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LEXINGTON, Ky. - Ramaco Resources, Inc. (NASDAQ:METC), a metallurgical coal producer with a market capitalization of $1.28 billion and currently trading above its InvestingPro Fair Value, announced Thursday it has priced its previously announced public offering of senior unsecured notes due 2030, with the notes bearing interest at a rate of 8.250% per year.
The coal mining company, which generated revenues of $628 million in the last twelve months, said the offering will generate approximately $57 million in gross proceeds before deducting commissions and expenses, or about $65 million if underwriters exercise their option to purchase additional notes in full.
The notes will mature on July 31, 2030, with interest 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 principal amount plus accrued interest.
According to the company’s statement, proceeds will be used to redeem all outstanding 9.00% Senior Notes due 2026 and for general corporate purposes, including funding rare earth development, future investments, capital expenditures, and working capital.
The notes will be issued in minimum denominations of $25.00 and the offering is expected to close on July 31, 2025. Ramaco has applied to list the notes on the Nasdaq Global Select Market under the symbol "METCI."
Lucid Capital Markets is acting as lead bookrunner for the offering, with B. Riley Securities, Janney Montgomery Scott, Piper Sandler, and William Blair serving as joint book-running managers.
Ramaco Resources operates metallurgical coal mining complexes in Central Appalachia and is developing coal and rare earth operations in Wyoming.
The information in this article is based on a press release statement from the company.
In other recent news, Ramaco Resources reported a net loss of $9 million for the first quarter of 2025, a downturn from the $4 million net income reported in the last quarter of 2024. The company’s earnings per share also declined to -$0.19 from a $0.06 gain in the previous period. Despite the financial loss, Ramaco Resources announced the launch of its Brook Mine Critical Minerals Project, indicating a strategic pivot toward rare earth minerals. Additionally, the company plans to offer senior unsecured notes due 2030, with the proceeds aimed at redeeming existing notes due 2026 and funding various corporate initiatives, including rare earth development. Ramaco Resources is set to receive a Preliminary Economic Assessment of its Brook Mine from Fluor Corporation, which will be reviewed by the Board of Directors. The company intends to release a summary of this assessment on its website following the board’s review. Meanwhile, coal stocks, including Ramaco Resources, experienced gains amid speculation of potential production cuts by Chinese coal producers.
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