Business Context and Reporting Period
Ramaco Resources, Inc. (Ramaco) is a dual-platform critical mineral company operating high-quality metallurgical coal mines in West Virginia and Virginia, while developing rare earth element (REE) and critical mineral operations at the Brook Mine in Wyoming. The reporting period covers the fiscal year ended December 31, 2025. The company operates two reportable segments: Metallurgical Coal and Rare Earths and Critical Minerals.
Key Financial Metrics
| Metric | 2025 | 2024 |
|---|---|---|
| Revenue | $536.6 million | $666.3 million |
| Net (Loss) Income | $(51.4) million | $11.2 million |
| Operating (Loss) Income | $(56.0) million | $16.6 million |
| Adjusted EBITDA | $36.1 million | $105.8 million |
| Cash Flow from Operations | $2.0 million | $112.7 million |
| Total Debt (Principal) | $467.6 million | $103.1 million |
| Cash and Equivalents | $440.3 million | $33.0 million |
| Coal Production | 3.8 million tons | 3.7 million tons |
Material Changes vs. Prior Period
- Revenue Decline: Revenue decreased 19% year-over-year to $536.6 million, driven by a 16% decrease in revenue per ton sold (from $167 to $140) and a 4% decrease in tons sold. The price decline was attributed to softening global metallurgical coal markets and index-based pricing volatility.
- Net Loss: The company reported a net loss of $51.4 million in 2025 compared to net income of $11.2 million in 2024. This was primarily due to lower operating income and increased interest expense.
- Cost Reductions: Cost of sales decreased 15% to $453.4 million, aided by the closure of the high-cost Jawbone mine in 2024 and reduced trucking costs at the Maben complex following the commissioning of a new preparation plant in late 2024.
- Capital Structure Shift: Total debt increased significantly by approximately $364 million to $467.6 million. This was driven by the issuance of $65.0 million in 8.250% Senior Notes due 2030 and $345.0 million in 0.0% Convertible Senior Notes due 2031. Proceeds were used to repay prior debt and fund the Brook Mine development.
- Liquidity Improvement: Cash and cash equivalents surged to $440.3 million from $33.0 million, bolstered by a $189.0 million equity offering and debt proceeds.
Guidance, Outlook, and Risks
- REE Development: The Brook Mine in Wyoming is in the development phase. A Preliminary Economic Assessment (PEA) by Fluor Corporation in July 2025 concluded the project is technically and economically viable. The company is advancing a pilot facility and a pre-feasibility study with Hatch Ltd., with commercial production not yet realized.
- Coal Outlook: Management expects metallurgical coal prices to remain volatile. The company plans to increase annual production to potentially 7 million clean tons over the medium term, subject to market conditions and permitting.
- Dividends: The quarterly Class A stock dividend was suspended in July 2025. Class B common stock dividends continue to be declared based on 20% of CORE royalty and infrastructure fees.
- Key Risks:
- SEC Comment Letter: The company received an unresolved comment letter from the SEC regarding disclosures related to the Brook Mine PEA and the characterization of the project's viability.
- Legal Proceedings: A putative class action lawsuit was filed in January 2026 alleging securities law violations regarding statements about the Brook Mine's development status.
- Permitting and Regulation: Significant risks exist regarding the ability to obtain permits for the Brook Mine and the impact of environmental regulations on coal operations.
- Customer Concentration: Three customers accounted for 34% of total revenue in 2025.
Investor Verification Checklist
- Brook Mine Viability: Verify the status of the SEC comment letter regarding the Brook Mine PEA and the timeline for the pre-feasibility study to confirm the path to commercial production.
- Debt Covenants: Review the terms of the new $500 million Revolving Credit Facility and Senior Notes to ensure compliance with fixed charge coverage ratios and other covenants given the recent net loss.
- Legal Exposure: Monitor the progress of the January 2026 class action lawsuit and the preparation plant purchase litigation to assess potential financial liabilities.
- Coal Pricing: Track global metallurgical coal indices and the company's fixed-price contract mix for 2026 to gauge revenue stability.
- Capital Allocation: Assess the balance between capital expenditures for the Brook Mine development and the maintenance of the cash-generating coal assets.