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LEXINGTON - Ramaco Resources, Inc. (NASDAQ:METC), a metallurgical coal operator with a market capitalization of $1.1 billion, announced Wednesday plans to offer senior unsecured notes due 2030 in a registered underwritten public offering. The company’s stock has shown remarkable strength, gaining over 110% year-to-date according to InvestingPro data.
The metallurgical coal operator said it intends to use the proceeds to redeem all of its outstanding Senior Unsecured Notes Due 2026 and for general corporate purposes, including funding the acceleration of rare earth development, future investments, capital expenditures, and working capital. The company currently operates with a moderate debt level, maintaining a healthy debt-to-equity ratio of 0.35.
The notes will be issued in minimum denominations of $25.00 and integral multiples thereof. The company has applied to list the notes on the Nasdaq Global Select Market under the symbol "METCI," with trading expected to commence within 30 business days after issuance if approved. InvestingPro analysis indicates the stock is currently trading above its Fair Value, with technical indicators suggesting overbought conditions.
Lucid Capital Markets, LLC will serve as lead bookrunner for the offering, with B. Riley Securities, Janney Montgomery Scott, Piper Sandler, and William Blair acting as joint book-running managers.
Ramaco Resources operates four active metallurgical coal mining complexes in Central Appalachia and one coal mine and rare earth development mine near Sheridan, Wyoming in the initial stages of production.
The offering is being made pursuant to a registration statement on Form S-3 that was declared effective by the Securities and Exchange Commission on September 29, 2023, according to the company’s press release statement. For investors seeking deeper insights, InvestingPro offers comprehensive analysis through its Pro Research Report, including detailed financial health metrics and growth prospects among its 12+ exclusive ProTips for METC.
The announcement does not constitute a notice of redemption under the optional redemption provisions of the indenture governing the 2026 Notes, nor does it represent an offer to sell the notes in states where such offer would be unlawful.
In other recent news, Ramaco Resources reported a net loss of $9 million for the first quarter of 2025, marking a decline from a net income of $4 million in the last quarter of 2024. The company’s earnings per share dropped to -$0.19 from a previous gain of $0.06. Despite these financial challenges, Ramaco announced the launch of its Brook Mine Critical Minerals Project, indicating a strategic shift towards rare earth minerals. Additionally, Ramaco Resources is set to receive a Preliminary Economic Assessment of its Brook Mine from Fluor Corporation, which will be reviewed by the company’s Board of Directors. This development is expected to be shared publicly on the company’s website later this week. In terms of analyst activity, there is no specific mention of upgrades or downgrades at this time. However, U.S.-listed coal companies, including Ramaco Resources, saw gains amid speculation of potential production cuts by Chinese coal producers. These recent developments highlight significant shifts and challenges for Ramaco Resources.
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