Ramaco Resources closes $57 million senior unsecured notes offering

LEXINGTON - Ramaco Resources, Inc. (NASDAQ:METC), a metallurgical coal producer with a market capitalization of $1.04 billion, announced Thursday the closing of its public offering of senior unsecured notes due 2030, raising approximately $57 million in gross proceeds. According to InvestingPro data, the company currently operates with a moderate debt level of $125.17 million.

The notes, which will mature on July 31, 2030, carry an interest rate of 8.250% per year, payable quarterly beginning October 30, 2025. Ramaco may redeem the notes in whole or in part on or after July 31, 2027, at 100% of the principal amount plus accrued interest. The notes received a ’BBB-’ rating from Egan-Jones Ratings Company. InvestingPro analysis indicates that while the company maintains a healthy current ratio of 1.32, analysts have recently revised earnings expectations downward for the upcoming period.

According to the company’s statement, proceeds will be used to redeem all outstanding 9.00% Senior Notes due 2026, of which $34.5 million is currently outstanding, and for general corporate purposes including rare earth development, future investments, capital expenditures, and working capital.

Ramaco 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.

Lucid Capital Markets, LLC served 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 metallurgical coal mining complexes in Central Appalachia and is developing coal and rare earth mining operations near Sheridan, Wyoming. With annual revenue of $628.27 million, the company has shown strong market performance with a 119.82% return over the past six months. For detailed insights and 12 additional ProTips about METC’s financial health and growth prospects, visit InvestingPro.

The company granted underwriters a 30-day option to purchase up to an additional $8.0 million in notes. The notes were issued in minimum denominations of $25.00 and integral multiples thereof.

This article is based on a press release statement from Ramaco Resources.

In other recent news, Ramaco Resources reported a net loss of $9 million for the first quarter of 2025, a notable decrease from the $4 million net income in the fourth quarter of 2024. Earnings per share dropped to -$0.19, compared to a $0.06 gain in the prior quarter. Despite these financial results, the company announced the launch of its Brook Mine Critical Minerals Project, indicating a shift towards rare earth minerals. Additionally, Ramaco Resources priced its public offering of senior unsecured notes due 2030, which will generate approximately $57 million in gross proceeds. The company plans to use the proceeds to redeem its outstanding notes due 2026 and for other corporate purposes. The company will also receive a Preliminary Economic Assessment of its Brook Mine from Fluor Corporation, with a summary expected to be released soon. Furthermore, coal stocks, including Ramaco Resources, experienced gains amid speculation of potential production cuts by Chinese coal producers.

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