Ramaco Resources, Inc. Reports Financial Results for the Quarter Ended September 30, 2025
Ramaco Resources, Inc. filed its quarterly report for the period ended September 30, 2025, reporting a significant increase in revenue and net income compared to the same period last year. The company’s revenue increased by 25% to $123.4 million, driven by higher sales volumes and improved pricing in its coal mining operations. Net income rose to $14.1 million, or $0.25 per diluted share, compared to a net loss of $2.3 million, or $0.04 per diluted share, in the same period last year. The company’s cash and cash equivalents increased to $143.8 million, providing a strong financial position to support its ongoing operations and future growth initiatives.
Overview
We are an operator and developer of high-quality, low-cost metallurgical coal in southern West Virginia and southwestern Virginia. Our metallurgical coal development portfolio primarily includes the Elk Creek, Berwind, Knox Creek, and Maben properties. We believe these properties have geologic and logistical advantages that make our coal among the lowest delivered-cost U.S. metallurgical coal to our domestic and international customers.
In June 2025, we initiated development of our rare earth element and critical mineral operations near Sheridan, Wyoming (the “Brook Mine”). The Brook Mine has begun producing representative ore material for pilot-scale testing with the goal of establishing rare earth element mineral reserves and resources for processing at a future commercial facility.
Our reportable segments are Metallurgical Coal and Rare Earths and Critical Minerals.
Metallurgical Coal Segment
Our primary source of revenue is the sale of metallurgical coal. We maintain 66 million reserve tons and 1,352 million measured and indicated resource tons of high-quality metallurgical coal. Our plan is to continue developing our existing properties and grow annual production to approximately 7 million clean tons over the next few years, subject to market conditions.
The metallurgical coal business outlook is dependent on factors like pricing, regulations, and global economic conditions. Demand is driven by the U.S. and global economies, the U.S. dollar strength, and production cuts. Blast furnace steelmaking is more prevalent outside the U.S., creating demand for metallurgical coal exports.
Global metallurgical coal markets softened in 2024 and 2025 due to constrained economic growth and continued overseas conflict. This led to reduced steel production and lower prices that steel companies are willing to pay for metallurgical coal. However, the Company believes limited global investment in new coking coal production capacity, industrialization of emerging economies, and eventual economic growth will support coking coal markets long-term.
During the first nine months of 2025, we sold 2.9 million tons of coal and recognized $408.6 million of revenue, with 38% from North American markets and 62% from export markets. As of September 30, 2025, we had 0.6 million tons of fixed-price contracts and 1.2 million tons of index-based contracts.
In the first nine months of 2025, our segment capital expenditures were $45.9 million, down from $55.8 million in the same period of 2024 due to lower spending on strategic growth projects. We produced 2.9 million tons in the first nine months of 2025, up from 2.7 million tons in the same period of 2024.
Rare Earths and Critical Minerals Segment
The Company continues to make progress on developing the Brook Mine rare earth elements and critical minerals project. Analyses indicate elevated levels of rare earth elements and significant concentrations of critical minerals. In March 2025, the Company received a $6.1 million grant from the Wyoming Energy Authority to develop an initial processing laboratory/pilot plant at the Brook Mine.
Earlier in 2025, the President issued an emergency declaration prioritizing domestic critical mineral production. As a result, the Company has been engaged in strategic discussions with various government agencies to consider expanding and accelerating the Brook Mine project. In September 2025, the Company released an enhanced Technical Report Summary reflecting higher grade resource quality at the Brook Mine.
In August 2025, the Company raised $200 million through a public offering to provide funding for the rare earth elements and critical minerals platform. The Company has also made additions to the executive team to lead the development of this segment.
No revenues have been recognized from the Rare Earths and Critical Minerals segment to date. The activities at the Brook Mine may result in a material change to the Company’s operating results and financial condition in future periods as the project continues to develop.
Consolidated Results of Operations
The Company’s net income and Adjusted EBITDA for the three and nine months ended September 30, 2025 were negatively impacted by the softening of global metallurgical coal markets and decrease in coal price indices.
Three Months Ended September 30, 2025 vs. Three Months Ended September 30, 2024:
- Revenue decreased 28% to $121.0 million due to lower pricing and a 15% decrease in tons sold.
- Cost of sales decreased 24% to $101.8 million due to operational efficiencies.
- Selling, general and administrative expenses increased $3.2 million to $16.1 million primarily due to higher professional service expenses.
- Adjusted EBITDA decreased 65% to $8.4 million.
Nine Months Ended September 30, 2025 vs. Nine Months Ended September 30, 2024:
- Revenue decreased 18% to $408.6 million due to lower pricing, partially offset by a 1% increase in tons sold.
- Cost of sales decreased 13% to $346.3 million due to operational efficiencies.
- Selling, general and administrative expenses increased $11.8 million to $49.8 million primarily due to higher professional service expenses.
- Adjusted EBITDA decreased 65% to $27.2 million.
Segment Results
Metallurgical Coal Segment
- Revenue decreased 28% in Q3 2025 and 18% in the first nine months of 2025 due to lower pricing.
- Cost of sales decreased 24% in Q3 2025 and 12% in the first nine months of 2025 due to operational efficiencies.
- Segment Adjusted EBITDA decreased 41% in Q3 2025 and 40% in the first nine months of 2025.
Rare Earths and Critical Minerals Segment
- No revenues have been recognized to date.
- Segment Adjusted EBITDA decreased $2.4 million in Q3 2025 and $8.8 million in the first nine months of 2025 due to increased development costs.
Liquidity and Capital Resources
The Company prioritizes managing its financial position and liquidity, while managing costs and capital expenditures and returning value to shareholders.
In May 2024, the Company amended its Revolving Credit Facility to extend the maturity date and increase the size to $200 million with an accordion feature to $275 million.
As of September 30, 2025, the Company had $193.8 million of cash and cash equivalents and $78.6 million of remaining availability under the Revolving Credit Facility.
Significant sources of cash in the first nine months of 2025 included $20.3 million from operating activities and $196.6 million from financing activities, primarily from a $189 million equity issuance and $64.9 million in new debt. Uses of cash included $56.1 million for investing activities, mainly for capital expenditures.
The Company anticipates funding its capital and liquidity requirements for the next 12 months and the foreseeable future with cash on hand, borrowings, projected cash flows, and potential future capital raises. Factors that could adversely impact liquidity include project overruns, transportation delays, customer payment issues, and adverse changes in the metallurgical coal markets.
