Business Context and Reporting Period
Company: Ramaco Resources, Inc. (Ramaco)
Filing Type: Form 10-Q (Unaudited)
Period Ended: June 30, 2026
Business Overview: Ramaco operates high-quality metallurgical coal mines in West Virginia and Virginia and is developing the Brook Mine rare earth elements (REE) and critical minerals project in Wyoming. The company reports two segments: Metallurgical Coal and Rare Earths and Critical Minerals.
Key Financial Metrics
| Metric | Three Months Ended June 30, 2026 | Six Months Ended June 30, 2026 |
|---|---|---|
| Revenue | $144.8 million | $266.4 million |
| Net Loss | $(15.4) million | $(33.7) million |
| Adjusted EBITDA | $5.7 million | $3.9 million |
| Cash and Cash Equivalents | $282.5 million (as of June 30, 2026) | N/A |
| Long-Term Debt, Net | $452.8 million (as of June 30, 2026) | N/A |
| Capital Expenditures | $31.0 million (Q2) | $51.0 million (YTD) |
| Stock Repurchases | $65.9 million (YTD) | N/A |
Material Changes vs. Prior Period
- Revenue Decline: Revenue decreased 5.3% quarter-over-quarter (QoQ) and 7.4% year-over-year (YoY) for the six-month period. This was driven by a 3.5% decrease in revenue per ton sold (to $137/ton) and a 3.8% decrease in tons sold (1.9 million tons YTD vs. 2.0 million tons prior year).
- Operating Loss: Operating loss widened to $(18.2) million for Q2 2026 compared to $(13.8) million in Q2 2025, primarily due to lower revenue and increased SG&A expenses.
- SG&A Increase: Selling, general, and administrative expenses rose to $17.6 million in Q2 2026 from $15.2 million in Q2 2025. This increase included higher labor costs and expenses related to the development of the Brook Mine project, partially offset by a $1.2 million reversal of a legacy accrued expense.
- Interest Expense: Net interest expense decreased significantly to $1.5 million in Q2 2026 from $2.8 million in Q2 2025, largely due to increased interest income from U.S. Treasury securities offsetting higher interest costs from new debt issuances in late 2025.
- Segment Performance: The Metallurgical Coal segment generated $14.5 million in Adjusted EBITDA for Q2 2026, down from $17.0 million in Q2 2025. The Rare Earths and Critical Minerals segment reported a loss of $(5.4) million in Adjusted EBITDA for Q2 2026, reflecting increased development costs.
Guidance, Outlook, and Risks
- Production Outlook: Management expects full-year 2026 production volumes between 3.6 and 3.9 million tons, with flexibility to vary production based on market conditions.
- Market Conditions: Global metallurgical coal markets remain soft due to constrained economic growth and oversupply. Management anticipates continued volatility in pricing but notes that supply cuts by higher-cost operations may eventually support prices.
- Brook Mine Development: The Brook Mine remains in the exploration stage. There is no assurance that inferred resources will convert to reserves or that the project will reach commercial scale. Capital expenditures for this segment increased to $6.7 million YTD 2026 compared to $0.5 million in the prior year.
- Liquidity: As of June 30, 2026, the company held $282.5 million in cash and had $117.6 million in remaining availability under its $350 million Revolving Credit Facility. The company is in compliance with all debt covenants.
- Legal Proceedings:
- Securities Class Action: A putative class action was filed in January 2026 alleging violations of securities laws regarding disclosures about the Brook Mine. An amended complaint was filed in May 2026; a pre-motion to dismiss hearing is scheduled for August 7, 2026.
- Insurance Dispute: A trial regarding "Hayseeds" damages for a 2018 silo failure is set for September 22, 2026. The company has accrued a loss recovery asset of approximately $4.8 million.
- Preparation Plant Litigation: A dispute regarding the purchase of a preparation plant is pending, with trial readiness expected by March 2027.
- Dividends: The company declared a stock dividend of $0.1535 per share on Class B common stock on August 4, 2026, payable in September 2026.
Investor Verification Checklist
- Debt Covenants: Verify continued compliance with the Revolving Credit Facility covenants, specifically the fixed charge coverage ratio and compensating balance requirements, given the operating losses.
- Brook Mine Viability: Monitor progress on the Brook Mine project, including technical validation, permitting, and the conversion of inferred resources to reserves, as this is a high-risk, capital-intensive initiative with no current revenue.
- Legal Outcomes: Track the resolution of the securities class action regarding Brook Mine disclosures and the insurance dispute trial scheduled for September 2026, as these could result in material liabilities or reputational impact.
- Coal Pricing Trends: Assess the impact of global steel demand and metallurgical coal price indices on future revenue per ton, which has declined 3.5% YoY.
- Cash Burn vs. Repurchases: Evaluate the sustainability of the $65.9 million in stock repurchases YTD against the negative operating cash flow of $(22.4) million and the reliance on cash reserves and credit facilities.