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    METC
    Earnings call· Jun 2026(Q2 FY26)

    Ramaco Resources Q2 FY26 earnings call METC

    Aug 5, 2026 Source

    Executive summary

    Ramaco Resources Q2 FY26 — Transformative Growth in Critical Minerals and Low Vol Met Coal

    Ramaco Resources is strategically advancing its Brook Mine critical minerals project, which shows significant financial potential following the Hatch conceptual study, while also expanding its low-volatile metallurgical coal production. The company is navigating challenging met coal markets by focusing on cost discipline and rebalancing its portfolio, supported by strong liquidity and opportunistic share repurchases. Discussions for critical mineral offtake and financing are progressing, with key milestones for de-risking the project expected in the coming quarters.

    Highlights

    5

    • Brook Mine project shows potential NPV of $3.4 billion to $8 billion and average adjusted EBITDA of $600 million to $1.3 billion, up substantially from prior studies.

    • Q2 mine cash cost at $99 per ton, marking the fourth consecutive quarter of sub-$100 cash costs despite rising diesel prices.

    • Repurchased $66 million worth of shares, reducing outstanding shares by 8% to less than 52 million.

    • Ended the quarter with record liquidity of over $400 million.

    • Safety performance significantly improved with 58% fewer incidents and a 54% reduction in total reportable incident rate year-to-date.

    Concerns

    5

    • Full-year 2026 production guidance reduced to 3.6 million to 3.9 million tons (from 3.7 million to 4.1 million tons) due to continued market weakness.

    • Full-year 2026 sales guidance reduced to 4.0 million to 4.3 million tons (from 4.1 million to 4.5 million tons).

    • Q2 adjusted EBITDA declined to $6 million compared to $9 million in Q2 2025.

    • Realized prices fell 6% to $116 per ton in Q2 2026 compared to $123 per ton in Q2 2025.

    • Diesel prices averaged $4.64 per gallon in Q2, increasing costs by approximately $3 per ton produced compared to early 2026 levels.

    Guidance & targets

    15
    CategoryTargetConfidence
    E-waste report publication
    Publish report on e-waste and its use
    medium materiality
    High
    SK-1300 compliant technical report summary
    Publish new SK-1300 compliant technical report summary
    high materiality
    High
    Pre-feasibility study (PFS)
    Publish full pre-feasibility study
    high materiality
    High
    Pilot plant building completion
    Building steel for pilot plant anticipated to be completed
    medium materiality
    High
    Pilot plant full-scale operations
    Full-scale operations expected to commence
    medium materiality
    High
    Maven Batchway Loadout Project startup
    Scheduled Q4 startup for the rail loadout at Maven
    medium materiality
    High
    Berwyn Mine third section operational
    Third section at Berwyn being operational very early in the fourth quarter this year
    medium materiality
    High
    Maven Beckley Seam first production
    Forecasting first production in early 2027
    medium materiality
    High
    Maven second underground low-vol section online
    Second underground low-vol section expected to come online in the second half of 2027
    medium materiality
    High
    Full-year 2026 production guidance
    3.6 million to 3.9 million tons
    high materiality
    High
    Full-year 2026 sales guidance
    4.0 million to 4.3 million tons
    high materiality
    High
    Full-year 2026 cash cost per ton sold guidance
    $96 to $99 per ton
    high materiality
    High
    Full-year 2026 capital expenditures
    $92 million to $97 million
    high materiality
    High
    Q3 2026 coal shipments
    950,000 to 1.1 million tons
    medium materiality
    High
    Q3 2026 cash costs
    Trend towards the higher end of the full year range
    medium materiality
    High

    Operational metrics

    34
    Brook Mine potential NPV
    $3.4 billion to $8 billionUp substantially compared to FLUR's 2025 studies
    Long-term

    Internal modeling for the Brook Mine using capital and operating cost information from Hatch, not reflecting potential uplift from e-waste.

    Brook Mine average adjusted EBITDA
    $600 million to $1.3 billionUp substantially compared to FLUR's 2025 studies
    Long-term

    Internal modeling for the Brook Mine using capital and operating cost information from Hatch, not reflecting potential uplift from e-waste.

    Brook Mine plant feed level (lower case)
    1.8 million tons
    Annual

    One of two levels of plant feed studied by Hatch.

    Brook Mine plant feed level (higher case)
    3.5 million tons
    Annual

    One of two levels of plant feed studied by Hatch, motivated by supplying larger level for domestic government supply chain needs.

    Potential revenue from critical minerals for semiconductor industry
    75%
    Future

    Roughly 75% of potential revenue will be tied to key critical minerals whose main demand driver is the semiconductor industry.

    Critical mineral extraction rate
    Over 90%
    Initial tests

    Average extractions for all targeted critical minerals, verified by third-party independent testing.

    Maven low vol production increase
    600,000 tons
    Annual

    Expected from the first two underground sections at Maven at full capacity.

    Maven annualized production
    1 million tons
    Annual

    Combined with existing surface production, this will be annualized production by 2027.

    Maven future low vol capacity increase
    600,000 tons
    Annual

    Potential to add two additional deep sections, bringing total low vol production from Maven to 1.5 million tons.

    Maven total low vol production
    1.5 million tons
    Annual

    Total low vol production from Maven complex with all potential expansions.

    Berwyn #3 section production increase
    300,000 tons
    Annual

    Expected from adding the Berwyn #3 section.

    Berwyn three sections annual production
    900,000 tons
    Annual

    Total annual production from three Berwyn sections.

    Berwyn optional fourth section production
    300,000 tons
    Annual

    Optionality to add a fourth section.

    Berwyn complex total production
    1.5 million tons
    Annual

    When four sections are added to Berwyn's Laurel Fork mine, creating another complex with this production slate.

    Combined annual low vol production
    3 million tons
    Annual

    Combined annual low vol production from both Maven and Berwyn complexes.

    Total production portfolio
    Over 6 million tonsUp from current 4 million tons
    Annual

    Balanced medium term portfolio, including Elk Creek and Knox Creek.

    Low vol share of production
    50%Up from 25% today
    Future

    Strategic objective to increase low vol share.

    Q2 mine cash cost
    $99
    Q2 2026

    Fourth consecutive quarter of sub-$100 cash costs.

    Diesel price increase impact on coal costs
    $3vs. start of 2026 levels
    Q2 2026

    Impact of diesel fuel alone in Q2.

    Maven loadout transportation cost reduction
    $20
    Future

    Immediate impact of the Maven Batchway Loadout Project.

    Maven loadout impact on total company cash costs
    $2
    Future

    Savings will lower overall cash costs across currently producing mines.

    Share repurchases
    $66 million
    YTD 2026

    Repurchased more than 8% of Class A shares.

    Outstanding shares
    Less than 52 million
    Q2 2026

    Reduced by share repurchases.

    Liquidity
    Over $400 millionRecord levels
    Q2 2026

    Ended the quarter with record levels of liquidity despite share buybacks.

    Stockpiled coal inventory value
    $100 million
    Q2 2026

    As of June 30, held as inventory to sell at better pricing.

    Stockpiled coal inventory volume
    1 million tons
    Q2 2026

    As of June 30, providing meaningful working capital tailwind.

    Q2 cash margins
    $17Down from $20 per ton in Q2 2025
    Q2 2026

    Due to lower realized prices.

    Q2 realized prices
    $116Fell 6% compared to $123 per ton in Q2 2025
    Q2 2026

    Lower realized prices contributed to reduced cash margins.

    Q2 adjusted EBITDA
    $6 millionCompared to $9 million in Q2 2025
    Q2 2026

    Decline in adjusted EBITDA.

    Q2 Class A EPS
    -$0.26Versus -$0.29 in Q2 2025
    Q2 2026

    Loss per share in Q2.

    LV-linked tons as percentage of overall volumes
    22%Versus roughly 15% in both Q1 and Q2
    Q3 2026

    Expected increase in LV-linked shipments.

    2026 secured commitments
    3.8 million tons97% of production at top end of revised guidance
    2026

    Secured commitments at the start of Q3.

    2026 fixed price book
    2.5 million tons
    2026

    Fixed price book for 2026.

    2026 export tons under index-linked arrangements
    1.3 million tons
    H2 2026

    For delivery in the back half of the year.

    Industry KPIs

    6
    MetricValueDetails
    Safety54%%
    Unit cash cost$99USD/ton
    Reserve life new supplyGenerations
    Growth project CAPEX first production$25 millionUSD
    Ore grade recovery drilling by deposit56 holesholes
    Production sales volume by metal and by mine3.6 million to 3.9 million tonstons

    Deals & partnerships

    8
    RE AlloysMOU for offtake and separation of Emric

    MOU for offtake and separation of Emric (rare earth elements).

    Various departments of governmentBuilding and enhancing relationships to support strategic initiatives to onshore Western critical mineral supply chains

    Regular communication with the Department of War for defense applications and supply chain alignment.

    Potential off-takers (gallium)Active discussions for gallium offtake

    Discussions with large gallium purification and distribution companies, wafer, power device, and RF manufacturers.

    Technology and battery firmsContact for HPA offtake

    Contact with domestic and abroad firms to place offtake of high purity alumina (HPA).

    Large firm (Scandium)Discussion for scandium offtake and circular arrangement

    Discussion with a large firm in the solid oxide fuel cell field for both offtake and recycling spent fuel cell materials.

    Material developers (Scandium alloys)Discussion to standardize new aluminum and titanium alloys

    Working with two material developers to standardize new alloys with identified end-use applications for defense, space, aerospace, and auto.

    Separation companies (Rare Earths)Discussions for separation and offtake agreements for Emric

    Under NDA and in discussion with domestic and allied nation firms to secure similar separation and offtake agreements for Emric.

    E-waste providers and offtake customersDiscussions to supply materials and create circular arrangements for recycling

    Active discussions with e-waste providers to supply materials and offtake customers to create a circular arrangement of recycling spent materials or manufacturing waste.

    Capital programs

    4
    Maven complex underground sections developmentunderway$25 million
    Period spend: Split evenly between 2026 and 2027
    Start: June 2026

    Benefit: Adds about 600,000 tons of production at full capacity by end of 2027

    Board approved capital for the development of the first two underground sections at Maven.

    Berwyn Mine ventilation projectunderway
    Spent to date: Intake shaft 46% concrete liner constructed and poured

    Benefit: New mine fan installation for third section ventilation

    Construction activities continued throughout Q2. Shaft excavation ran approximately three weeks behind schedule.

    Maven Batchway Loadout Projectunderway

    Benefit: Roughly $20 per clean ton in transportation cost reduction for Maven coal

    Work continues, scheduled for Q4 startup.

    Critical Mineral Pilot Plantunderway
    Spent to date: Excavation work, pilings, and some foundations completed in Q2

    Hatch Team is in initial design, delivering package to Zeton for detailed design this quarter. Lab operations moving into facility this fall.

    Risks & headwinds

    4
    Market weakness in highball coalsQ2 2026 and ongoing

    U.S. highball indices declined roughly $10 per ton in Q2 2026; Q2 production levels fell modestly

    Mitigation: Proactively idled one of three stone coal sections at Elk Creek; shifting portfolio to low vol production; adjusting high vol production accordingly based on 2027 domestic pricing clarity.

    Elevated diesel fuel costsQ2 2026 and ongoing (Q3 expected to trend higher)

    Averaged $4.64 per gallon in Q2 (peak $5.71), up from $2.50 per gallon at start of 2026; current pricing at $4.71; increased coal costs by ~$3 per ton produced in Q2

    Mitigation: Maintaining sub-$100 cash costs despite headwinds; Maven loadout project expected to reduce transportation costs by $20/clean ton, lowering overall cash costs by ~$2/ton.

    Supply chain delays for critical mineral projectOngoing, impacting project completion

    Timeline and capital costs for Brook Mine pushed out and increased compared to last year's report

    Mitigation: Main driver is long delivery times (2-4 years) for large power transformers due to limited manufacturing capacity and competition; company will work to tighten and reduce timing and cost as it progresses.

    Chinese export control on rare earthsOngoing, with upcoming expiration of suspension in November

    China has shown willingness to use rare earths as a geopolitical weapon; three years since China exported gallium to North America

    Mitigation: Brook Mine aims to provide domestic supply; active discussions with government and commercial off-takers to secure long-term domestic supplies; developing new alloys with domestic partners.

    What to watch in Q3 FY26

    5

    Critical minerals MOU announcements

    Coming weeks and months
    CurrentOver 30 NDAs signed, in offtake discussions for every material
    TargetAdditional MOUs announced

    Why it matters

    Securing MOUs is a key step in de-risking the Brook Mine project and validating market demand for its critical minerals.

    We expect to announce some of these as we progress towards the end of the year. So those would be with this year.

    Q&A highlights

    6

    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

    3 min read5 chapters

    Detailed Narrative

    01

    Brook Mine Critical Minerals Project Update

    The Brook Mine project is considered transformative for Ramaco and the US, aiming to address critical mineral supply chain dependencies on China. The company has adopted a carbochlorination method for processing its coal-based feedstock, moving from an upstream provider to a potential midstream refiner. This process allows for the extraction of high-value critical minerals like gallium, scandium, and germanium from carbonaceous kaolinite clays, with initial tests showing over 90% extraction rates. The project is highly scalable, with potential plant feed levels of 1.8 million to 3.5 million tons of feedstock, and can be adjusted based on demand and financing. The company is also exploring the integration of e-waste to boost yields of targeted critical minerals, with early estimates suggesting significant impact from small amounts of e-waste.

    02

    Met Coal Business Strategy and Performance

    Ramaco is strategically shifting its met coal portfolio to increase low-volatile (low vol) production to 50% from the current 25%, in response to market weakness🌐 in high-volatile (high vol) coals. This involves significant capital deployment for underground expansions at the Maven and Berwyn complexes, aiming for a combined 3 million tons of annual low vol production by 2027. Despite challenging market conditions and rising diesel prices, the company achieved sub-$100 cash costs for the fourth consecutive quarter in Q2. The Maven Batchway Loadout Project, scheduled for Q4 startup, is expected to significantly reduce transportation costs and improve overall cash costs.

    03

    Balance Sheet Strength and Capital Allocation

    The company maintains a strong balance sheet with over $400 million in liquidity at the end of Q2, despite repurchasing $66 million worth of shares, reducing outstanding shares by 8%. This liquidity provides optionality to invest in both the coal and critical minerals businesses. Ramaco also holds approximately $100 million in stockpiled coal inventory (1 million tons as of June 30), which is expected to provide a working capital tailwind as market conditions improve. The company balances share repurchases with strategic investments in growth projects.

    04

    Commercial Strategy for Critical Minerals

    Ramaco has built a dedicated internal marketing and sales team for Brook Mine materials, engaging in over 30 NDAs related to potential offtake and technical engagement. The company is in discussions with counterparties for every material to be produced, including high purity gallium, germanium, alumina (HPA), and silica (HPS). Demand for these products is high, particularly from the semiconductor, technology, and defense industries. The company is also exploring circular arrangements for recycling spent materials and manufacturing waste, with two groups already sending materials for testing at the Brook facility.

    05

    Project De-risking and Future Milestones

    The Hatch conceptual study provides a foundation for advancing discussions with government and commercial financing counterparties. Key de-risking milestones include publishing an e-waste report in Fall 2026, an SK-1300 compliant technical report summary by year-end 2026, and a full pre-feasibility study in Spring 2027. Construction of the pilot plant building is on schedule for completion in Q4 2026, with full-scale operations expected to commence in 2027. Infill drilling is underway to increase resource confidence for the pre-feasibility study.

    AI-generated summary of the company’s earnings call. Not investment advice.