METCZ — Ramaco Resources, Inc.

Summary of Ramaco Resources Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Adjusted EBITDA: $6 million, down from $9 million in Q2 2025.
• Cash Margin: $17 per ton, decreased from $20 per ton year-over-year.
• Realized Price: $116 per ton, a 6% decline compared to $123 per ton in Q2 2025.
• Cash Cost: $99 per ton, maintaining sub-$100 costs for the fourth consecutive quarter despite rising diesel prices.
• Liquidity: Over $400 million, with more than 8% of Class A shares repurchased for $66 million.
• Inventory: Approximately 1 million tons of coal stockpiled as of June 30.

2. Strategic Updates and Business Highlights

• Critical Minerals Initiative: The Hatch conceptual study for the Brook Mine indicates a potential NPV of $3.4 billion to $8 billion and average adjusted EBITDA of $600 million to $1.3 billion. The company is transitioning from a feedstock provider to a midstream refiner, focusing on critical minerals like gallium and germanium.
• Carbochlorination Process: This method has shown over 90% extraction rates for targeted minerals. The company is also exploring e-waste integration to enhance yields.
• Metallurgical Coal Operations: Despite market weakness in high-vol coal, low-vol coal production is being prioritized. The Maben complex is expected to add 600,000 tons of production by the end of 2027.
• Safety Improvements: A 58% reduction in incidents year-to-date compared to 2025, contributing to operational stability.

3. Forward Guidance and Outlook

• Production Guidance: Full-year 2026 production is revised to 3.6 to 3.9 million tons, down from 3.7 to 4.1 million tons, with sales guidance adjusted to 4.0 to 4.3 million tons.
• Cash Cost Guidance: Expected to remain between $96 to $99 per ton for the year.
• Capital Expenditures: Increased to $92 to $97 million, reflecting investments in low-vol production growth.

4. Challenges and Points of Concern

• Market Weakness: Continued oversupply in the high-vol coal market is impacting pricing and profitability. The company has idled one section of its high-vol Stonecoal mine to manage costs.
• Rising Diesel Costs: Diesel prices have increased significantly, adding approximately $3 per ton to production costs.
• Delayed Project Timelines: The Brook Mine project timeline has been pushed back due to supply chain issues, particularly related to large power transformers.
• Dependence on Critical Minerals Market: The shift towards critical minerals exposes the company to market volatility and geopolitical risks, particularly concerning rare earth elements.

5. Notable Q&A Insights

• Realized Prices: Limited upside for realized prices in the second half of 2026 until a broader shift towards low-vol coal occurs.
• Offtake Agreements: Expectation of MOU announcements for offtake agreements by year-end, with customer interest in securing domestic supplies amid geopolitical tensions with China.
• E-Waste Potential: E-waste integration could significantly enhance financial metrics, with interim studies expected by year-end.
• Separation of Rare Earths Business: Discussions on separating the rare earths business are ongoing, contingent on risk mitigation and revenue stabilization.

This summary encapsulates the key financial metrics, strategic initiatives, forward guidance, challenges, and insights from the Q&A session, providing a comprehensive overview of Ramaco Resources' performance and outlook for Q2 2026.