Q3 2024 Ramaco Resources Inc Earnings Call Transcript
Key Points
- Ramaco Resources Inc (METC) achieved its strongest operational quarter of the year, with record production and sales exceeding 1 million tons for the first time.
- The company successfully reduced mine costs by over 25% from March to September, with costs dropping from $120 to $93 per ton.
- Operational improvements are expected to continue into the fourth quarter, with projections of increased production and sales.
- The Maben prep plant was commissioned on time and on budget, reducing trucking costs by approximately $40 per ton.
- Ramaco Resources Inc (METC) has secured 2.7 million tons in sales commitments for 2025, with 1.6 million tons sold at fixed prices averaging $152 per ton.
- The company faced a significant decline in met coal prices, attributed to China's overproduction of steel, impacting financial results.
- Third quarter adjusted EBITDA decreased to $24 million from $29 million in the second quarter, with net income breaking even.
- The closure of the Knox Creek Jawbone mine negatively impacted third quarter net income by approximately $1 million.
- US metallurgical coal indices have fallen throughout the year, leading to a $7 per ton sequential decline in realized price per ton.
- Production and sales guidance for 2024 was reduced by 200,000 tons at the midpoint due to challenging market conditions.
Good day and welcome to Ramaco Resources' Third Quarter of 2024 Results Conference Call. (Operator Instructions.) Also, please be aware that today's call is being recorded.
I would now hand over the call to Jeremy Sussman, Chief Financial Officer. Please go ahead, sir.
Thank you. On behalf of Ramaco Resources, I'd like to welcome all of you to our Third Quarter 2024 Earnings Conference Call. With me this morning is Randy Atkins, our Chairman and CEO; Chris Blanchard, EVP for Mine Planning and Development; and Jason Fannin, our Chief Commercial Officer.
Before we start, I'd like to share our normal cautionary statement. Certain items discussed on today's call constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent Ramaco's expectations concerning future events. These statements are subject to risks, uncertainties, and other factors, many of which are outside of
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