Ramaco Resources — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported a net loss of $18.2 million for the quarter, with Class A diluted EPS of $(0.32).
• Adjusted EBITDA for the quarter was $3.0 million, down 64% year-over-year from $8.4 million in Q3 2025.
• Revenue for the quarter was $150.1 million, up 24% year-over-year from $121.0 million in Q3 2025.
• Cost of sales was $133.8 million for the quarter.
• Liquidity ended the quarter at $375 million, an increase of 38% year-over-year.
• Cash and cash equivalents were $233.0 million with $141.7 million of borrowing availability under the revolving credit facility; there were zero borrowings under the facility.
• Year-to-date 2026 net loss was $52.0 million, with Class A diluted EPS of $(0.88).
• Year-to-date 2026 revenue was $416.5 million, up 2% year-over-year.
• Year-to-date 2026 Adjusted EBITDA was $6.9 million, down 75% year-over-year.
• Non-GAAP cash cost of sales per ton for the quarter was $104, up 7% year-over-year from $97.
• Non-GAAP cash margins per ton sold were $16 for the quarter, down 30% year-over-year from $23.

Guidance and Future Outlook:

• Refined 2026 production guidance to 3.5 – 3.6 million tons, down from the previous 3.6 – 3.9 million tons.
• Refined 2026 sales guidance to 4.0 – 4.1 million tons, down from the previous 4.0 – 4.3 million tons.
• Increased 2026 cash cost guidance to $101 – $103 per ton, up from $96 – $99 per ton, driven by inflationary pressures including diesel prices rising to $5.85 per gallon and U.S. rebar prices rising to $952 per ton.
• Increased 2026 capital expenditure guidance to $97 – $102 million, up from $92 – $97 million.
• Anticipates a working capital benefit in the fourth quarter as inventory is sold into higher-priced markets.
• Expects 2027 domestic sales commitments to account for a meaningful portion of anticipated production, with 1.7 million tons signed at an average fixed price of $139 per ton.
• Anticipates the third section of the Berwind low-vol mine and the first underground section of the Maben low-vol mine to be in production before year-end, adding 600,000 tons of annualized low-vol production.
• The new rail loadout at the Maben Complex is expected to be completed in January 2027, reducing trucking costs by roughly $20 per ton.
• Pre-feasibility study (PFS) for the critical mineral project is expected to commence in Q1 2027 and complete in the second half of 2027.
• The pilot plant building structure is expected to be completed in early 2027, with the full pilot plant expected in the second half of 2027.
• An SK-1300-compliant Technical Report Summary for the Brook Project is expected in Q1 2027.

Business Segments and Product Lines:

• Total tons sold in Q3 2026 were 1.077 million, up 23% year-over-year.
• Total tons produced in Q3 2026 were 851,000, down 10% year-over-year.
• 2026 sales commitments totaled approximately 4.2 million tons, exceeding 100% of the midpoint of 2026 production guidance.
• Of 2026 commitments, 1.3 million tons are fixed-price sales to North American customers at an average of $137 per ton.
• 2.1 million tons are fixed-price sales to seaborne customers at an average of $110 per ton.
• 0.8 million tons are index-priced export sales.
• Inventory as of September 30, 2026, was approximately 900,000 tons, down from a peak of 1.1 million tons in Q1 2026 but still 600,000 tons above normal.
• The Company is testing third-party e-waste samples for analytical and metallurgical evaluation to support the pre-feasibility study.
• Carbochlorination tests achieved average recoveries of 97% for Sc+Ga+Ge, 92% for NdPr, 96% for Y, and 97% for Dy+Tb.

Market and Competitive Landscape:

• U.S. low-vol and high-vol indices increased to an average of $174 per ton in Q3 2026, up 4% from Q2 2026.
• Current average spot prices are up 9% ($17 per ton) versus the third quarter average.
• Australian premium low-vol indices were up 35% year-over-year in Q3 2026.
• U.S. high-vol indices rose 10% versus Q3 2025.
• The Company noted oversupply from China into global steel markets as a multi-year pricing headwind.
• Australian premium low-vol prices rallied close to their highest level in over two years.

Risks and Challenges:

• External inflationary pressures, specifically diesel prices more than doubling since the start of the year and rising steel prices, have increased cash costs.
• The Company faces risks related to the development of the exploratory Brook Mine rare earth and critical mineral project, including the conversion of inferred resources to reserves.
• Forward-looking statements regarding future production, sales, and costs are subject to risks such as unexpected delays, counterparty performance failures, government regulation, and supply disruptions.
• The Company noted that actual results could differ materially from forward-looking statements due to factors outside its control.

Management Commentary and Tone:

• Chairman and CEO Randall Atkins expressed comfort in the company's position despite stock market volatility, citing the stability of a dual-platform business model.
• Management highlighted that current stock market levels are not reflective of longer-term value and that the company is taking steps to create value once markets stabilize.
• Atkins noted that while near-term costs suffer from macro impacts, the company maintains some of the lowest relative costs in the industry for continuous mining.
• Management expressed confidence in 2027 pricing and market conditions, anticipating stronger margin expansion in Q4 2026 and full-year 2027.
• The tone was positive regarding the critical mineral platform's progress, citing exceptional recovery results and advanced discussions for offtake transactions and financing.

Other Key Points:

• The Company won a favorable $30 million jury verdict against Chubb Insurance related to the 2018 Elk Creek coal storage silo failure, including $27.5 million in net economic losses and $2.5 million in additional damages.
• The Board declared a quarterly cash dividend of $0.0742 per share on Class B common stock for Q4 2026, payable on December 18, 2026.
• The Company recognized an income tax benefit of $5.2 million in Q3 2026, representing an approximate 22% effective tax benefit rate.
• Quarterly capital expenditures totaled $35.5 million, up 114% year-over-year, driven by the ramp-up of low-vol growth projects.
• The Company signed 200,000 tons of additional 2026 business at favorable margins.
• Domestic steel mills sought Ramaco's strong balance sheet to reduce counterparty risk against less well-capitalized companies.