Signature Sponsor
Ramaco Resources Reports Third Quarter 2026 Results

 

 

November 3, 2026 - Ramaco Resources, Inc. (NASDAQ: METC, METCB, "Ramaco" or the "Company") is a leading operator and developer of high-quality, low-cost metallurgical coal in Central Appalachia and is exploring a coal, rare earth, and other critical minerals project in Wyoming. Today it reported financial results for the three and nine months ended September 30, 2026 (the "Results").

Third Quarter 2026 Highlights
  • The Company had a quarterly net loss of $(18.2) million and Class A diluted EPS of $(0.32).
  • The Company had quarterly Adjusted EBITDA of $3.0 million, defined as adjusted earnings before interest, taxes, depreciation, amortization, equity-based compensation, and, when applicable, certain other non-operating and expense items that are non-recurring and not related to the underlying business performance, a non-GAAP measure ("Adjusted EBITDA"). See "Reconciliation of Non-GAAP Measures" below.
  • The Company ended the third quarter with liquidity of $375 million, an increase of 38% year over year. The Company's balance sheet remains among the strongest in its history.
  • The Company has successfully signed 1.7 mm tons of domestic business at an average fixed price of $139 per ton for delivery in 2027. This represents a volume increase of almost one third from 2026. When combined with 1.1 million tons of 2027 export commitments, these 2.8 million tons in sales would account for a meaningful portion of our anticipated 2027 production. Per our standard practice, we will release initial 2027 guidance after our Board of Directors meeting in early December.
  • Based on year-to-date 2026 cash costs of $100 per ton, financial results from these domestic sales alone would represent over $65 million of met coal segment Adjusted EBITDA in 2027.
  • During the third quarter, the Company won a favorable $30 million jury verdict against Chubb Insurance related to the 2018 Elk Creek coal storage silo failure, including $27.5 million in net economic losses and $2.5 million in additional damages. The final award amount will depend on the outcome of any post-trial motions. The Company is also entitled to an award for its attorneys' fees since this litigation commenced in 2018 in an amount that will be determined by the Court.
Market Commentary / 2026 Outlook
 
Rare Earths and Critical Minerals:
  • Exceptional recovery results have been achieved through a series of carbochlorination tests completed at a third-party laboratory. Average recoveries were 97% for combined scandium (Sc) + gallium (Ga) + germanium (Ge), 92% for NdPr, 96% for yttrium (Y), and 97% for dysprosium (Dy) + terbium (Tb).
  • The Company has received and is testing third-party e-waste samples for analytical and metallurgical evaluation. We are continuing to source additional e-waste samples to support the pre-feasibility study ("PFS") being prepared by Hatch Consultants. 
  • Preparation of the PFS will commence in Q1 2027 when sufficient metallurgical results are available from bench scale testing. The PFS is currently anticipated to be completed in the second half of 2027.
  • The Company expects to receive an SK-1300-compliant Technical Report Summary ("TRS") for the Initial Assessment of the Brook Project in Q1 2027, which will be focused on geological matters.
  • In addition to previously disclosed MOUs for potential oxide and metal purchases, the Company remains in advanced discussions regarding both potential domestic and international offtake transactions and third-party project financing involving the public and private sectors for development and construction of the critical mineral refinery.
  • The pilot plant's building structure continues to be constructed in Wyoming, with completion of the building structure expected in early 2027. The interior pilot-scale processing module equipment and testing facilities are currently being engineered by Hatch, with detailed engineering and fabrication to be completed at the Zeton, Inc. facility in Ontario, Canada. Zeton has commenced front-end flowsheet design. We expect the pilot plant to be completed in the second half of 2027, subject to procurement and fabrication timelines for the modules.
Metallurgical Coal:
  • As of September 30, sales commitments for 2026 totaled approximately 4.2 million tons, equal to more than 100% of 2026 production guidance at the midpoint of 3.6 million tons. Of this total, 1.3 million tons are committed to North American customers at an average realized fixed price of $137 per ton. An additional 2.1 million tons are committed to seaborne customers at an average fixed price of $110 per ton. 
  • In total, 3.4 million tons are committed at an average fixed price of $120 per ton. A further 0.8 million export tons are committed to seaborne customers at index-linked pricing and are not yet priced.
  • U.S. low-vol and high-vol indices increased on average to $174 per ton, or 4% ($7 per ton), in the third quarter vs the second quarter of 2026. Current average spot prices are up to $191 per ton, or 9% ($17 per ton), versus the third quarter.
  • As of September 30, 2026, we had approximately 900,000 tons of clean and clean equivalent coal in inventory compared to a peak of approximately 1.1 million tons during the first quarter of 2026. The September 30, 2026 inventory figure was more than 600,000 tons above normal.
  • As a result of current spot prices, the Company has begun to reduce previously stockpiled inventory by selling coal into higher-priced markets. As these tons are sold and converted to cash, this should lead to a working capital liquidity benefit and reduce inventory over the next few quarters.
  • Should prices hold, in the fourth quarter alone the Company anticipates levels of Adjusted EBITDA and net income could be higher than the combined amounts generated in the first three quarters of the year.
  • The Company anticipates that the third section of the Berwind low vol mine and the first underground section of the Maben low vol mine will both be in production before year-end. This combined production should add 600,000 tons of additional low-vol metallurgical coal production on an annualized basis. When combined with the restart of our Laurel Fork Mine, the Company will have added almost 1 million annualized tons of low-vol production this year. 
  • Construction of the new rail loadout at our low-vol Maben Complex is anticipated to be completed in January 2027. This loadout is expected to reduce current trucking costs at this complex by roughly $20 per ton.
Guidance:
  • The Company has refined 2026 guidance in a number of areas. On the back of continued production discipline in the high-vol market, full-year 2026 production guidance is now 3.5 – 3.6 million tons, down from 3.6 – 3.9 million tons. Full-year 2026 sales guidance is changed to 4.0 – 4.1 million tons versus 4.0 – 4.3 million tons. The Company continues to anticipate a working capital benefit in the fourth quarter. 
  • The Company is increasing 2026 cash cost guidance from $96 - $99 per ton to $101 - $103 per ton. This is caused by external inflationary pressures, including current diesel prices of $5.85 per gallon, compared with $2.50 per gallon at the start of the year, and U.S. rebar prices of $952 per ton, compared with $910 per ton at the start of the year.
  • The Company is increasing 2026 capital expenditure guidance to $97 – $102 million from $92 - $97 million. This is reflective of the first underground section of Maben now anticipated to be running in the fourth quarter of 2026 versus the first quarter of 2027 previously. 
  • The Company has modestly adjusted other non-operational full-year 2026 guidance items which can be found in the guidance tables.
Fourth Quarter Class B Dividend
  • The Board declared a quarterly cash dividend of $0.0742 per share on Class B common stock for the fourth quarter of 2026. The fourth quarter dividend is payable on December 18, 2026, to shareholders of record at the close of business on December 4, 2026.
Management Commentary
 
Randall Atkins, Ramaco Resources' Chairman and Chief Executive Officer, commented, "As we survey the current wreckage in both the stock and capital markets over the past several weeks, we take some comfort in where we are and where we are headed.
 
To step back and take some perspective, we clearly feel that current stock market levels are not reflective of longer-term value. We think, however, that we are taking appropriate steps to create value for our shareholders once markets stabilize and ultimately improve, as they do in commodity-related businesses. In this environment, having a dual platform company with one existing revenue producing component while the other is in growth development mode provides us with financial stability that many in the rare earth/critical mineral space do not enjoy.
 
Our coal operations continue to perform well amid the difficult multi-year pricing headwinds caused by oversupply from China into global steel markets. Although our near-term costs suffer at the margins from macro impacts like higher diesel and steel prices, we still enjoy some of the lowest relative costs in the industry for our form of continuous mining.
 
We also remain in growth mode, adding roughly 1 million tons on an annualized basis of new low vol production this year, as we shift our quality mix toward a greater level of this higher value product.
 
As we exited the third quarter and look ahead to 2027, we see somewhat improving markets, a meaningful start on 2027 sales at stronger pricing, and good mine cost control despite external macro pressures. This is all supported by a strong balance sheet and liquidity.
 
On our critical mineral platform, we are moving forward with testing of our upstream geology and development of our future separation and extraction facility. We continue to de-risk the carbochlorination processing flowsheet and have also begun testing third-party e-waste samples to enhance feedstock concentrations and ultimate oxide output.
 
As we continue to define the resource base, we have essentially already positioned ourselves as a future upstream provider, with roughly three quarters of anticipated oxide revenue tied to demand in the semiconductor industry. What Ramaco and the country lack is any current domestic midstream capability to refine and separate our feedstock. As we move toward that goal, we are well financed to advance the project through all stages of development up to the commencement of construction of the refinery.
 
We have also achieved exceptional recovery results from third-party carbochlorination testing. Average recoveries were 97% for combined scandium, gallium and germanium, 92% for NdPr, 96% for yttrium and 97% for Dy + Tb. These results continue to validate the process route selected in the Hatch conceptual study released last quarter.
 
The construction of the critical mineral pilot plant is well underway, with the building structure expected to be completed in early 2027. Hatch and Zeton continue to advance engineering and fabrication of the pilot processing modules. We expect the pre-feasibility study to begin in the first quarter of 2027 and be completed later next year. As bench-scale metallurgical results become available, including from new e-waste samples, we also anticipate completion of the pilot plant in the second half of 2027.
 
On the downstream critical mineral front, we also remain in advanced discussions regarding potential domestic and international critical mineral offtake transactions, as well as project financing for the refinery involving the public and private sectors.
 
Turning back to our metallurgical coal business, pricing has now moved up meaningfully more than costs. We anticipate stronger margin expansion in both the fourth quarter of 2026 and full-year 2027. Australian premium low-vol prices have rallied close to their highest level in over two years, and U.S. high-vol indices have strengthened on supply disruptions.
Current U.S. spot prices are up 9% versus the third quarter average. Our third quarter cash costs rose to $104 per ton from $99 per ton in the second quarter, driven largely by diesel prices that have more than doubled since the start of the year.
 
We are continuing our coal production growth, and expect the third section at Berwind and the first underground section at Maben to be in production before year-end, adding roughly 0.6 million tons of annualized low-vol production. Including the restart of our Laurel Fork Mine, we will have added almost 1 million annualized low-vol tons this year. The new Maben rail loadout, now expected to be operational in January, should reduce trucking costs at that complex by roughly $20 per ton.
 
We are well positioned for 2027 on forward sales, having committed a strong portion of our anticipated production. We have signed 1.7 million tons of new domestic business at an average fixed price of $139 per ton, up from 1.3 million tons at an average fixed price of $137 per ton committed for 2026. We also recently signed 200,000 tons of additional 2026 business at favorable margins. Domestic steel mills looked to Ramaco's strong balance sheet to add additional tons to reduce counterparty risk against other less well capitalized companies that struggled to deliver on their previously committed 2026 tons.
 
This quarter also saw us receive a verdict in a lengthy legal battle against Chubb Insurance where we won a favorable $30 million jury verdict related to the 2018 Elk Creek coal storage silo failure.
 
Finally, regarding our balance sheet, we also ended the quarter with $375 million of liquidity, up 38% year over year. We currently have no borrowings under our revolving credit facility and expect a working capital tailwind to increase further liquidity over the coming quarters as we sell inventory stockpiled for sale into higher-priced markets and convert those tons to cash."
 
Third Quarter 2026 Performance
 
In the following paragraphs, all references to "quarterly" periods or to "the quarter" refer to the third quarter of 2026, unless specified otherwise.
 
Quarterly 2026 over 2025 Year Comparison
 
Overall coal production of 851,000 tons in the third quarter of 2026 was down 10% from the same period of 2025. The decline was largely due to the previously announced idling of higher-cost metallurgical coal production prompted by weak market conditions.
Overall coal sales of 1.1 million tons in the third quarter of 2026 were up 23% from the same period of 2025 as the Company reduced inventory in the third quarter of 2026.
 
U.S. high-vol metallurgical coal indices rose 10% versus the third quarter of 2025. Quarterly pricing was $120 per ton, which is consistent with same period of the third quarter of 2025. Of note, Australian premium low-vol indices were up 35% year-over-year in the third quarter of 2026, while U.S. low-vol indices were up approximately 13% year-over-year.
Cash mine costs were $104 per ton sold, excluding transportation costs and idle mine costs, and were 7% higher than in the same period of 2025, largely because of higher diesel prices during the period.
 
Resultant cash margins were $16 per ton during the third quarter, down 30% from $23 per ton in the same period of 2025. This was based on non-GAAP revenue (FOB mine) and non-GAAP cash cost of sales (FOB mine).
 
Quarterly 2026 Sequential Comparison
 
Third quarter 2026 production totaled 851,000 tons, down 9% from the second quarter of 2026. The decrease reflected disciplined high-vol production in the current challenging market environment.
 
Third quarter of 2026 sales of 1,077,000 tons were up 2% from the second quarter of 2026. Realized third quarter pricing of $120 per ton was up 3% from $116 per ton in the second quarter of 2026. This increase was primarily due to higher indices in the third quarter.
 
Quarterly cash costs of $104 per ton were up $5 per ton, or 5%, compared to the second quarter of 2026. The increase in cash costs was largely due to elevated diesel prices during the period. Quarterly cash margins were $16 per ton, down $1 compared to the second quarter, mainly due to diesel prices. These figures are based on non-GAAP revenue (FOB mine) and non-GAAP cash cost of sales (FOB mine).
 
Balance Sheet and Liquidity
 
As of September 30, 2026, the Company had liquidity of $374.7 million, consisting of approximately $233.0 million of cash and $141.7 million of borrowing availability under our revolving credit facility. There were zero borrowings under our revolving credit facility as of September 30, 2026. Liquidity was up approximately 38% compared to the same period of 2025.
 
Quarterly capital expenditures totaled $35.5 million, up 114% compared to $16.6 million in the same period of 2025. This compared to $27.4 million for the second quarter of 2026. The increase was driven by the ramp-up of the Company's low-vol growth projects at both the Berwind and Maben Complexes.
 
For the third quarter of 2026, the Company recognized an income tax benefit of $5.2 million, an approximate 22% effective tax benefit rate.
 
To see the full results with financial figures included, click here.