Ramaco Resources (METC) Q2 FY26 earnings call: guidance and Q&A

Given the stability of met coal pricing in Q3, should we expect limited upside to realized prices until the shift to low vol materializes?

Yes, that's correct. The company has 1.3 million tons index-linked and domestic tons at fixed prices. While some incremental domestic tonnage has been layered in due to high steel utilization and supplier issues, significant upside depends on US indices improving.

“Yes, I'd say that's correct. As I mentioned, we've got about 1.3 million tons index linked across a broad spectrum of indices in the back half and of course you know the remainder of our committed tons being domestic at a fixed price but yes I think that's a correct statement they are given where they're at today until we see some movement upwards at least in the US indices you know. relatively flattish.”

asked by Tyler Bissett · answered by Jeremy Sussman

When can we expect more meaningful MOU/offtake announcements? How has customer feedback been on the new timeline and flow sheet? What needs to happen for finalized agreements, and are customers concerned about China's export control expiration?

MOUs are expected in the near term (weeks/months), well before pilot plant samples. Customers understand the long timeline for building a large-scale refinery. China's willingness to use rare earths as a geopolitical weapon makes domestic supply crucial for stability. Finalized agreements and FID will follow the PFS, providing engineering and cost numbers, and lining up procurement arrangements.

“We expect to announce some of these as we progress towards the end of the year. So those would be with this year. As far as, you know, customers' response to our timing, I think everybody, ourselves included, would love to have all of these minerals on the market yesterday. But it is also understood that if you're building a large-scale refinery and working timelines to catch up China's 30 years ahead of us, that these things will take time.”

asked by Tyler Bissett · answered by Randall Atkins

Do you anticipate any challenges in securing offtake agreements for high purity alumina (HPA) and high purity silica (HPS) given the production size, similar to other rare earth elements?

No, the company does not expect it to be different. HPA and HPS have demand across multiple sectors, similar to other products. The carbochlorination flow sheet offers flexibility to adjust HPA/HPS production without changing plant feed, as only 5% of final products are HPA/HPS, with the rest used for chlorine recycling.

“I mean, this is a product that has demand across a number of sectors, so it is not dissimilar to the marketing efforts that we're making for our other products. And so, no, we do not expect it to be different in our discussions with Oren. offtake counterparties for HPA or HPS.”

asked by Matthew Key · answered by Unknown Speaker

Can you explain the potential financial or operational benefit of integrating e-waste into the Brook Mine process?

E-waste recyclers typically target precious metals, leaving behind material rich in gallium and germanium that Ramaco can process. Small amounts of high gallium/germanium e-waste can significantly boost financials. The company plans to publish an interim study on e-waste economics before year-end, indicating its material impact on NPV, IRR, payback, cash flows, and margins.

“Only small amounts of this material. material can make a significant difference in terms of the financials. As Oren said, we're sourcing these materials so we can do some testing, assaying on it, better understand the quantities that are out there, what's the metallurgical response through our flow sheet, and then we hope to include this in future studies.”

asked by Matthew Key · answered by Mike Woloszek

What are the potential levers to accelerate the Brook Mine's timeline, given the initial 2031 expectation might be conservative?

The main driver for the current schedule push-out is supply chain related to large power transformers, which have long delivery times (2-4 years) due to limited manufacturing capacity and competition from AI data centers and renewables. An improvement in this supply chain could be an opportunity to accelerate the timeline.

“The large power transformers have a long delivery time, you know, from two to four years. And we've got independent, you know, opinions on that from more than one engineering firm. And the reason for that is, you know, these things are highly customized, manufacturing capacity currently limited, and, you know, competition with AI data centers, renewable energy products, you know, What that looks like in a year from now, perhaps it gets better, and I think that could be an opportunity. But that's the main driver of what's caused the schedule to push out is supply chain related to large power transformers.”

asked by Jeff Gramp · answered by Unknown Speaker

What are the latest thoughts on a potential separation of the rare earths business, when would it make sense, and how should investors think about the ultimate equity check for the Brook Mine?

The company is aligning itself into different silos (met coal, critical minerals, royalty interests) but would only separate them when they are ready to stand on their own, with risk mitigation and revenue. The equity check depends on financing, which could involve sovereign-oriented financing or private options like procurement arrangements with advance payments, co-ventures, etc. It's too early to determine the exact approach.

“I think, you know, the way I would look at it, you've really asked two questions. One is the reorg. So, you know, we've already telegraphed that we're kind of aligning ourselves so that we'll have, you know, different silos. You know, one's obviously a met silo, one's potentially a critical mineral silo, which frankly might break down into two. two pieces. One would be refining and one would be mining and marketing. kind of mirroring again what we've got in the east.”

asked by Nick Giles · answered by Randall Atkins