Ramaco Resources : Q4 2024 Ramaco Resources Inc. Earnings Presentation

Published: 2025-03-11 10:37:04 ET METC

INVESTOR PRESENTATION

F o u r t h Q u a r t e r a n d F u l l Ye a r 2 0 2 4 R e s u l t s

RAMACO AT A GLANCE

Sweden

Finland

Canada

Belgium

Netherlands

Germany

Poland Ukraine

Czech Republic

Spain

Romania

South Korea

USA

Italy

Turkey

Japan

India

Indonesia

Brazil

South Africa

Ramaco has shipped its metallurgical coal to steelmakers in over 20 countries.

Key 2024 Metrics

$666 mm

$106 mm1

$11 mm

Revenue

Adj. EBITDA

Net Income

Ramaco is a low-cost, "pure play" metallurgical coal company with a strong pipeline to almost double production as market conditions warrant. The Company is also developing its Brook Mine Rare Earth Elements and Critical Minerals deposit, which has been called the only primary source for gallium, germanium, and scandium in the world by Fluor.

4.0 mm tons

0.5x2

Sales Volume

Net Debt to Adj. EBITDA

(1)

See "Reconciliation of Non-GAAP Measures" in the Appendix.

(2)

See "Reconciliation of Non-GAAP Measures" in the Appendix. Based on trailing 12-month adjusted EBITDA.

INVESTMENT THESIS

"Pure Play" Metallurgical Coal Company

Industry Leading Cost Control

Met coal is a key component in steel production, which is

Despite an overall decline in metallurgical coal pricing in

crucial to national defense and infrastructure development.

2024, Ramaco reduced its cash costs per ton by almost 20%

Ramaco (NASDAQ: METC) is a producer of high-quality met

from 1Q24 to 4Q24. Our cash costs of $96 per ton1 in 4Q24

coal for customers both in the U.S. and around the world, with

were the lowest among our publicly traded peer group.

among the most attractive growth pipelines in the industry.

Robust Growth Pipeline

Potential production of >7 mm tons over the medium term, up from just 0.5 mm tons produced in 2017 and <4 mm tons in 2024.

Strong 2025 Contract Book

Critical Mineral Optionality

~3.5 mm tons in 2025 (~80% at the

Despite our REE and Critical Mineral

midpoint of production guidance) is

discovery, METC still generally trades in-

already contracted, including ~1.9 million

line with its coal only peers based on

tons with a fixed price of $145 per ton.

consensus estimates.

(1) See "Reconciliation of Non-GAAP Measures" in the Appendix.

FOURTH QUARTER AND FULL YEAR 2024 RESULTS

SOLID MARGINS DESPITE DECLINE IN MET COAL PRICING

Our margins remained strong despite the fall in metallurgical coal prices throughout 2024

Ramaco has reduced cash costs per ton2 from $118 in 1Q24 to $96 in 4Q24, which is easily in the first quartile of the U.S. cost curve.

Due to strong cost control, 4Q24 cash margins declined by just $2 per ton from 2Q24 to $33 per ton despite the ~$30 per ton sequential drop in U.S. coal indices.

U.S. met coal prices are likely to move higher from current levels, as pricing is trading well into the global cost curve, and some high-profile mines have recently come offline.

Solid Quarterly Margins 1

$140

$250

$120

$200

RealizedPrice

Margins

$100

$150

$80

$60

$50

$100

$40

$20

Margins Per Ton

Realized Price

U.S. Met Coal Spot Price 3

$500 $400 $300 $200 $100

Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25

Met Coal Cash Costs 2

$115

$110 $105

$100 $96 $95

$90 $85

Ramaco Peer 1 Peer 2 Peer 3 Peer 4

Global Coal Capex 4

$12

$10

2011

2013

2025E

2009

2015

2017

2019

2021

2023

2024E

(1)

$/short ton FOB mine.

(2)

$/short ton FOB mine; Results are for 4Q24. See "Reconciliation of Non-GAAP Measures" in the Appendix. Peers include

(alphabetically): Alpha, Coronado, Peabody, Warrior. Source: Company documents.

(3)

In $/metric tonne FOB port for U.S. High Vol A (monthly average). Source: Platts.

(4)

In $ Billion, adjusted for inflation in 2023 dollars. Source: Jefferies, Nov. 2023.

FOURTH QUARTER PERFORMANCE REVIEW

Strong growth platform coupled with a conservative balance sheet remain core principles

Total coal production (000s of tons)

1200

901

972

954

1000

844

745

800

600

400

200

4Q23

1Q24

2Q24

3Q24

4Q24

Total coal sales (000s of tons)

1,500

1,122

988

929

915

1,023

1,000

500

4Q23

1Q24

2Q24

3Q24

4Q24

Due to both improved productivity and continued increases in production, fourth quarter sales of

1.12 mm tons were a quarterly record, with an annualized run-rate of 4.5 mm tons achieved.

Ramaco has one of the industry's most conservative balance sheets,

Total Debt1 (in $MM)

Legacy Liabilities + AROs2 (in $MM)

with net debt to trailing 12-month Adjusted EBITDA of just 0.5x.

$500

$400 $300 $200 $100 $0

$89

$1,500

$1,000

$500

$34

Ramaco has the lowest AROs plus legacy liabilities among its direct peer group, 94% below the group average.(3)

Peer 1 Ramaco Peer 2 Peer 3 Peer 4 Peer 5

Ramaco Peer 1 Peer 2 Peer 3 Peer 4 Peer 5

2025 RAMACO RESOURCES GUIDANCE

Full-Year

2024

2025 Guidance

Company Production (tons)

4,200 - 4,600

3,671

Sales (tons)(a)

4,400 - 4,800

3,989

Cash Costs Per Ton - Company

97 - 103

$105

Produced(b)

Other

Committed 2025 Sales Volume(f)

Volume

Avg Price

(In millions, except per ton amounts)

North America, fixed priced

1.6

152

Seaborne, fixed priced

0.3

111

Total, fixed price

1.9

145

Indexed price

1.5

Total committed tons

3.5

Capital Expenditures(c)

60,000 - 70,000

68,842

Selling, general and administrative

34,000 - 38,000

31,820

expense(d)

Depreciation, depletion and amortization

73,000 - 78,000

65,615

expense

Interest expense, net

8,000 - 9,000

6,123

Effective tax rate(e)

25 - 30%

25%

Idle Mine Costs

1,000 - 2,000

1,529

METALLURGICAL COAL GROWTH

SOLID TRACK RECORD OF EXECUTING ON GROWTH

Strong 5+ year track record of growing both production and shareholder returns

Initial production began in 2017. Since then, Ramaco has consistently executed on its plan to grow production, generate strong free cash flow, maintain a conservative capital structure, and make shareholder distributions.

Revenue (in $MM)

$800

$566

$694

$666

$600

$400

$169

$283

$200

2020

2021

2022

2023

2024

Total coal sales (in mm of tons)

3.5

4.0

Total coal production (in mm of tons)

3.2

3.7

2.7

2.2

2 1.7

2020

2021

2022

2023

2024

Dividends Paid1 (in $MM)

$40

$33

$30

$26

1.7

2.2

2.4

$20

$10

$20

$0 $0

2020

2021

2022

2023

2024

2020

2021

2022

2023

2024

(1) Includes both cash and stock dividends to METC and METCB.

MEDIUM-TERM POTENTIAL

TO ALMOST DOUBLE PRODUCTION

Ramaco annual production (in millions of tons)

1.8 1.9 1.7

0.5

4.4

3.7

3.2

2.7

2.2

Ramaco is capable of organically growing production to >7 million tons over the medium-term.

Ramaco has both the financial and operational flexibility to take a prudent approach to growth during challenging market conditions.

In 2025, Ramaco anticipates growing production at least 15% vs 2024, with much of this associated growth capex

2017A

2018A

2019A

2020A

2021A

2022A

2023A

2024A

2025E*

Medium

Term

(*) Based on the midpoint of guidance.

having already been spent in 2024.

Disclaimer

Ramaco Resources Inc. published this content on March 10, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 11, 2025 at 14:36:08.096.