Ramaco Resources, Inc.

What they do

Ramaco operates high-quality, low-cost metallurgical coal mines in southern West Virginia and southwestern Virginia, with active complexes at Elk Creek, Berwind, Knox Creek, and Maben. The company is also developing the Brook Mine in Wyoming for rare earth elements and critical minerals, currently at the exploration stage. Operations are organized into two reportable segments: Metallurgical Coal and Rare Earths and Critical Minerals.

Revenue drivers

• Metallurgical Coal Segment — Primary revenue source; Q2 2026 revenue of $144.8 million, with non-GAAP revenue per ton (FOB mine) of $116 on 1,056 thousand tons sold.
• Transportation services — Separately billed transportation revenue included in coal sales; Q2 2026 transportation revenue was $22.5 million, reducing non-GAAP revenue per ton to $116.
• Rare Earths and Critical Minerals — Exploration-stage, no revenue yet; potential future revenue depends on successful development of the Brook Mine into commercial production.

Recent performance

In Q2 2026, Ramaco reported a net loss of $15.4 million and Class A diluted EPS of $(0.26), with Adjusted EBITDA of $5.7 million. Revenue for the quarter was $144.8 million, down from $153.0 million in Q2 2025, and cash cost per ton sold was $99, $4 lower year-over-year. For the six months ended June 30, 2026, revenue was $266.4 million and net loss was $33.7 million. Full-year 2025 revenue was $536.6 million with a net loss of $51.4 million.

Strategy

Ramaco is pursuing a dual platform strategy, focusing on its core metallurgical coal business while developing the Brook Mine for rare earths and critical minerals. The company approved a $25 million project for two underground sections at Maben Complex, expected to add 0.6 million premium low-vol tons at full capacity. Management believes share repurchases are a prudent use of capital, having repurchased over 8% of Class A shares outstanding year-to-date. They are in advanced discussions for offtake transactions and non-dilutive project financing for the Brook Project, and are exploring enhancements like blending e-waste and PVC into feedstock.

Risks

• Customer concentration — Loss of or significant reduction in purchases by largest coal customers could adversely affect results.
• Steel industry dependence — Customer base is highly dependent on the steel industry, so steel demand fluctuations impact coal sales.
• No long-term contracts — We do not enter into long-term coal sales contracts, exposing us to market price fluctuations.
• Brook Mine development uncertainty — No assurance of successful commercial development; no rare earth or critical mineral reserves currently established.

Outlook

Management expects the Maben expansion to contribute premium low-vol production at cash margins roughly double the company's overall Q2 margins. For the Brook Project, a Preliminary Feasibility Study is planned next year, with an interim study of revised economics expected by year-end 2026. Pilot plant building completion in Wyoming is expected in fall 2026, with full-scale operations targeted for initial production in 2031.