METC

Ramaco's core metallurgical coal business is in the trough of a brutal cycle. FY2025 revenue fell 19.5% to $537M and the company swung from $11.2M net income in 2024 to a $51.4M loss, with operating income collapsing to -$56.0M (-10.4% margin) and ROE turning negative at -10.6%. MD&A is explicit about the cause: global steel demand is weak, China is dumping exports, and steelmakers are 'cutting back on their own production and reducing the price they are willing to pay for metallurgical coal feedstock.' Volumes actually held up — 3.8M tons sold in 2025 vs 4.0M in 2024, and production at the flagship Elk Creek complex grew from 2,286 to 2,719 thousand clean tons — so this is a price problem, not a demand-destruction problem.

What keeps this from being a 'sell' is the balance sheet and the optionality. Cash exploded from ~$33M to $440M (+1,234% YoY), giving the company a thick cushion to ride out the cycle. That cash came at a price: long-term debt ballooned 405.9% to $468M, pushing liabilities/equity to 1.36x. The capital was raised to fund the Brook Mine rare-earth and critical-minerals project near Sheridan, Wyoming — a genuine call option on the U.S. critical-minerals supply-chain story, but one with no reserves established yet ('with the goal of...ultimately establishing mineral reserves and resources'). MD&A also discloses 1.1M tons of fixed-price contracts at $142/ton, which provides revenue visibility into 2026.