Ramaco Q3 2026 Revenue Rises 24% as Coal Sales Grow

Ramaco Resources Inc. (Nasdaq: METC, METCB) reported a 24% year-over-year increase in third-quarter 2026 revenue as higher metallurgical coal sales lifted its top line, though the company remained loss-making and sequential adjusted EBITDA declined. Ramaco also advanced its Brook Mine critical-minerals project and expanded its fixed-price domestic coal commitments for 2027.

Revenue rose to $150 million, up 4% from the second quarter and 24% from a year earlier. Sales volume reached 1.1 million tons, increasing 2% sequentially and 23% year over year, while inventories began to decline.

The company posted a net loss of $18.2 million, equivalent to a diluted loss of $0.32 per Class A share. Adjusted EBITDA, a non-GAAP measure, was $3 million, down from $6 million in the second quarter.

Ramaco’s realized coal price increased to $120 per ton from $116 in the prior quarter. Non-GAAP cash cost per ton sold rose to $104 from $99, leaving a quarterly cash margin of $16 per ton. Year-to-date cash costs were $100 per ton through September.

The company ended the quarter with $375 million of liquidity, 38% more than a year earlier, and no borrowings under its revolving credit facility. Ramaco also secured a $30 million jury verdict against Chubb Insurance related to the 2018 Elk Creek silo failure, although the verdict remains subject to post-trial motions and a possible appeal, leaving the amount and timing of any recovery uncertain.

Coal Sales and Production Outlook

Ramaco has signed 1.7 million tons of fixed-price domestic business for 2027 at an average price of $139 per ton. That compares with 1.3 million tons committed for 2026 at an average of $137 per ton.

Based on year-to-date 2026 cash costs of $100 per ton, the company estimates that the 2027 domestic commitments alone imply more than $65 million of metallurgical coal segment adjusted EBITDA. The forward-looking non-GAAP estimate cannot be reconciled with a comparable GAAP measure without unreasonable effort, and actual costs and results may differ.

For full-year 2026, Ramaco’s presentation lists production guidance of 3.5 million to 3.6 million tons and sales guidance of 4.0 million to 4.1 million tons. Cash costs are expected to range from $101 to $103 per ton sold, excluding transportation and idle-mine costs. Capital expenditures are projected at $97 million to $102 million.

The third Berwind section and first underground Maben section are expected to enter service by year-end, adding about 600,000 tons of annualized low-volatility coal production. Including the Laurel Fork restart, Ramaco expects to have added about 1 million annualized tons of low-volatility capacity during 2026. The company said its reserve pipeline could support production of more than 7 million tons over the medium term, subject to market conditions and board approval.

Brook Mine Development

At the exploratory Brook Mine in Wyoming, third-party bench-scale testing of Ramaco’s proposed carbochlorination process produced average recoveries of 92% to 97% across selected critical minerals and magnetic rare earth elements. The company expects a pre-feasibility study to begin in the first quarter of 2027, after sufficient testing results are available, with completion anticipated in the second half of that year.

Construction of the Wyoming pilot-plant building is expected to be completed in early 2027, and Ramaco is targeting full pilot operations in the second half. Commercial production is targeted for 2031. The company also said it was in advanced discussions regarding domestic and international offtake arrangements and non-dilutive public- and private-sector project financing.

Ramaco’s internal modeling, using capital and operating assumptions from a July 2026 conceptual study by Hatch Ltd., estimates a pre-tax net present value of $8 billion and average annual adjusted EBITDA of approximately $1.3 billion over the proposed project’s life. The model assumes $4 billion of capital spending after contingency and average annual revenue of about $1.67 billion, excluding thermal coal.

Approximately 76% of modeled Brook Mine revenue would come from semiconductor-related products, including gallium metal, germanium oxide, high-purity alumina and high-purity silica. The remaining modeled revenue would primarily come from scandium oxide and mixed rare-earth carbonate.

Those estimates remain preliminary and are based entirely on inferred mineral resources, which are not reserves and have not demonstrated economic viability. The Brook Mine remains an exploration-stage property for rare earth elements and critical minerals, and a pre-feasibility study would be required to support the proposed production schedule. There is no assurance that the modeled resources, recoveries, financing, construction timetable or commercial-scale operation will be realized.

Other risks identified by Ramaco include metallurgical coal and critical-mineral prices, customer demand, permitting and regulatory requirements, transportation and equipment availability, project technology, geological conditions, financing needs, inflation, trade policy and the company’s ability to complete major capital projects on schedule.