METC — Ramaco Resources, Inc.

Summary of Ramaco Resources Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Liquidity: Record liquidity of $521 million, up over 275% year-over-year.
• Net Debt: Reduced to $11 million.
• Cash Costs: Q4 cash cost per ton sold was $92, the lowest in four years, positioning Ramaco in the first quartile of the U.S. cash cost curve.
• Cash Margins: Q4 cash margins were $24 per ton, equal to the strongest margins of 2025.
• Production: Q4 production was 892,000 tons, slightly down from Q3 due to seasonal factors.
• Adjusted EBITDA: Increased to $9 million from $8 million in Q3.
• Earnings Per Share: Class A EPS showed a loss of $0.22 in Q4, an improvement from a loss of $0.25 in Q3.

2. Strategic Updates and Business Highlights

• Met Coal Operations: Achieved the lowest costs since Q4 2021 at the Elk Creek complex. The company plans to grow total sales for the sixth consecutive year while lowering cash costs for the third year.
• Growth Projects: Accelerated low-vol growth projects at Berwind and Maben complexes, expected to add 100,000 to 200,000 tons of production in 2026.
• Critical Minerals: Introduced a new proprietary technology, carbochlorination, for rare earth extraction, which is expected to improve recoveries and reduce costs. The company is focusing on high-purity gallium and alumina for the semiconductor industry.
• Pilot Plant: Construction of a pilot plant in Wyoming is underway, expected to be operational by 2027.

3. Forward Guidance and Outlook

• 2026 Production Guidance: Anticipated production of 3.7 million to 4.1 million tons, with sales of 4.1 million to 4.5 million tons.
• CapEx: Expected to increase to $85 million to $90 million in 2026, up from $64 million in 2025, with significant investments in both met coal and critical minerals.
• Market Conditions: Anticipated improvement in met coal pricing due to supply constraints and increased demand, particularly from India.

4. Bad News, Challenges, or Points of Concern

• Market Pressures: High-vol met coal indices fell 17% in Q4, contributing to competitive pricing pressures.
• Logistics Issues: Rail logistics bottlenecks caused shipment delays in early 2026, impacting production schedules.
• Delayed Projects: The new flowsheet for critical minerals has pushed back the timeline for the preliminary feasibility study and pilot plant operations.
• High-Vol Market Competition: Increased competition in the high-vol market with several peers launching new projects, leading to pricing pressures.

5. Notable Q&A Insights

• Technology Shift: The decision to pivot to the carbochlorination process was based on significant improvements in economics and product purity, particularly for gallium.
• Market Dynamics: Discussions with the government and potential customers have been positively influenced by the focus on gallium for semiconductors.
• Future of Rare Earths: The company plans to sell rare earths as mixed rare earth carbonate (MREC) rather than separating them, simplifying operations and reducing costs.
• Production Timeline: The overall project timeline for Brook Mine is expected to be delayed by about a year due to the new flowsheet changes.

Overall, Ramaco Resources demonstrated solid financial performance in Q4 2025, with strategic initiatives aimed at enhancing production and diversifying into critical minerals, despite facing challenges in market conditions and logistics. The outlook for 2026 remains optimistic, with anticipated growth in production and sales.