What Ramaco Resources (METC) Said on Its Q3 Earnings Call

Key Points

• Coal sales and pricing are improving: Ramaco has booked about 1.7 million tons of 2027 North American sales at roughly $139 per ton, plus 1.1 million tons of carryover export commitments. Management expects fourth-quarter adjusted EBITDA to exceed the first three quarters combined.
• Higher costs and disciplined production weigh on 2026: Ramaco raised cash-cost guidance to $101–$103 per ton, citing sharply higher diesel prices, and reduced production and sales guidance. It ended Q3 with $375 million in liquidity and expects selling excess inventory at better prices to provide a roughly $75 million working-capital benefit.
• Brook Mine development is advancing: Testing showed high recovery rates for several critical minerals, while pilot-plant completion has shifted to the second half of 2027. Ramaco expects to spend about $25 million on project development in 2027 before deciding whether to build a refinery.

Ramaco Resources NASDAQ: METC said its third-quarter results reflected continued pressure from diesel costs and a softer high-volatility metallurgical coal market earlier in the year, while management pointed to improving coal pricing, expanding low-volatility production and continued development of its Brook Mine critical minerals project in Wyoming.

Chairman and CEO Randy Atkins said the company expects stronger margins in the fourth quarter and in 2027 as coal prices improve and Ramaco shifts more of its production toward low-vol metallurgical coal. He said fourth-quarter adjusted EBITDA is expected to exceed the combined adjusted EBITDA generated in the first three quarters of 2026.

2027 Coal Sales Book Takes Shape

Ramaco said it has secured approximately 1.7 million tons of North American business for 2027 at an average price of about $139 per ton. Atkins said those commitments represent more than $65 million of expected adjusted EBITDA for the met coal segment, with domestic volumes more than 30% higher than in 2026.

The company also has 1.1 million tons of carryover export commitments for 2027, bringing identified sales to roughly 2.8 million tons. Chief Commercial Officer Jason Fannin said Ramaco had largely completed its domestic contract settlements for 2027, although some specialty-customer agreements were still expected to be finalized in the fourth quarter.

During the question-and-answer session, CFO Jeremy Sussman said the remaining specialty business could add a couple hundred thousand tons, bringing the domestic book to just under 2 million tons. He said that business generally carries some of the company’s highest prices and could lift average realizations.

Ramaco said it was effectively sold out for 2026, with commitments for 4.2 million tons as of the end of the third quarter. The company’s sales guidance calls for 4 million to 4.1 million tons, reflecting the possibility that some fourth-quarter committed shipments may move into January.

Fannin said pricing improved during the third quarter and into the fourth quarter. Australian premium low-volatility coal averaged about $248 per ton in the third quarter and stood at roughly $262 per ton at the time of the call. U.S. high-vol A coal averaged about $171 per ton in the third quarter and was at $190 per ton, while U.S. low-vol coal was at $210 per ton.

Management cited mine idlings, closures, limited investment and improved pricing discipline as factors supporting a firmer pricing floor. Fannin said Chinese steel exports could limit near-term seaborne coal price gains, while India’s growing blast-furnace capacity remains a driver of longer-term coking coal demand.

Low-Vol Production Growth and Cost Initiatives

Ramaco is advancing low-vol production at its Berwind and Maben complexes. Atkins said a new third section at Berwind and the first underground section at Maben are expected to enter production before year-end, adding about 600,000 annualized tons of low-vol coal. Including the restart of Laurel Fork, the company expects to have added nearly 1 million annualized low-vol tons during 2026.

At Maben, Executive Vice President of Mine Planning and Development Chris Blanchard said the company had removed its first development face-up coal from the new underground mine and expects initial underground production in December. Ramaco expects a Norfolk Southern batch-weigh rail load-out at Maben to begin commissioning early in the first quarter of 2027. Management said the load-out should reduce operating costs at the complex by more than $20 per ton.

At Berwind, Ramaco expects to begin bringing on its No. 3 production unit in December after completing ventilation work. The company expects four full sections, including a section at Laurel Fork, to be operating as it enters 2027.

Meanwhile, Ramaco has moderated production at Elk Creek amid what Blanchard described as a still-oversupplied high-vol market. The company completed mining at the MP No. 1 underground mine in October and did not replace that production. Ramaco said it has two sections that could be restarted quickly if pricing and market demand support the move.

Ramaco ended the third quarter with roughly 600,000 tons of inventory above normal levels. Sussman said the company expects selling down that inventory at improved prices could provide an approximately $75 million working-capital tailwind over coming quarters, with inventories largely returning to normal before mid-2027.

Costs, Liquidity and Updated Guidance

The company ended the quarter with $375 million of liquidity, including $233 million of cash. Sussman said liquidity increased 38% from a year earlier.

Ramaco increased its 2026 cash-cost guidance to $101 to $103 per ton from $96 to $99 per ton, citing inflationary pressures, particularly diesel. Management said diesel prices had risen to $5.85 per gallon from $2.50 per gallon at the start of the year, creating a headwind of more than $3 per ton.

The company also reduced midpoint production guidance by 200,000 tons and midpoint sales guidance by 100,000 tons, citing continued discipline in the high-vol market. It raised midpoint capital-expenditure guidance by roughly $5 million because the first underground Maben section is now expected to begin operating in 2026 rather than the first quarter of 2027.

Atkins also said Ramaco won a favorable $30 million jury verdict against Chubb Insurance related to the 2018 Elk Creek coal storage silo failure. The company said it expects to seek recovery of attorney fees, with the amount to be determined by the court.

Brook Mine Critical Minerals Project Advances

Ramaco said it remains fully financed to advance the Brook Mine project through development stages leading up to a decision on constructing a refinery. The company expects to spend about $25 million of capital expenditures in 2027 on the pilot plant, drilling, engineering and related work before a final investment decision on refinery construction.

Executive Vice President of Critical Mineral Operations Mike Woloschuk said infill drilling continues within the project’s 4,500-acre permitted area. Geological modeling showed continuity of kaolinite, which hosts minerals representing about three-quarters of anticipated project revenue, according to management.

The company reported results from third-party carbochlorination testing, including average recoveries of 97% for combined scandium, gallium and germanium; 92% for neodymium and praseodymium; 96% for yttrium; and 97% for dysprosium and terbium. Woloschuk said the process showed materially higher recovery rates for certain critical minerals than prior flow-sheet approaches.

Construction of the pilot plant is continuing, with the building structure expected to be complete in early 2027. Ramaco now expects pilot-plant completion in the second half of 2027, rather than earlier in the year, after delayed installation of laboratory fume hoods pushed back bench-scale testing needed for pilot-plant design criteria.

Senior Vice President of Critical Mineral Sales Orin Atkins said Ramaco executed three non-binding memorandums of understanding in August. Two involve gallium, including agreements with Indium Corporation and Bedrock Semiconductor, while a third with RoboLoop concerns AI-driven robotic disassembly of e-waste to isolate gallium-rich material streams.

Management said it is continuing discussions to convert MOUs into definitive agreements, pursue separation and offtake solutions for the Brook Mine’s mineral basket, and evaluate e-waste and other secondary feedstocks that could improve project economics.

About Ramaco Resources (NASDAQ:METC)

Ramaco Resources, Inc is a coal producer focused primarily on the development and operation of metallurgical coal mines. Its metallurgical coal is used by steelmakers in the production of coke, a key input in traditional steel manufacturing. The company also produces and sells thermal coal and related coal products where commercially appropriate.

Ramaco Resources operates mining assets in the Central Appalachian region of the United States, including properties in southern West Virginia and Virginia, and owns the Brook Mine development in Sheridan, Wyoming.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.