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1. Company Snapshot

1.a. Company Description

Ramaco Resources, Inc.produces and sells metallurgical coal.The company's development portfolio includes the Elk Creek project consisting of approximately 20,200 acres of controlled mineral and 16 seams located in southern West Virginia; the Berwind property comprising approximately 41,300 acres of controlled mineral and an area of Squire Jim seam coal deposits, which is situated on the border of West Virginia and Virginia; the Knox Creek property consisting of approximately 62,100 acres of controlled mineral that is located in Virginia; and the RAM Mine property comprising approximately 1,570 acres of controlled mineral, which is situated in southwestern Pennsylvania.


The company serves blast furnace steel mills and coke plants in the United States, as well as international metallurgical coal consumers.The company was founded in 2015 and is headquartered in Lexington, Kentucky.

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1.b. Last Insights on METC

Ramaco Resources' recent performance was driven by a strong Q1 earnings beat, with a loss of $0.19 per share versus the Zacks Consensus Estimate of a loss of $0.29. The company's revenue topped estimates, indicating a resilient business. Additionally, Ramaco's high-quality met coal production capacity and demand from the steel industry contributed to its performance. The company's financial robustness, with ample asset coverage and operational resilience, supports strong debt repayment prospects. Furthermore, the hiring of Michael Woloschuk as Executive Vice President for Critical Mineral Operations and the appointment of former U.S. Senator Joseph Manchin III to the Board of Directors demonstrate the company's commitment to growth and strategic development.

1.c. Company Highlights

2. Ramaco Resources' Q3 2025 Earnings: A Strong Liquidity Position and Advancements in Rare Earth Business

Ramaco Resources reported a net loss per share of -$0.25 in Q3 2025, beating the estimated loss of -$0.33 per share. The company's liquidity reached a record $272 million at the end of Q3, with net cash of $77 million. Revenue and production details were not explicitly stated, but the metallurgical coal business had solid operational results in Q3, with a cash cost per ton of $97, putting Ramaco in the first quartile of the U.S. cash cost curve. Production fell modestly from the second quarter to 945,000 tons, while tons sold fell to roughly 900,000 in Q3 from roughly 1.1 million tons in Q2.

Publication Date: Nov -25

📋 Highlights
  • Record Liquidity:: Ramaco achieved $272 million in liquidity (Q3 2025) with $77 million net cash, bolstered by a $200 million common stock placement in August 2025.
  • Scandium Ofatake Premium:: DLA signed a contract at $6.2 million/ton for scandium, 66% higher than prior estimates, highlighting Western supply premiums due to Chinese export restrictions.
  • Projected Rare Earth Economics:: First-year oxide production (2028) could generate $500 million EBITDA with a $5.1 billion NPV (8% discount rate) and >150% IRR.
  • Brook Mine Expansion:: Plans to increase capacity 2.5x to 5 million tons, with a 150-year mine life and potential for in-situ mining of deeper high-grade deposits.
  • Pilot Plant Progress:: Zeton awarded construction for a modular pilot plant, expected to be operational by early 2026, with testing on 300 tons of stockpiled high-grade ore.

Advancements in Rare Earth Business

Ramaco is making significant progress in its rare earth business, including a $200 million common stock placement in August and plans to increase the base size of the Brook Mine by 2.5x to approximately 5 million tons. The company estimates that its rare earth platform could generate more than $500 million of EBITDA and have a projected NPV of more than $5 billion in the first year of commercial oxide production, now estimated to be in 2028. According to Randall Atkins, "the unique thing about the Brook site is that we have a particularly unique site with some geological anomalies that might not be repeatable elsewhere."

Valuation Metrics

Ramaco's current valuation metrics indicate that the market is pricing in significant growth expectations, with a P/S Ratio of 1.57 and an EV/EBITDA of 22.02. The company's ROE is currently negative at -8.26%, and the ROIC is also negative at -3.71%. Analysts estimate next year's revenue growth at 20.1%, which may be challenging to achieve given the current market conditions. The company's metallurgical coal business is facing challenges due to China's flooding of cheap steel into world markets, but Ramaco is not selling tons at a loss into an oversaturated market and is instead modestly trimming production guidance.

Outlook

Ramaco is well-positioned to provide meaningful supply in scandium, which is critical for lightweighting of cars and planes as well as various military applications. The company plans to actively engage with federal and state officials to expand the existing approved Brook Mine permit to include most of its nearly 6,000 acres of control. With a strong liquidity position and advancements in its rare earth business, Ramaco is moving rapidly along a multiyear path to transition into a dual critical mineral platform in both rare earths and met coal.

3. NewsRoom

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Ramaco Chairman and CEO Randall Atkins to Appear on Fox Business' Varney & Co. to discuss U.S. Critical Mineral and Brook Mine Development

Dec -01

Source: prnewswire.com

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Lowey Dannenberg, P.C. is Investigating Ramaco Resources Inc. (NASDAQ: METC) for Potential Violations of the Federal Securities Laws and Encourages Investors with more than $50,000 in Losses to Contact the Firm

Nov -24

Source: globenewswire.com

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How China Built Rare-Earth Dominance, and How the U.S. Can Fight Back

Nov -21

Source:

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Lowey Dannenberg, P.C. is Investigating Ramaco Resources Inc. (NASDAQ: METC) for Potential Violations of the Federal Securities Laws and Encourages Investors with more than $50,000 in Losses to Contact the Firm

Nov -17

Source: globenewswire.com

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Ramaco Resources Announces Fourth Quarter Stock Dividend for Class B Common Stock

Nov -14

Source: prnewswire.com

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Ramaco Posts FAQ Section on Website for Brook Mine Project

Nov -13

Source: prnewswire.com

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RAMACO RESOURCES, INC. PRICES HEDGING TRANSACTION TO PLACE BORROWED CLASS A COMMON STOCK IN CONNECTION WITH CONVERTIBLE NOTES OFFERING

Nov -05

Source: prnewswire.com

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RAMACO RESOURCES, INC. PRICES $300 MILLION CONVERTIBLE SENIOR NOTES OFFERING

Nov -05

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Coal

Expected Growth: 5%

Ramaco Resources' 5% growth in coal segment is driven by increasing demand from Asian markets, particularly China and India, coupled with rising natural gas prices, making coal a more competitive energy source. Additionally, the company's focus on metallurgical coal, used in steel production, benefits from growing global infrastructure development and urbanization.

7. Detailed Products

Metallurgical Coal

High-quality metallurgical coal used in the production of steel

Thermal Coal

Thermal coal used for electricity generation

Industrial Coal

Coal used in various industrial applications

Coal Reserve Holdings

Coal reserves held for future production and sale

8. Ramaco Resources, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Ramaco Resources, Inc. is medium due to the availability of alternative energy sources such as solar and wind power. However, the high demand for coal in the steel industry and the lack of suitable substitutes for metallurgical coal mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of concentration in the buyer market. Ramaco Resources, Inc. has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of a few large suppliers of mining equipment and services. However, Ramaco Resources, Inc. has a diversified supply chain, which reduces the bargaining power of individual suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the coal mining industry. The high capital requirements, regulatory hurdles, and complexity of the mining process deter new entrants.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the coal mining industry. The industry is highly competitive, and companies compete fiercely for market share and customers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 20.56%
Debt Cost 9.32%
Equity Weight 79.44%
Equity Cost 9.32%
WACC 9.32%
Leverage 25.87%

11. Quality Control: Ramaco Resources, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Natural Resource Partners

A-Score: 6.8/10

Value: 4.2

Growth: 5.6

Quality: 7.7

Yield: 9.0

Momentum: 6.5

Volatility: 8.0

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SunCoke Energy

A-Score: 6.3/10

Value: 8.7

Growth: 5.0

Quality: 4.8

Yield: 9.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

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NACCO

A-Score: 6.2/10

Value: 7.9

Growth: 3.3

Quality: 6.3

Yield: 5.0

Momentum: 9.5

Volatility: 5.3

1-Year Total Return ->

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Dorian LPG

A-Score: 5.7/10

Value: 5.2

Growth: 6.8

Quality: 5.5

Yield: 10.0

Momentum: 2.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Ramaco Resources

A-Score: 5.3/10

Value: 5.4

Growth: 7.2

Quality: 3.2

Yield: 5.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

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Hallador Energy

A-Score: 3.8/10

Value: 5.5

Growth: 1.4

Quality: 3.5

Yield: 0.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

17.76$

Current Price

17.76$

Potential

-0.00%

Expected Cash-Flows