Ramaco Resources Inc.
08/05/2026 | Press release | Distributed by Public on 08/05/2026 11:06
Quarterly Report for Quarter Ending June 30, 2026 (Form 10-Q)
Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained in our Annual Report, as well as the financial statements and related notes appearing elsewhere in this Quarterly Report. The following discussion contains forward-looking statements that reflect our future plans, estimates, beliefs and expected performance. The forward-looking statements are dependent upon events, risks and uncertainties that may be outside our control. We caution you that our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to such differences are discussed elsewhere in this Quarterly Report, particularly in the "Cautionary Note Regarding Forward-Looking Statements" and in our Annual Report and in this Quarterly Report under the heading "Item 1A. Risk Factors," all of which are difficult to predict. In light of these risks, uncertainties and assumptions, the forward-looking events discussed may not occur. We do not undertake any obligation to publicly update any forward-looking statements except as otherwise required by applicable law.
Overview
We are an operator and developer of high-quality, low-cost metallurgical coal in southern West Virginia and southwestern Virginia, and are exploring a coal, rare earth, and other critical minerals project in Wyoming. Our metallurgical coal development portfolio primarily includes the following properties: Elk Creek, Berwind, Knox Creek, and Maben. We believe each of these properties possesses geologic and logistical advantages that make our coal among the lowest delivered-cost U.S. metallurgical coal to our domestic customer base, North American blast furnace steel mills and coke plants, as well as to international metallurgical coal consumers. In mid-2025, we held a ribbon cutting and groundbreaking event at our rare earth element and other critical mineral exploration stage property near Sheridan, Wyoming (the "Brook Mine"). The Brook Mine is currently an exploration stage property with respect to its rare earth element and other critical mineral operations. The Brook Mine initially produced representative material to serve as feedstock for testing, with the goal of demonstrating the viability of processing rare earth elements and other critical minerals and establishing mineral reserves. There is no assurance that we will be able to successfully develop the Brook Mine into a commercial scale mine, and there is no certainty that any part of the inferred mineral resources estimated will be converted into higher confidence mineral resources and eventually mineral reserves in the future. Contiguous to the Brook Mine, the Company operates a carbon research facility related to the production of advanced carbon products and materials from coal.
Our reportable segments, which are primarily based on the Company's internal organizational structure and types of controlled mineral deposits, are its two operating segments-Metallurgical Coal and Rare Earths and Critical Minerals. Where applicable, prior period amounts have been recast to conform to this segment reporting structure, which was modified during the third quarter of 2025.
Metallurgical Coal Segment
Our primary source of revenue is the sale of metallurgical coal. We maintain 85 million reserve tons and an additional 1,337 million measured and indicated resource tons of high-quality metallurgical coal. Our plan is to continue the development of our existing properties and grow annual production over the next few years to possibly as much as seven million clean tons of metallurgical coal annually, subject to market conditions, permitting and additional capital deployment in the medium-term. We may also acquire additional coal reserves or infrastructure that contribute to our focus on long-term value creation, operational efficiency and lower costs.
The overall outlook of the metallurgical coal business is dependent on a variety of factors such as pricing, regulatory uncertainties, and global economic conditions. Coal consumption and production in the U.S. are driven by several market dynamics and trends including the U.S. and global economies, the U.S. dollar's strength relative to other currencies and accelerating production cuts. Blast furnace steelmaking is more prevalent outside the U.S. compared to domestic steel production, which creates demand for exports of metallurgical coal, including demand growth in the Asia Pacific.
Global metallurgical coal markets remained soft in the second quarter of 2026 due to constrained economic growth in some regions of the world and continued conflict overseas. Reduced global steel production and oversupply in the market have led to a reduction in the price steel producers are willing to pay for their metallurgical coal feedstock. Overall steel demand will likely remain weak in the near term; however, supply cuts have begun occurring for higher cost operations which is expected to positively impact pricing. Longer term, the Company believes that limited global investment in new coking coal production capacity, the industrialization of emerging economies, expansion of urbanization globally, and an eventual return to economic growth will support coking coal markets overall.
During the six months ended June 30, 2026, we sold 1.9 million tons of coal and recognized $266.4 million of revenue. Of this amount, 29% of our revenue was from sales into North American markets, including Canada, and 71% of our revenue was from sales into export markets. During the same period of 2025, we sold 2.0 million tons of coal and recognized $287.6 million of revenue, of which 37% was from sales into North American markets, including Canada, and 63% was from sales into export markets. Sales into export markets, which often include index-based pricing, generally have greater exposure to variability in pricing from period to period. The Company's exports have not been materially delayed or otherwise affected by recent severe weather events, dockworker labor disputes, global conflicts or recently enacted U.S. tariffs.
As of June 30, 2026, the Company had outstanding performance obligations of approximately 0.7 million tons for contracts with fixed sales prices averaging $139 per ton, excluding freight, as well as 1.6 million tons for contracts with index-based pricing mechanisms. The Company expects to satisfy approximately 85% of these commitments in 2026 and 15% of these commitments in 2027. Refer to Note 9 of Part I, Item 1 for additional information.
The metallurgical coal markets are volatile in nature; therefore, the Company prioritizes managing its financial position and liquidity, while managing costs and capital expenditures and returning value to its shareholders.
In the first six months of 2026, our segment capital expenditures were $43.4 million, excluding capitalized interest of $0.5 million. In the first six months of 2025, our segment capital expenditures were $34.6 million, excluding capitalized interest of $0.7 million. The increase in capital expenditures was mainly attributable to the construction of a new rail loadout at our Maben complex and adding mining sections at our Berwind complex as part of our growth commitments in our low-vol portfolio.
The Company produced 1.9 million tons of coal during the first six months of 2026 compared to 2.0 million tons of coal in the corresponding period of 2025. The Company expects full-year production volumes in 2026 between 3.6 and 3.9 million tons with an ability to vary production dependent on market conditions.
Rare Earths and Critical Minerals Segment
Our ongoing business development efforts are focused on the timely and prudent advancement of our rare earth elements and other critical minerals property, the assessment of associated processing facilities to support the future production of rare earth element minerals and other critical minerals products, and coal-to-carbon based products.
The Company continues to move forward with its potential rare earth elements and other critical minerals deposit evaluation at the Brook Mine. The timeline for our rare earth elements and other critical minerals initiatives is subject to the completion of ongoing test work, engineering studies, and the continued updating of mine designs, as well as the receipt of all required federal, state, and local permits and licenses and compliance with applicable regulatory requirements.
Critical mineral production, including mill throughput and feed grades, is subject to further technical validation, including additional infill and step-out drilling, geological modeling, mine planning, and metallurgical testing. There is no assurance that we will be able to successfully develop the Brook Mine into a commercial scale mine, and there is no certainty that any part of the inferred mineral resources estimated will be converted into higher confidence mineral resources and eventually mineral reserves in the future.
In the first six months of 2026, our segment capital expenditures were $6.7 million, excluding capitalized interest of $0.3 million. In the first six months of 2025, our segment capital expenditures were $0.5 million. The increase in capital expenditures was attributable to the continued expansion of the Brook Mine project.
No revenues have been recognized from the Company's Rare Earths and Critical Minerals segment to date.
Consolidated Results of Operations
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Three months ended June 30, |
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Six months ended June 30, |
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(In thousands, except per share amounts) |
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2026 |
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2025 |
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2026 |
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2025 |
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Revenue |
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$ |
144,799 |
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$ |
152,959 |
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$ |
266,412 |
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$ |
287,615 |
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Costs and expenses |
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Cost of sales (exclusive of items shown separately below) |
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128,176 |
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134,182 |
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236,690 |
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248,314 |
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Asset retirement obligations accretion |
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483 |
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402 |
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989 |
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804 |
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Depreciation, depletion, and amortization |
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16,811 |
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17,038 |
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33,424 |
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34,580 |
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Selling, general and administrative expenses |
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17,577 |
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15,181 |
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37,862 |
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29,783 |
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Total costs and expenses |
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163,047 |
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166,803 |
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308,965 |
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313,481 |
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Operating income (loss) |
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(18,248) |
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(13,844) |
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(42,553) |
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(25,866) |
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Other income (expense), net |
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189 |
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658 |
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674 |
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1,163 |
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Interest expense, net |
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(1,519) |
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(2,818) |
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(1,853) |
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(5,048) |
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Income before tax |
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(19,578) |
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(16,004) |
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(43,732) |
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(29,751) |
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Income tax benefit (expense) |
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4,163 |
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2,030 |
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9,998 |
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6,320 |
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Net income (loss) |
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$ |
(15,415) |
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$ |
(13,974) |
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$ |
(33,734) |
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$ |
(23,431) |
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Earnings per common share |
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Basic - Class A |
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$ |
(0.26) |
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$ |
(0.29) |
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$ |
(0.56) |
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$ |
(0.48) |
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Basic - Class B |
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$ |
(0.13) |
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$ |
(0.12) |
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$ |
(0.28) |
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$ |
(0.31) |
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Diluted - Class A |
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$ |
(0.26) |
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$ |
(0.29) |
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$ |
(0.56) |
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$ |
(0.48) |
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Diluted - Class B |
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$ |
(0.13) |
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$ |
(0.12) |
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$ |
(0.28) |
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$ |
(0.31) |
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Adjusted EBITDA |
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$ |
5,704 |
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$ |
9,005 |
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$ |
3,911 |
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$ |
18,794 |
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Net income and Adjusted EBITDA for the three and six months ended June 30, 2026 were negatively impacted by the continued unfavorable global metallurgical coal markets and metallurgical coal price indices. This occurred due to a variety of macroeconomic factors, including the continued Chinese oversupply of steel into a muted global economic environment. Refer to Non-GAAP Financial Measures later in Item 2 for more information regarding Adjusted EBITDA.
Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025
Revenue. Coal sales revenue for the three months ended June 30, 2026 was $144.8 million, approximately 5.3% lower than the same period in 2025 driven by the negative impact of pricing and a 2.1% decrease in tons sold. See the "Metallurgical Coal Segment" section below for further discussion of year-over-year changes in revenue. There are no revenues from the Company's Rare Earths and Critical Minerals segment at this time.
Cost of sales. Our cost of coal sales for the three months ended June 30, 2026 was $128.2 million, approximately 4.5% lower than the same period in 2025 driven by the decrease in tons sold described above. See the "Metallurgical
Coal Segment" section below for further discussion of year-over-year changes in cost of sales. There are no cost of sales from the Company's Rare Earths and Critical Minerals segment at this time.
Depreciation, depletion, and amortization. Depreciation, depletion, and amortization expense totaled $16.8 million and $17.0 million for the three months ended June 30, 2026 and 2025, respectively. The decrease quarter-to-quarter was related to a $0.3 million decrease in development amortization and depletion and a $0.2 million decrease in finance lease amortization, partially offset by general increases in plant and equipment versus 2025.
Selling, general, and administrative. Selling, general, and administrative ("SG&A") expenses were $17.6 million and $15.2 million for the three months ended June 30, 2026 and 2025, respectively. SG&A expenses for the three months ended June 30, 2026 include a $1.2 million reversal of a legacy accrued expense established in 2023 following resolution of the related matter. In addition to this matter, the increase in 2026 was also due to an increase in labor costs of $2.1 million, including stock compensation, with the remaining increase attributable to the development of our rare earth element and critical minerals project.
Other income (expense), net. Other income (expense), net was $0.2 million for the three months ended June 30, 2026 compared $0.7 million for the three months ended June 30, 2025. The decrease in 2026 was associated with activities ancillary to our operations such as rail rebates, scrap sales and other miscellaneous income.
Interest expense, net. Interest expense, net was $1.5 million for the three months ended June 30, 2026 compared to $2.8 million for the same period in 2025. The decrease in 2026 was largely due to increased interest income of $2.2 million from U.S. treasury securities, offset by an increase in interest expense of $1.2 million associated with the issuance of 2030 Senior Notes in the fiscal quarter ended September 30, 2025 and 2031 Convertible Senior Notes in the fiscal quarter ended December 31, 2025.
Income tax benefit (expense). The effective tax rate for the three months ended June 30, 2026 and 2025 was a benefit of 21.3% and 12.7%, respectively. The lower effective tax rate for the quarter ended June 30, 2025 compared to 2026 was primarily driven by the impact of changes to the annual effective tax rate made in that period. The primary differences from the federal statutory rate of 21% are related to state taxes, non-deductible expenses, production tax credits, and depletion expense for income tax purposes.
Earnings (loss) per share. Refer to Note 11 of Part I, Item 1 for information regarding earnings per share calculations for Class A and Class B common stock.
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Revenue. Coal sales revenue for the six months ended June 30, 2026 was $266.4 million, approximately 7.4% lower than the same period in 2025 driven by the negative impact of pricing and a 3.8% decrease in tons sold. See the "Metallurgical Coal Segment" section below for further discussion of year-over-year changes in revenue. There are no revenues from the Company's Rare Earths and Critical Minerals segment at this time.
Cost of sales. Our cost of coal sales for the six months ended June 30, 2026 was $236.7 million, approximately 4.7% lower than the same period in 2025 driven by the decrease in tons sold described above. See the "Metallurgical Coal Segment" section below for further discussion of year-over-year changes in cost of sales. There are no cost of sales from the Company's Rare Earths and Critical Minerals segment at this time.
Depreciation, depletion, and amortization. Depreciation, depletion, and amortization expense totaled $33.4 million and $34.6 million for the six months ended June 30, 2026 and 2025, respectively. The decrease was related to a $1.9 million decrease in development amortization and depletion and a $0.4 million decrease in finance lease amortization, partially offset by general increases in plant and equipment versus 2025.
Selling, general, and administrative. SG&A expenses were $37.9 million and $29.8 million for the six months ended June 30, 2026 and 2025, respectively. SG&A expenses for the six months ended June 30, 2026 include a $1.2 million reversal of a legacy accrued expense established in 2023 following resolution of the related matter. In addition to
this matter, the increase in 2026 was also due to an increase in labor costs of $3.4 million, including stock compensation, with the remaining increase attributable to the development of our rare earth element and critical minerals project.
Other income (expense), net. Other income (expense), net was $0.7 million for the six months ended June 30, 2026 compared to $1.2 million for the six months ended June 30, 2025. The decrease in 2026 was associated with activities ancillary to our operations such as rail rebates, scrap sales and other miscellaneous income.
Interest expense, net. Interest expense, net was $1.9 million for the six months ended June 30, 2026 compared to $5.0 million for the same period in 2025. The decrease in 2026 was largely due to increased interest income of $5.6 million from U.S. treasury securities, offset by an increase in interest expense of $2.5 million associated with the issuance of 2030 Senior Notes in the fiscal quarter ended September 30, 2025 and 2031 Convertible Senior Notes in the fiscal quarter ended December 31, 2025.
Income tax benefit (expense). The effective tax rate for the six months ended June 30, 2026 and 2025 was a benefit of 20.0% and 23.5%, respectively, excluding the impact of discrete items. Discrete items for the periods consisted of stock-based compensation. The lower effective tax rate for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was primarily driven by a lower expected percentage depletion deduction. The primary differences from the federal statutory rate of 21% are related to state taxes, non-deductible expenses, production tax credits, and depletion expense for income tax purposes.
Earnings (loss) per share. Refer to Note 11 of Part I, Item 1 for information regarding earnings per share calculations for Class A and Class B common stock.
Segment Results
Metallurgical Coal Segment
Coal sales and Segment Adjusted EBITDA information is summarized as follows:
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Three months ended June 30, |
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Six months ended June 30, |
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(In thousands) |
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2026 |
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2025 |
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Increase (Decrease) |
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2026 |
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2025 |
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Increase (Decrease) |
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Revenue |
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$ |
144,799 |
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$ |
152,959 |
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$ |
(8,160) |
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$ |
266,412 |
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$ |
287,615 |
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$ |
(21,203) |
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Tons sold |
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1,056 |
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1,079 |
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(23) |
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1,948 |
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2,024 |
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(76) |
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Total revenue per ton sold (GAAP basis) (a) |
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$ |
137 |
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$ |
142 |
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$ |
(5) |
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$ |
137 |
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$ |
142 |
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$ |
(5) |
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Cost of sales |
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$ |
128,176 |
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$ |
132,264 |
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$ |
(4,088) |
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$ |
236,690 |
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$ |
244,484 |
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$ |
(7,794) |
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Tons sold |
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1,056 |
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1,079 |
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(23) |
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1,948 |
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2,024 |
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(76) |
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Total cost of sales per ton sold (GAAP basis) (a) |
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$ |
121 |
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$ |
123 |
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$ |
(2) |
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$ |
122 |
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$ |
121 |
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$ |
1 |
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Segment Adjusted EBITDA (b) |
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$ |
14,537 |
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$ |
17,014 |
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$ |
(2,477) |
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$ |
23,270 |
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$ |
35,721 |
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$ |
(12,451) |
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(a) Refer to Non-GAAP Financial Measures below for supplemental calculations of revenue per ton sold (FOB mine) and cash cost per ton sold (FOB mine). |
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(b) Segment Adjusted EBITDA is management's primary segment measure of profit or loss in assessing segment performance and deciding how to allocate the Company's resources. See Note 12-Segment Reporting in Part I, Item 1 for additional information on the calculation of Segment Adjusted EBITDA. Refer to Non-GAAP Financial Measures below for an explanation of the Company's calculation of Segment Adjusted EBITDA. |
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Our revenue includes sales of Company-produced coal and coal purchased from third parties. We include amounts billed by us for transportation to our customers within revenue and transportation costs incurred within cost of sales.
Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025
Revenue. Coal sales revenue for the three months ended June 30, 2026 was $144.8 million, approximately 5.3% lower than the same period in 2025 driven by the negative impact of pricing and a 2.1% decrease in tons sold. The decrease in tons sold was attributable to a 32.0% decrease in domestic tons sold, offset by a 16.7% increase in export tons sold. Revenue per ton sold decreased 3.5% from $142 per ton for the three months ended June 30, 2025 to $137 per ton for the three months ended June 30, 2026. Revenue per ton sold (FOB mine), a non-GAAP measure which excludes transportation revenues and demurrage, also decreased 5.7% from $123 per ton for the three months ended June 30, 2025 to $116 per ton for the three months ended June 30, 2026. Refer to Non-GAAP Financial Measures later in Item 2 for more information regarding this measure. The decrease in the Company's revenue per ton sold measures were largely due to the decrease in metallurgical coal prices, specifically within U.S. high-vol indices, due to the macroeconomic conditions discussed earlier. We expect metallurgical coal prices to remain volatile in the near term.
Cost of sales. Our cost of coal sales for the three months ended June 30, 2026 was $128.2 million, approximately 3.1% lower than the same period in 2025 mainly attributable to the decrease in tons sold discussed above. Cost of sales per ton sold decreased 1.6% from $123 per ton for the three months ended June 30, 2025 to $121 per ton for the three months ended June 30, 2026. Cash cost per ton sold (FOB mine), a non-GAAP measure which excludes transportation costs and idle mine costs, decreased 3.9% from $103 per ton for three months ended June 30, 2025 to $99 per ton for three months ended June 30, 2026. Refer to Non-GAAP Financial Measures later in Item 2 for more information regarding this measure. The decrease in the Company's cost of sales per ton sold measures were largely due to our increased efforts to produce from cost effective mines in a challenging macroeconomic coal environment discussed earlier.
Segment adjusted EBITDA. Segment adjusted EBITDA for the three months ended June 30, 2026 decreased by $2.5 million compared to the same period in 2025 driven by the revenue and cost of sales items discussed above.
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Revenue. Coal sales revenue for the six months ended June 30, 2026 was $266.4 million, approximately 7.4% lower than the same period in 2025 driven by the negative impact of pricing and a 3.8% decrease in tons sold. The decrease in tons sold was attributable to a 22.3% decrease in domestic tons sold, offset by a 6.2% increase in export tons sold. Revenue per ton sold decreased 3.5% from $142 per ton for the six months ended June 30, 2025 to $137 per ton for the six months ended June 30, 2026. Revenue per ton sold (FOB mine), a non-GAAP measure which excludes transportation revenues and demurrage, also decreased 6.6% from $123 per ton for the six months ended June 30, 2025 to $115 per ton for the six months ended June 30, 2026. Refer to Non-GAAP Financial Measures later in Item 2 for more information regarding this measure. The decrease in the Company's revenue per ton sold measures were largely due to the decrease in metallurgical coal prices, specifically within U.S. high-vol indices, due to the macroeconomic conditions discussed earlier. We expect metallurgical coal prices to remain volatile in the near term.
Cost of sales. Our cost of coal sales for the six months ended June 30, 2026 was $236.7 million, approximately 3.2% lower than the same period in 2025 mainly attributable to the decrease in tons sold discussed above. Cost of sales per ton sold increased 0.8% from $121 per ton for the six months ended June 30, 2025 to $122 per ton for the six months ended June 30, 2026 due to a $4.2 million increase in transportation and idle costs, offset by cost efficiencies realized from our increased efforts to produce from cost effective mines in a challenging macroeconomic coal environment discussed earlier. Cash cost per ton sold (FOB mine), a non-GAAP measure which excludes transportation costs and idle mine costs, decreased 3.0% from $101 per ton for the six months ended June 30, 2025 to $98 per ton for the six months ended June 30, 2026 in alignment with the previous explanation. Refer to Non-GAAP Financial Measures later in Item 2 for more information regarding this measure.
Segment adjusted EBITDA. Segment adjusted EBITDA for the six months ended June 30, 2026 decreased by $12.5 million compared to the same period in 2025 driven by the revenue and cost of sales items discussed above.
Rare Earths and Critical Minerals Segment
As of June 30, 2026, the Company has not recorded any revenues or cost of sales from the Rare Earths and Critical Minerals segment. Segment Adjusted EBITDA is shown below:
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Three months ended June 30, |
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Increase |
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Six months ended June 30, |
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Increase |
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(In thousands) |
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2026 |
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2025 |
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(Decrease) |
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2026 |
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2025 |
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(Decrease) |
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Segment Adjusted EBITDA (a) |
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$ |
(5,438) |
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$ |
(4,282) |
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$ |
(1,156) |
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$ |
(12,049) |
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$ |
(8,465) |
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$ |
(3,584) |
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|
(a) Segment Adjusted EBITDA is management's primary segment measure of profit or loss in assessing segment performance and deciding how to allocate the Company's resources. Note 12-Segment Reporting in Part I, Item 1 for additional information on the calculation of Segment Adjusted EBITDA. Refer to Non-GAAP Financial Measures below for an explanation of the Company's calculation of Segment Adjusted EBITDA. |
||||||||||||||||||
Segment adjusted EBITDA. Segment adjusted EBITDA for the three and six months ended June 30, 2026 decreased by $1.2 million and $3.6 million, respectively, compared to the same periods in 2025 primarily driven by increased labor and professional service costs to develop the Brook Mine rare earth elements and other critical minerals project in 2026.
Liquidity and Capital Resources
The metallurgical coal markets are volatile in nature; therefore, the Company prioritizes managing its financial position and liquidity, while managing costs and capital expenditures and returning value to its shareholders.
On December 30, 2025, the Company entered into a Third Amended and Restated Credit and Security Agreement, which includes KeyBank National Association and multiple lending parties, in order to, among other things, extend the maturity date and increase the size of the facility. The amended facility has a maturity date of December 30, 2030 (subject to a springing maturity tied to convertible indebtedness), and provides an initial aggregate revolving commitment of $350.0 million as well as an accordion feature to increase the size by an additional $150.0 million subject to certain terms and conditions set forth in the Credit Agreement. The amended facility provides the Company with additional flexibility to pursue further growth in production while meeting normal operating requirements. The terms of the amended facility also require the Company to maintain certain covenants, including fixed charge coverage ratio and compensating balance requirements. Borrowings under the amended facility may not exceed the borrowing base as determined under the amended formula included in the agreement.
At June 30, 2026, we had $282.5 million of cash and cash equivalents and $117.6 million of remaining availability under our Revolving Credit Facility for future borrowings. Cash and cash equivalents include $7.5 million of compensating balances held in dedicated accounts to assure future credit availability under the revolver. The Company's total current assets were $460.6 million and were in excess of total current liabilities by $351.8 million as of the balance sheet date.
Significant uses of cash during the first six months of 2026
Uses of cash:
| ● | Cash flows used in operating activities were $22.4 million, which were driven primarily by a net loss adjusted for non-cash expenses including depreciation, depletion, and amortization as well as stock-based compensation. Changes in operating assets and liabilities also contributed to operating cash outflow driven primarily by an increase in accounts receivable due to higher June 2026 shipments which remained |
| uncollected at period end, an increase in inventory due to production and inventory valuation, and an increase in accrued liabilities due to the timing of vendor payments. |
| ● | Cash capital expenditures totaled $44.6 million, which includes offsetting grant income of $0.5 million from the Wyoming Energy Authority associated with the Brook Mine project. A majority of the capital expenditures in Q2 2026 related to the construction of a new rail loadout at our Maben complex and adding mining sections at our Berwind complex as part of our growth commitments in our low-vol portfolio. |
| ● | Cash outflows for financing activities totaled $91.0 million, which is mainly attributable to $65.9 million in common stock repurchases and $17.6 million in tax payments associated with shares surrendered for withholding taxes for the vesting of stock-based awards during the first quarter of 2026. |
All dividends declared to date for Class B common stock were based on 20% of CORE royalty and infrastructure fees for the previous quarter.
|
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|
Three months ended June 30, |
|
Six months ended June 30, |
|
||||||||
|
(In thousands) |
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Royalties |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ramaco Coal |
|
$ |
1,987 |
|
$ |
2,748 |
|
$ |
3,814 |
|
$ |
5,129 |
|
|
Amonate Assets |
|
|
740 |
|
|
704 |
|
|
1,246 |
|
|
1,304 |
|
|
Other |
|
|
- |
|
|
5 |
|
|
- |
|
|
12 |
|
|
Total Royalties |
|
$ |
2,727 |
|
$ |
3,456 |
|
$ |
5,060 |
|
$ |
6,444 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infrastructure Fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preparation Plants (Processing at $5.00/ton) |
|
|
4,140 |
|
|
4,625 |
|
$ |
7,980 |
|
$ |
8,881 |
|
|
Rail Load-outs (Loading at $2.50/ton) |
|
|
1,963 |
|
|
2,176 |
|
|
3,573 |
|
|
4,245 |
|
|
Total Infrastructure Fees (at $7.50/ton) |
|
$ |
6,103 |
|
$ |
6,801 |
|
$ |
11,553 |
|
$ |
13,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CORE Royalty and Infrastructure Fees |
|
$ |
8,830 |
|
$ |
10,257 |
|
$ |
16,613 |
|
$ |
19,570 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Cash Available for Dividend for Class B Common Stock |
|
$ |
8,830 |
|
$ |
10,257 |
|
$ |
16,613 |
|
$ |
19,570 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20% of Cash Available for Dividend for Class B Common Stock |
|
$ |
1,766 |
|
$ |
2,051 |
|
$ |
3,323 |
|
$ |
3,914 |
|
Refer to Note 14 of Part I, Item 1 for additional information regarding dividends declared subsequent to the date of the financial statements.
The Company currently anticipates declaring similar dividends on a quarterly basis in future periods; however, future declarations of dividends are subject to Board of Directors' approval and may be adjusted as business needs or market conditions change.
Future sources and uses of cash
Our primary use of cash includes capital expenditures for mine development, infrastructure and equipment, ongoing operating expenses, as well as our investment in advancing our rare earth elements and other critical minerals project. As of the date of this Quarterly Report, we expect to fund our capital and liquidity requirements for the next twelve months and the reasonably foreseeable future with cash on hand, borrowings under the Revolving Credit Facility, and projected cash flows from operations. Factors that could adversely impact our future liquidity and ability to carry out our capital expenditure program include the following:
| ● | Project overruns related to the evaluation of the Brook Mine, including but not limited to increased costs to test and validate the viability of processing rare earth elements and other critical minerals at a commercial scale; |
| ● | Timely delivery of our product by rail and other transportation carriers; |
| ● | Late payments of accounts receivable by our customers; |
| ● | Cost overruns in our purchases of equipment needed to complete our mine development plans; |
| ● | Delays in completion of development of our various mines, processing plants and refuse disposal facilities, which would reduce the coal we would have available to sell and our cash flow from operations; and |
| ● | Adverse changes in the metallurgical coal markets that would reduce the expected cash flow from operations. |
If future cash flows were to become insufficient to meet our liquidity needs or capital requirements, due to changes in macroeconomic conditions or otherwise, we may reduce our expected level of capital expenditures for new mine production and/or fund a portion of our capital expenditures through the issuance of debt or equity securities, new debt arrangements, or from other sources such as asset sales.
On August 5, 2025, the Company filed an automatic shelf registration statement, which was effective upon filing, to sell any combination of Class A common stock, Class B common stock, preferred stock, depositary shares, debt securities, warrants, and rights. No securities may be sold until a prospectus supplement describing the method and terms of any future offering is delivered.
Refer to Note 5 of Part I, Item 1, for information regarding the Company's Revolving Credit Facility and indebtedness.
There were no material changes to the Company's contractual obligations from those disclosed in the Annual Report. The Company's contractual commitments and obligations include repayments of long-term debt, including senior unsecured notes and convertible senior notes, minimum coal lease and royalty obligations, payments under financing and operating leases, take-or-pay obligations associated with rail and export terminal transportation contracts, and insurance premium financing. In addition, the Company has asset retirement obligations and workers' compensation and occupational disease obligations that represent additional material cash requirements.
Critical Accounting Estimates
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amounts of revenue and expenses reported for the period then ended. A discussion of our critical accounting policies and estimates is included in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates" of the Annual Report. There were no material changes to our critical accounting policies during the six months ended June 30, 2026.
Off-Balance Sheet Arrangements
A discussion of off-balance sheet arrangements is included under the heading "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Off-Balance Sheet Arrangements" in the Annual Report. There were no material changes during the six months ended June 30, 2026.
Non-GAAP Financial Measures
Adjusted EBITDA - Adjusted EBITDA is used as a supplemental non-GAAP financial measure by management and external users of our financial statements, such as industry analysts, investors, lenders, and rating agencies. We believe Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance.
We define Adjusted EBITDA as net income plus net interest expense; stock-based compensation; depreciation, depletion, and amortization expenses; income taxes; accretion of asset retirement obligations; and, when applicable, certain other non-operating and expense items that are non-recurring and not related to the underlying business performance. A reconciliation of net income to Adjusted EBITDA is included below. Adjusted EBITDA is not intended to serve as a substitute to U.S. GAAP measures of performance and may not be comparable to similarly-titled measures presented by other companies.
|
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|
|
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|
|
|
|
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||
|
(In thousands) |
|
2026 |
|
2025 |
|
2026 |
|
2025 |
||||
|
Reconciliation of Net Income to Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|||
|
Net income (loss) |
|
$ |
(15,415) |
|
$ |
(13,974) |
|
$ |
(33,734) |
|
$ |
(23,431) |
|
Depreciation, depletion, and amortization |
|
16,811 |
|
17,038 |
|
33,424 |
|
34,580 |
||||
|
Interest expense, net |
|
1,519 |
|
2,818 |
|
1,853 |
|
5,048 |
||||
|
Income tax expense (benefit) |
|
(4,163) |
|
(2,030) |
|
(9,998) |
|
(6,320) |
||||
|
EBITDA |
|
(1,248) |
|
3,852 |
|
(8,455) |
|
9,877 |
||||
|
Stock-based compensation |
|
5,912 |
|
4,751 |
|
10,820 |
|
8,113 |
||||
|
Other expense (a) |
|
|
557 |
|
|
- |
|
|
557 |
|
|
- |
|
Accretion of asset retirement obligation |
|
483 |
|
402 |
|
989 |
|
804 |
||||
|
Adjusted EBITDA |
|
$ |
5,704 |
|
$ |
9,005 |
|
$ |
3,911 |
|
$ |
18,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Represents non-recurring expenses incurred in connection with our internal reorganization. |
||||||||||||
Non-GAAP revenue per ton sold - Non-GAAP revenue per ton sold (FOB mine) is calculated as coal sales revenue less transportation revenues and demurrage, divided by tons sold. We believe revenue per ton sold (FOB mine) provides useful information to investors as it enables investors to compare revenue per ton we generate against similar measures made by other publicly-traded coal companies and more effectively monitor changes in coal prices from period to period excluding the impact of transportation costs which are beyond our control. The adjustments made to arrive at these measures are significant in understanding and assessing our financial performance. Revenue per ton sold (FOB mine) is not a measure of financial performance in accordance with U.S. GAAP and, therefore, should not be considered as a substitute to revenue under U.S. GAAP.
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Increase |
|
Six months ended June 30, |
|
Increase |
||||||||||
|
(In thousands) |
|
2026 |
|
2025 |
|
(Decrease) |
|
2026 |
|
2025 |
|
(Decrease) |
||||||
|
Metallurgical Coal Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
144,799 |
|
$ |
152,959 |
|
$ |
(8,160) |
|
$ |
266,412 |
|
$ |
287,615 |
|
$ |
(21,203) |
|
Less: Adjustments to reconcile to Non-GAAP revenue (FOB mine) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation |
|
|
22,483 |
|
|
20,607 |
|
|
1,876 |
|
|
42,685 |
|
|
39,650 |
|
|
3,035 |
|
Non-GAAP revenue (FOB mine) |
|
$ |
122,316 |
|
$ |
132,352 |
|
$ |
(10,036) |
|
$ |
223,727 |
|
$ |
247,965 |
|
$ |
(24,238) |
|
Tons sold |
|
|
1,056 |
|
|
1,079 |
|
|
(23) |
|
|
1,948 |
|
|
2,024 |
|
|
(76) |
|
Non-GAAP revenue per ton sold (FOB mine) |
|
$ |
116 |
|
$ |
123 |
|
$ |
(7) |
|
$ |
115 |
|
$ |
123 |
|
$ |
(8) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refer to coal sales information for revenue per ton sold (GAAP basis) calculations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP cash cost per ton sold - Non-GAAP cash cost per ton sold (FOB mine) is calculated as cash cost of sales less transportation, idle, and other costs, divided by tons sold. We believe cash cost per ton sold provides useful information to investors as it enables investors to compare our cash cost per ton against similar measures made by other publicly-traded coal companies and more effectively monitor changes in coal cost from period to period excluding the impact of transportation costs which are beyond our control. The adjustments made to arrive at these measures are significant in understanding and assessing our financial performance. Cash cost per ton sold (FOB mine) is not a measure of financial performance in accordance with U.S. GAAP and, therefore, should not be considered as a substitute to cost of sales under U.S. GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Increase |
|
Six months ended June 30, |
|
Increase |
||||||||||
|
(In thousands) |
|
2026 |
|
2025 |
|
(Decrease) |
|
2026 |
|
2025 |
|
(Decrease) |
||||||
|
Metallurgical Coal Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales: |
|
$ |
128,176 |
|
$ |
132,264 |
|
$ |
(4,088) |
|
$ |
236,690 |
|
$ |
244,484 |
|
$ |
(7,794) |
|
Less: Adjustments to reconcile to Non-GAAP cash cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation costs |
|
|
22,469 |
|
|
20,673 |
|
|
1,796 |
|
|
42,436 |
|
|
39,671 |
|
|
2,765 |
|
Idle and other costs |
|
|
1,256 |
|
|
686 |
|
|
570 |
|
|
2,623 |
|
|
1,144 |
|
|
1,479 |
|
Non-GAAP cash cost of sales |
|
$ |
104,451 |
|
$ |
110,905 |
|
$ |
(6,454) |
|
$ |
191,631 |
|
$ |
203,669 |
|
$ |
(12,038) |
|
Tons sold |
|
|
1,056 |
|
|
1,079 |
|
|
(23) |
|
|
1,948 |
|
|
2,024 |
|
|
(76) |
|
Non-GAAP cash cost per ton sold (FOB mine) |
|
$ |
99 |
|
$ |
103 |
|
$ |
(4) |
|
$ |
98 |
|
$ |
101 |
|
$ |
(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refer to coal sales information for cost per ton sold (GAAP basis) calculations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ramaco Resources Inc. published this content on August 05, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on August 05, 2026 at 17:06 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]