Ramaco Resources (NASDAQ:METC) reported second-quarter adjusted EBITDA of $6 million, down from $9 million a year earlier, as lower metallurgical coal prices pressured margins despite continued cost control and a stronger liquidity position.
Class A earnings per share showed a loss of $0.26 for the quarter, compared with a $0.29 loss in the second quarter of 2025. Realized coal pricing was $116 per ton, down 6% from $123 per ton a year earlier, while cash margins declined to $17 per ton from $20 per ton.
Coal guidance reduced amid high-vol market weakness
Ramaco lowered its full-year 2026 production outlook to 3.6 million to 3.9 million tons, from prior guidance of 3.7 million to 4.1 million tons. Sales guidance was reduced to 4 million to 4.3 million tons, from 4.1 million to 4.5 million tons previously.
The company maintained its midpoint cash-cost outlook, now forecasting full-year cash costs of $96 to $99 per ton sold, compared with prior guidance of $95 to $100 per ton. Capital-expenditure guidance increased to $92 million to $97 million from $85 million to $90 million, reflecting spending on its Maben underground low-volatility metallurgical coal project.
For the third quarter, Ramaco expects coal shipments of 950,000 to 1.1 million tons. Sussman said third-quarter cash costs are expected to trend toward the high end of the full-year range because of elevated diesel prices.
Chief Commercial Officer Jason Fannin said the company had secured commitments for 3.8 million tons, or about 97% of production at the top end of its revised guidance, entering the third quarter. Its 2026 fixed-price book totaled 2.5 million tons at a blended price of $121 per ton, supplemented by 1.3 million export tons under index-linked arrangements for the second half.
Fannin said U.S. high-volatility metallurgical coal markets remained weak, while low-volatility coal has continued to command a premium. Ramaco idled one of three Stonecoal sections at its Elk Creek complex in response to high-vol market conditions.
Low-vol expansion planned at Maben and Berwind
Chairman and Chief Executive Officer Randy Atkins said Ramaco is accelerating its strategy to increase low-vol coal to approximately 50% of its production slate, from roughly 25% currently.
The board approved $25 million for development of the first two underground sections at the Maben Complex. The capital will be deployed over the next 12 months, split between 2026 and 2027. Ramaco expects the two sections to add about 600,000 tons of annual production at full capacity by the end of 2027.
The company also expects its Maben rail loadout project to begin operating during the fourth quarter. Chris Blanchard, executive vice president of mine planning and development, said the loadout is expected to reduce transportation costs for Maben coal by approximately $20 per clean ton and lower companywide cash costs by nearly $2 per ton across current producing mines.
Ramaco expects its third Berwind section to be operational early in the fourth quarter of 2026 and plans to add 300,000 tons of Berwind production in 2027. Including potential additions at Maben and Berwind, the company outlined a path toward more than 6 million tons of total annual production over the medium term, compared with roughly 4 million tons currently.
The company said its first seaborne trial cargo of Maben coal was scheduled to arrive in India during the week of the call, with industrial consumption planned later in the month and into September. It is also discussing a trial cargo for Northeast Asia during the fourth quarter.
Brook Mine study shifts focus to critical-mineral refining
Ramaco also highlighted a recently released Hatch conceptual study for its Brook Mine critical minerals project in Wyoming. Atkins said the company adopted a carbochlorination processing approach that could move the project beyond an upstream feedstock model into potential large-scale refining.
Based on internal modeling using Hatch capital and operating-cost information, Ramaco estimated a potential net present value of approximately $3.4 billion to $8 billion and average adjusted EBITDA of $600 million to $1.3 billion, depending on whether the facility processes 1.8 million or 3.5 million tons of feedstock. Atkins said those figures exclude any potential contribution from electronic-waste processing.
Management said approximately 75% of potential Brook Mine revenue would be tied to critical minerals with demand drivers in semiconductor-related industries, including gallium and germanium. Mike Woloschuk, executive vice president of critical mineral operations, said initial third-party-verified testing produced average extraction rates above 90% for targeted critical minerals.
Ramaco expects its analytical laboratory to begin internal carbochlorination testing during the current quarter. The company said the pilot plant building remains on schedule for completion later in 2026, with full-scale pilot operations expected to begin in 2027.
- Ramaco expects an e-waste report during the fall.
- A new S-K 1300-compliant technical report summary is planned by the end of 2026.
- The company expects to complete a full pre-feasibility study in spring 2027.
Orin Atkins, senior vice president of critical mineral sales, said Ramaco had signed more than 30 nondisclosure agreements related to potential offtake and technical engagement. The company is in discussions with counterparties for each material expected to be produced at Brook and anticipates announcing additional memorandums of understanding before year-end.
On capital allocation, Ramaco repurchased $66 million of stock during the year, reducing Class A shares outstanding by roughly 8%, or nearly 5 million shares, to fewer than 52 million shares. The board has authorized a total $100 million repurchase program, according to management.
About Ramaco Resources (NASDAQ:METC)
Ramaco Resources, Inc (NASDAQ:METC) is a U.S.-based producer of premium metallurgical coal and industrial minerals, focused on supplying the steel and allied industries. The company’s operations are centered in the Appalachian region of West Virginia, where it develops, mines and processes high-carbon coal products designed to meet the quality requirements of blast‐furnace and electric‐arc furnace steelmakers.
The firm’s flagship asset is the Elk Creek underground mine in Wyoming County, West Virginia, which began commercial production in 2019 and delivers a range of high‐grade metallurgical and anthracite coals.
