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Ramaco Resources reports Q4 EPS 32c, consensus 58c
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Ramaco Resources reports Q4 EPS 32c, consensus 58c

Reports Q4 revenue $135.23M, consensus $140.83M. Overall production in the quarter was 695,000 tons, up 34% from the same period of 2021. CEO Randall Atkins commented, "2022 was one of the most volatile market and logistical environments we have faced as a public company. Despite a major operational setback and continued transportation issues, we achieved a number of important milestones. First, early 2022 marked the fifth-year anniversary of the first ton of coal that the company ever produced. Last year we produced almost 2.7 million tons. Despite headwinds, we are also incredibly proud of the entire Ramaco team for successfully generating over $200M of Adjusted EBITDA, having started from scratch just five years ago. I can think of no other U.S. publicly traded coal company that has been able to achieve that level of growth, in that short a time frame. Second,…we initiated our inaugural regular base dividend, and then promptly doubled that amount. Recently, we again increased our dividend by a further 10%. For our long-term investors, we look forward to continuing regular increases over the coming years. Third, we are extremely pleased that in a volatile environment our marketing team has been able to book significant new metallurgical sales….Fourth, it is always gratifying to be able to give back to the communities in which we operate…2022 was a record year, with almost 3 times greater Adjusted EBITDA than 2021. With that said, as we have rapidly grown, we have also encountered a number of unforeseen headwinds. First, we had the unfortunate ignition at Berwind in July. This cost us several hundred thousand tons of projected production in 2022 and with it substantial expected earnings. We are pleased to report that the mine returned to operations last week, and we expect it will hit full production from the first section by Q3. Our investigation of the cause of the accident concluded that the ignition source was external to the mine…we now estimate that last year rail and logistics issues negatively impacted our earnings each quarter by an average of $14M of Adjusted EBITDA or $11M of net income…We are hopeful that, based on operational changes at our railroad partners, logistics will return to a more normalized cadence in the coming year. Despite these past issues, 2023 is poised to be a transformational positive year for Ramaco…We also have several impactful developments which will begin to increase production and earnings starting in Q2 and building throughout the year….In 2023 we anticipate an ~825,000 ton increase in production over 2022 at the high end of guidance. We expect a corresponding increase in sales enhanced by the approximately 150,000 of carryover tons we were unable to ship for weather and rail issues by year end 2022. Indeed, by Q3, because of the quarterly increase in production cadence, we expect to be producing at an annualized four million ton per year run rate. On our financial metrics, we also hope to achieve a 5% decrease in our cash mine costs, as well as a significant 43% decrease in capital expenditures versus 2022 levels…"

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