Page 1

RAMACO Ramaco Resources , Inc. Reports Third Quarter 2021 Financial Results LEXINGTON , Ky . , Nov. 2 , 2021 / PRNewswire / - - • Net income was $ 7.0 million ( EPS of $ 0.16 ) and Adjusted EBITDA was $ 17.8 million for the third quarter of 2021. Adjusted EBITDA was the highest third quarter on record for the Company . 75 % of sales in the third quarter of 2021 were to North American customers on lower priced legacy contracts , compared to 48 % in the first half of 2021 . • The Company has largely concluded 2022 North American sales , with 1.7 million tons booked at $ 196 per short ton FOB mine , compared to 1.4 million tons in 2021 at $ 89 per ton . This translates to over $ 325 million in booked revenue for 2022 , and generates Adjusted EBITDA of roughly $ 190 million , using year - to - date 2021 cash costs , adjusted upward for higher sales - related costs . • The Company executed an Asset Purchase Agreement with companies owned by Coronado Global Resources Inc. ( " Coronado " ) to purchase what are referred to as the Amonate Assets . The cash consideration for the acquisition is $ 30 million to be paid at closing , which is anticipated to occur by mid - November . The acquisition will almost immediately be accretive to the Company . It is expected to add 200,000 tons of new low- volatile production in 2022 and ultimately 700,000 tons by the end of 2023. Beginning in June 2022 , it will also save millions of dollars annually on avoided trucking costs on all 750,000 tons of existing Berwind production . • The Company announced that its Board of Directors ( " Board " ) has authorized the initiation of a regular quarterly dividend to be paid beginning in the first quarter of 2022. The amount of the dividend and timing of both the record date and payment date will be set at the Company's Board meeting to be held in early December . • The Company's principal bank lender , KeyBank , N.A. , amended the Company's revolving credit agreement , increasing the overall availability under the credit line to $ 40 million , from its current $ 30 million level . There are other modifications to the lending facility reflective of the Company's improved creditworthiness , including extending the maturity date to December 31 , 2024 . Ramaco Resources , Inc. ( NASDAQ : METC ) ( " Ramaco " or the " Company " ) today reported quarterly net income of $ 7.0 million , or $ 0.16 per diluted share for the three months ended September 30 , 2021 , which was almost 250 % above net loss of $ 4.8 million , or $ 0.11 per diluted share for the three months ended September 30 , 2020 . The Company's adjusted earnings before interest , taxes , depreciation , amortization and equity - based compensation ( " Adjusted EBITDA " ) was $ 17.8 million for the three months ended September 30 , 2021 , approximately 2,700 % higher than the $ 0.6 million of Adjusted EBITDA for the three months ended September 30 , 2020 . Key operational and financial metrics are presented below : Key Metrics Change Change Change 3Q21 2Q21 3Q20 Total Tons Sold ( ' 000 ) Revenue ( $ mm ) 644 686 ( 6 ) % 430 $ 76.4 $ 76.1 Cost of Sales ( $ mm ) $ 54.8 $ 57.8 Pricing of Company Produced ( $ / Ton ) $ 105 $ 96 Cash Cost of Sales - Company Produced ( $ / Ton ) $ 71 $ 69 Cash Margins on Company Produced ( $ / Ton ) $ 34 $ 27 Net Income ( loss ) ( $ mm ) $ 7.0 $ 9.9 Diluted Earnings ( loss ) per Share Adjusted EBITDA ( $ mm ) $ 0.16 $ 0.23 $ 17.8 $ 18.1 Capex ( $ mm ) $ 9.1 $ 4.8 ( 2 ) % $ 88 % $ 0 % $ 39.5 ( 5 ) % $ 35.7 9 % $ 78 3 % $ 69 26 % $ 9 ( 29 ) % $ ( 4.8 ) 247 % $ ( 30 ) % $ ( 0.11 ) 241 % $ 0.6 2698 % $ 2.5 264 % $ 3Q21 YTD 3Q20 YTD 50 % 1,751 94 % $ 195.9 $ 117.8 54 % $ 143.8 $ 1,208 45 % 66 % 96.8 49 % 35 % $ 98 $ 87 13 % 3 % $ 67 $ 70 ( 4 ) % 278 % $ 31 $ 17 82 % 21.1 $ ( 0.2 ) 13159 % 0.48 $ ( 0.00 ) 12676 % 47.4 $ 17.6 $ 19.9 139 % 20.5 ( 14 ) % Third Quarter 2021 Summary Year over Year Quarterly Comparison Overall production in the third quarter of 2021 was 553,000 tons , up nearly 40 % from the same period of 2020. Elk Creek alone produced 510,000 tons in the third quarter of 2021. Overall total sales in the third quarter of 2021 were 644,000 tons , up 50 % from 430,000 tons in the third quarter of 2020 . Cash margins on Company produced coal were $ 34 per ton in the third quarter of 2021 , up 278 % from the same period of 2020. Pricing of Company produced coal sold was $ 105 per ton , which was 35 % higher in the third quarter of 2021 compared to the third quarter of 2020. Company produced cash mine costs were $ 71 per ton in the third quarter of 2021 , which were 3 % higher than the same period of 2020. Despite higher sales - related costs , as well as modest inflationary pressures , cash mine costs at Elk Creek of $ 67 per ton in the third quarter of 2021 were equal to the same period of 2020 . Sequential Quarter Comparison Total sales volume of 644,000 tons in the third quarter of 2021 was down 6 % from the second quarter of 2021 .