Ramaco Resources, Inc. has recently released its 10-Q report, detailing its business operations and financial performance. Ramaco Resources, Inc. is engaged in the development, operation, and sale of metallurgical coal. The company's development portfolio includes various properties located in West Virginia, Virginia, Pennsylvania, and Wyoming. Ramaco Resources primarily serves blast furnace steel mills and coke plants in the United States, as well as metallurgical coal consumers internationally. The company was founded in 2015 and is headquartered in Lexington, Kentucky.
In the 10-Q report, Ramaco Resources, Inc. reported its financial results for the three and nine months ended September 30, 2024. The company's revenue for the first nine months of 2024 amounted to $495.4 million, compared to $490.8 million for the same period in 2023. During this period, the company sold 2.9 million tons of coal, generating 67% of its revenue from sales into export markets and 33% from sales into North American markets, including Canada. Ramaco Resources, Inc. also had outstanding performance obligations of approximately 1.7 million tons for contracts with fixed sales prices averaging $151 per ton, excluding freight, as well as 1.6 million tons for contracts with index-based pricing mechanisms.
The company's net income for the first nine months of 2024 was $7.3 million, compared to $52.3 million for the same period in 2023. Additionally, Ramaco Resources, Inc. reported Adjusted EBITDA of $76.6 million for the first nine months of 2024, a decrease from $123.7 million for the same period in 2023. The company attributed the decline in net income and Adjusted EBITDA to the softening of global metallurgical coal markets and the decrease in metallurgical coal price indices, driven by macroeconomic factors such as Chinese oversupply of steel and muted global economic conditions.
In terms of operational performance, the company's cost of sales for the first nine months of 2024 amounted to $397.2 million, compared to $354.4 million for the same period in 2023. The company sold 2.9 million tons of coal during this period, with the total cost of sales per ton sold decreasing from $144 in 2023 to $139 in 2024. Ramaco Resources, Inc. also highlighted its ongoing assessment of potential rare earth and critical minerals deposits in Wyoming, as well as its progress in advancing new carbon product technologies with the goal of commercializing products that use coal in an improved economic and environmental manner.
As a result of these announcements, the company's shares have moved -2.9% on the market, and are now trading at a price of $11.87. Check out the company's full 10-Q submission here.
