Ramaco Resources Inc
(HAM:5R02)
€
9.18
-0.72 (-7.27%)
Market Cap: 595.27 Mil
Enterprise Value: 754.32 Mil
PE Ratio: 0
PB Ratio: 2.00
GF Score: 79/100 
Q2 2026 Ramaco Resources Inc Earnings Call Transcript
Aug 05, 2026 / 03:00PM GMT
Release Date Price:
€8.18
(+10.24%)
Key Points
Positve
- The Hatch conceptual study for the Brook Mine shows a transformative project with a potential NPV of $3.4 billion to $8 billion and average adjusted EBITDA of $600 million to $1.3 billion, significantly higher than previous estimates.
- The carbochlorination process is a proven technology, with initial tests showing over 90% extraction rates for targeted critical minerals, and it positions Ramaco as a potential large-scale midstream refiner.
- The company is strategically shifting to low-vol metallurgical coal production, with plans to increase it to 50% of the portfolio, capitalizing on stronger pricing and supply dynamics in that segment.
- Ramaco maintains a strong balance sheet with over $400 million in liquidity, allowing for opportunistic share buybacks (8% of Class A shares repurchased) and investment in growth projects.
- The company has secured 97% of its 2026 met coal sales commitments, with a fixed price book of 2.5 million tons at $121 per ton, providing revenue visibility despite market weakness.
- Operational costs remain in the first quartile of US met coal cost curves, with cash costs under $100 per ton for four consecutive quarters, despite rising diesel prices.
- The Brook Mine project is scalable, with the ability to adjust production levels based on demand and financing, and it has the potential to supply multiple times the US demand for gallium, a critical semiconductor material.
- The company is advancing commercial discussions for critical minerals, with over 30 NDAs and offtake discussions for every material, and expects to announce MOUs in the near future.
- The Maben rail loadout project is on schedule for Q4 2026, expected to reduce transportation costs by $20 per clean ton and lower overall cash costs by nearly $2 per ton.
- The company is exploring e-waste integration, which could significantly boost gallium and germanium production with minimal process modifications, adding potential upside to the project.
Negative
- Metallurgical coal markets remain weak, especially for high-vol coals, with too much domestic production chasing limited export demand, leading to lower realized prices.
- Diesel fuel costs have increased significantly, with Q2 2026 averaging $4.64 per gallon (up from $2.50 at the start of the year), adding approximately $3 per ton to production costs.
- The company reduced its full-year 2026 production and sales guidance due to market conditions, with production now expected at 3.6-3.9 million tons (down from 3.7-4.1 million).
- Capital expenditures for 2026 have been increased to $92-97 million (from $85-90 million) to fund the Maben underground expansion, adding to financial commitments.
- The Brook Mine project timeline has been pushed out, with commercial production not expected until 2031, and capital costs have increased compared to previous estimates.
- The company reported a net loss per Class A share of $0.26 in Q2 2026, and adjusted EBITDA declined to $6 million from $9 million in the prior year period.
- The company proactively idled one section at its Stonecoal Mine due to oversupply in the high-vol market, reducing production capacity.
- The critical minerals project faces significant financing and offtake hurdles, with major capital disbursements still more than two years away and government financing support pending.
- The company's cash margins fell to $17 per ton in Q2 2026 from $20 per ton in Q2 2025, reflecting lower realized prices of $116 per ton.
- The company is exposed to geopolitical risks, including the Iranian conflict impacting diesel prices and China's export controls on rare earths, which could affect supply chain stability.
Operator
Good day, everyone, and welcome to the Ramaco Resources second-quarter 2026 results conference call. (Operator Instructions) Please also note today's event is being recorded.
At this time, I would like to turn the floor over to Jeremy Sussman, Chief Financial Officer. Please go ahead.
Jeremy Sussman
Ramaco Resources, Inc. - Executive Vice President and Chief Financial Officer
Thank you. On behalf of Ramaco Resources, I'd like to welcome all of you to our second-quarter 2026 earnings conference call.
With me this morning is Randy Atkins, our Chairman and CEO; Mike Woloschuk, our EVP of Critical Mineral Operations; Orin Atkins, our SVP of Critical Mineral Sales; Chris Blanchard, our EVP of Mine Planning and Development; and Jason Fannin, our Chief Commercial Officer of Met Coal.
Before we start, I'd like to share our normal cautionary statement. Certain items discussed on today's call constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements
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