Earning Spotlight: Ramaco Resources, Inc. (NASDAQ: METC)

Ramaco Resources, Inc. (NASDAQ: METC) reported change of -10.73% to $5.28 with the recent traded volume of 143211 shares in most recent trading session compared to an average volume of 65.34K. The stock was down over last five days period with -1.33%. The one month performance of stock was 4.04%. METC shares are at 7.05% for the quarter and driving a -16.38% return over the course of the past year and is now at 19.60% since this point in 2018. 

The Company has earnings of $ 19.10M and made $6.60 sales for the last 12 months. Its quarter to quarter sales remained 68.10%. METC is -22.02% upward its 200-day moving average. On a similar note, the stock is -2.21% above its 50-day moving average. The average volatility for the week and month was at 3.32% 3.93% respectively. The company holds 39.95M shares outstanding and 8.44M shares are floated in market.

Ramaco Resources, Inc. (NASDAQ: METC) declared preliminary, unaudited financial results for the year ended December 31, 2018, as well as financial and operational guidance for 2019.  

In 2018, Ramaco sold over 2.1 million tons, and realized revenue of approximately $228 million. Ramaco is guiding to an estimated net income for 2018 of approximately $23.5 to $24.5 million and adjusted EBITDA of approximately $41 to $43 million. Capital expenditures through the year ended December 31, 2018 were approximately $48 million.

Based upon committed sales, development plans and production forecasts, Ramaco expects 2019 coal production in the range of 1.8 to 2.2 million tons.  The Company expects the average cash cost per ton to be between $63-$69 per ton at the Elk Creek mine complex and $120-$135 at the Berwind development mine, respectively. The Company will continue to do development mining throughout 2019 at our Berwind complex as we move towards the high value, low cost Pocahontas #4 seam, which it anticipates reaching in the spring of 2020. 

At the Elk Creek mine, the cost guidance for 2019 of $63-$69 per ton (up from 2018 estimated costs of $60 per ton) are expected to result from an increase in sales related costs associated with higher sales realizations. Using a midpoint of $66 per ton cost at our Elk Creek deep and surface complex, this sales price would provide almost a $50 per ton cash margin.

Randall Atkins, Ramaco’s Executive Chairman and Chief Financial Officer stated, “We continue to evolve Ramaco into an important presence in the United States metallurgical coal space. We completed 2018 with significantly stronger financial and operational results over 2017 in nearly every metric. Year over year, our sales volumes increased by over 250%, production by over 200%, revenue by over 270%, net income by over 250% and adjusted EBITDA by roughly 550%. Average per ton costs declined by 14% to $63 per ton and our capital expenditures declined by 37% to $48 million.”

“As we look to 2019, we are optimistic. We have started the year with our strongest operating results since inception. To date, we have placed almost 2.0 million tons of our 2019 production. Our current fixed price sales of 1.6 million tons are at $113 per ton. This is almost 50% higher than our 2018 average sales prices of roughly $78 per ton.”

“The Company has also committed nearly an additional 350,000 tons at indexed pricing, approximately 230,000 tons of domestic business and 120,000 tons of export business. We anticipate selling the balance of our 2019 met coal production principally into the Atlantic export markets. Five percent of our overall 2019 production tons at Elk Creek are steam tons, which are projected to be sold on a spot basis.”

Michael Bauersachs, President and CEO added that, “As we announced last year, we were challenged by the silo failure at our Elk Creek complex in the fourth quarter. We were able to continue operating at all our mines and creatively restarted the preparation plant in December. Our permanent belt workaround at Elk Creek is now complete and we are operating today at roughly 80% of processing capacity. Our final silo rehabilitation is projected to be completed early in the second quarter of 2019 at which point we expect to return to full capacity.”

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