Ramaco Resources closes $200 million public offering of class A stock

LEXINGTON - Ramaco Resources, Inc. (NASDAQ:METC, METCB), whose stock has surged over 118% in the past six months according to InvestingPro data, announced Thursday the closing of its previously announced underwritten public offering of Class A common stock, raising approximately $200 million in gross proceeds.

The metallurgical coal producer sold 10,666,667 shares at a public offering price of $18.75 per share, according to a company press release. Additionally, selling stockholders Yorktown Energy Partners granted underwriters a 30-day option to purchase up to an additional $30 million of Class A common stock, which was exercised in full. The sale of these additional shares is expected to complete on August 8.

Ramaco stated it intends to use the net proceeds to accelerate development of its rare earth elements and critical minerals project, pursue strategic growth opportunities, and for general corporate purposes.

Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC acted as lead joint book-running managers for the offering.

The offering was made pursuant to a shelf registration statement filed with the Securities and Exchange Commission that became effective on August 5, 2025. A final prospectus supplement and accompanying prospectus were filed on August 7.

Ramaco Resources operates four active metallurgical coal mining complexes in Central Appalachia and a developing rare earth and coal mine near Sheridan, Wyoming. In 2023, the company announced the discovery of a major deposit of primary magnetic rare earths and critical minerals at its Wyoming site. Trading at a high EBITDA multiple of 27.8x, InvestingPro analysis suggests the stock is currently overvalued, though it offers additional insights through its comprehensive Pro Research Report, which covers what really matters for 1,400+ top stocks through expert analysis and intuitive visuals.

In other recent news, Ramaco Resources Inc. reported a net loss of $14 million for the second quarter of 2025, marking a decline from the previous quarter. Despite maintaining a strong liquidity position, the company faced challenges in the coal market, which contributed to reduced production guidance. Additionally, Ramaco Resources priced an upsized public offering of Class A common stock at $18.75 per share, aiming to raise approximately $200 million before underwriting discounts and expenses. This public offering was set below the previous day’s closing price, which might have influenced investor sentiment. The company initially announced a $150 million offering, with selling stockholders Yorktown Energy Partners providing underwriters a 30-day option to purchase up to an additional $22.5 million of stock. These developments reflect ongoing strategic financial maneuvers by Ramaco Resources amid market challenges.

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