Page 1

RAMACO Ramaco Resources , Inc. Reports First Quarter 2021 Financial Results - Net income was $ 4.1 million ( EPS of $ 0.10 ) , while adjusted EBITDA was $ 11.5 million for the first quarter of 2021. Adjusted EBITDA was our second best first quarter for the Company since our inception , driven by the first quarter that the Company has recorded sub- $ 60 per ton cash mine costs . - Total Company Production of 577,000 tons was also a quarterly record . Total cash cost of sales was $ 59 per ton , which was also a company record . On the back of these results we are now increasing full - year 2021 production guidance , while lowering our 2021 cash cost guidance . - The Berwind slope development and Big Creek mine are now progressing both on time and on budget with the goal of the Company having over 3 million tons on an annualized basis by mid - next year . With first quarter capex of just $ 3.7 million , we are also reducing our 2021 capital expenditure outlook . LEXINGTON , Ky . , May 12 , 2021 - Ramaco Resources , Inc. ( NASDAQ : METC ) ( " Ramaco " or the " Company " ) today reported quarterly net income of $ 4.1 million , or $ 0.10 per diluted share for the three months ended March 31 , 2021 , which was over 100 % above net income of $ 2.0 million or $ 0.05 per diluted share for the three months ended March 31 , 2020 . The Company's adjusted earnings before interest , taxes , depreciation , amortization and equity - based compensation ( " Adjusted EBITDA " ) was $ 11.5 million for the three months ended March 31 , 2021 almost 40 % higher compared with $ 8.4 million of Adjusted EBITDA for the three months ended March 31 , 2020 . Key operational and financial metrics are presented below : Key Metrics Change Change 1Q21 4Q20 Total Tons Sold ( ' 000 ) Revenue ( $ mm ) 422 541 $ 43.5 $ 51.1 1Q20 ( 22 ) % 416 1 % ( 15 ) % $ 41.9 4 % Cost of Sales ( $ mm ) $ 31.2 $ 48.7 ( 36 ) % $ 30.9 1 % Pricing ( $ / Ton ) $ 89 $ 80 11 % $ 93 ( 4 ) % Cash Cost of Sales ( $ / Ton ) $ 59 $ 76 ( 22 ) % $ 67 ( 12 ) % Cash Margins ( $ / Ton ) $ 30 $ 4 650 % $ 26 15 % Net Income ( Loss ) ( $ mm ) $ 4.1 $ ( 4.7 ) 187 % $ 2.0 111 % Adjusted EBITDA ( $ mm ) $ 11.5 $ ( 1.4 ) 919 % $ 8.4 37 % Capex ( $ mm ) $ 3.7 $ 4.2 ( 12 ) % $ 8.9 ( 58 ) % Diluted Earnings ( Loss ) per Share $ 0.10 $ ( 0.11 ) 191 % $ 0.05 100 % First Quarter 2021 Summary Year over Year Quarterly Comparison Overall sales in the first quarter of 2021 were 422,000 tons , up 1 % from 416,000 tons in the first quarter of 2020. Cash margins were $ 30 per ton in the first quarter of 2021 , up 15 % from the same period of 2020. While pricing per ton of coal sold was approximately 4 % lower in the first quarter of 2021 compared to the first quarter of 2020 , cash cost of sales in the first quarter of 2021 was $ 59 per ton or approximately 12 % lower than the same period in 2020 due primarily to higher production . This was the first quarter in Ramaco's history that cash costs per ton sold fell below $ 60 . Cash costs per ton sold at Elk Creek specifically were $ 55 in the first quarter of 2021 . Sequential Quarter Comparison Overall sales volume of 422,000 tons in the first quarter of 2021 was down 22 % from the fourth quarter of 2020 , as the result of a heavy level of spot sales primarily into export markets at the end of 2020. In addition , as anticipated , the Company produced heavily in the first quarter for second quarter delivery to customers served by the Great Lakes shipping routes , which are generally closed in the first quarter due to weather . Cash margins increased a dramatic 650 % in the first quarter of 2021 when compared to the fourth quarter of 2020. This increase was due to 11 % higher revenue per ton sold in the first quarter of 2021 relative to the fourth quarter of 2020 , coupled with significantly lower cash mine costs of $ 59 per ton in the first quarter of 2021 compared to $ 76 per ton in the fourth quarter of 2020 . Cash mine costs on Company produced coal at Elk Creek were $ 55 per ton sold in the first quarter of 2021 compared to $ 76 per ton in the fourth quarter of 2020. As discussed during the fourth quarter 2020 earnings call , there were a number of unique , non - recurring negative circumstances at Elk Creek that occurred in the fourth quarter that were not experienced in the first quarter of 2021 . Other income was $ 2.9 million in the first quarter of 2021 compared to $ 0.5 million in the fourth quarter of 2020 principally due to the recognition of $ 2.5 million for the CARES Act Employee Retention Tax Credit . We expect to qualify for and recognize a similar amount for the CARES Act Employee Retention Tax Credit in the second quarter of 2021 .