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Preliminary Fourth Quarter and Full Year 2017 Unaudited Financial Results
“Ramaco Resources achieved significant operational and sales milestones in its first full year of operations,” stated
Initial Guidance for 2018:
Ramaco Resources’ Executive Chairman,
“We believe that 2018 will be a year of strong financial and operational performance. In turn, this should provide long-term value for our shareholders. Our reserve base continues to present advantaged geologic characteristics. We have several factors at work here: relatively thick coal seams at our deep mines, the ability to utilize low cost highwall miners at our surface mine, and desirable metallurgical coal qualities. We believe that once we are at full production, these characteristics will contribute to a production profile that will allow us to achieve a cash cost of production significantly below most U.S. metallurgical coal producers. We look forward to 2018 being a strong year for generating cash flows,” Mr. Atkins concluded.
The exhibit below summarizes some of the key metrics for the respective periods:
|Company||163||372||2,000 – 2,200|
|Purchase||102||236||400 – 750|
|Total Sales Volume||265||608||2,400 – 2,950|
|Committed 2018 Sales Volume|
|Domestic, priced|| 1,133
|Export, priced|| 194
|Export, priced against index|| 166
|Total Committed Company Tons||1,493
|Purchase (domestic, priced)||410
|Total Committed Sales Volume|| 1,903
|% of Estimated 2018 Sales Volume||71%
|Uncommitted 2018 Sales Volume
|Total Uncommitted Sales Volume||765
|% of Estimated 2018 Sales Volume||29%
|Elk Creek mining complex||273||546||1,800 – 1,950
|Berwind mine||2||2||200 – 250
|Total Production||275||548||2,000 – 2,200
|Company Financial Metrics|
|Average revenue per ton(d)||$ 70||$ 66|
|Average cash costs of coal sold(d)||63||76||$ 58 – $ 61
|Average cash margin per ton||$ 7||$(10)|
|Average cash margin per ton||$ 9||$13
||$20,000 – $25,000
|Cash Paid for Income Taxes||$ –
(a) Preliminary and unaudited.
(b) Projections based on our current expectations. These projections are forward-looking and actual results may differ materially.
(c) Clean ton equivalents.
(d) Excludes transportation.
About Ramaco Resources, Inc.
Ramaco Resources is an operator and developer of high-quality, low cost metallurgical coal in southern West Virginia, southwestern Virginia and southwestern Pennsylvania. The Company has five active mines within two mining complexes at this time.
News and additional information about Ramaco Resources, including filings with the Securities and Exchange Commission, are available at http://www.ramacoresources.com. For more information, contact investor relations at (859) 244-7455.
CAUTIONARY STATEMENT REGARDING PRELIMINARY RESULTS
The preliminary results in this release are based on management’s initial review of the Company’s operations for the quarter and year ended December 31, 2017 and are subject to revision based upon its year-end closing procedures and the completion and external audit of the Company’s year-end financial statements. Actual results may differ materially from these preliminary results as a result of the completion of year-end closing procedures, final adjustments and other developments. In addition, these preliminary results are not a comprehensive statement of the Company’s financial results for the fourth quarter or full year ended December 31, 2017, should not be viewed as a substitute for full, audited financial statements prepared in accordance with generally accepted accounting principles. The Company expects to announce full 2017 financial results in advance of its quarterly conference call, anticipated in late-March 2018.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this news release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent Ramaco Resources’ expectations or beliefs concerning future events, and it is possible that the results described in this news release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Ramaco Resources’ control, which could cause actual results to differ materially from the results discussed in the forward-looking statements. These factors include, without limitation, unexpected delays in our current mine development activities, failure of our sales commitment counterparties to perform, increased government regulation of coal in the United States or internationally, or unexpected decline of demand for coal in export markets and underperformance of the railroads. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, Ramaco Resources does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Ramaco Resources to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements found in Ramaco Resources’ filings with the Securities and Exchange Commission (“SEC”), including its Annual Report on Form 10-K. The risk factors and other factors noted in Ramaco Resources’ SEC filings could cause its actual results to differ materially from those contained in any forward-looking statement.
POINT OF CONTACT:
Michael P. Windisch, Executive Vice President – Chief Accounting Officer firstname.lastname@example.org 859-244-7455