Coal producer Ramaco Resources' Q3 revenue misses estimates, reports net loss

Overview

• Ramaco Q3 revenue and adjusted EBITDA miss analyst expectations

• Company reports Q3 net loss of $13.3 mln, EPS at $(0.25)

• Ramaco maintains strong liquidity with $272 mln, aiding transition to critical minerals

Outlook

• Ramaco expects Brook Mine to produce 3,400 tons of rare earth oxides annually

• Company lowers 2025 coal production guidance to 3.7-3.9 mln tons

• Ramaco plans to develop a Strategic Critical Minerals Terminal

Result Drivers

• COST CONTROL - Despite a 6% decline in U.S. metallurgical coal indices, strong cost control improved cash margins by 15%

• LIQUIDITY STRENGTH - Record liquidity of $272 mln supports transition to critical minerals

• RARE EARTH TRANSITION - Transition to rare earths and critical minerals aims to support U.S. strategic supply chain goals

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the iron & steel peer group is "buy"

• Wall Street's median 12-month price target for Ramaco Resources Inc is $50.00, about 30.3% above its October 24 closing price of $34.87

• The stock recently traded at 270 times the next 12-month earnings vs. a P/E of 33 three months ago

Press Release:

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