Ramaco Resources announces operational and financial updates

Increase to its class a dividend

• In-line with the company’s historic dividend policy, Ramaco’s Board of Directors has approved an increase in the Class A dividend by 10%. This is the third such increase since the original dividend was declared in 2022.
• The Board also approved and declared the quarterly Class A common stock cash dividend of US$0.1375 per share for 1Q24. The first quarter dividend is payable on 15 March 2024, to shareholders of record on 1 March 2024.
• The Board will announce the amount and timing of the Class B common stock dividend after completion of the company’s year-end financials in February 2024.

Initial 2024 guidance

• The company is issuing initial guidance for the 2024 calendar year. For production volumes, the company expects between 3.9 - 4.4 million t, with and ability to vary the range of the production levels largely dependent on market demand and outlook.
• As of 30 November 2023, the company has sales commitments of over 2 million t for delivery in 2024. This consists of had 1.3 million t committed to North American customers at an average realised price of US$167/t. The company additionally has 0.7 million t committed at index-linked pricing for delivery to export customers.
• The company anticipates that 2024 sales will ultimately exceed production by at least 0.2 million t, as it continues to monetise its current elevated inventory levels. Should additional purchase coal opportunities emerge, 2024 sales may exceed production by additional greater amounts.
• Ramaco anticipates its 2024 cash cost of sales will be in the range of US$105 – 111/t, as increased production levels are partially offset by continued inflationary cost pressure.
• The company anticipates capital expenditures in 2024 of between US$45 – 55 million, at the midpoint of production guidance. Even at the high end of production guidance, the company anticipates 2024 capital expenditures to remain well below 2023 figures, as the production range is driven more by demand factors as opposed to capex spend.
• The range for the company’s 2024 selling, general and administrative costs is between US$38 – 42 million, excluding non-cash stock compensation. The company expects interest expense of less than US$5 million, and an effective tax rate of 20 – 25%.
• Lastly, the company anticipates depreciation, depletion, and amortisation of US$57 – 63 million.

Rare earth element update

• The company anticipates that Weir International, the mining consultancy that authored the original May 2023 Exploration Technical Summary Report, will provide an updated year-end report which will be available early next year.
• The company continues with further drilling and independent chemical testing following development mining which commenced in October. It will continue to release regular disclosure of ongoing results.

Read the article online at: https://www.worldcoal.com/coal/12122023/ramaco-resources-announces-operational-and-financial-updates/