March 22, 2018 - Ramaco Resources, Inc. (NASDAQ:METC) reported a net loss of $2.6 million, or $0.07 per share, for the fourth quarter of 2017 on revenues of $24.0 million.  The Company’s adjusted earnings before interest, taxes, depreciation and amortization and equity-based compensation expense for the fourth quarter was a loss of approximately $328,000 for the same period. 

The Company reported a net loss of $15.4 million, or $0.41 per share for the full year 2017.  Revenues exceeded $61 million and the Company’s adjusted EBITDA loss for the year was $9.3 million. 

“We had aggressive development plans for 2017 and I am pleased with our execution,” Michael Bauersachs, Ramaco Resources’ President and CEO stated. “Ramaco Resources has the nation’s newest, fully operational preparation plant and loadout facility, with three active deep mines and one surface/highwall mine at our Elk Creek complex.  All of this was completed within the past fifteen months. Coupled with commercial mining of low volatile coal at our Berwind mine, we expect to produce between 2.0 to 2.2 million tons of high quality, low cost coal in 2018. In the fourth quarter of 2017, average cash mining costs at our Elk Creek mines dropped below $60 per ton. These achievements are possible because of our employees and we thank them for their commitment and hard work,” Bauersachs concluded.

Operational Results

Over the past twelve months Ramaco Resources opened four new mines and the Elk Creek preparation plant mentioned above.  Capital expenditures were $75.0 million for 2017.

The Company sold 608 thousand tons of metallurgical coal in 2017, including 236 thousand tons of purchased coal.  The average sales price (FOB mine) of the Company’s sales volumes improved to just under $70 for the fourth quarter and was approximately $66 for the entire year. “These selling prices were indicative of the need to introduce our products as a new entrant into the market.  Strategically, this was important in positioning Ramaco Resources to achieve our ramp-up in production,” Bauersachs commented. 

Ramaco Resources saw production costs fall to approximately $58 per ton in the fourth quarter from $84 per ton for the first three quarters of 2017. Production costs for 2017 were adversely impacted by higher trucking and third-party processing expenses incurred before its preparation plant and loadout facilities became operational.  

Randall Atkins, Chairman of Ramaco Resources noted, “We have transitioned from being a development stage company into a fully operational company in 2018. Our mining costs continue to fall, in line with expectations, and pricing realizations are also improving in 2018. Metallurgical coal pricing continued to be strong in the fourth quarter, driven by the favorable global economic conditions and steel industry strength.  We anticipate these same positive macro-economic conditions will continue through 2018.”

“We are pleased with our sales and marketing execution. Presently, we have committed approximately 73% of our anticipated 2018 Company mined sales volumes. We have roughly 600 thousand uncommitted tons, which we expect to place into the export markets.”

“We continue to see strong interest from foreign purchasers for our coal qualities and expect to place our remaining uncommitted volumes principally into export markets.  Given our low mining cost advantage, combined with the pricing strength in the markets, we are optimistic for a strong performance in 2018,” Atkins concluded. 

Ramaco Resources is an operator and developer of high-quality, low cost metallurgical coal in southern West Virginia, southwestern Virginia and southwestern Pennsylvania. The Company has five active mines within two mining complexes at this time. 

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