Q1 2024 Ramaco Resources Inc Earnings Call

Operator: Good morning and welcome to the Ramaco Resources first quarter 2024 results conference call. All participants will be in listen-only mode. Should you need assistance, please email the Conference Specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you can press star then 1 on your telephone keypad. To withdraw from the question queue, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Jeremy Sussman, Chief Financial Officer. Please go ahead.

Good morning, and welcome to the <unk> resources first quarter 2024 results conference call all.

Operator: All participants will be and listen only mode.

Operator: Did you need assistance. They said no conference specialist about Christmas, Turkey, followed by zero.

Operator: After today's presentation, there will be an opportunity to ask questions.

Jeremy Ryan Sussman: So that's the question Press Star then one of your telephone keypad.

Operator: She was dropped from the question. Please press start them too please.

Operator: Please note. This is being recorded Oh now like to turn the cost of a Jeremy Sussman Chief Financial Officer. Please go ahead.

Jeremy Ryan Sussman: On behalf of Ramaco Resources, I'd like to welcome all of you to our first quarter 2024 earnings conference call. With me this morning is Randy Atkins, our Chairman and CEO, Chris Blanchard, our Chief Operating Officer, and also in the room is our new VP of Marketing and Analysis, David Dyer.

Jeremy Ryan Sussman: Thank you operator.

Jeremy Ryan Sussman: On behalf of grammar car resources I'd like to welcome all of you know our first quarter of 2024 earnings Conference call.

Jeremy Ryan Sussman: With me this morning, with Randy Atkins, our chairman and CEO.

Jeremy Ryan Sussman: Our chief operating officer, an offer in the room is our new V P of marketing and analysis David.

Jeremy Ryan Sussman: Before we start, I'd like to share our normal cautionary statement. Certain items discussed on today's call constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent Ramaco's expectations concerning future events. They are subject to risks, uncertainties, and other factors, many of which are outside of our control, which could cause actual results to differ materially from the results discussed in these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, Ramaco does not undertake any obligation to update or revise any forward-looking statement, whether as the result of new information, future events, or otherwise.

Jeremy Ryan Sussman: Before we start I'd like to share a normal cautionary statements certain items discussed on today's call constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.

Jeremy Ryan Sussman: I'd also like to remind you that you can find a reconciliation of the non-GAAP financial measures that we plan to discuss today in our press release, which can be viewed on our website, www.ramacoresources.com. Lastly, I would, of course, encourage everyone on this call to go to our website and download today's investor presentation. With that said, let me introduce our Chairman and CEO, Randy Atkins.

Jeremy Ryan Sussman: These forward looking statements represent grandma cause expectations concerning future events, they're subject to risks uncertainties and other factors many of which are outside of our control, which could cause the actual results differ materially from the results discuss the need for a a few statements and.

Speaker Change: Any forward looking statements speaks only isn't the date on which it is made except as required by law Radmacher does not undertake any obligation to update and revise any forward looking statements, whether it's the result of new information future events or otherwise.

Jeremy Ryan Sussman: I'd also like to remind you that you can find a reconciliation of the non-GAAP financial measures that we plan to discuss today in our press release, which can be viewed on our website www dot <unk> resources Dot com.

Randall W. Atkins: Lastly, I of course encourage everyone on this call to go onto our website and download today's investor presentation.

Randall W. Atkins: With that said, let me introduce our chairman and CEO Randy athletes.

Randall W. Atkins: Thanks, Jeremy.

Randall W. Atkins: Good morning to everyone, and thanks for joining the call. Our first quarter results were, of course, below our expectations. We printed $24 million of EBITDA in Q1 against twice that amount in Q4. Jeremy will go into detail on the financial metrics, but a main driver was lower realized prices. They dropped by over $55 a ton, or almost 20% since Q4. This particularly hit us in March when we shipped almost 50% of our Q1 export business, which was export, which was the index price. We also dealt last quarter with mine cost issues at Elk Creek due to both tough geology and labor. I'm confident that our results will improve throughout the year.

Randall W. Atkins: Good morning to everyone and thanks for joining the call.

Randall W. Atkins: Our first quarter results were of course below our expectations.

Randall W. Atkins: We printed twenty-four man Don Q1 against twice that amount in Q4.

Randall W. Atkins: Jeremy will go into detail and financial metrics, but a main driver was lower realized prices they.

Randall W. Atkins: They dropped by over $55 a ton are almost 20 per cent since Q4.

Randall W. Atkins: This is particularly you hit us in March when we shipped almost 50 per cent of our queue, one export business, which was export which was index priced.

Randall W. Atkins: We also dealt last quarter with mine cost issues at El Creek from both tough geology and labor conditions.

Randall W. Atkins: I'm confident that our results will improve throughout the year. This will come from a combination of continued production growth greater cost discipline and improvements in productivity.

Randall W. Atkins: This will come from a combination of continued production growth, greater cost discipline, and improvements in productivity. With that expectation in mind, we have continued to maintain our current guidance for the year. As I said in our earnings release, there are parallels with our somewhat bifurcated performance in 23. Last year, we were both a different and much larger company in the second half of the year. Why?

Randall W. Atkins: But that expectation in mind, we have continued to maintain our current guidance for the year.

Randall W. Atkins: Cause I shed in our earnings release, there are parallels with are somewhat bifurcated performance in 2003.

Randall W. Atkins: Last year, we were both a different and much larger company in the second half of the year why essentially we grew by 33% from three to 4 million tons of annualized production in the back half.

Randall W. Atkins: Essentially, we grew by 33% from 3 to 4 million tons of annualized production in the back half. 2024 looks like it may play out in a very similar fashion. We now expect to ramp current sales and production by an additional 1 million tons or 30% by Q4. And in the year at basically a 5 million ton run. We will reduce CapEx in 24 by 30% against 23 numbers. Throughout the balance of the year, we will also see a meaningful cost reduction back to guidance levels from a combination of new production and better molding conditions, as I will briefly note in a moment.

Randall W. Atkins: 2024, it looks like it may play out it's been very similar fresh.

Randall W. Atkins: We now expect to ramp current sales and production by an additional 1 million tons or 30% by Q4 and in the year. It basically a 5 billion ton run right.

Randall W. Atkins: We will reduce capex and 24 by 30% against twenty-three numbers.

Randall W. Atkins: And the balance of the year. We were also see a meaningful cost reduction back the guidance levels from a combination of new production and better mounting conditions as I will briefly note in a moment.

Randall W. Atkins: Later, we're also going to talk in detail about each of our four near-term production growth projects. All of them are currently on track on both timing and budget. In a brief summary, at Elk Creek, we will add roughly 600,000 tons of additional annualized production from the Ram No. 3 surface and highwall, as well as a new third section to the Stonewall Album.

Randall W. Atkins: Later, we're also gonna talk in detail about each of our four near term production growth initiatives. All of them are currently on track on both timing and budget.

Randall W. Atkins: And a brief summary at Elk Creek, we will add roughly 600000 tons of additional annualize production from the Ram number three surface and Highwall mine.

Randall W. Atkins: As well as a new third section to the Stonewall album.

Randall W. Atkins: Both ramp up by the mid-year, and these mines will be in thicker coal costs, with costs rather estimated at approximately $90 to $95. In the main Berwyn mine, starting in Q4, we will add roughly another 300,000 tons of annualized low-vol production by adding a third section. That mine is now running at a cost of approximately $85 per ton, and we're expecting similar cost metrics in the new sector. Lastly, we are on track to have the Maven Prep Plant fully operational before the year.

Randall W. Atkins: Both ramp up by the mid year and these minds will be encyclical costs with cost rather estimated at approximately 90 to $95 a ton.

Randall W. Atkins: And the main Berwyn mind, starting in Q4, we will add roughly another 300000 tonnes of annualize local production from adding a third section.

Randall W. Atkins: That mine is now running with cost of approximately $85 per ton and we're expecting similar cost metrics in the news section.

Randall W. Atkins: Last spring we are on track to have the Megan prep plant fully operational before year end.

Randall W. Atkins: This will eliminate about $40 per ton of current trucking. So collectively, in the back half, we should be producing and selling almost a million tons more. Importantly, this new production should have an average mine cost well below $100. When this is combined with productivity gains at our other mines, we anticipate overall costs will decline meaningfully in the second half. Our bottom line goal is to exit 24 at or below $100 per ton cash cost and produce and sell at almost 5 million tons annually. This is now baked into our full year cash cost guidance of $105 to $111. In the rare earth element business, since we last spoke last quarter, we have moved forward on a number of fronts. In March, Weir International issued an updated technical report on our exploration target.

Randall W. Atkins: This will eliminate about $40 per ton of current trucking cost.

Randall W. Atkins: So collectively in the back half, we should be producing and selling on an annual basis of almost a million tons more.

Randall W. Atkins: Importantly, this new production should have average mind cost well below $100 per ton.

Randall W. Atkins: When this is combined with productivity gains at our other minds, we anticipate overall cost will decline meaningfully in the second half.

Randall W. Atkins: Our bottom line goal is to exit 24 at or below $100 per ton cash cost and produce and sell it almost 5 million tonne annual rate.

Randall W. Atkins: This is now baked into our full year cash cost guidance of 105 to $111 per ton.

Randall W. Atkins: Both the rare earth volumes and mineral concentration estimates basically doubled from the original report a year ago. We are currently drilling more cores at deeper depths and also mining larger tests. As we do, we anticipate these numbers will get larger. There are two matters concerning the rare earths I'd like to know. There are a number of deposit lithologies that showed maximum part-per-million concentrations exceeding 9,000 ppm.

Randall W. Atkins: On a rare rare earth elements business since we last spoke last quarter. We have moved forward on a number of fronts in.

Randall W. Atkins: In March where internationally issued an updated technical report on our exploration target.

Randall W. Atkins: Both the rare volumes and mineral concentration estimates basically doubled from the original report a year ago.

Randall W. Atkins: We are currently drilling more cores it deeper depth and also mining larger test samples as.

Randall W. Atkins: As we do we anticipate these numbers will get larger.

Randall W. Atkins: There are two matters on the railroad so I would like to note. There are a number of deposit lithology showed maximum part per billion concentrations exceeding 9000 ppm.

Randall W. Atkins: This includes coal. Also, 10% of the deposit is now estimated to contain two high-value critical minerals called gallium and germanium, which are used in CIMIC.

Randall W. Atkins: Includes cole.

Randall W. Atkins: Also 10% of the deposit is now estimated to contain too high value critical minerals called gallium and germanium. These are used and should be conductors and both were banned from export by China last year.

Randall W. Atkins: Both were banned from export by China last year. We are now estimated to have one of the largest natural supplies of these minerals in the U.S. On the back of the new WEIR report, in April, we held our first inaugural investor REE conference call with both the buy and the sell side. We would like to thank nearly all of the 200 people who participated, who were both a lot of new and many familiar faces.

Randall W. Atkins: We are now estimated to have one of the largest natural supplies of these minerals in the U S.

Randall W. Atkins: On the back of the New where report in April we held our first inaugural Investor R. E Conference call with both to buy and sell side.

Randall W. Atkins: We would like to thank nearly all of the 200 people who participated but we're both a lot of new and many familiar faces.

Randall W. Atkins: We are continuing to progress at the Brook Mine in terms of developing the geological assessment as well as the chemical and preliminary separation analysis of the RE, and we still expect completion of our techno-economic analysis later this year. Switching gears, in terms of the overall MET market, Jeremy will touch on some details in his remarks. However, MET call prices, as I said, fell by roughly $55 throughout the first quarter. In March alone, the drop accelerated by $30 a month.

Randall W. Atkins: We are continuing to progress at the Brook mind in terms of developing the geological assessment as well as the chemical and preliminary separation analysis of the <unk> and we still expect completion of our techno economic analysis later this year.

Randall W. Atkins: Switching gears in terms of the overall met market Jeremy will touch on some detail in his remarks, however met called prices as I said fell by roughly $55 throughout the first quarter in March alone the drop accelerated by $30 a ton.

Randall W. Atkins: As I mentioned, unfortunately, March was when we had the majority of our first quarter exports. This price decline was largely on the back of muted seasonal buying influences, which we've now seen occur in Q1 for the last three years in a row. Some good news, however, is that pricing appears to have stabilized once again at levels similar to last year's lows. On the demand front, we have recently seen increased buying activity from several of our Asian customers. On the supply side, overall coal production is down in cap year to date, with southern West Virginia down about 14% and Virginia down about 21%.

Jeremy: As I mentioned Unfortunately March was when we had the majority of our first quarter experts export shipments.

Randall W. Atkins: This price decline largely on the back of muted seasonal buying influences, which we've now seen occur in Q1 for the last three years in a row.

Randall W. Atkins: Some good news however is that pricing appears to have stabilised once again at level similar to last year's lows.

Randall W. Atkins: On the demand front, we have recently seen increased buying activity from several of our Asian customers.

Randall W. Atkins: On the supply side overall coal production is down in capp year to date with southern West, Virginia down about 14% in Virginia down about 21%.

Randall W. Atkins: This decline is reflected in the recent closure of some higher cost mines near us that are frankly losing money at current prices. One silver lining of these closures is that the labor markets seem to have stabilized. As a result, hiring has picked up, and wage pressures seem to have declined. However, the Met markets are always driven by macroeconomic factors. We're optimistic that the back half of the year may show some resilience in both demand and price. There are a number of factors which we expect may lead to this.

Randall W. Atkins: This decline is reflected with the recent closure of some higher cost man's near us that are frankly, losing money at current price levels.

Randall W. Atkins: One silver lining of these closures is that the labour markets seem to have stabilized.

Randall W. Atkins: As a result.

Randall W. Atkins: Our hiring is picked up and wage pressures seemed to have declined.

Randall W. Atkins: Although the met markets are always driven by macro economic factors, we're optimistic that the back half of the year May show, some resiliency in both demand and pricing.

Randall W. Atkins: There are a number of factors, which we expect may lead to this rebound.

Randall W. Atkins: In a nutshell, Chinese domestic steel demand has been weak, which calls for them to increase their steel production. And that supply glut has led to lower steel prices across the region, which in turn has squeezed margins across the whole supply chain. As we know, China has been in a shift toward building out energy transition and consumer-related industries at the expense of less spending on traditional real estate and infrastructure.

Randall W. Atkins: In a nutshell Chinese domestic steel demand has been weak this year, which caused them to increase their steel exports and that supply glut has led to lower scale prices across the region, which in turn is squeezed margins across the whole supply chain.

Randall W. Atkins: As we know China has been in a shift toward building up energy transition and consumer related industries at the expense of less spending on traditional real estate and infrastructure.

Randall W. Atkins: Looking forward, however, there are reasons to expect that the Asian steel markets may rebound in the second half of the year with a corresponding uptick in overall med coal prices. First, in China, there's a growing expectation of improving downstream demand due to recent project funding via accelerated bonds. In addition, India has progressively had a larger role in impacting the global met...

Randall W. Atkins: Looking forward. However, there are reasons to expect that the agent steel markets may rebound in the second half of the year with a corresponding uptick in overall med cold pricing.

Randall W. Atkins: First in China, there's a growing expectation of improving downstream demand due to recent project funding be accelerated bond issuances.

Randall W. Atkins: In addition.

Randall W. Atkins: India and progressively had a larger role and impacting the global met business.

Randall W. Atkins: This may be equal to or even greater than Chinese market influence as we move forward. And one aspect of this influence on the markets we've seen is that now both India and China's seasonal buying patterns have more weight on price. As an example, China seems to be a more aggressive buyer in Q4 for their Q1 construction act, and India seems to restock ahead of the monsoon season in Q3. Also this year, Indian elections are taking place this quarter, which has added to salter infrastructure. Note there's a prohibition on approving new infrastructure projects during the election.

Randall W. Atkins: This may be equal or even greater than Chinese market fluent influences we move forward.

Randall W. Atkins: And one aspect of this influence on the market's we've seen.

Randall W. Atkins: Now, both India, and China is seasonal buying patter patterns have more weight on price.

Randall W. Atkins: As an example, China seems to be a more aggressive buyer in queue for for their queue. One construction activity.

Randall W. Atkins: And India seems to restock ahead of the monsoon season in Q3.

Randall W. Atkins: Also this year Indian elections are taking place this quarter, which was added to softer infrastructure spending.

Randall W. Atkins: The note there isn't it prohibition of approving new infrastructure projects during the election season.

Randall W. Atkins: So this adds another impact. Therefore, we view India's recent demand pullback as somewhat of a seasonal one, and post-election, we expect an uplift beginning in July. So, to step back against this backdrop of international demand, we couple it with a forward muted supply picture from the closure of some higher-cost mines in the U.S. and continued production issues at some of the older Australian mines. This leads us to feel some optimism that we may see both demand and price pick up in the second half.

Randall W. Atkins: So this adds another impact.

Randall W. Atkins: Therefore, we view India's recent demand pullback is somewhat of a seasonal one and post election, we expect an uplift beginning in July.

Randall W. Atkins: So to step back against this backdrop of international demand, we coupled with a forward muted supply picture from the closure of some higher cost match in the U S and continued production issues at some of the older Australia match.

Randall W. Atkins: This leads us to feel some optimism that we may see both demand and price pick up in the second half.

Randall W. Atkins: Indeed, as I've said over the last few weeks, we have seen some increased sales interest from our Asian customers. And we should also not discount the knock-on demand impact if the U.S. economy shows some strength in the back half of the year. We expect this might come from the combined impact of spending rollouts from the multiple fiscal stimulus packages passed last year and the resulting on-shoring or re-shoring of related energy transition processes.

Randall W. Atkins: Indeed, as I've said over the last few weeks, we have seen some increase sales interest from our Asian customers.

Randall W. Atkins: And we should also not discount the knock on demand impact if the U S economy shows some strength in the back half of the year.

Randall W. Atkins: We expect this might come from the combined impact of spending rollouts from the multiple fiscal stimulus packages passed last year and the resulting onshoring are reassuring a related energy transition projects.

Randall W. Atkins: Lastly, on the financial front, we recently closed an agreement to increase both the size and the term of our existing revolver with a KeyBank-led syndicate. This facility takes the basic size of the revolver from $125 million to $200 million. It has an additional $75 million accordion feature, which increases the ultimate size to 275.

Randall W. Atkins: Lastly, on our financial front, we recently closed agreement to increase both the size and the term of our existing revolver with a keybanc led syndicate.

Randall W. Atkins: This facility takes the basic size of the revolver from $125 million to $200 million.

Randall W. Atkins: It has an additional $75 million. According in feature which increases the ultimate size to $275 million.

Randall W. Atkins: We also extended the term from three to five years until 2029. As we look to our production and sales growth over the coming years, we appreciate now having the flexibility of a larger facility to basically meet normal working capital. And I want to especially thank KeyBank, as well as our syndicate members, for their long and continued support of Ramaco and all of our growth initiatives. I view the closing of this upsized facility as a validation of our longstanding, strong credit culture and conservative balance.

Randall W. Atkins: We also extended the term from three to five years until 2029.

Randall W. Atkins: As we look to our production and sales growth over the coming years. We appreciate now having the flexibility of a larger facility to basically meet normal working capital requirements.

Randall W. Atkins: And I want to thank especially keybanc as well as our syndicate members for their long and continued supportive aramco at all or without growth initiatives.

Randall W. Atkins: I view the closing of this upset facility as a validation of our long standing strong credit culture and conservative balance sheet.

Randall W. Atkins: In line with that, I would note that over the course of 24, we will continue to pay down the term debt we had at the end of the year, as Jeremy will detail in a moment. And with that, I would like to turn the floor over to the rest of our team to discuss finances.

Randall W. Atkins: In line with that I would note that over the course of 24, we will continue to pay down the term that we had at the end of the year is Jeremy will detail in a moment.

Speaker Change: And with that I would like to turn the floor over to the rest of our team to discuss finances operations in market. So Jeremy please begin with a rundown on our financial metrics. Thank.

Jeremy Ryan Sussman: As you noted, first quarter 2024 results were negatively impacted by lower index pricing, especially in March. We shipped over half of our export tons in March when industries were at their lowest. In addition, Q1 mine costs were impacted by challenging geology and labor constraints at Elk Creek, both of which are expected to improve throughout Q2, and especially in the back half of the year. Now to get into some specifics, Q1 adjusted EBITDA was $24 million compared to $48 million in the same period of last year.

Speaker Change: Thank you Randy.

Speaker Change: As you noted first quarter of 2024 results were negatively impacted by lower index pricing, especially in March we.

Jeremy Ryan Sussman: We tipped over half of our export comes in March and the fees were at their lowest.

Jeremy Ryan Sussman: In addition, he won't mind costs for impacted by challenging geology, and labor constraints with El Creek, both of which are expected to improve throughout Q too and especially in the back half of the year.

Jeremy Ryan Sussman: Now to get into some specifics Q1, adjusted EBITDA was $24 million compared to $48 million the same period of last year.

Jeremy Ryan Sussman: The primary reason for the year-over-year decrease was the 20% decline in index pricing which led to a similar decline in our realized pricing to $155 per ton versus $188 in Q1 of 23. Overall net income was $2 million compared to $25 million in Q1 of 2023. While net income was positive, Class A EPS was zero. Now, as a reminder, when calculating Class A earnings per share, net income is reduced by the Class B dividend declared in that quarter.

Jeremy Ryan Sussman: Primary reason for the year over year decrease with a 20% decline in index pricing, which led to a similar decline in our realized pricing to $155 per ton versus 188, and Q1 of 23.

Jeremy Ryan Sussman: Overall, net income was $2 million compared to $25 million in Q1 of twenty-three while.

Jeremy Ryan Sussman: While net income was positive glace EPS was zero now as a reminder, when calculating class a earnings per share net income is reduced by the class the dividend declared in that quarter.

Jeremy Ryan Sussman: At the same time, our cash costs rose from $109 per ton this time last year to $118 per ton this past quarter. However, sales of 929,000 tons were up 23% year over year on the back of both higher production and sales from inventory. That said, while production of 844,000 tons was up 10,000 tons from Q1 of 2003, this missed our internal expectations on the back of both challenging geology and labor constraints at Elk Creek, which led to higher costs. Increased purchase call, especially on the low volume side, also negatively impacted our cash cost by a couple bucks a ton. Put some metrics behind the production list.

Jeremy Ryan Sussman: The same time or cash cost rose from $109 per ton. This time last year to $118 per ton this past quarter sales.

Jeremy Ryan Sussman: Sales of 929000 tons were up 23% year over year on the back of both higher production and sales from inventory.

Jeremy Ryan Sussman: Said bought production of 844000 tonnes with a 10000 tonnes from Q1 of 23 dismissed.

Jeremy Ryan Sussman: Dismissed our internal expectations on the back of both challenging theology, and labor constraints, Elk Creek, which led to higher costs.

Jeremy Ryan Sussman: Increased purchase call, especially on the local side also negatively impacted our cash cost by a couple of Bucks a ton.

Jeremy Ryan Sussman: What's the matrix behind the production Miss.

Jeremy Ryan Sussman: We believe the combination of challenging geology at our Elk Creek Complex's Stone Coal Alma Mine, coupled with labor constraints, cost us over 100,000 tons of production in Q1. The biggest labor challenge was staffing up our Michael Palatin mine, which produced just 20,000 tons of coal this quarter, almost 50,000 tons below what a normal quarter would look like. The good news is that, based on a loosening labor market due to mine closures around us, this mine is now essentially fully staffed as of early May.

Jeremy Ryan Sussman: We believe the combination of challenging geology at our Elk Creek complex. This don't call Alma mine, coupled with labor constraints cost us over 100000 tons of production in Q1.

Jeremy Ryan Sussman: Biggest flavor challenge with staffing up our Michael Poulton mine, which produced the 20000 tons of coal this quarter, almost 50000 tons below in a normal quarter it looked like.

Jeremy Ryan Sussman: Good news is that based on the loosening labor market due to mine closures around us. This minus now essentially fully staffed as of early may.

Jeremy Ryan Sussman: On the geology front, Chris will talk through this in more detail, but our stone coal alma mine had to mine through some very thin coal in Q1. This mine came in almost 30,000 tons below what we would have expected for the quarter. The good news is that after continuing challenging conditions in April, the second section is now pillaring for the rest of the year and thus is in much better condition.

Jeremy Ryan Sussman: On the geology front.

Jeremy Ryan Sussman: This will talk through this in more detail, but our phone call album line had to mind through some very thin call. In Q1. It's mine came in almost 30000 tonnes below what we would expect it for the quarter.

Jeremy Ryan Sussman: Good news is that after continued challenging conditions in April the second section is now tailoring for the rest of the year enough as in much better condition.

Jeremy Ryan Sussman: This would lead to much higher production and lower costs. Had we produced at overall expected levels in Q1, we are confident that cash costs would have come in the full year guidance range of $105 to $111 per ton. Looking ahead, we anticipate Q2 shipments of 850,000 to 950,000 tons of coal and expect an increase in sales guidance throughout the year. As Randy noted, over the balance of the year, Ramaco anticipates adding almost a million tons of annualized production compared to current run rates, all from projects that are fully underway.

Jeremy Ryan Sussman: It could be much higher production and lower costs.

Jeremy Ryan Sussman: Have we produced an overall expected levels in Q1, we are confident the cash costs would have come in the full year guidance range of 105 to $111 per ton.

Jeremy Ryan Sussman: Looking ahead, we anticipate Q2 shipments of 850000 to 950000 tons of coal and expect an increase in sales guidance throughout the year.

Jeremy Ryan Sussman: As Randy noted over the balance of the year ran mccullough anticipates, adding almost a million tons of annualized production compared to current run rates all from projects that are fully underway.

Jeremy Ryan Sussman: Overall mine costs are expected to meaningfully decline in the back half of this year as volumes are anticipated to be materially above those levels in the first half of 2024. For the full year, we are reiterating all prior 2024 guidance, which you can, of course, find in our guidance tables. I'll note that at the midpoint of guidance, we anticipate both production and sales up 30% versus 2023, a decline in cash costs, and a 30% decline in CapEx.

Jeremy Ryan Sussman: Overall mind costs are expected to meaningfully declined in the back half of this year.

Jeremy Ryan Sussman: <unk> sure anticipated to be materially above those levels in the first half of 24.

Jeremy Ryan Sussman: For the full year, we're reiterating all prior 2024 guidance, which you can of course find an archiving tables.

Jeremy Ryan Sussman: I'll note that at the midpoint of guidance, we anticipate both production sales up 30% versus 2023.

Jeremy Ryan Sussman: Climbing cash costs, and a 30% decline in capex.

Jeremy Ryan Sussman: That said, based on the three new minds or sections that we're adding throughout the year, we clearly anticipate results to be back by halfway. Moving to the balance sheet, our liquidity on March 31st of $96 million was up 46% year-on-year. This is despite the fact that accounts receivable hit record quarter-end levels of $104 million in marks, up over $30 million on the year.

Jeremy Ryan Sussman: That said based on the three new mine's a section that we're adding throughout the year, we clearly anticipate results to be back have waited.

Jeremy Ryan Sussman: Moving to the balance sheet or liquidity on March 31, $96 million was up 46% year on year.

Jeremy Ryan Sussman: Despite the fact that accounts receivable hit record quarter and levels of $104 million and mark up over $30 million on the year.

Jeremy Ryan Sussman: As Randy both said and provided specifics, last week we closed on our $200 million revolver, up from $125 million, and extended the term into 2029. I want to thank our key bank and syndicate partners for their support of Ramaco as well as our growth strategy. Now, on page 8 of our slide deck, we have a chart that illustrates our commitment to maintaining a conservative balance. Specifically, we have continued to meaningfully pay down term debt over the past few quarters, including in Q1.

Jeremy Ryan Sussman: It's Randy both set and provided specific John last week, we closed on our $200 million revolver up from $125 million and extended the term into 2029.

Jeremy Ryan Sussman: I want to thank our Keybanc and syndicate partners for their support of <unk> as well as our growth strategy.

Jeremy Ryan Sussman: Now on page eight of our slide deck, we have a chart that illustrates our commitment to maintaining a conservative balance sheet.

Jeremy Ryan Sussman: But typically we have continued to meaningfully pay down turn that over the past few quarters, including in Q1.

Jeremy Ryan Sussman: One year ago, we had roughly $140 million of total debt outstanding. We reduced that figure by roughly $55 million to just $86 million, which includes amounts drawn on the revolver as of the end of Q1. We will repay the final $9 million of term debt associated with the Maven acquisition over the next few months. This essentially leaves us with just the $35 million unsecured baby bond, which we can choose to repay at any time, but it's not due until 2026, plus whatever we have drawn on the revolver for working capital purposes.

Jeremy Ryan Sussman: One year ago, we had roughly $140 million a total debt outstanding.

Jeremy Ryan Sussman: We have reduced that figure by roughly $55 million $86 million, which includes amounts drawn on the revolver as of the end of Q1.

Jeremy Ryan Sussman: We won't be paid the final $9 million a term that associated with the <unk> acquisition over the next few months.

Jeremy Ryan Sussman: This essentially leaves us with just for $35 million unsecured baby bond, which we can do to repay at any time, but it's not due until 2026, plus whatever we have drawn on the revolver for working capital purposes.

Jeremy Ryan Sussman: As of Q1, our net debt-to-trailing 12-month EBITDA was less than 0.4 times. Before I turn the call over to Chris, I'd like to add to Randy's remarks on the We were now essentially sold out at the midpoint of 24 production guidance. We have 1.4 million tons committed to North American customers at an average realized price of $167 per ton and 700,000 tons that have mostly already shipped to Seabourn customers at an average realized price of $150 per ton, for a total of 2.1 million tons committed at an average realized price of $162.

Jeremy Ryan Sussman: As in Q1, our net debt to trailing 12 month EBITDA was less than 0.4 times.

Jeremy Ryan Sussman: We also have an additional 2 million tons committed at mostly index-linked pricing for delivery-to-export customers, with over half of that index-linked pricing on the lowball side. This brings total commitments to 4.2 million tons, up from 3.9 million tons when we last spoke. At this point, we're essentially 100% sold out through year end, with the ability, of course, to pivot to higher levels dependent on market conditions. In addition, in the wake of the Baltimore Bridge collapse, I want to reiterate that Ramaco does not ship through the Port of Baltimore. We've got dedicated throughput to export our coal through various Hampton Roads coal terminals in Virginia. Thus, we've seen zero direct impact on our business as a result of the bridge collapse. Switching gears.

Jeremy Ryan Sussman: Before I turn the call over to Chris I'd like to add onto Randy's remarks on the market.

Jeremy Ryan Sussman: We are now essentially sold out at the midpoint of 24 production guidance.

Jeremy Ryan Sussman: We have 1.4 million tonnes committed to north American customers at an average realized price of $167 per ton and 700000 tonnes, but mostly already shipped to seaborne customers and an average realized price of $150 per ton.

Jeremy Ryan Sussman: For a total of 2.1 million tonnes committed and an average realized price of $162 per ton.

Jeremy Ryan Sussman: You'll also have an additional 2 million tonnes committed it mostly index linked pricing for delivery to export customers with over half of that index linked pricing on the local side.

Jeremy Ryan Sussman: This brings total commitment 4.2 million tonnes up from 3.9 million tons. When we last spoke.

Jeremy Ryan Sussman: At this point, we're essentially 100% sold out three year and with the ability of course to pivot to higher levels dependent on market conditions.

Jeremy Ryan Sussman: In addition, and the wait for the Baltimore Bridge collapsed I want to reiterate that Ramic does not shipped through the port of Baltimore, We've got dedicated throughput to export our call through various Hampton roads Cole terminals in Virginia.

Jeremy Ryan Sussman: We've seen zero direct impact to our business as a result of the bridge collapse.

Jeremy Ryan Sussman: In Randy's remarks, he discussed the reasons behind the Q1 drop in pricing and the reasons for optimism in the second half of this year, which I'm going to elaborate on. First, we're witnessing the effects that low prices are having on high-cost central app supply around us. Specifically, we are seeing the most amount of incoming job applications for our mines that we've seen since last summer, frankly, as a number of higher-cost competitors' operations have either shut down or scaled back.

Jeremy Ryan Sussman: Switching gears and.

Jeremy Ryan Sussman: Rantings remarks, you discuss the reasons behind the Q1 drop in price and and the reason for optimism in the second half of this year, which I'm going to elaborate on first.

Jeremy Ryan Sussman: First.

Jeremy Ryan Sussman: [noise] witnessing the effects that low prices are having on high cross central out supply around us.

Jeremy Ryan Sussman: Typically we are seeing the most amount of incoming job application for our minds that we've seen since last summer frankly, as a number of high higher cost competitors operations have either shut down or scaled back.

Jeremy Ryan Sussman: Second, on the demand side, Chinese steel demand disappointed in Q1 on the back of continued struggles in the real estate sector, in particular. In addition, while Indian steel production remained up double digits year on year in Q1, India's met coal buying activity was not as robust as it was in the second half of 2012. That said, looking ahead, India's most recent PMI data showed that its business activity expanded at the fastest pace in almost 14 years.

Jeremy Ryan Sussman: Second on the demand side Chinese steel demand disappointed in Q1 on the back of continued struggles in the real estate sector in particular.

Jeremy Ryan Sussman: In addition, while Indian steel production has remained up double digits year on year in Q1.

Jeremy Ryan Sussman: Indian men call buying activity was not as robust as it was in the second half of 23.

Jeremy Ryan Sussman: That said looking forward India's most recent PMI data showed that business activity expanded it the fastest patient almost 14 years.

Jeremy Ryan Sussman: When combined with an expectation of a further pick-up in activity post both their elections and the monsoon season, we'd expect India to be very supportive of the met coal markets in the back half of the year. However, time is always a bit more difficult to handicap.

Jeremy Ryan Sussman: When combined with an expectation of a further pick up in activity post both their elections and monsoon season, we'd expect India to be very supportive of met coal markets in the back half of the year.

Jeremy Ryan Sussman: Now, there's always a bit more difficult to handicap.

Christopher L. Blanchard: It's been a slow start to the year there on a number of fronts, including loan growth. That said, as Randy mentioned, there's a growing expectation that credit growth will accelerate in the back half of this year. If that's the case, while we would expect both the U.S. low vol and high vol pricing to rebound, this should especially be true on the low vol side. Frankly, low vols are essentially sold out across the board for many producers, and while current U.S. indices remain muted, we do not believe they necessarily reflect the current tightness in the U.S. low vol markets, in particular.

Jeremy Ryan Sussman: A slow start to the year, there on a number of fronts, including low and growth.

Christopher L. Blanchard: That said.

Christopher L. Blanchard: Randy mentioned, there is a growing expectation that credit growth will accelerate in the back half of this year.

Christopher L. Blanchard: That's the case, while we would expect both the U S low balling highball pricing to rebound this especially be true on the local side.

Christopher L. Blanchard: Frankly, low balls essentially sold out across the board for many producers and while current U S. Embassies remained muted we do not believe they necessarily reflect the current tightness in the U S local markets in particular.

Christopher L. Blanchard: We're seeing both domestic and international inquiries on the low volume side for 2024 delivered delivery. Frankly, it's some pretty solid pricing. That said, I'd now like to turn the call over to our Chief Operating Officer, Chris Blanchard.

Christopher L. Blanchard: We're seeing both domestic and international inquiries on the low wall side for 2024 delivered delivery candidly at some pretty solid pricing.

Christopher L. Blanchard: That said I'd now like to turn the call over to our Chief operating Officer, Chris Blanchard.

Christopher L. Blanchard: Thank you, Jeremy. And thanks, everyone, for joining our call this morning. As Randy and Jeremy both alluded to, the first quarter was extremely challenging operationally on several fronts. First and foremost, when we exited 23rd, the labor market for experienced and skilled underground coal miners was extremely tight. While our turnover rates have moderated from unsustainable levels in the previous year, we were not as successful as usual in filling some vacancies at our operations. This shortage was the most acute amongst the scarcer skilled positions.

Christopher L. Blanchard: Thanks, Jeremy and thanks, everyone for joining our call. This morning.

Christopher L. Blanchard: As Randy and Jeremy both alluded to the first quarter was extremely challenging operationally on several fronts.

Christopher L. Blanchard: First and foremost exiting twenty-three the labor market for experienced and skilled underground coal miners was extremely tight.

Christopher L. Blanchard: While our turnover rates have moderated from unsustainable levels in the previous year, we were not as successful as typical and feeling some vacancies at our operations.

Christopher L. Blanchard: The shortage was the most acute amongst the scarcer skilled positions.

Christopher L. Blanchard: And while all of our complexes saw this trend, the bulk of the impact was at our Elk Creek operations, which are in Logan County, West Virginia, and in close proximity to several of our peers. However, the recent precipitous drop in the coal pricing indices has had one positive effect. Some of the higher-cost operations in the region have been scaled back or outright idled, and as a result, we are seeing an overall loosening in the labor market, with both more quality applications received as well as a reduction in our natural turnover.

Christopher L. Blanchard: And while all of our complex and saw this trim the bulk of the impact was that our Elk Creek operations, which are in Logan County, West, Virginia and in close proximity several of our peers.

Christopher L. Blanchard: However, the recent precipitous drop in the cold pricing indices has had one positive effect.

Christopher L. Blanchard: Some of the higher cost operations in the region have been scaled back or outright idol and as a result, we are seeing an overall loosening in the labor market with both more quality applications received as well as a reduction in her natural turnover.

Christopher L. Blanchard: To put some metrics on the effects of these vacancies on operations, we entered the year at Elk Creek running with approximately a 15% vacancy rate from our targeted staffing level. By the end of the first quarter, staffing vacancies were less than 10% at Elk Creek, and our annualized voluntary turnover rate decreased by approximately 4% overall as well.

Christopher L. Blanchard: To put some metrics to the effects of these vacancies on the operations, we entered the year and it'll create groaning with approximately a 15% vacancy rate from our targeted staffing levels.

Christopher L. Blanchard: By the end of the first quarter staffing vacancies are less than 10% at El Creek, and our annualized voluntary turnover rate has decreased by approximately 4% overall as well.

Christopher L. Blanchard: This is critical, in particular, at one of the main mines at Elk Creek, which was understaffed for its budgeted production levels for the first several months of the year. It is now almost fully staffed, with production levels rising to meet our expectations. At the corporate level, we're taking a measured look at each mine and at each section within each mine, given the coal markets and near-term cost pressures. As geologic or other challenges occur, we are rightsizing underperforming mines to manage overall minecast costs.

Christopher L. Blanchard: This is critical in particular at one of the main lines with.

Christopher L. Blanchard: Was understaffed for it's budgeted production levels for the first several months of the year.

Christopher L. Blanchard: It is now almost fully staffed with the production levels rising to meet our expectations.

Christopher L. Blanchard: At the corporate level, we're taking a measured look at each mine and at each section within each mine given the cold markets and near term cost pressures.

Christopher L. Blanchard: As geologic or other challenges occur we are right sizing underperforming mines to manage overall non-cash costs.

Christopher L. Blanchard: Switching to those geologic challenges, as mentioned, our stone coal mine at Elk Creek progressed through difficult mining conditions on both of its super sections during the quarter. Due to moving to predominantly retreat mining on one of these sections and transitioning another section into the thicker Alma seam, where coal heights will be approximately 50 inches or greater compared to 30 inches or less. We now expect to reverse the production misses at Stone Coal, as well as see a substantial decline in cash costs for the remainder of this year heading into 2025. At Elk Creek, overall, we expect an uptick in the second half of the year in production levels as some of the issues I've just described ease. More importantly, we'll see the new Ram No.

Christopher L. Blanchard: Wishing to those geologic challenges as mentioned are stone coal mine at El Creek progress through difficult mining conditions on both of us Super sections during the quarter.

Christopher L. Blanchard: Due to moving to predominantly retreat mining one of these sections entrance transitioning another section into the thick around the same or cold highs will be approximately 50 inches or greater compared to 30 inches or less.

Christopher L. Blanchard: We now expect to reverse the production misses that stone cold as well as the a substantial decline in cash costs for the remainder of this year heading into 2025.

Christopher L. Blanchard: And it'll Creek overall, we expect an uptick in the second half of the year and production levels as some of the issues I've just described these.

Christopher L. Blanchard: 3 Surface and high-well miner began production in the second half, being fully ramped up at an additional 350,000 ton per year rate by the end of the third quarter. Where staffing for underground mines remains a challenge, the labor pool for surface miners is much more amenable. This mine will start up essentially fully staffed as each spread is put into operation, meaning that the ramp-up period will be very short. Initial development work has revealed favorable mining conditions, even compared to our RAM number one surface mine. On a more positive note, our Berlin complex in general, and the Berlin mine specifically, continue to perform well and exceed our projections each month. Bolstered by the favorable geology of the Pocahontas No.

Christopher L. Blanchard: More importantly, we will see the new Ram number three surface and how will monitor begin production in the second half.

Christopher L. Blanchard: Being fully ramped up in an additional 350000 ton per year right by the end of the third quarter.

Christopher L. Blanchard: Where staffing for underground mines remains a challenge the labor pool for surface monitors is much more amenable.

Christopher L. Blanchard: <unk> startup essentially fully fast as each spread is put into operation, meaning that the ramp up period will be very short.

Christopher L. Blanchard: [noise] excuse me initial development work has revealed favorable mining conditions, even compared to our Ram number one surface mine.

Christopher L. Blanchard: On a more positive note or Berlin complex in general and the Berlin mind, specifically continue to perform well in exceed our projections each month.

Christopher L. Blanchard: 4 seam, productivity remains above budget. The recent completion of our triad number two coal mine allowed us to shift labor to fill vacancies at Burland and our other coal mines in this division, again bumping our productivity. We're on schedule and on budget with the expansion of the Berlin Mon.

Christopher L. Blanchard: All stirred by the favorable geology of the Pocahontas number, forcing productivity remains above budget.

Christopher L. Blanchard: The recent completion of our triad number two coal mine allowed us to shift labor to fill vacancies at Berlin and our other coal mines in this division again bumping our productivity.

Christopher L. Blanchard: We are on schedule and on budget with the expansion of the Berlin mine.

Christopher L. Blanchard: There, surface site preparation is well underway for the series of shafts and an elevator that will be excavated and installed starting this summer. As we've previously discussed, completing the first of these shafts and increasing our ventilation capabilities is the gating item for the start of our third super section at Burwell. I expect this section to begin production in the third quarter of this year and to be fully ramped up and operating at the levels of the initial two sections by year-end 24. At that point, the individual burrow and mine will be Ramaco's largest and produce 900,000 to a million tons annually by itself.

Christopher L. Blanchard: They're the surface site preparation is well underway for the series of staff in an elevator that will be excavated and install starting this summer.

Christopher L. Blanchard: As we've previously discussed completing the first of these shelves and increasing our ventilation capabilities as the gating item for the start of our third supersession Berkland.

Christopher L. Blanchard: Expect this section to begin production in the third quarter of this year and to be fully ramped an operating at the levels of the initial two sections by year end 2004.

Christopher L. Blanchard: At that point, the individual burrowing mine will be Ram goes largest and produce 900000 to a million tons annually by itself.

Christopher L. Blanchard: Finally, work is progressing ahead of schedule at Maven on the construction of the new preparation. The modular plant we purchased in March has been completely taken down and transported from Alabama to the site in May. Earthwork for the foundations for the preparation plant and the initial facilities are complete, on-site, and the actual plant footers will begin construction next week. We continue to expect that the preparation plant will be operational during the fourth quarter of 2024.

Christopher L. Blanchard: Finally work is progressing ahead of schedule. It may have been on the construction of the new preparation plant.

Christopher L. Blanchard: The modular plant we purchased in March has been completely taken down and transported transported from Alabama to site at Nathan.

Christopher L. Blanchard: First worked for the foundations for the preparation point in the initial facilities are complete on site and the actual plant footer will begin construction next week.

Christopher L. Blanchard: We continue to expect that the preparation plant will be operational during the fourth quarter of 2024.

Christopher L. Blanchard: This will immediately result in a $40 per clean ton reduction in our raw coal trucking costs from May. You will also afford us the option to potentially expand the production portfolio at Maven into the other quality low volatile seams we control on the property and give us additional purchase call opportunities. Coming up. We're glad to be out of the first quarter, knowing we have some of the headwinds behind us. We expect the second quarter to complete setting the table for the balance of 2024 with a step change upwards in production as Ram number three and Berwyn number three begin operation.

Christopher L. Blanchard: This will immediately result in a 40 dollar per clean tone reduction.

Christopher L. Blanchard: Local trucking costs from Nathan.

Christopher L. Blanchard: We'll also forward as the option to potentially expand the production portfolio. It may have been into the other quality low volatile seems we control on the property and give us additional purchase cole opportunities.

Christopher L. Blanchard: Dumbing up.

Christopher L. Blanchard: We're glad to be out of the first quarter, knowing we have some of the headwinds behind us.

Christopher L. Blanchard: We expect the second quarter to complete setting the table for the balance of 2024 with a step change upwards in production as Ram number three in Berlin number three begin operation.

Christopher L. Blanchard: This keeps us on our trajectory to exit the year at over five million tons per annum of production sales and sales with a significant reduction in our operating cash costs as well. This now concludes management's prepared remarks. At this time, I'd like to turn the call back over to the operator. Thank you. We will now begin the question and answer session.

Christopher L. Blanchard: This keeps us on a trajectory to exit the year it over 5 million tonnes per annum production sales sales.

Speaker Change: Sales with.

Christopher L. Blanchard: Reduction in operating cash cost as well.

Christopher L. Blanchard: And this now concludes management's prepared remarks at this time I'd like to turn the call back over to the operator. Thank you.

Speaker Change: We will now begin the question and answer session.

Operator: To ask a question, you may press star then 1 on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw from the question queue, please press star then 2. At this time, we'll pause momentarily to assemble our roster. Our first question will come from Lucas Pipes with B. Reilly. You may now go ahead.

Speaker Change: To ask a question you May press start in one of your telephone keypad, if you're using a speaker phone. Please pick up your handset before pressing the keys.

Operator: Jonathan the question queue. Please press Star then too.

Lucas Nathaniel Pipes: At this time, we'll pause momentarily to assemble our roster.

Lucas Nathaniel Pipes: My first question will come from Lucas pipes with be Riley you may not go ahead.

Lucas Nathaniel Pipes: Thank you very much, operator. Good morning, everyone. Randy and team.

Lucas Nathaniel Pipes: Thank you very much operate a good morning, everyone.

Lucas Nathaniel Pipes:

Lucas Nathaniel Pipes: Our first question is on your growth this year, and I wondered, are you kind of fully locked and loaded on this? You know, equipment, we're hearing from some of your peers, is still hard to come by. Is all of that equipment procured and on site? Or are you waiting for that to come in? And then on the labor side, it sounds like there is some easing.

Lucas Nathaniel Pipes: Randy and and team. My first question is on your on your grocery list here and I Wonder if.

Lucas Nathaniel Pipes: Ah you're kind of fully locked and loaded on this equipment. We're hearing from someone she appears this is still hard to come by it's all of that equipment procured and on site or are you are you waiting for that to come in and then on the labor side. It sounds like there is.

Lucas Nathaniel Pipes: But do you have key staff already hired and ready to go? And then anything on the market side that could change plants at this stage? Good to hear the market is stabilizing, but wondering how you Thank you very much.

Lucas Nathaniel Pipes: There is some easing, but do you have to key staff already higher and ready to go and then anything on the market site that could change plans at this at this stage could you hear the market is stabilizing but wondering how do you think about that thank you very much.

Randall W. Atkins: So Lucas, I'll take a stab at a couple of your questions, and then I'm going to turn it over to Chris to give you maybe a little more granular detail on equipment and labor. So, in somewhat order, equipment-wise, as you asked, we have just recently purchased a good deal of new underground equipment, really within the last few weeks. So I'll let Chris detail that, but we're ahead of the curve on that game. On labor, again, I'll let Chris detail that, but we've had a very tight market, as many of our peers have noted as well. That's loosening up.

Speaker Change: Okay, So Lucas I'll take a.

Randall W. Atkins: Stabbed a couple of your questions and then I'm going to turn it over to Chris to give you may be a little more granular detail on equipment and labor.

Randall W. Atkins: So you know just.

Randall W. Atkins: Just in somewhat order equipment was interesting you asked that we have just recently purchased a good deal of new underground equipment.

Randall W. Atkins: Really within the last few weeks, so I'll, let Chris detail that but we're ahead of the curve on that game on labor again, I'll, let Chris detail, but.

Randall W. Atkins: We've had a very tight market as many of our peers have noted as well that's loosening, we've had particularly in Elk, one mine and <unk>.

Randall W. Atkins: We've had, particularly at Elk, one mine in a week. We're getting those spots filled, and as I said, that hopefully will result in a turnaround moving forward. And in terms of our sort of overall market plans... You know, we have baked this production in because we've essentially sold all the tons. And so it's not as if we were hanging out there with a great deal of unsold production moving into the balance of 24.

Randall W. Atkins: Especially that was frankly understaffed and that Understaffing led to obviously lower productivity as well as production numbers.

Randall W. Atkins: We're getting those those spots filled and.

Randall W. Atkins: And as I said that hopefully will result in a turnaround moving forward and in terms of our sort of overall market plans.

Randall W. Atkins: We have we have baked this production in because we've essentially sold all the time and so it's not as if we were hanging out there with a great deal of unsold.

Randall W. Atkins: Production moving into the balance of 24, we have retained some optionality <unk>.

Randall W. Atkins: We have retained some optionality through maybe one or two tweaks and maybe some purchase call to take our guidance numbers up to the higher end or maybe even a touch above that as we progress in the year. But obviously, we're not going to do that unless we see the market behaving in a manner in which we would be encouraged to move in that direction. So, Chris, why don't you fill in a little bit more detail on the equipment? All right.

Randall W. Atkins: Probably through maybe one or two tweaks and maybe some purchase cool to take our guidance numbers up to the higher end or maybe even a touch above that as we progress every year, but obviously, we're not gonna do that unless we see the market behaving in a manner in which we would be encouraged to move in that direction. So Chris wanted to fill in a little bit more detail.

Christopher L. Blanchard: To Lucas, as Randy noted, and you did, equipment, mobile equipment, particularly for underground, is extremely scarce, and we were fortunate enough to fulfill all of our 24 needs for underground equipment and rebuilds, really, and sort of lock that in in the last month. Moving forward, also, within the last, I think, two weeks, we've locked in our slots for 25 and 26 so that we can have a secure position going forward. We don't have any material capex left to spend on any of the expansion.

Chris: Equipment on Labor Alright, Thank you for Lucas Randy noted and you did.

Christopher L. Blanchard: Equipment mobile equipment, particularly for underground is extremely scarce and we were fortunate enough to.

Christopher L. Blanchard: Fulfill all of our four.

Christopher L. Blanchard: Four needs, an underground equipment, and rebuilds really and sort of lock that in in the last month.

Christopher L. Blanchard: Moving forward also within the last I think two weeks, we've locked in our slots for 25 and 26. So that we can have a secure position going forward.

Christopher L. Blanchard: Well, we don't have any material capex lift to spend for any of the expansion months that we've talked about.

Christopher L. Blanchard: The minds that we've talked about. And, you know, of course, fortunately, we're pushing them as fast as we can, but they are going to be our lower cost profile than what we're currently running. So we'll have some optionality there based on what the market is like.

Christopher L. Blanchard: And of course, Fortunately, we're pushing them as fast as we can but they are going to be our lower cost profiled in what we're currently running so he will have some optionality there based on what the market dictates.

Christopher L. Blanchard: Thank you. Thank you. Oh, I'm sorry. No, no, sorry, go ahead.

Speaker Change: Thank thank you bye labor.

Christopher L. Blanchard: Yeah.

Speaker Change: Oh, I'm sorry Lucas.

Christopher L. Blanchard: No no sorry go ahead.

Christopher L. Blanchard: I skipped your labor question. I was going to mention that we have seen the labor market. I wouldn't say it's softened exactly, but it's moved back to a more healthy position as far as minors moving around and the availability of skilled minors. And like our peers, I'm sure we have ramped up our training efforts for new electricians, new minors as well, internal.

Speaker Change: I was just skipped or labor question I was going to mention that we have seen the labor market.

Christopher L. Blanchard: I wouldn't say, it's softened exactly but it's moved back to a more healthy position as far as.

Christopher L. Blanchard: Monitors moving around and debate the availability of skilled minors and like our peers I'm sure.

Christopher L. Blanchard: We have ramped up our training efforts for new electricians, new miners as well internally.

Christopher L. Blanchard: Thank you. Chris, one quick follow-up on the equipment side. Is it new or rebuilt equipment? And when would you expect it to be delivered if it's been procured?

Speaker Change: Thank you Chris one one quick follow up on the equipment side.

Speaker Change: Is is it new or or or rebuilt equipment and when would you expect it to be delivered since it's been procured recently thank you.

Christopher L. Blanchard: So, rebuilt equipment and, you know, in the past years also, that's just for rebuilt slots. We've taken delivery of two of the six pieces that we acquired and expect to take delivery of the remaining four within the next, call it, six weeks.

Chris: So rebuilt equipment and that you know in the out years also that's just for rebuild slots. We've taken delivery of two of the six pieces that we acquired and expect to take delivery of the the remaining four within the next call at six weeks.

Jeremy Ryan Sussman: Thank you very much for that. For my second question, Jeremy, you know how it works, right? The release comes out, you update your contract book, we compare that to the prior hedge position, and I backed into $146 per short ton on your export tons incrementally sold during the quarter. And first, that sets him about right versus where you've been selling tons. And today, how would your average export sales compare to that figure? Better? About the same level? What is worse? Would appreciate your thoughts on that. Thank you.

Speaker Change: Alright, Thank you very much for that.

Jeremy: For my second question.

Jeremy Ryan Sussman: Jeremy you you you know how it works the release comes out you take your contract book, we compare that to the prior to the to the primary physician and I backed into $146 for short turn on your export incrementally soldiering the quarter.

Jeremy Ryan Sussman: And first.

Jeremy Ryan Sussman: That seems about right versus where you spin selling tons and today.

Jeremy Ryan Sussman: How would your average X.

Jeremy Ryan Sussman: Export sales compared to that figure it better about that same level.

Jeremy Ryan Sussman: Of course would appreciate your thoughts on that thank you.

Jeremy Ryan Sussman: Sure, good question, Lucas. So yeah, I agree with the math, obviously, when you look at our Q4 release versus the incremental 500,000 tons or so that's been priced since then. I think, as Randy kind of noted in his comments, over half of our export tons, just by sort of luck of the draw, were shipped in March when indices were at their lowest. So, when you look at it on a go-forward basis, I would say our Q1 realizations were lower than you would expect on a quarterly basis.

Jeremy: Sure. It's a good question Lucas so yeah I.

Jeremy Ryan Sussman: I agree with the math, obviously, when you look at our queue for relief versus.

Jeremy Ryan Sussman: Versus the incremental cost 500000 tons or so that that's been.

Jeremy Ryan Sussman: In price. Since then I think is there any kind of noted in his comments.

Jeremy Ryan Sussman: Half of our over half of our export tons.

Jeremy Ryan Sussman: Just by sort of luck of the draw or.

Jeremy Ryan Sussman: Scripted March when industries were at at their lows. So I mean, when you look at when you look at it on a go forward basis, I would say our Q1 Q.

Jeremy Ryan Sussman: Q1 realization.

Jeremy Ryan Sussman: Lower than you would expect on a quarterly basis now the bad news of courses.

Jeremy Ryan Sussman: Now, the bad news, of course, is since Q1, spot high volatility is down another 13% or so. So I mean, we're not in the prediction game in terms of predicting where the spot market goes. But obviously, if prices hold, you've got to take the indices into account when looking at our realizations for Q2.

Jeremy Ryan Sussman: Q1 [noise].

Jeremy Ryan Sussman: Spot high volume.

Jeremy Ryan Sussman: Is down another call at 13% or so so I mean.

Jeremy Ryan Sussman: We're not in the in the prediction game in terms of.

Jeremy Ryan Sussman: Predicting where the.

Jeremy Ryan Sussman: Where the spot market goes, but obviously, if if prices hold.

Jeremy Ryan Sussman: Gotta take the indices into account when when looking at our realizations for two two.

Lucas Nathaniel Pipes: Thank you very much for that, Jeremy. I'll try to squeeze one last one in.

Speaker Change: Thank you very much for that Jeremy.

Speaker Change: I've tried to squeeze one last four man.

Lucas Nathaniel Pipes: First, on retreat mining, when and for how long does that occur? Obviously, that is very efficient. So trying to get a sense for what the potential benefits there are. And with the idlings you've seen across the industry, any way to quantify the potential impact on thousands or millions of times?

Lucas Nathaniel Pipes:

Speaker Change: First on the retreat mining waiting for how long does that occur obviously, that's very efficient. So so I'm trying to get a <unk>.

Lucas Nathaniel Pipes: <unk> <unk> <unk>.

Lucas Nathaniel Pipes: Potential benefits, there and with the with the iPhone. Thanks, you've seen across the industry any way to quantify the potential impact on on.

Lucas Nathaniel Pipes: Oh.

Lucas Nathaniel Pipes: Thousands or millions, sometimes some basis. Thank you.

Christopher L. Blanchard: Lucas, I'll jump on the retreat mining and then probably hand it off on the impact on the idlings. You know, as you know, on room and pillar, usually you advance for a few months and then you retreat for a few months at our stone coal mine in particular that we mentioned. Just the way that that mine was laid out.

Speaker Change: Lucas I'll I'll jump on the the retreat mining and then handed handed off on the the impact on the idling, but.

Christopher L. Blanchard:

Christopher L. Blanchard: As you know on Room-and-pillar, usually you you advance for a few months and then retreat for a few months.

Christopher L. Blanchard: At our stone coal mine in particular that we mentioned.

Christopher L. Blanchard: We basically advanced for about three years, and we will be retreat mining there for the remainder of 24 and, actually, into 25 on one of the sections, and the second section will be retreat mining for about half of the year. So it'll be an abnormally high amount of retreat mining after an abnormally high amount of the more expensive advanced mining. So I hope that answers your question. The rest of the mines at Elk Creek are more or less on that same schedule. Yeah.

Christopher L. Blanchard: Just the way that that mine was.

Christopher L. Blanchard: Was laid out we basically advanced for about three years.

Christopher L. Blanchard: And we will be retreat mining there for the remainder of 24 and actually into 25 on one of the sections and the second section will be retreat mining for about half of the year. So it it will be an abnormally high amount of retreat mining after an abnormally amount of the more expensive advanced mining.

Christopher L. Blanchard: So I hope that answers your question the rest of the mind Meadow creek or more or less on that same schedule.

Jeremy Ryan Sussman: Yeah, and Lucas, to your second part of your question about idling, I mean, I gave you some macro numbers, you know, for the quarter, for the Southern Central App, West Virginia production was down about 14 percent, and Virginia production was down about 21 percent. So that gives you some general notion of sort of directionally where the production figures are going to shake out. And obviously, you know, in Virginia, as an example, where we've got a number of operations, a 20 percent plus decline is fairly meaningful.

Speaker Change: And Lucas to your second part of your question about the idling I mean, I gave you some macro numbers.

Jeremy Ryan Sussman: For the quarter.

Jeremy Ryan Sussman: You know sort of southern.

Jeremy Ryan Sussman: Central App West, Virginia production was down about 14%, Virginia production was down about 21%. So that gives you some general notion of sort of directionally, where where the production figure during the shakeout and obviously you know.

Jeremy Ryan Sussman: Virginia is an example, where we've got a number of operations.

Jeremy Ryan Sussman: A 20 per cent plus the.

Jeremy Ryan Sussman: Decline is a fairly meaningful one.

Jeremy Ryan Sussman: Mmm.

Lucas Nathaniel Pipes: I appreciate all the color. Thank you very much, and to you and the team, best of luck.

Speaker Change: I appreciate all the colors, thank you very much and and.

Lucas Nathaniel Pipes: <unk> best of luck.

Speaker Change: Thank you. Thank you.

Operator: Again, if you have a question, please press star then 1. Our next question will come from Nathan Martin with Seaport Global. You may now go ahead.

Lucas Nathaniel Pipes: Again, if you have a question. Please press Star then one our next question will come from Nathan Martin with Sea Port Global you May not go ahead.

Nathan Pierson Martin: It's actually with the Benchmark Company, but thank you, operator, and good morning, guys. I want to start out on the pricing front as well. As mentioned, production is essentially fully committed at this point. But given the volatile spreads we've seen so far this year between the Australian indices and the U.S. indices, any way we could kind of get a breakdown of how you guys expect your remaining C-borne contract position to kind of be split between those Aussie and U.S. indices?

Nathan Pierson Martin: It's actually with the benchmark company, but thank you operator and good morning, guys.

Nathan Pierson Martin: Well it started out of the pricing front as well is mentioned production essentially fully committed at this point given the volatile spreads missing so far this year between.

Nathan Pierson Martin: Australia end of the season U S embassies in any way, we can kind of get a breakdown of how you guys expect the remaining seaboard contracted position okay.

Nathan Pierson Martin: Between those I'll see him in U S embassies.

Jeremy Ryan Sussman: Yeah, Nate, so I'll give you some color on that. So, you know, first of all, in terms of our overall pace, about a third of our coal will go domestic this year. And then two-thirds will go to export. I'd say on the export side, Europe and Asia are pretty equal. Let's call it about 30% of our business, and then the remaining, call it 10% or so, goes into South America.

Speaker Change: Yeah, So I'll I'll I'll I'll give you some color on that so.

Jeremy Ryan Sussman: First of all in terms of our overall kaden about a third of our call will go domestic this year.

Jeremy Ryan Sussman: And then two thirds of go export I'd say within the export.

Jeremy Ryan Sussman: Side.

Jeremy Ryan Sussman: Europe, and Asia are pretty equal, let's let's call both about 30% of our of our business and then the remaining call at 10% or so it goes it goes into to South America.

Jeremy Ryan Sussman: Europe and South America is all going to be against the U S. A U S embassy as both both low ball and high ball a lot of the Asian business is actually not all of it but a fair amount of it is priced off of either the Aussie PLP or some other Aussie Yandex, which of course is more linked to the low hall and the high vaulted so when all of a sudden.

Jeremy Ryan Sussman: You know, Europe and South America are all going to be against the US indices, both low vol and high vol. A lot of the Asian business is actually, not all of it, but a fair amount of it is priced off of either the Aussie PLV or some other Aussie index, which, of course, is more linked to the low vol side than the high vol side. So when all is said and done, you know, we've got about 2 million tons or so of index-linked business left to ship. You know, over half of it is, you know, either directly low vol or linked to, you know, an Aussie PLV or similar type index.

Jeremy Ryan Sussman: We've got about 2 million tons of cell of of index linked business left left the ship.

Jeremy Ryan Sussman: Over half of it is is either directly low ball are linked to.

Jeremy Ryan Sussman: An aussie pov or or or similar type index.

Jeremy Ryan Sussman: I, Jeremy, appreciate that. That's very helpful. Maybe just along the same line. Uh, you know, given current market conditions, what kind of capture rates are you guys getting versus some of those U.S. indices, Hybel A, Hybel B? Are you seeing any discounts in the marketplace?

Speaker Change: Hi, Jeremy appreciate that that's very helpful. Maybe just along the same lines.

Jeremy: You know given current market conditions.

Speaker Change: Capture rates are you guys getting vs. Some of those U S embassy probably have I'll be.

Jeremy: Are you seeing any discounts in the marketplace.

Jeremy Ryan Sussman: I mean, you know, as we said in our remarks, that the US low-vol market itself is quite tight. So, you know, any discounts there are, if there are, they're pretty small. I'd say, you know, that the high-vol markets are certainly a bit more oversupplied than the low-vol markets. But as Randy noted, I mean, that's really where you're seeing a lot of the higher cost operations shut down.

Speaker Change: I mean, you know as we said in our remarks that the U S. Low ball market itself is quite tight. So you know any discounts. There are there are there are pretty small I'd say.

Jeremy Ryan Sussman: The Hi, vol market.

Jeremy Ryan Sussman: Are are certainly a bit more oversupplied then.

Jeremy Ryan Sussman: Then low ball, but as Randi noted I mean, that's that's really where you're seeing a lot of the a lot of the higher cost operations shut down so.

Jeremy Ryan Sussman: Certainly from our standpoint.

Jeremy Ryan Sussman: So, you know, certainly, you know, from our standpoint, you know, I'm certainly optimistic about the kind of cadence throughout the year between the combination of supply shutdowns and, and also the fact that we don't think that the US low vol indices frankly reflect the current tightness.

Jeremy Ryan Sussman: We're certainly optimistic about kind of the cadence throughout the year between the combination of kind of supply shutdowns and and also the fact that we don't think that the U S level indices frankly reflect the current tightness.

Randall W. Atkins: And Nate, one other point which is again maybe a somewhat obvious one, but I think in terms of the decline in production that we're seeing in the central app area, there's probably going to be, you know, call it a quarter lag in terms of how that starts to impact pricing and availability on, particularly the high end of all markets, but I do think it's coming. Also, I would look toward, you know, the back half of the year is firming up, frankly, for a number of the reasons we cited on a macro basis, but on the supply side in central Asia, I think that's when you're going to start to see a little bit of impact, particularly as it relates to, of course, export.

Jeremy Ryan Sussman: One other point, which again is it maybe someone obvious one but I think in terms of the decline in production that we're seeing in the central App area, there is probably going to be.

Randall W. Atkins: Call and a quarter lag in terms of how that starts to impact pricing and availability on particularly the have all markets, but I do think it's coming so I would look toward the back half of the year.

Randall W. Atkins: Is firming up frankly for a number of the reasons, we cited on a macro basis, but on the on the supply side.

Randall W. Atkins: Central lamp I think that's when you're going to start to see a little bit of.

Randall W. Atkins: Impact, particularly as it relates to of course export shipments.

Jeremy Ryan Sussman: Nate, I'm on the low side. I'd even say, I'd even, you know, mention that there have been some domestic inquiries lately. So you know, again, we think that markets, we feel, are good about that market today. And as Randy said, certainly feel good about the high-volatility market, you know, in the future. I will give you an anecdote, Nate, when you see one trading group asking for a bid, you feel hopeful; when you see two asking for a bid at the same time, you feel a little suspicious; when you see four asking for a bid at the same time, you begin to think that somebody knows something; perhaps you don't. So I take some comfort in the directional side of what we're seeing out there in the market.

Randall W. Atkins: <unk> on the local.

Randall W. Atkins: I'd, even mentioned that there've been some even domestic inquiries lately. So again, we think that markets. We feel we feel good about that market today and as Randy said certainly feel good about the hi vol market.

Jeremy Ryan Sussman: I will give you an anecdote Nate when you when you see one trading group asked for a bit you you feel help hopeful when you seek to ask for a bit at the same time you feel a.

Jeremy Ryan Sussman: A little suspicious when you see for asking for a bit at the same time you begin to think that somebody knows something perhaps you don't so I I I take some comfort in the directional side.

Jeremy Ryan Sussman: What we're seeing out there in the market right now.

Nathan Pierson Martin: Got it, got it. Appreciate that anecdote, Randy. Um, you know, maybe just thinking about logistics for a second, guys. You know, I know Ramaco wasn't directly impacted by the unfortunate Baltimore port outage, but any comments on how that's maybe indirectly impacted, you know, your rail service to Hampton Roads, for instance?

Speaker Change: Got it got it <unk> I appreciate that anecdote Randy.

Nathan Pierson Martin: Maybe just thinking about logistics for a second guys. You know I know <unk> wasn't directly impacted by the the unfortunate Baltimore port outage, but any comments on how about maybe indirectly impacted your rail service spoke to hit the road for instance.

Christopher L. Blanchard: Yeah, Chris. You want to take that one? I mean, honestly.

Nathan Pierson Martin: Yeah, Chris do you want to take that one.

Christopher L. Blanchard: I mean, honestly, Nate, we didn't see too much impact. I think some more coal was moving to the other piers, but as far as service from, frankly, both of our railroads, they've been pretty much on time and getting the inventory to our customers as we produce it and as it's ready for shipment.

Chris: I mean honestly, we didn't see too much impact I think some more coal was moving to the other peers, but.

Christopher L. Blanchard: As far as service from <unk>.

Christopher L. Blanchard: Frankly, both of our railroads they've been.

Christopher L. Blanchard: Pretty much just in time and getting the inventory to our customers as we produce it and as it ready for shipment.

Nathan Pierson Martin: Okay, great. Great to hear from you, Chris.

Speaker Change: Okay, great great to hear Chris maybe shifting over the call sign real quick.

Nathan Pierson Martin: Maybe shifting over to the cost side real quick. Obviously, you guys mentioned new mines coming online this year should improve the mix with lower costs expected, but $90 to $95 a ton. Maybe even prep plants coming online hopefully before year end, which will reduce trucking costs. So, kind of putting all that together, I think you said you were hoping to hit an exit rate of around 100 or maybe even less. So, any early thoughts on how these items could kind of translate into what to expect for costs in 2025? Like, how much would those improve versus this year's guidance of, what is it, 105 to 111?

Speaker Change: Obviously, you guys mentioned, a new mines coming online this year should improve the mixed with lower cost expected 90 to $95 a tonne Megan prep plants coming online hopefully before your N, which will reduce struggling cough. So.

Nathan Pierson Martin: Putting all that together I think you said, hoping to hit an exit rate of around 100, or maybe even laugh. So any early thoughts on how these items to kind of translate into what to expect for for cost and twenty-five like how much those improve versus this year's guidance of what is it 105 to 111.

Jeremy Ryan Sussman: Yeah, I mean, Nate, obviously, we're a long time away from our 25 budget and, you know, If we just take sort of a 5 million ton exit rate, don't layer in any tons or anything like that. Honestly, the exit rate is a good way to look at next year. I mean, obviously, I think Q1 will certainly be our highest cost quarter. Q2 is still going to be above the high end of the range, really just due to the fact that some of the labor and geology issues persisted into April.

Nathan Pierson Martin: Yeah. So I think you know obviously.

Jeremy Ryan Sussman: A long time away from our twenty-five budget and.

Jeremy Ryan Sussman: If we just take sort of the call 5 million ton exit rape don't don't layer in any tons or anything like that honestly the exit right as a as a good is a good way to look at next year. I mean, obviously you know I think Q1 will certainly be our our highest cost a quarter to two still going to be above the high end of the range.

Jeremy Ryan Sussman: More to just due to the fact that some of the labor and geology issues persisted into a.

Jeremy Ryan Sussman: But those are behind us. And so, as Chris noted, once we layer in all these kind of, call it $85 to $95 a ton cost mines throughout the course of the year, that's what really gets you to a step change in the back half of the year and certainly exiting the year when all of that's online. Yeah, and

Jeremy Ryan Sussman: Into April but those are behind us and so is Chris noted once we layer and all this kind of call at 85 to $95 a tonne cost minds throughout throughout the course of the year that that's what really gets you to a step change in the back half of the year and certainly exiting the year when all of that online.

Jeremy Ryan Sussman: Yeah, and Nate, you know, as we've said several times before, obviously, we're on a growth trajectory to get probably to 7 to 7.5 million tons over the next few years. Obviously, we can calibrate that depending upon, and will calibrate it, depending upon market conditions. So, you know, to look forward into 2025, we will still be in growth mode, assuming that the market's there. And, you know, as we grow more tons, just by virtue of the math, if nothing else, it's

Jeremy Ryan Sussman: And.

Jeremy Ryan Sussman: As we've said.

Jeremy Ryan Sussman: Several times before obviously, we're on a a growth trajectory to get probably to 77 and a half billion times over the next few years.

Jeremy Ryan Sussman: We can calibrate that depending upon and well calibrated depending upon market conditions. So.

Jeremy Ryan Sussman: To look forward into 25, we will still be in growth mode, assuming that the market's there.

Jeremy Ryan Sussman: As we grow more tons just by virtue of the math, if nothing else is going to help us on cost.

Nathan Pierson Martin: Okay, got it. Very, very helpful guys. I'll leave it there. Appreciate the time and best of luck in the second quarter.

Speaker Change: Okay got it very very helpful guys I'll leave it there appreciate the at the time and best of luck in the second quarter.

Nathan Pierson Martin: Like state.

Randall W. Atkins: This concludes our question and answer session. I would like to turn the conference back over to Randall Atkins for any closing remarks.

Nathan Pierson Martin: This concludes our question and answer session. So I would like to turn the conference back over to Randall Atkins for any closing remarks.

Randall W. Atkins: Again, as always, we thank everybody for joining us today, and we'll look forward to catching up with you after the end of the next quarter. Take care.

Randall W. Atkins: Okay again as always we thank everybody for joining us today, and we will look forward to catching up with you. After the end of the next quarter take care.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Speaker Change: The conference is not concluded. Thank you for attending today's presentation you may not disconnect.