Sunday, 3 March 2024


Ramaco Resources ups 2024 sales and production guidance By

Ramaco Resources ups 2024 sales and production guidance

© Reuters.

LEXINGTON, Ky. – Ramaco Resources, Inc. (NASDAQ: NASDAQ:), a prominent metallurgical coal operator, announced today a significant increase in its sales and production guidance for 2024. The company has committed to sales of 3.8 million tons for the year, nearly doubling its previously forecasted figures. This updated guidance reflects a robust 90% increase since the last update in early December 2023.

Ramaco’s fourth quarter performance in 2023 was notably strong, with net income expected to range between $28 million and $30 million, and Adjusted EBITDA projected at $56 million to $58 million. This quarter marked the company’s best in 2023, with almost a 50% increase in net income and Adjusted EPS, and over a 25% increase in Adjusted EBITDA compared to the third quarter. The company also achieved its target annualized sales run-rate of approximately 4 million tons, with actual coal shipments just under 1 million tons for the second consecutive quarter.

For the full year of 2023, Ramaco anticipates net income to be between $80 million and $82 million with Adjusted EBITDA in the range of $180 million to $182 million, marking the company’s second-best financial year on record. The average price for the approximately 3.5 million tons sold in 2023 was $169 per ton, a significant increase from 2022.

In addition to the upward revision of its 2024 sales and production guidance, Ramaco also revealed the purchase of a coal preparation plant for $3 million, which will be relocated to the company’s Maben Mine Complex. The move aims to decrease trucking costs and expand processing capacity, with the plant expected to be operational by the fourth quarter of 2024. The company estimates an additional $8 million in initial development capital expenditures related to the plant in 2024.

Ramaco’s 2024 capital expenditures are forecasted to be between $53 million and $63 million, inclusive of the costs associated with the new preparation plant. This strategic acquisition is anticipated to materially reduce trucking and mine cash costs at the Maben complex.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Click Here to Read the Full Original Article at All News…