Ramaco to establish national critical minerals stockpile in Wyoming

LEXINGTON - Ramaco Resources, Inc. (NASDAQ:METC, METCB), a mining company with a market capitalization of $2.08 billion and an impressive 363% return over the past six months according to InvestingPro, announced Monday its board has approved plans to develop a Strategic Critical Minerals Terminal (SCMT) at its Brook Mine facility in Wyoming, aiming to create a national stockpile of rare earth elements and critical minerals.

The company, which maintains a moderate debt-to-equity ratio of 0.39 and a healthy current ratio of 1.36, plans to collaborate with a commodity structuring and financial advisor to develop the facility, which will provide storage and inventory management for critical minerals and rare earths extracted from the mine.

According to the press release, the Brook Mine spans over 15,800 acres with 4,500 acres currently permitted. The company claims the site contains significant deposits of rare earth elements including scandium, gallium, and germanium, which are used in defense systems and advanced technologies.

Ramaco’s board has authorized increasing the annual commercial rare earth and critical mineral oxide production projection to approximately 3,400 tons, up from the previously planned 1,240 tons, representing a 174% increase.

The company stated that the Brook Mine site offers strategic advantages for the stockpile placement due to its connectivity to the BNSF railroad and proximity to a major interstate highway, which could facilitate transportation of materials to customers nationwide.

The SCMT initiative is designed to address supply chain vulnerabilities for materials considered vital for national security applications. The company indicated it plans to not only process its own rare earths and minerals but also offer tolling services for third-party producers.

A Technical Report Summary cited in the announcement estimated 1.4 million tons of Total Rare Earth Oxide on the permitted acreage, with potential for expansion as additional property is tested and explored.

The information in this article is based on a company press release statement. While Ramaco Resources shows strong price momentum, InvestingPro analysis indicates the stock is currently trading above its Fair Value. Investors can access detailed financial analysis, 12 additional ProTips, and comprehensive valuation metrics through InvestingPro’s detailed research report, part of its coverage of over 1,400 US stocks.

In other recent news, Ramaco Resources, Inc. has made significant strides in its operations and strategic positioning. The company has initiated the development of a pilot processing plant and laboratory near Sheridan, Wyoming, aimed at converting domestic carbonaceous ore into high-purity rare earth oxides. Additionally, Ramaco has strengthened its leadership team by appointing Martin van Wyk as Senior Vice President of Critical Minerals Processing, who will oversee the Brook Mine Project. In a strategic move to enhance its industry influence, Ramaco’s CEO, Randall W. Atkins, has been appointed to the Executive Committee of the International Energy Agency’s Coal Industry Advisory Board. The company has also been approved as a member of the Defense Industrial Base Consortium, which will allow it to engage in federally funded defense-related projects. In terms of market performance, Baird has initiated coverage of Ramaco Resources with an Outperform rating, indicating positive expectations for the company’s future. These developments reflect Ramaco’s ongoing efforts to expand its capabilities and influence within the industry.

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