February 5, 2026 - We came across a?bullish thesis?on Ramaco Resources, Inc. on Asymmetric Capital’s Substack by Srikanth Thangellamudi. In this article, we will summarize the bulls’ thesis on METC. Ramaco Resources, Inc.'s share was trading at $22.58 as of January 28th. METC’s trailing and forward P/E were 9.47 and 5.49  respectively according to Yahoo Finance.

Ramaco Resources traces its origins to a $2 million coal mine purchase in Wyoming by former Wall Street banker Randall Atkins, a disciplined Appalachian metallurgical coal operator that has unexpectedly evolved into a potential cornerstone of U.S. rare earth independence.

Ramaco today runs a low-cost, clean metallurgical coal business across West Virginia and Virginia, producing roughly 3.5 million tons annually with first-quartile cash costs near $100 per ton, minimal debt, and strong liquidity. This coal platform provides downside protection, allowing the company to withstand weak pricing cycles while funding future growth without financial stress.

The transformative opportunity lies at the Brook Mine in Wyoming, where government researchers and Ramaco estimate up to 1.1 million metric tons of rare-earth oxides, potentially worth tens of billions of dollars at current prices. The deposit includes heavy magnetic rare earths such as terbium and dysprosium, along with critical minerals like gallium, germanium, and scandium—materials vital for defense, semiconductors, and clean energy. Management plans to build a vertically integrated platform, including a Strategic Critical Minerals Terminal, positioning Ramaco as both a producer and national stockpiler, while targeting first commercial oxide production around 2028.

Despite a sharp stock pullback driven by uncertainty around rare earth timelines and geopolitics, Ramaco’s balance sheet has been fortified by a $200 million equity raise, leaving it net-cash and capable of funding development without near-term dilution. At scale, management estimates the rare earth platform alone could generate over $500 million of EBITDA annually, dwarfing the current valuation. Even if execution disappoints, investors are left with a resilient coal business; if Brook succeeds, Ramaco could emerge as a strategic U.S. critical minerals champion, offering a highly asymmetric risk-reward profile.

Previously, we covered a bullish thesis on Ramaco Resources, Inc. (METC) by Unemployed Value Degen in October 2024, which highlighted the company’s low-cost metallurgical coal operations, disciplined growth, and strategic rare earth discovery in Wyoming valued at $37 billion. METC’s stock price has appreciated by approximately 109.65% since our coverage due to operational efficiency and rare earth potential. Srikanth Thangellamudi shares a similar view but emphasizes the Brook Mine’s rare earth platform and potential $500 million EBITDA from oxide production.

Ramaco Resources, Inc. is not on our list of the?30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held METC at the end of the third quarter which was 14 in the previous quarter. While we acknowledge the risk and potential of METC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame.