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Ramaco Resources Reports Third Quarter 2019 Financial Results

Coal News - Published on Fri, 08 Nov 2019

Image Source: ramacoresources.com
Ramaco Resources Inc has reported third quarter net income of $5.5 million, for the quarter ended September 30, 2019, as compared to a net income of $6.2 million in the prior year quarter ended September 30, 2018. The Company's adjusted earnings before interest, taxes, depreciation, amortization and equity-based compensation expenses was $13.6 million for the three months ended September 30, 2019, as compared with Adjusted EBITDA of $11.0 million for the three months ended September 30, 2018. Adjusted EBITDA for the nine months, year over year was roughly 32% higher in 2019. Key operational and financial metrics are presented below:

Overall sales of Company produced tons in the third quarter of 2019 were 510,000 thousand tons, the same as in the third quarter of 2018. Cash margins on Company produced coal were $31 per ton in the third quarter of 2019, up 24% over the same period of last year, arising from 2019 pricing improvements, partially offset by higher production costs. Similarly, Adjusted EBITDA improved by 24% in the 2019 period.

Overall sales volumes of Company produced tons in the third quarter of 2019 were up 2% from the second quarter of 2019. Our cash margin on Company produced coal declined in the sequential period. This decline was caused principally by higher costs. Cash costs per ton sold on Company produced coal were $80 in the third quarter of 2019 compared to $71 in the second quarter of 2019. The $80 per ton figure includes costs of our Berwind mine, which is still in development and thus has higher cash costs. At Elk Creek, cash costs per ton sold were $73 in the third quarter of 2019. Adjusted EBITDA for the third quarter of 2019 was $13.6 million as compared to $19.1 million for the second quarter of 2019, down 29%. Third quarter 2019 cash costs per ton sold were negatively affected by an unusually high inventory reduction, with sales volume meaningfully exceeding production volume, as Ramaco worked down inventory that had built up as a result of last year's silo failure.

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Posted By : Rabi Wangkhem on Fri, 08 Nov 2019
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