Ramaco Resources, Inc. has reported its financial results for the first quarter of 2025, showing a net income of $(9.5) million and adjusted EBITDA of $9.8 million. The non-GAAP cash cost per ton sold was $98, marking a $20 decrease compared to the first quarter of 2024. Additionally, the non-GAAP cash margins per ton and realized sales price per ton were reported as $24 and $122, respectively, both the highest among its publicly traded peer group.
Despite facing adverse market conditions, the company achieved a quarterly record production of 4.0 million tons in the first quarter of 2025. However, the U.S. metallurgical coal indices experienced a decline of $5 per ton quarter over quarter and $65 per ton compared to the first quarter of 2024.
Looking ahead, the company has made several adjustments to its 2025 guidance. The cost per ton sold guidance has been lowered to $96 – $102, while capital expenditure guidance has been reduced from $60 – $70 million to $55 – $65 million. Full-year 2025 production is now anticipated to be 3.9 – 4.3 million tons, down from prior expectations of 4.2 – 4.6 million tons.
In terms of rare earths and critical minerals, Ramaco Resources has made significant progress in the development of the rare earth element ("REE") and critical mineral ("CM") deposit at its Brook Mine in Sheridan, Wyoming. The company anticipates commencing large-scale carbon ore mining in June 2025 and expects initial production of rare earth concentrates processed at pilot scale to begin in 2026. The company also announced the hiring of Michael Woloschuk as the Executive Vice President for Critical Minerals, who brings over 30 years of experience in developing and operating large-scale critical mineral mining and processing operations internationally.
Wyoming Governor Mark Gordon announced a $6.1 million matching grant for Ramaco’s Brook Mine project, and the company has released a revised technical report summary on the Brook Mine property rare earth element exploration target. Weir International, Inc., estimated the total rare earth oxide ("TREO") to be approximately 1.7 million tons, with the deposit containing critical minerals such as scandium, germanium, and gallium.
Randall Atkins, Ramaco Resources’ Chairman and CEO, expressed confidence in the company's trajectory of operational strength and sales excellence despite challenging market conditions in the metallurgical coal business. He noted the reduction in 2025 production and sales guidance due to weak market conditions but emphasized the company's retainment of the optionality to increase production and sales when market conditions improve.
Atkins also highlighted the progress made on the rare earth element and critical mineral front at the Brook Mine in Wyoming, expressing pride in the potential of the mine to provide a meaningful share of the United States' domestic supply requirements for rare earths and critical minerals.
Today the company's shares have moved -1.53% to a price of $8.99. If you want to know more, read the company's complete 8-K report here.
