METCB — Ramaco Resources, Inc.

Summary of Ramaco Resources Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Liquidity: Record liquidity of $521 million, up 275% year-over-year.
• Net Debt: Reduced to $11 million.
• Q4 Production: 892,000 tons, a slight decrease from Q3 due to seasonal factors.
• Cash Cost: $92 per ton, the lowest in four years and among the best in Central Appalachia.
• Cash Margins: $24 per ton, tied for the strongest of 2025.
• Adjusted EBITDA: Increased to $9 million from $8 million in Q3.
• Class A EPS: Loss of $0.22 in Q4, improved from a loss of $0.25 in Q3.

2. Strategic Updates and Business Highlights

• Met Coal Operations: Achieved lowest costs since Q4 2021 at Elk Creek complex. Strong domestic and export pricing for met coal, with 80% of 2026 production already committed.
• Growth Projects: Accelerating low-vol growth projects at Berwind and Maben complexes, expected to add 100,000 to 200,000 tons in 2026.
• Critical Minerals: Development of a new proprietary carbochlorination process for rare earth extraction, enhancing product recovery and reducing costs. Anticipated to produce high-purity gallium, alumina, and quartz.
• Corporate Structure: Exploring reorganization into a holding company to better reflect dual operations in met coal and critical minerals.

3. Forward Guidance and Outlook

• 2026 Production Guidance: Expected to be between 3.7 million to 4.1 million tons, with sales projected at 4.1 million to 4.5 million tons.
• CapEx: Anticipated to increase to $85 million to $90 million in 2026, including growth capital for critical minerals.
• Market Outlook: Positive expectations for met coal pricing due to supply constraints and increased demand, particularly from India.

4. Challenges and Points of Concern

• Market Pressures: High-vol met coal pricing remains under pressure, with indices down 17% in Q4. Competitive pressures from peers with new projects in high-vol coal.
• Logistics Issues: Rail bottlenecks due to extreme weather impacted shipments in early 2026, causing delays but no production curtailments.
• Delays in Pilot Plant: New flowsheet changes have pushed back the timeline for pilot operations to 2027, which may affect the overall project schedule for the Brook Mine.

5. Notable Q&A Insights

• Technology Shift: The decision to pivot to the carbochlorination process was based on significant improvements in product recovery and economics, particularly for gallium.
• Market Dynamics: Anticipated changes in Chinese steel exports and domestic pricing could support higher coking coal prices.
• Future of Rare Earths: The focus on high-purity gallium and the decision to sell rare earths as mixed products (MREC) may enhance marketability and reduce complexity in production.
• CapEx Considerations: The new flowsheet is expected to reduce overall capital expenditure compared to previous estimates, although exact figures will be clarified in the upcoming PEA.

This summary encapsulates the key points from Ramaco Resources' Q4 2025 earnings call, highlighting both the positive developments and the challenges faced by the company.