Ramaco Resources Inc. (METC) PT Lowered to $18 at Benchmark

Benchmark analyst Nathan Martin lowered the price target on Ramaco Resources Inc. (NASDAQ: METC) to $18.00 (from $20.00) while maintaining a Buy rating.

The analyst commented, "We reiterate our Buy rating on shares of Ramaco Resources (METC) and lower our target to $18 from $20. METC reported 4Q adjusted EBITDA of $29M, beating our Street-high estimate of $24M driven by continued cash cost/ton improvement. With the Maben prep plant now in operation, net trucking costs were reduced by over $20 per clean ton with the opportunity to lower by an additional ~$20/ton if METC moves forward with the construction of a rail loadout. As for full-year 2025, management reaffirmed all prior targets, save a 5% increase in effective tax rate guidance. Notably, we expect 1Q to be the weakest of the year as results will be pressured by extreme weather and weak market conditions. However, METC maintained record liquidity at year end, and management mentioned it could potentially increase market share or acquire assets if the right opportunities present themselves. Finally, following lab delays, METC now anticipates a complete technical and economic analysis of the rare earth and mineral deposit at its Brook Mine by the end of April. The company plans to bench test a pilot demonstration process before moving forward with construction of a facility adjacent to the mine in late summer. This capex is included in current FY25 guidance with METC noting only $10M total has been spent on the project to date."

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