. The company announced intentions to double its met coal production from the current 3.5 million tons and delve into the rare earth business.

Despite a challenging pricing environment, Ramaco achieved a record EBITDA of $182 million and substantial free cash flow. Looking ahead, the company plans to retire all debt in 2024 and has made significant strides in increasing its market cap, which now stands around $1 billion.

Key Takeaways

• Ramaco Resources reported record EBITDA of $182 million and net income of $30 million for Q4 2023.
• The company aims to double met coal production and expand into the rare earth business.
• Over two-thirds of 2024 sales are expected to be exports, with significant growth in Asian markets.
• Ramaco anticipates a 40% increase in sales from 2023 levels and a 30% increase in production and sales for 2024.
• The company has a strong safety record and plans to increase production at its Berwind mine and relocate a coal prep plant to reduce costs.
• Ramaco's market cap increased by over $500 million in 2023, with total market cap now approximately $1 billion.
• Shareholder returns were impressive, with a one-year return of approximately 200% and a three-year return of over 1,000%.

Company Outlook

• Production and shipments are expected to increase throughout the year, with a significant increase in the second half due to new mines.
• Ramaco is working to increase and extend its existing revolver, with a preliminary agreement reached with KeyBank.