Earnings Buzz: Ramaco Resources, Inc. (NASDAQ: METC)

On 06 Dec 2019, Ramaco Resources, Inc. stock identified change of 19.93% away from 52-week low price and recently located move of -50.00% off 52-week high price. It has market worth of $149.45M. METC stock has been recorded 3.11% away from 50 day moving average and -25.51% away from 200 day moving average. Moving closer, we can see that shares have been trading 8.16% off 20-day moving average.

Ramaco Resources, Inc. (METC) recently stated third quarter net income of $5.5M, or $0.14 per fully diluted share for the quarter ended September 30, 2019, as contrast to a net income of $6.2M, or $0.15 per fully diluted share in the previous year quarter ended September 30, 2018. The Company’s adjusted earnings before interest, taxes, depreciation, amortization and equity-based compensation expenses (“Adjusted EBITDA”) was $13.6M for the three months ended September 30, 2019, as contrast with Adjusted EBITDA of $11.0M for the three months ended September 30, 2018. Adjusted EBITDA for the nine months, year over year was roughly 32% higher in 2019.

Year over Year Quarterly Comparison
Overall sales of Company produced tons in the third quarter of 2019 were 510,000 thousand tons, the same as in the third quarter of 2018. Cash margins on Company produced coal were $31 per ton in the third quarter of 2019, up 24% over the same period of last year, arising from 2019 pricing improvements, partially offset by higher production costs.  Similarly, Adjusted EBITDA improved by 24% in the 2019 period.

2019 Quarter Over Quarter Comparison
Overall sales volumes of Company produced tons in the third quarter of 2019 were up 2% from the second quarter of 2019.  Our cash margin on Company produced coal declined in the sequential period.  This decline was caused principally by higher costs.  Cash costs per ton sold on Company produced coal were $80 in the third quarter of 2019 contrast to $71 in the second quarter of 2019. The $80 per ton figure includes costs of our Berwind mine, which is still in development and thus has higher cash costs. At Elk Creek, cash costs per ton sold were $73 in the third quarter of 2019. Adjusted EBITDA for the third quarter of 2019 was $13.6M as contrast to $19.1M for the second quarter of 2019, down 29%. Third quarter 2019 cash costs per ton sold were negatively affected by an unusually high inventory reduction, with sales volume meaningfully exceeding production volume, as Ramaco worked down inventory that had built up as a result of last year’s silo failure.

Randall Atkins, Ramaco Resources’ Executive Chairman remarked, “The met coal space is experiencing one of its periodic price downdrafts. The depth and extent of this downturn remains to be seen. Since the Company was essentially created in a similar period of market turbulence, we feel comfortable that we are structured to withstand market pressures such as recently. We also remain poised to take advantage of opportunities to continue to prudently expand production, while maintaining our low cost, low debt profile.”

Atkins continued, “We locked in 2019 domestic sales last year at what is now comfortably above current market prices. This year we have entered into domestic forward sales for 2020 mostly from our lower quality coal portfolio. We have preserved the sales optionality to sell our more valuable higher quality coals for export in 2020. We have additionally maintained optionality to pivot production levels to between 1.8 to 2.3M tons next year depending on the current market conditions. Given competitive weakness with some of our higher leveraged and higher cost peers, we are also sensing both new market and asset disposition opportunities. We look forward to finishing 2019 as our strongest year ever. We approach 2020 with a sense of both discipline and prospects.”

Ramaco Resources, Inc. noticed change of 6.80% to $3.61 along volume of 87295 shares in recent session compared to an average volume of 56.13K. METC’s shares are at -21.18% for the quarter and driving a -29.08% return over the course of the past year and is now at -27.07% since this point in 2018. The average volatility for the week at 7.36% and for month was at 6.85%.

 

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