Ramaco Resources prices upsized $200 million public offering

Published 06/08/2025, 03:14
Ramaco Resources prices upsized $200 million public offering

LEXINGTON - Ramaco Resources, Inc. (NASDAQ:METC, METCB) has priced an upsized public offering of Class A common stock at $18.75 per share, according to a press release statement issued Tuesday. The offering price represents a discount to the current trading price of $23.14, with the stock trading near its 52-week high of $24.75. According to InvestingPro data, METC has delivered an impressive 144% return over the past six months.

The coal mining company is selling 10,666,667 shares with expected gross proceeds of approximately $200 million before deducting underwriting discounts, commissions and other expenses.

In connection with the offering, Yorktown Energy Partners has granted underwriters a 30-day option to purchase up to an additional $30 million of Class A common stock at the same public offering price.

Ramaco 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. While the company faces near-term profitability challenges, InvestingPro analysis reveals 10+ additional insights about METC’s financial health and growth prospects, available exclusively to subscribers.

Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC are serving as lead joint book-running managers for the offering, which is expected to close on August 7, 2025, subject to customary closing conditions.

The company operates four active metallurgical coal mining complexes in Central Appalachia and one development rare earth and coal mine near Sheridan, Wyoming. In 2023, Ramaco announced the discovery of a major deposit of primary magnetic rare earths and critical minerals at its Wyoming site.

A shelf registration statement relating to the offered securities was filed with the Securities and Exchange Commission and became automatically effective on August 5, 2025.

In other recent news, Ramaco Resources has initiated a $150 million underwritten public offering of its Class A common stock. This move includes an option for underwriters to purchase an additional $22.5 million of stock from selling stockholders, Yorktown Energy Partners. Concurrently, the company’s Q2 2025 earnings call presented a mixed financial picture, revealing a net loss of $14 million, which marks a decline from the previous quarter. Despite maintaining a strong liquidity position, the earnings announcement led to investor concerns primarily due to reduced production guidance and ongoing challenges in the coal market. These developments are crucial for investors keeping an eye on Ramaco Resources’ financial health and strategic direction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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