Ramaco Resources, Inc. (METC) Misses Q3 Views

Ramaco Resources, Inc. (NASDAQ: METC) reported Q3 EPS of $0.14, which may not compare to the analyst estimate of $0.29. Revenue for the quarter came in at $61.4 million versus the consensus estimate of $68.47 million.

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.

Randall Atkins, Ramaco Resources\' Executive Chairman remarked, "The met coal space is experiencing one of its periodic price downdrafts. The depth and extent of this downturn remains to be seen. Since the Company was essentially created in a similar period of market turbulence, we feel comfortable that we are structured to withstand market pressures such as today. We also remain poised to take advantage of opportunities to continue to prudently expand production, while maintaining our low cost, low debt profile."

Atkins continued, "We locked in 2019 domestic sales last year at what is now comfortably above current market prices. This year we have entered into domestic forward sales for 2020 mostly from our lower quality coal portfolio. We have preserved the sales optionality to sell our more valuable higher quality coals for export in 2020. We have additionally maintained optionality to pivot production levels to between 1.8 to 2.3 million tons next year depending on then current market conditions. Given competitive weakness with some of our higher leveraged and higher cost peers, we are also sensing both new market and asset disposition opportunities. We look forward to finishing 2019 as our strongest year ever. We approach 2020 with a sense of both discipline and opportunity."

For earnings history and earnings-related data on Ramaco Resources, Inc. (METC) click here.

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