Q1 2024 Ramaco Resources Inc Earnings Call Transcript
Key Points
- Ramaco Resources Inc (METC) plans to ramp up current sales and production by an additional 1 million tons or 30% by Q4 2024.
- The company expects to reduce CapEx in 2024 by 30% compared to 2023.
- New production initiatives are on track and expected to lower average mine costs to well below $100 per ton.
- The Maben prep plant is expected to be fully operational before year-end, eliminating about $40 per ton of current trucking costs.
- Ramaco Resources Inc (METC) has increased its revolver facility from $125 million to $200 million, with an additional $75 million accordion feature, extending the term to 2029.
- First-quarter 2024 results were below expectations, with EBITDA dropping to $24 million from $48 million in Q4 2023.
- Lower realized prices, particularly a $55 per ton drop since Q4, significantly impacted financial performance.
- Mine cost issues at Elk Creek due to tough geology and labor conditions led to higher costs and lower production.
- Cash costs rose from $109 per ton in Q1 2023 to $118 per ton in Q1 2024.
- Production of 844,000 tons in Q1 2024 missed internal expectations due to challenging geology and labor constraints.
Good morning, and welcome to the Ramaco Resources first-quarter 2024 results conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Jeremy Sussman, Chief Financial Officer. Please go ahead.
Thank you, operator. On behalf of Ramaco Resources, I'd like to welcome all of you to our first quarter 2024 earnings conference call. With me this morning is Randy Atkins, our Chairman and CEO; Chris Blanchard, our Chief Operating Officer and also in the room is our new VP of Marketing and Analysis, David Dyer.
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. They're subject to risks, uncertainties, and other factors, many of which are
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