NASDAQ$METC

Ramaco Resources Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Ramaco Resources' financial results for Q2 2023 were reported, revealing a decrease in net income compared to the previous quarter, but progress in production and strategic initiatives.

Ramaco Resources reported a net income of $7.6 million for Q2 2023, a decrease from $25.3 million in Q1 2023. The results were affected by transportation issues. The company is progressing with its rare earth element project and has updated its 2023 production and sales guidance.

  • Net income was $7.6 million, down from $25.3 million in the previous quarter.
  • Adjusted EBITDA was $30.0 million, compared to $48.3 million in the previous quarter.
  • Transportation issues negatively impacted net income and Adjusted EBITDA by $9 million and $11 million, respectively.
  • The company has 3.1 million tons of committed sales, with 2.2 million tons at a fixed price of $188 per ton.

Headline financials

Total Revenue

$137M

Previous: $139M-0.9%
EPS (adj)

$0.17

Previous: $0.74-77.0%
Total Tons Sold

715.0K

Previous: 584.0K+22.4%
Capital Expenditures

-$48M

Previous: -$53.8M+10.8%
Free Cash Flow

-$40.5M

Previous: -$20.5M-97.1%
Net Income

$7.56M

Previous: $33.3M-77.3%
Operating Income

$10M

Previous: $42.7M-76.5%
Gross Profit

$38.3M

Previous: $62M-38.3%
Cash & Equivalents

$33.9M

Previous: $43.5M-22.0%
Total Assets

$660M

Previous: $490M+34.9%
Stock-Based Comp

$3.57M

Previous: $2.29M+56.1%

Revenue & EPS history

Ramaco · Revenue · Quarterly

$137M

Q2 2023-0.9%vs Q2 2022
Beat estimate in 3 of 12 quarters(25%)
ActualEstimate

Forward guidance

Ramaco Resources updated its full-year 2023 guidance, adjusting production, sales, and capital expenditure expectations. The company anticipates increased production and sales in the fourth quarter, with a focus on cost management and strategic initiatives.

Tailwinds

  • Berwind No. 1 mine's first section will complete development production soon, with the second section in full production during Q3 2023.
  • Maben surface and highwall mines continue to increase production as projected.
  • Elk Creek preparation plant reached full capacity of 3 million tons after a 50% capacity upgrade.
  • Company expects to be selling coal at a quarterly rate above one million tons and an annual rate of more than 4 million tons by Q4 2023.
  • The company is focusing on increasing met coal production and processing capacity at Elk Creek.

Headwinds

  • 2023 production guidance lowered to 3.0 – 3.5 million tons from 3.1 – 3.6 million tons due to idling the Triple S mine.
  • 2023 sales guidance updated to 3.1 – 3.6 million tons from 3.3 – 3.8 million tons.
  • 2023 cash costs guidance increased to $102 – $108 per ton from $97-103 per ton due to inflation and higher mine development costs.
  • 2023 Capital Expenditures lowered to $60 – $70 million from $65 – $80 million previously.
  • U.S. metallurgical coal spot pricing is down over 20% from the first half of 2023.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-2.0%

Avg return

Earnings day

+2.9%

Avg return

5 days after

-1.1%

Avg return

30 days after

41%

15 / 37 earnings

Positive

+19.9%

Q2 2021

Best reaction

-18.4%

Q3 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.6%-2.2%
Q4 2025-15.4%-12.4%-11.9%
Q3 2025-16.9%-10.6%-53.9%
Q1 2025-0.4%+3.8%+12.1%
Q4 2024-3.9%+13.8%-8.2%
Q3 2024+10.2%+17.5%+39.4%
Q2 2024+10.9%+12.7%-19.9%
Q1 2024-15.4%-17.7%-16.7%
Q4 2023+7.7%-9.0%-17.3%
Q3 2023-1.8%+46.6%+43.5%
Q2 2023-11.9%-11.6%-15.4%
Q1 2023+9.7%+33.5%+3.2%
Q4 2022-3.9%-4.5%-13.2%
Q3 2022-7.7%-12.1%-9.8%
Q2 2022-17.1%-4.7%-9.7%
Q1 2022+2.6%+11.0%+22.8%
Q4 2021-10.7%+0.4%-1.4%
Q3 2021-10.9%-13.9%-30.8%
Q2 2021+19.9%+25.0%+34.6%
Q1 2021+8.9%+17.4%+32.4%
Q4 2020+8.4%+14.9%+1.8%
Q3 2020-1.3%-2.7%+5.6%
Q2 2020+7.5%+13.3%+20.8%
Q1 2020-8.8%-4.2%+8.8%
Q4 2019-3.9%-9.9%-16.1%
Q3 2019-6.5%-3.1%-11.5%
Q2 2019-9.7%+7.2%+30.5%
Q1 2019-4.3%-5.0%-19.2%
Q4 2018+8.8%+12.0%+2.7%
Q3 2018-17.8%-19.5%-29.9%
Q2 2018+5.9%+24.3%+20.9%
Q1 2018-0.3%+3.2%+13.1%
Q4 2017+1.1%+6.7%-9.2%
Q3 2017-18.4%-26.2%-15.4%
Q2 2017-8.5%-2.5%-1.3%
Q1 2017+2.9%+8.1%-9.1%
Q4 2016+16.2%+9.4%-11.2%
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015

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