Discovery Capital Increases Ramaco Resources Stake to $182 Million Amid Stock Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Yahoo Finance
- Increased Holdings: Connecticut-based Discovery Capital Management added 4.18 million shares of Ramaco Resources in Q3, raising its total stake to 5.53 million shares valued at $182.21 million, making it the fund's largest holding and indicating confidence in the coal market.
- Value Growth: This increase in holdings resulted in a valuation boost of approximately $164.67 million for Discovery Capital in Ramaco, reflecting the company's strong performance in the coal sector despite a challenging overall market environment.
- Financial Performance: Although Q3 revenue fell 28% year-over-year to $121 million, Ramaco's adjusted EBITDA reached $8.4 million, demonstrating resilience amid declining prices, while liquidity soared to a record $272 million.
- Strategic Transition: Ramaco is transitioning to a dual-platform model that includes rare earth and critical minerals development at the Brook Mine in Wyoming, indicating growth potential beyond its traditional coal business and enhancing investment diversification.
Analyst Views on METC
Wall Street analysts forecast METC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for METC is 39.52 USD with a low forecast of 16.15 USD and a high forecast of 50.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
6 Buy
1 Hold
1 Sell
Moderate Buy
Current: 17.380
Low
16.15
Averages
39.52
High
50.00
Current: 17.380
Low
16.15
Averages
39.52
High
50.00
About METC
Ramaco Resources, Inc. is an operator and developer of metallurgical coal in southern West Virginia and southwestern Virginia and a developing producer of coal, rare earth and critical minerals in Wyoming. Its executive offices are in Lexington, Kentucky, with operational offices in Charleston, West Virginia and Sheridan, Wyoming. The Company has four active metallurgical coal mining complexes in Central Appalachia and one coal mine and rare earth development near Sheridan, Wyoming in the initial stages of production. Its development portfolio primarily includes properties: Elk Creek, Berwind, Knox Creek, and Maben. It also controls mineral deposits near Sheridan, Wyoming as part of the Company’s initiatives regarding the potential recovery of rare earth elements and critical minerals as well as the potential commercialization of coal-to-carbon-based products and materials. Its Knox Creek Complex includes a preparation plant and 64,050 acres of controlled mineral rights.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
