Ramaco Resources Reports Fourth Quarter and Full-Year 2025 Results

Comprehensive Review for Investors

Key Financial Highlights

• Quarterly Net Loss: Ramaco Resources reported a net loss of \$(14.7) million for Q4 2025 and a full-year net loss of \$(51.4) million. Class A diluted EPS was \$(0.26) in Q4 and \$(0.99) for the full year. Excluding a one-time, non-recurring \$2.5 million expense related to critical minerals terminal structuring, Class A diluted EPS was \$(0.22) for the quarter and \$(0.95) for the year.
• Adjusted EBITDA: Q4 Adjusted EBITDA was \$8.9 million, and full-year Adjusted EBITDA was \$36.1 million. This represents a significant decline versus 2024, where full-year Adjusted EBITDA was \$105.8 million.
• Cash Costs: Q4 cash mine cost per ton sold was \$92, the lowest in four years and a \$5 per ton improvement over Q3. Full-year 2025 cash mine cost was \$98 per ton, down \$7 from 2024.
• Cash Margins: Q4 cash margin per ton was \$24, matching the highest quarterly margin in 2025. Full-year margin was \$22 per ton, down from \$35 in 2024 due to lower coal prices.
• Liquidity: Q4 ended with record liquidity of \$521 million, up over 275% year-on-year. This is the strongest balance sheet in the company’s history.
• Production and Sales: 2025 sales volumes totaled 3.83 million tons (down 4% from 2024), while production was 3.83 million tons. Cash capex for 2025 was \$64.3 million.

Shareholder-Relevant and Price-Sensitive Developments

• Strategic Transition: Ramaco is transitioning into a dual-platform company, combining its traditional high-quality, low-cost metallurgical coal business with emerging rare earth and critical minerals development in Wyoming.
• Rare Earth & Critical Minerals Breakthrough:
  • Ramaco announced a proprietary, patent-pending carbochlorination flowsheet for processing rare earth elements and critical minerals from coal, which has been validated by third-party testing. This replaces the previous solvent extraction method.
  • The new process is projected to substantially increase recoveries and yields for high-value products like high-purity gallium, alumina, and quartz, critical for the semiconductor industry. Gallium products are expected to drive the majority of future revenue.
  • This approach lowers capital and operating costs, simplifies plant design, and reduces reliance on scandium as the main revenue driver.
  • Ramaco will sell magnetic rare earth feedstock as mixed rare earth carbonate (MREC) to third-party magnet processors, further simplifying operations and reducing capital needs.
  • Revised economic estimates are being prepared by Hatch, Inc., with a new Preliminary Economic Assessment (PEA) expected mid-2026 and a Pre-Feasibility Study (PFS) by late 2026.
  • The company has filed robust patent and trade secret protections for its new process, potentially establishing a unique domestic source for rare earths and critical minerals from coal.
• Accelerated Coal Growth Projects:
  • Sales commitments for 2026 stand at 3.1 million tons (about 80% of midpoint production guidance).
  • Production growth projects for low-vol coal are being accelerated, including restarting the Laurel Fork Mine and adding a third section at Berwind Mine. These are expected to add 0.1-0.2 million tons in 2026 and 0.5 million tons in 2027.
  • Construction of a new rail loadout at the Maben complex is underway, aiming for year-end completion and anticipated to save \$20 per ton in trucking costs. Deep mining at Maben could add up to 1.5 million tons in future low-vol production.
  • Estimated \$20 million in new growth commitments for low-vol development in 2026.
• 2026 Guidance:
  • Annual sales volumes expected between 4.1 and 4.5 million tons, with potential to reach 5 million tons.
  • Met coal production guidance is 3.7 to 4.1 million tons.
  • Cash costs per ton sold targeted at \$95 to \$100, marking a third consecutive year of cost reductions and lowest level since 2021.
  • Maintenance and growth capex expected between \$85 and \$90 million, including \$20 million for rare earth business.
  • Q1 2026 shipments expected at 800,000-950,000 tons, with higher cash costs due to seasonal factors.
• Capital Raises and Financial Transformation:
  • Over \$1 billion in new capital raised in 2025, including:
    • \$65 million via unsecured notes (Lucid Capital)
    • \$200 million equity (Morgan Stanley & Goldman Sachs)
    • \$345 million 6-year zero-coupon convertible notes (Goldman Sachs, Morgan Stanley)
    • \$500 million revolving credit facility (KeyBank)
  • Net debt at year-end was \$11 million, down from \$56 million end-2024.
• Dividend News:
  • Board declared a quarterly Class B common stock dividend of \$0.1489 per share for Q1 2026, payable in Class B shares. Fractional shares will be settled in cash.
• Government Support & Market Initiatives:
  • The Trump administration announced plans to establish price floors for critical minerals to counter China’s market dominance, which could support Ramaco’s rare earth business.
  • Discussions underway regarding domestic rare earth and critical mineral stockpiles, aligning with Ramaco’s Brook Mine terminal initiative with Goldman Sachs.

Operational Performance and Outlook

• Cost Leadership: Ramaco maintained first quartile cash cost position in U.S. met coal, with Elk Creek achieving \$80 per ton in Q4 2025.
• Market Commentary: U.S. high-vol coal indices were weak in Q4, but low-vol indices rebounded due to Australian supply constraints and strong Indian demand. Australian premium low-vol up by >\$40/ton to \$240/ton; U.S. indices up 10% since Q4.
• Sales Pricing: 1.1 million tons committed to North American customers at \$142/ton fixed price, highest among peers; 2.0 million export tons at index-linked pricing.
• Production Discipline: Some higher-cost production was idled in response to weak market conditions.
• Employment Practices: Ramaco did not cut wages or benefits, maintaining its status as a best-in-class employer.

Financial Metrics (Q4 2025 vs. Q3 2025 and Q4 2024)

Risks and Forward-Looking Statements

• Forward-looking statements are subject to risks including delays in mine development, failure to increase production, regulatory changes, demand decline, and challenges in rare earth and critical minerals development.
• Rare earth and critical minerals segment is new and requires significant investment; no assurance mineral resources at Brook Mine will convert to reserves.

Conclusion

Ramaco Resources is undergoing a major transformation, with strong liquidity, strategic capital raises, cost discipline, and a significant breakthrough in rare earth mineral processing technology. The patent-pending carbochlorination process promises to deliver higher value, lower cost, and simplified operations, potentially positioning Ramaco as a unique domestic supplier of critical minerals. Accelerated coal production projects and robust sales commitments add further upside. These developments are highly price-sensitive and could materially affect share values, especially as rare earth and critical mineral initiatives progress and market conditions improve. Investors should closely monitor Ramaco’s execution of its dual-platform strategy and upcoming revised economic assessments.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Forward-looking statements are subject to risks and uncertainties. Investors should review Ramaco Resources’ filings with the SEC and consult their own advisors before making investment decisions.

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