Business Context and Reporting Period
Ramaco Resources, Inc. (Ramaco) is a Delaware corporation operating high-quality, low-cost metallurgical coal mines in West Virginia and Virginia, while simultaneously developing the Brook Mine rare earth elements (REE) and critical minerals project in Wyoming. This Form 10-Q covers the quarterly period ended March 31, 2026. The Company operates two reportable segments: Metallurgical Coal and Rare Earths and Critical Minerals.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenue | $121.6 million | $134.7 million |
| Net Loss | $(18.3) million | $(9.5) million |
| Operating Loss | $(24.3) million | $(12.0) million |
| Adjusted EBITDA | $(1.8) million | $9.8 million |
| Cash and Cash Equivalents | $355.2 million | $440.3 million |
| Long-Term Debt (Net) | $452.1 million | $451.4 million |
| Operating Cash Flow | $(34.6) million | $26.0 million |
| Capital Expenditures | $17.5 million | $20.9 million |
Segment Performance: The Metallurgical Coal segment generated $121.6 million in revenue and $8.7 million in Segment Adjusted EBITDA. The Rare Earths and Critical Minerals segment generated no revenue and reported a Segment Adjusted EBITDA loss of $(6.6) million due to development costs.
Material Changes vs. Prior Period
- Revenue Decline: Revenue decreased 10% year-over-year to $121.6 million, driven by a 6% decrease in tons sold (892,000 tons vs. 946,000 tons) and a 4% decrease in revenue per ton ($136 vs. $142). The decline is attributed to soft global metallurgical coal markets and lower index-based pricing for export sales.
- Widened Losses: Net loss more than doubled to $18.3 million from $9.5 million. This was primarily due to lower revenue, increased Selling, General, and Administrative (SG&A) expenses ($20.3 million vs. $14.6 million), and higher development costs for the Brook Mine project.
- SG&A Increase: SG&A expenses rose by $5.7 million, driven by increased professional services, general mine expenses, and labor costs associated with the REE project development.
- Interest Expense Reduction: Net interest expense dropped significantly to $0.3 million from $2.2 million, largely due to increased interest income ($3.1 million) from U.S. Treasury securities offsetting higher interest costs from new debt issuances.
- Share Repurchases: The Company repurchased 1,032,202 shares of Class A common stock for approximately $15.0 million under its 2025 Stock Repurchase Program.
Guidance, Outlook, and Risks
- Production Outlook: Management expects full-year 2026 production volumes between 3.7 and 4.1 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. However, supply cuts by higher-cost operators are expected to eventually support pricing.
- Brook Mine Development: The REE project 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 $2.2 million in Q1 2026.
- Liquidity: As of March 31, 2026, the Company held $355.2 million in cash and had $133.6 million of remaining availability under its $350 million Revolving Credit Facility. The Company expects to fund operations and capital requirements for the next 12 months with existing cash, revolver borrowings, and operating cash flows.
- Legal and Regulatory Risks:
- SEC Comments: The SEC Staff issued unresolved comments regarding disclosures of the Brook Mine project and the technical report summary filed in the 2025 10-K.
- Securities Litigation: A putative class action lawsuit was filed in January 2026 alleging violations of securities laws regarding statements about the Brook Mine's development status.
- Insurance Dispute: A trial is pending regarding "Hayseeds" damages related to a 2018 storage silo failure; the Company has accrued a loss recovery asset of approximately $4.7 million.
Investor Verification Checklist
- Verify the status of the SEC Staff comments regarding the Brook Mine technical report and the Company's response timeline.
- Monitor the progress of the putative class action securities litigation filed in January 2026.
- Assess the impact of global metallurgical coal price indices on future revenue per ton, given the Company's heavy reliance on export markets.
- Review the capital expenditure burn rate for the Brook Mine project to ensure it aligns with the Company's liquidity position and funding strategy.
- Confirm the Company's compliance with debt covenants, specifically the fixed charge coverage ratio and compensating balance requirements under the Revolving Credit Facility.