RAMACO RESOURCES, INC. ANNOUNCES PRICING OF UPSIZED $200 MILLION PUBLIC OFFERING

Collaboration Announcement: Ramaco Resources has signed a significant Umbrella Cooperative Research and Development Agreement (CRADA) with the U.S. Department of Energy's National Energy Technology Laboratory to enhance research on rare earth elements and critical minerals.

Focus on Innovation: The agreement aims to leverage advanced technologies, including artificial intelligence and quantum computing, to accelerate the discovery and commercialization of rare earths and critical minerals, particularly at Ramaco's Brook Mine in Wyoming.

Financial Performance: Ramaco Resources reported a net loss of $13.3 million for Q3 2025, with adjusted EBITDA of $8.4 million and cash costs per ton sold decreasing to $97, despite a decline in metallurgical coal prices.

Transition to Critical Minerals: The company is transitioning to become a dual-platform producer of metallurgical coal and rare earth elements, with plans to develop the Brook Mine in Wyoming, which is expected to significantly increase production of critical minerals.

Strategic Initiatives: Ramaco's Board approved the development of a national strategic critical mineral terminal to support its downstream operations, aiming to enhance the U.S. supply chain for rare earths and critical minerals.

Market Outlook: Despite challenges in the metallurgical coal market, Ramaco maintains a strong liquidity position of $272 million, allowing for continued investment in its critical minerals initiatives while managing production costs effectively.

Public Offering Announcement: Ramaco Resources, Inc. has announced an upsized public offering of 10,666,667 shares of Class A common stock at $18.75 per share, aiming to raise approximately $200 million for development projects and corporate purposes.

Underwriters and Closing Details: Morgan Stanley and Goldman Sachs are the lead underwriters for the offering, which is expected to close on August 7, 2025, pending customary conditions.

Financial Performance: Ramaco Resources reported a net loss of $14 million for Q2 2025, with adjusted EBITDA of $9 million and production reaching a record of approximately 1 million tons. The company anticipates reduced full-year production and sales due to weak market conditions.

Rare Earths Development: Ramaco is transitioning into a dual-platform company focusing on metallurgical coal and rare earth minerals, with the Brook Mine expected to become a significant U.S. source of critical minerals by 2027, supported by government collaboration to accelerate development.

Investment Focus: The article discusses the importance of investing in high-growth, low-debt stocks amidst current market volatility, highlighting Ramaco Resources, Inc. (NASDAQ:METC) as a notable example due to its strong earnings growth and strategic projects in rare earth minerals.

Market Performance: It emphasizes that companies with low debt levels tend to outperform those with high debt, showcasing historical data where low-debt growth firms achieved significantly higher annualized returns compared to their high-debt counterparts.

Pump and Dump Stocks Overview: The article discusses the characteristics of pump and dump stocks, which are highly volatile and favored by hedge funds for short-term trading opportunities. It emphasizes the importance of risk management and market sentiment when engaging with these stocks.

Ramaco Resources, Inc. (NASDAQ:METC): Ramaco Resources is highlighted as a notable pump and dump stock due to its high volatility and hedge fund ownership. The company has shown strong performance in Q4 2024 and anticipates increased met coal prices in the future, while also progressing on a rare earth minerals project.