METC — Ramaco Resources, Inc.

Summary of Ramaco Resources Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Record Liquidity: Ramaco ended Q4 2025 with liquidity of $521 million, up over 275% year-over-year.
• Net Debt: The company reported a net debt position of $11 million.
• Cash Costs: Q4 cash cost per ton sold was $92, the lowest in four years, with cash margins of $24 per ton, tied for the strongest of 2025.
• Production: Q4 production was 892,000 tons, slightly down from Q3 due to seasonal factors.
• Adjusted EBITDA: Increased to $9 million in Q4 from $8 million in Q3.
• Earnings Per Share: Class A EPS showed a loss of $0.22 in Q4, an improvement from a $0.25 loss in Q3.

2. Strategic Updates and Business Highlights

• Met Coal Operations: Achieved the lowest costs since Q4 2021, with strong productivity and cost control. The company is focused on maintaining wages and benefits for workers.
• Sales Commitments: Approximately 80% of 2026 production has been committed, with strong domestic and export pricing.
• Critical Minerals Development: Introduced a new proprietary technology, carbochlorination, to enhance the extraction of rare earths and critical minerals, which is expected to improve product recoveries and reduce costs.
• Growth Projects: Accelerated low-vol growth projects at Berwind and Maben, expected to add 100,000 to 200,000 tons of production in 2026.

3. Forward Guidance and Outlook

• 2026 Production Guidance: Anticipated production of 3.7 to 4.1 million tons, with sales expected to be 4.1 to 4.5 million tons.
• CapEx: Projected CapEx for 2026 is $85 million to $90 million, up from $64 million in 2025, including maintenance and growth capital.
• Market Expectations: The company expects strong earnings growth in 2026 if benchmark prices stabilize or improve, with a focus on low-vol coal due to tighter supply-demand dynamics.

4. Challenges and Points of Concern

• Market Pressures: High-vol metallurgical coal indices fell 17% in Q4, and the competitive landscape remains challenging with oversupply in high-vol markets.
• Logistical Issues: Rail logistics bottlenecks due to extreme weather impacted shipments in January and February, although production was not curtailed.
• Delays in Pilot Plant: The new flowsheet has pushed back the timeline for the pilot plant and the overall project schedule, which could affect commercialization timelines.

5. Notable Q&A Insights

• Technology Shift: The decision to pivot to the carbochlorination process was based on significant improvements in economics and product quality, particularly for gallium, which is expected to become a major revenue driver.
• Market Dynamics: The company is optimistic about the recovery of coal prices, particularly in low-vol segments, and is positioned to benefit from tightening supply.
• Future Separation Capacity: There is confidence that separation capacity for rare earths will develop in time to meet market needs as the Brook Mine comes online.
• Strategic Partnerships: Ongoing discussions with government and strategic partners are expected to enhance the company’s position in the critical minerals market.

Overall, Ramaco Resources demonstrated strong financial performance in Q4 2025, with strategic initiatives aimed at enhancing its position in both met coal and critical minerals markets, despite facing challenges from market pressures and logistical issues. The outlook for 2026 appears positive, with growth anticipated in production and sales.