Summary of Ramaco Resources Q4 2025 Earnings Call

1Key Financial Results and Metrics

Liquidity: Record liquidity of $521 million, up 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.

Cash Margins: Q4 cash margins of $24 per ton, tied for the strongest of 2025.

Production: Q4 production totaled 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 loss narrowed to $0.22 from $0.25 in Q3.

2Strategic Updates and Business Highlights

Met Coal Operations: Achieved lowest costs since Q4 2021 at the Elk Creek complex, with strong domestic and export pricing.

Growth Initiatives: Accelerating low-vol growth projects at Berwind and Maben complexes, adding 100,000 to 200,000 tons of production in 2026.

Critical Minerals: Developed a new proprietary carbochlorination process for rare earth extraction, improving product recovery and reducing costs.

Intellectual Property: Over 70 patents pending related to the new flowsheet and processes.

Corporate Structure: Exploring a reorganization into a holding company structure to enhance operational flexibility.

3Forward Guidance and Outlook

2026 Production Guidance: Expected production of 3.7 to 4.1 million tons, with sales anticipated at 4.1 to 4.5 million tons.

CapEx: Projected at $85 million to $90 million, up from $64 million in 2025, including $20 million for critical minerals.

Market Expectations: Anticipating strong earnings growth in 2026 if met coal prices stabilize or improve.

4Bad News, Challenges, or Points of Concern

Market Pressures: High-vol met coal indices fell 17% in Q4, with continued pricing pressure from oversupply in high-vol markets.

Logistics Issues: Rail logistics bottlenecks due to extreme weather affected shipments in early 2026.

Delayed Project Timelines: The new flowsheet for rare earths has pushed back the timeline for pilot operations and commercial production.

Competitive Landscape: Increased competition in high-vol markets, with several peers ramping up production.

5Notable Q&A Insights

Flowsheet Changes: Management emphasized that the shift to the carbochlorination process was a strategic decision based on improved economics and product recovery.

Gallium Focus: The new flowsheet enhances the focus on high-purity gallium for the semiconductor industry, which is expected to grow rapidly.

Market Dynamics: Discussions with U.S. and Indian officials could lead to increased U.S. met coal imports into India, potentially benefiting sales.

Product Qualification: The pilot plant will be crucial for qualifying products for customers, although bench-scale testing may commence sooner for certain high-purity products.

Sales Strategy: The company is maintaining a disciplined approach to production and sales, prioritizing value over volume in a challenging pricing environment. Overall, Ramaco Resources is positioned for growth in 2026 with strong financials and strategic initiatives, despite facing challenges in market pricing and logistics.