May 12, 2017 -Ramaco Resources, Inc. (NASDAQ:METC) today announced its results for the quarter ended March 31, 2017 reflecting its first quarter of production and coal sales as well as the continued development of its metallurgical coal properties.

Ramaco Resources reported a net loss of $3.1 million, or $0.10 per share for the quarter ending March 31, 2017 compared with a net loss of $3.8 million, or $0.17 per share, for the quarter ending March 31, 2016. Excluding a one-time charge of $2.1 million, adjusted net loss per share for the quarter ending March 31, 2017 was $0.03 per share, and excluding a one-time charge of $3.1 million, adjusted net loss in the quarter ended March 31, 2016 was $0.03 per share.1  Revenues in the quarter totaled $11.5 million compared to none in the first quarter of 2016.

“We produced and sold our first coal from our Alma mine at the Elk Creek mine complex this quarter and remain excited about the future prospects at Elk Creek,” said Michael Bauersachs, President and Chief Executive Officer of Ramaco Resources. “Construction of our Elk Creek preparation plant remains on schedule for completion in mid-summer. The activation of this infrastructure will open up significant opportunities for us moving forward,” Bauersachs concluded.

For the quarter ended March 31, 2017, Ramaco Resources had coal sales revenues of $9.9 million on the sale of 55,770 tons of produced coal and 35,281 tons of purchased coal. Third-party coal processing at Knox Creek accounted for the $1.6 million balance of the revenues for the period. Cost of sales and processing totaled $10.8 million in the first quarter of 2017, resulting in a gross margin of $0.7 million. Last year, in the first quarter of 2016, Ramaco Resources had no revenue or cost of sales as it was still in the mine-development mode.

Other expenses during the first quarter of 2017 totaled $3.8 million, including a $2.1 million one-time charge for equity-based compensation and $1.1 million in selling, general and administrative expenses. The one-time charge arose from the accelerated vesting of executive stock options as a result of Ramaco Resources’ initial public offering in February 2017 (the “Initial Public Offering”). Total expenses in the first quarter of 2016 were $3.8 million, which included a $3.1 million write-off of costs associated with a proposed financing that was not consummated. Selling, general and administrative expenses in the first quarter of 2017 of $1.1 million, excluding the one-time charge, were significantly higher than the $0.4 million incurred in the same period of 2016 as Ramaco Resources continued to grow its organization.

In the first quarter of 2017, Ramaco Resources invested $17.2 million in its planned mining operations and supporting infrastructure, including $10 million for the new Elk Creek preparation plant and rail line. Ramaco Resources’ total investment in this facility, which is expected to be completed in the third quarter of 2017 will exceed $32 million.

“With our continuing investments in mines and infrastructure, Ramaco Resources is positioning itself strategically to play a meaningful role in the future metallurgical coal markets,” Randall Atkins, Ramaco Resources’ Executive Chairman stated. “Given our low cost structure, our long-term goal is to be an active participant in both the domestic and export metallurgical coal markets and to be prepared to respond quickly to any significant upward price movements. The recent supply disruption in Australia caused by Cyclone Debbie is a good example,” Atkins continued.

“We successfully completed our mine development financing program with our Initial Public Offering on February 8, 2017 in which Ramaco Resources raised net proceeds of approximately $43.7 million from its sale of 3.8 million shares,” Atkins added. “The liquidity offered by both the Initial Public Offering and our August 2016 private issuance of $90 million of Series A preferred units has enabled Ramaco Resources to fully fund its mine development program without having to incur debt,” Atkins concluded.  At March 31, 2017, Ramaco Resources had liquidity of approximately $78 million.


Ramaco Resources is an operator and developer of high-quality, low cost metallurgical coal in central and southern West Virginia, southwestern Virginia and southwestern Pennsylvania.