# Ramaco Resources, Inc.: Form 10-Q for the period ended Mar 31, 2025

- Company: [Ramaco Resources, Inc.](/companies/metc.md) (CIK 1687187)
- Form: 10-Q
- Filed: 2025-05-12
- Accepted by EDGAR: May 12, 2025, 16:05 ET
- Period: 2025-03-31
- Accession: 0001558370-25-007370
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1687187/000155837025007370/metc-20250331x10q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1687187/000155837025007370/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-03-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-01-01 to 2025-03-31 | $134.7m | us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax |
| Cost of revenue | 3 months, 2025-01-01 to 2025-03-31 | $114.1m | us-gaap:CostOfGoodsAndServicesSold |
| Selling, general and administrative | 3 months, 2025-01-01 to 2025-03-31 | $14.6m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months, 2025-01-01 to 2025-03-31 | −$12.0m | us-gaap:OperatingIncomeLoss |
| Income tax | 3 months, 2025-01-01 to 2025-03-31 | −$4.3m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-01-01 to 2025-03-31 | −$9.5m | us-gaap:NetIncomeLoss |
| Operating cash flow | 3 months, 2025-01-01 to 2025-03-31 | $26.0m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Dividends paid | 3 months, 2025-01-01 to 2025-03-31 | $2.5m | us-gaap:PaymentsOfDividends |
| Cash and equivalents | at 2025-03-31 | $43.5m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-03-31 | $164.0m | us-gaap:AssetsCurrent |
| Total assets | at 2025-03-31 | $685.7m | us-gaap:Assets |
| Current liabilities | at 2025-03-31 | $124.4m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-03-31 | $330.5m | us-gaap:Liabilities |
| Current portion of debt | at 2025-03-31 | $307.0k | us-gaap:LongTermDebtCurrent |
| Shareholders' equity | at 2025-03-31 | $355.2m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 27,701 characters.

*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report, as well as the financial statements and related notes appearing elsewhere in this Quarterly Report. The following discussion contains forward-looking statements that reflect our future plans, estimates, beliefs and expected performance. The forward-looking statements are dependent upon events, risks and uncertainties that may be outside our control. We caution you that our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to such differences are discussed elsewhere in this Quarterly Report, particularly in the “Cautionary Note Regarding Forward-Looking Statements” and in our Annual Report and in this Quarterly Report under the heading “Item 1A. Risk Factors,” all of which are difficult to predict. In light of these risks, uncertainties and assumptions, the forward-looking events discussed may not occur. We do not undertake any obligation to publicly update any forward-looking statements except as otherwise required by applicable law.*

### Overview

We are an operator and developer of high-quality, low-cost metallurgical coal in southern West Virginia and southwestern Virginia. Our development portfolio primarily includes the following properties: Elk Creek, Berwind, Knox Creek, and Maben. We believe each of these properties possesses geologic and logistical advantages that make our coal among the lowest delivered-cost U.S. metallurgical coal to our domestic customer base, North American blast furnace steel mills and coke plants, as well as international metallurgical coal consumers. We also control mineral deposits near Sheridan, Wyoming as part of the Company’s initiatives regarding the potential recovery of rare earth elements and critical minerals as well as the potential commercialization of coal-to-carbon-based products and materials.

Our primary source of revenue is the sale of metallurgical coal. We are a pure-play metallurgical coal company with 66 million reserve tons and 1,352 million measured and indicated resource tons of high-quality metallurgical coal. Our plan is to continue the development of our existing properties and grow annual production over the next few years to approximately seven million clean tons of metallurgical coal, subject to market conditions, permitting and additional capital deployment in the medium-term. We may make acquisitions of reserves or infrastructure that continue our focus on advantaged geology and lower costs.

The overall outlook of the metallurgical coal business is dependent on a variety of factors such as pricing, regulatory uncertainties, and global economic conditions. Coal consumption and production in the U.S. are driven by several market dynamics and trends including the U.S. and global economies, the U.S. dollar’s strength relative to other currencies and accelerating production cuts. Blast furnace steelmaking is more prevalent outside the U.S. compared to domestic steel production, which creates demand for exports of metallurgical coal, including demand growth in Asia Pacific.

Global metallurgical coal markets softened in 2024 due to constrained economic growth in some regions of the world and continued conflict overseas. The global steel market experienced slower growth, especially in China, resulting in elevated levels of Chinese steel exports. These conditions have led steel companies to both cut back on their own production and to reduce the price they are willing to pay for their metallurgical coal feedstock. For 2025, overall steel demand will likely remain weak in the near term; however, supply cuts may occur for higher cost operations absent a significant upward movement in pricing. Longer term, the Company believes that limited global investment in new coking coal production capacity, the industrialization of emerging economies, expansion of urbanization globally, and an eventual return to economic growth will support coking coal markets overall.

During the first three months of 2025, we sold 0.9 million tons of coal and recognized $134.7 million of revenue. Of this amount, 33% of our revenue was from sales into North American markets, including Canada, and 67% of our revenue was from sales into export markets. During the same period of 2024, we sold 0.9 million tons of coal and recognized $172.7 million of revenue, of which 31% was from sales into North American markets, including Canada, and 69% was from sales into export markets. Sales into export markets, which often include index-based pricing, generally have greater exposure to variability in pricing from period to period. The Company’s exports have not been materially delayed or otherwise affected by recent severe weather events or by dockworker labor disputes taking place at U.S. East Coast ports.

As of March 31, 2025, the Company had outstanding performance obligations of approximately 1.5 million tons for contracts with fixed sales prices averaging $154 per ton, excluding freight, as well as 2.6 million tons for contracts with index-based pricing mechanisms. The Company expects to satisfy approximately 67% of these commitments in 2025, 32% of these commitments in 2026, and the remaining 1% in 2027. Refer to Note 8 of Part I, Item 1 for additional information.

The metallurgical coal markets are volatile in nature; therefore, the Company prioritizes managing its financial position and liquidity, while managing costs and capital expenditures and returning value to its shareholders.

In the first three months of 2025, our total capital expenditures were $20.3 million, excluding capitalized interest of $0.5 million. In the first three months of 2024, our capital expenditures were $18.7 million, excluding capitalized interest of $0.2 million. The increase in capital expenditures was due to the Company’s progress related to strategic growth projects specifically at the Maben preparation plant.

The Company produced 1.0 million tons during the first three months of 2025 compared to 0.8 million tons during the first three months of 2024 as a result of the increase in capacity and completed development work. The Company expects full-year production volumes in 2025 between 3.9 and 4.3 million tons with an ability to vary production dependent on market conditions.

The Company continues to assess its potential rare earth elements and critical minerals deposit in Wyoming. Analysis performed to date indicates elevated levels of rare earth elements along with significant concentrations of critical minerals gallium and germanium, which were banned for export to the United States by China on December 2, 2024. The Company hopes to complete its techno-economic analysis of the overall commercial aspects of the potential opportunity and begin construction of a pilot processing facility in mid to late 2025. The Company recently received a $6.1 million matching grant from the Wyoming Energy Authority, which will be applied toward development of the pilot plant and related facilities at the Brook Mine.

No revenues have been recognized from the Company’s Wyoming initiatives.

### Results of Operations

*(In thousands, except per share amounts)*

| ​ ​ ​ | ​ ​ ​ | ​ ​ Three months ended March 31, 2025 ​ ​ | ​ ​ | ​ ​ 2024 ​ ​ | ​ ​ ​ | ​ ​ ​ |
| --- | --- | ---: | --- | --- | --- | --- |
| Revenue | ​ | $134,656 | ​ | $172,676 | ​ | ​ |
| ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ |
| Costs and expenses | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ |
| Cost of sales (exclusive of items shown separately below) | ​ | 114,132 |  | ​ 139,713 |  |  |
| Asset retirement obligations accretion | ​ | ​ 402 |  | ​ 354 |  |  |
| Depreciation, depletion, and amortization | ​ | 17,542 | ​ | ​ 15,220 | ​ | ​ |
| Selling, general and administrative expenses | ​ | 14,602 | ​ | ​ 14,114 | ​ | ​ |
| Total costs and expenses | ​ | 146,678 | ​ | ​ 169,401 | ​ | ​ |
| ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ |
| Operating (loss) income | ​ | (12,022) |  | ​ 3,275 |  |  |
| ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ |
| Other income (expense), net | ​ | 505 | ​ | ​ 629 | ​ | ​ |
| Interest expense, net | ​ | (2,230) | ​ | ​ (1,332) | ​ | ​ |
| Income before tax | ​ | ​ (13,747) | ​ | ​ 2,572 | ​ | ​ |
| ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ |
| Income tax (benefit) expense | ​ | (4,290) |  | ​ 540 |  |  |
| ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ |
| Net (loss) income | ​ | $(9,457) | ​ | $2,032 | ​ | ​ |
| ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ |
| Earnings per common share | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ |
| Basic - Class A | ​ | $(0.19) | ​ | $(0.00) | ​ | ​ |
| Basic - Class B | ​ | $(0.20) | ​ | $0.24 | ​ | ​ |
| ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ |
| Diluted - Class A | ​ | $(0.19) | ​ | $(0.00) | ​ | ​ |
| Diluted - Class B | ​ | $(0.20) | ​ | $0.23 | ​ | ​ |
| ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ |
| Adjusted EBITDA | ​ | $9,788 | ​ | $24,180 | ​ | ​ |

Net income and Adjusted EBITDA for the three months ended March 31, 2025 were negatively impacted by the softening of global metallurgical coal markets and the decrease in metallurgical coal price indices. This occurred due to a variety of macroeconomic factors including the continued Chinese oversupply of steel into a muted global economic environment. Refer to *Non-GAAP Financial Measures* later in Item 2 for more information regarding Adjusted EBITDA.

Coal sales information is summarized as follows:

*(In thousands)*

| ​ ​ ​ | ​ ​ ​ ​ | ​ ​ Three months ended March 31, 2025 ​ ​ | ​ ​ | ​ ​ 2024 ​ ​ | ​ ​ ​ | ​ ​ Increase (Decrease) ​ ​ | ​ ​ ​ | ​ ​ ​ |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Revenue | ​ | $134,656 | ​ | $172,676 | ​ | $(38,020) | ​ | ​ |
| Tons sold | ​ | ​ 946 | ​ | ​ 929 | ​ | ​ 17 | ​ | ​ |
| Total revenue per ton sold (GAAP basis) | ​ | $142 | ​ | $186 | ​ | $(44) | ​ | ​ |
| ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ |
| Cost of sales | ​ | $114,132 | ​ | $139,713 | ​ | $(25,581) | ​ | ​ |
| Tons sold | ​ | ​ 946 | ​ | ​ 929 | ​ | ​ 17 | ​ | ​ |
| Total cost of sales per ton sold (GAAP basis) | ​ | $121 | ​ | $150 | ​ | $(29) | ​ | ​ |
| ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ |
| Refer to Non-GAAP Financial Measures for supplemental calculations of revenue per ton sold (FOB mine) and cash cost per ton sold (FOB mine) | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ |

Our revenue includes sales of Company produced coal and coal purchased from third parties. We include amounts billed by us for transportation to our customers within revenue and transportation costs incurred within cost of sales.

#### Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024

*Revenue.* Coal sales revenue for the three months ended March 31, 2025 was $134.7 million, approximately 22% lower than the same period in 2024 driven by the negative impact of pricing offset partially by the 2% increase in tons sold. The increase in tons sold occurred in export markets, which increased 8% but were offset partially by the decrease in North America volumes. Revenue per ton sold decreased 24% from $186 per ton for the three months ended March 31, 2024 to $142 per ton for the three months ended March 31, 2025 and was driven by the variability in index-based pricing for export sales. Revenue per ton sold (FOB mine), a non-GAAP measure which excludes transportation revenues and demurrage, also decreased 21% from $155 per ton for the three months ended March 31, 2024 to $122 per ton for the three months ended March 31, 2025. Refer to *Non-GAAP Financial Measures* later in Item 2 for more information regarding this measure. The decrease in the Company’s revenue per ton sold measures was due to the decrease in metallurgical coal prices as U.S. metallurgical coal price indices continued to fall in the first quarter of 2025 by an average of 27% quarter over quarter due to the macroeconomic conditions discussed earlier. We expect metallurgical coal prices to remain volatile in the near term.

There are no revenues from rare earth and critical minerals at this time.

*Cost of sales.* Our cost of coal sales for the three months ended March 31, 2025 was $114.1 million, approximately 18% lower than the same period in 2024 despite the 2% increase in tons sold discussed above. Cost of sales per ton sold decreased 19% from $150 per ton for the three months ended March 31, 2024 to $121 per ton for the three months ended March 31, 2025. Cash cost per ton sold *(FOB mine)*, a non-GAAP measure which excludes transportation costs, alternative mineral development costs, and idle mine costs, decreased 17% from $118 per ton for the three months ended March 31, 2024 to $98 per ton for the three months ended March 31, 2025. Refer to *Non-GAAP Financial Measures* later in Item 2 for more information regarding this measure. Mine costs for the first quarter of 2025 benefited from efficiencies gained from increased production versus the same period in 2024.

*Depreciation, depletion, and amortization.* Depreciation, depletion, and amortization expense totaled $17.5 million and $15.2 million for the three months ended March 31, 2025 and March 31, 2024, respectively. The increase quarter-to-quarter was related to general increases in plant and equipment and production versus 2024.

*Selling, general, and administrative.* Selling, general, and administrative (“SG&A”) expenses were $14.6 million and $14.1 million for the three months ended March 31, 2025 and March 31,2024, respectively. The $0.5 million increase in 2024 was primarily due to the increase in stock-based compensation expense offset by other administrative cost.

*Other income (expense), net.* Other income (expense), net was $0.5 million for the three months ended March 31, 2025, compared to $0.6 million for the three months ended March 31, 2024.

*Interest expense, net.* Interest expense, net was $2.2 million for the three months ended March 31, 2025 compared to $1.3 million for the same period in 2024. The increase in 2025 was largely due to issuance of the 8.375% Senior Unsecured Notes due 2029 (the “Senior Notes due 2029”) in late 2024.

*Income tax expense (benefit).* The effective tax rate for the three months ended March 31, 2025 and March 31, 2024 was 31% and 21%, respectively, excluding the impact of discrete items. The primary differences from the federal statutory rate of 21% are related to state taxes, non-deductible expenses, the foreign-derived intangible income deduction, and depletion expense for income tax purposes.

*Earnings (loss) per share.* Refer to Note 10 of Part I, Item 1 for information regarding earnings per share calculations for Class A and Class B common stock.

### Liquidity and Capital Resources

The metallurgical coal markets are volatile in nature; therefore, the Company prioritizes managing its financial position and liquidity, while managing costs and capital expenditures and returning value to its shareholders.

On May 3, 2024, the Company entered into the First Amendment Agreement to the Second Amended and Restated Credit and Security Agreement in order to, among other things, extend the maturity date and increase the size of its existing Revolving Credit Facility. The amended facility has a maturity date of May 3, 2029, and provides an initial aggregate revolving commitment of $200 million as well as an accordion feature to increase the size by an additional $75 million subject to certain terms and conditions, including the lenders’ consent. The amended facility provides the Company with additional flexibility to pursue further growth in production while meeting normal operating requirements. The terms of the amended facility also require the Company to maintain certain covenants, including fixed charge coverage ratio and compensating balance requirements. Borrowings under the amended facility may not exceed the borrowing base as determined under the amended formula included in the agreement.

At March 31, 2025, we had $43.5 million of cash and cash equivalents and $74.9 million of remaining availability under our Revolving Credit Facility for future borrowings. Cash and cash equivalents include $7.5 million of compensating balances held in dedicated accounts to assure future credit availability under the revolver. The Company’s total current assets were $164.0 million and were in excess of total current liabilities by $39.6 million as of the balance sheet date.

#### Significant sources and uses of cash during the first three months of 2025

Sources of cash:

- Cash flows provided by operating activities were $26.0 million during the first three months of 2025, which were driven primarily by net earnings adjusted for non-cash expenses including depreciation, depletion, and amortization as well as stock-based compensation. Changes in operating assets and liabilities

also contributed to operating cash flow driven primarily by the decrease in accounts receivable due to the collection of fourth quarter 2024 revenues, which were $36.2 million higher than first quarter revenues.

- Cash inflows for financing activities totaled $6.7 million, which included:
- net proceeds from borrowing of $15.9 million on our existing debt, finance leases, and insurance financing and
- net outflow of $2.5 million to stockholders in the form of dividend payments and
- net outflows of $6.7 million of other various activities

Uses of cash:

- Capital expenditures totaled $20.3 million, including expenditures related to the preparation plant and expansion of our Maben complex. Capital expenditures for the Maben preparation plant totaled $1.8 million. The preparation plant at Maben was commissioned in October 2024, which should reduce trucking costs at the complex going forward. Most capital expenditures for 2025 are expected to occur in the first half of the year as a carryforward of commitments for growth projects made in 2024.
- Additional cash flows from other activities related to deposits on equipment and other of $1.9 million.

The Class B common stock dividends were calculated based on 20% of the previous quarter’s CORE royalty and infrastructure fees as shown below. Refer to Note 6 of Part I, Item 1 for additional information regarding dividends.

*(In thousands)*

| ​ ​ ​ Royalties | ​ ​ ​ ​ ​ | ​ ​ Three months ended March 31, 2025 ​ ​ ​ ​ | ​ ​ ​ ​ ​ | ​ ​ Three months ended March 31, 2024 ​ ​ ​ ​ |
| --- | --- | --- | --- | --- |
| Ramaco Coal | ​ | $2,381 | ​ | $2,730 |
| Amonate Assets | ​ | ​ 600 | ​ | ​ 1,312 |
| Other | ​ | ​ 7 | ​ | ​ 12 |
| Total Royalties | ​ | $2,988 | ​ | $4,054 |
| ​ | ​ | ​ ​ | ​ | ​ ​ |
| Infrastructure Fees | **​** | ​ ​ | **​** | ​ ​ |
| Preparation Plants (Processing at $5.00/ton) | ​ | $4,256 | ​ | $4,475 |
| Rail Load-outs (Loading at $2.50/ton) | ​ | ​ 2,069 | ​ | ​ 1,954 |
| Total Infrastructure Fees (at $7.50/ton) | ​ | $6,325 | ​ | $6,429 |
| ​ | ​ | ​ ​ | ​ | ​ ​ |
| CORE Royalty and Infrastructure Fees | **​** | $9,313 | **​** | $10,483 |
| ​ | ​ | ​ ​ | ​ | ​ ​ |
| **Total Cash Available for Dividend for Class B Common Stock** | **​** | $9,313 | **​** | $10,483 |
| ​ | ​ | ​ ​ | ​ | ​ ​ |
| **20% of Cash Available for Dividend for Class B Common Stock** | **​** | $1,863 | **​** | $2,097 |

The Company anticipates declaring similar dividends on a quarterly basis in future periods; however, future declarations of dividends are subject to Board of Directors’ approval and may be adjusted as business needs or market conditions change.

#### Future sources and uses of cash

Our primary use of cash includes capital expenditures for mine development and ongoing operating expenses. We expect to fund our capital and liquidity requirements for the next twelve months and the reasonably foreseeable future with cash on hand, borrowings under our revolving credit facility, projected cash flows from operations, and, if warranted, capital raised under the Company’s shelf registration discussed below. Factors that could adversely impact our future liquidity and ability to carry out our capital expenditure program include the following:

- Timely delivery of our product by rail and other transportation carriers;
- Late payments of accounts receivable by our customers;
- Cost overruns in our purchases of equipment needed to complete our mine development plans;
- Delays in completion of development of our various mines, processing plants and refuse disposal facilities, which would reduce the coal we would have available to sell and our cash flow from operations; and
- Adverse changes in the metallurgical coal markets that would reduce the expected cash flow from operations.

If future cash flows were to become insufficient to meet our liquidity needs or capital requirements, due to changes in macroeconomic conditions or otherwise, we may reduce our expected level of capital expenditures for new mine production and/or fund a portion of our capital expenditures through the issuance of debt or equity securities, new debt arrangements, or from other sources such as asset sales.

On September 1, 2023, the Company filed a shelf registration statement to sell any combination of Class A common stock, Class B common stock, preferred stock, depositary shares, debt securities, warrants, and rights at an aggregate initial offering price of up to $400.0 million. No securities may be sold until a prospectus supplement describing the method and terms of any future offering is delivered.

Refer to Note 4 of Part I, Item 1 for information regarding the Company’s Revolving Credit Facility and indebtedness.

### Critical Accounting Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amounts of revenue and expenses reported for the period then ended. A discussion of our critical accounting policies and estimates is included in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates” of the Annual Report. There were no material changes to our critical accounting policies during the first three months of 2025.

### Off-Balance Sheet Arrangements

A discussion of off-balance sheet arrangements is included under the heading “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Off-Balance Sheet Arrangements” in the Annual Report. There were no material changes during the first three months of 2025.

### Non-GAAP Financial Measures

*Adjusted EBITDA -* Adjusted EBITDA is used as a supplemental non-GAAP financial measure by management and external users of our financial statements, such as industry analysts, investors, lenders, and rating agencies. We believe Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance.

We define Adjusted EBITDA as net income plus net interest expense; stock-based compensation expense; depreciation, depletion, and amortization expenses; income taxes; accretion of asset retirement obligations; and, when applicable, certain other non-operating items (income tax penalties and charitable contributions). A reconciliation of net income to Adjusted EBITDA is included below. Adjusted EBITDA is not intended to serve as a substitute to U.S. GAAP measures of performance and may not be comparable to similarly-titled measures presented by other companies.

*(In thousands)*

| ​ ​ Reconciliation of Net Income to Adjusted EBITDA | ​ ​ | ​ ​ Three months ended March 31, 2025 ​ | ​ | ​ ​ 2024 ​ | ​ ​ ​ | ​ ​ |
| --- | --- | ---: | --- | ---: | --- | --- |
| Net (loss) income | ​ | $(9,457) | ​ | $2,032 | ​ | ​ |
| Depreciation, depletion, and amortization | ​ | 17,542 | ​ | 15,220 | ​ | ​ |
| Interest expense, net | ​ | 2,230 | ​ | 1,332 | ​ | ​ |
| Income tax (benefit) expense | ​ | (4,290) | ​ | 540 | ​ | ​ |
| EBITDA | ​ | 6,025 | ​ | 19,124 | ​ | ​ |
| Stock-based compensation | ​ | 3,361 | ​ | 4,702 | ​ | ​ |
| Accretion of asset retirement obligation | ​ | 402 | ​ | 354 | ​ | ​ |
| Adjusted EBITDA | ​ | $9,788 | ​ | $24,180 | ​ | ​ |

*Non-GAAP revenue per ton sold-* Non-GAAP revenue per ton sold (FOB mine) is calculated as coal sales revenue less transportation revenues and demurrage, divided by tons sold. We believe revenue per ton sold (FOB mine) provides useful information to investors as it enables investors to compare revenue per ton we generate against similar measures made by other publicly-traded coal companies and more effectively monitor changes in coal prices from period to period excluding the impact of transportation costs which are beyond our control. The adjustments made to arrive at these measures are significant in understanding and assessing our financial performance. Revenue per ton sold (FOB mine) is not a measure of financial performance in accordance with U.S. GAAP and, therefore, should not be considered as a substitute to revenue under U.S. GAAP.

*(In thousands)*

| ​ ​ ​ | ​ ​ ​ ​ | ​ ​ Three months ended March 31, 2025 ​ ​ | ​ ​ | ​ ​ 2024 ​ ​ | ​ ​ ​ |
| --- | --- | --- | --- | --- | --- |
| Revenue | ​ | $134,656 | ​ | $172,676 | ​ |
| Less: Adjustments to reconcile to Non-GAAP revenue (FOB mine) | ​ | ​ ​ | ​ | ​ ​ | ​ |
| Transportation | ​ | ​ (19,042) | ​ | ​ (28,285) | ​ |
| Non-GAAP revenue (FOB mine) | ​ | $115,614 | ​ | $144,391 | ​ |
| Tons sold | ​ | ​ 946 | ​ | ​ 929 | ​ |
| Non-GAAP revenue per ton sold (FOB mine) | ​ | $122 | ​ | $155 | ​ |
| ​ | ​ | ​ ​ | ​ | ​ ​ | ​ |
| Refer to coal sales information for revenue per ton sold (GAAP basis) calculations | ​ | ​ ​ | ​ | ​ ​ | ​ |

*Non-GAAP cash cost per ton sold -* Non-GAAP cash cost per ton sold (FOB mine) is calculated as cash cost of sales less transportation costs, alternative mineral development costs, and idle and other costs, divided by tons sold. We believe cash cost per ton sold provides useful information to investors as it enables investors to compare our cash cost per ton against similar measures made by other publicly-traded coal companies and more effectively monitor changes in coal cost from period to period excluding the impact of transportation costs which are beyond our control, and alternative mineral costs, which are more developmentally focused at the present time. The adjustments made to arrive at these measures are significant in understanding and assessing our financial performance. Cash cost per ton sold (FOB mine) is not a measure of financial performance in accordance with U.S. GAAP and, therefore, should not be considered as a substitute to cost of sales under U.S. GAAP.

*(In thousands)*

| ​ ​ ​ | ​ ​ ​ ​ | ​ ​ Three months ended March 31, 2025 ​ ​ | ​ ​ | ​ ​ 2024 ​ ​ | ​ ​ ​ |
| --- | --- | --- | --- | --- | --- |
| Cost of Sales: | ​ | $114,132 | ​ | $139,713 | ​ |
| Less: Adjustments to reconcile to Non-GAAP cash cost of sales | ​ | ​ ​ | ​ | ​ ​ | ​ |
| Transportation costs | ​ | ​ (18,998) | ​ | ​ (28,876) | ​ |
| Alternative mineral development costs | ​ | ​ (1,912) | ​ | ​ (1,135) | ​ |
| Idle and other costs | ​ | ​ (459) | ​ | ​ (237) | ​ |
| Non-GAAP cash cost of sales | ​ | $92,763 | ​ | $109,465 | ​ |
| Tons sold | ​ | ​ 946 | ​ | ​ 929 | ​ |
| Non-GAAP cash cost per ton sold (FOB mine) | ​ | $98 | ​ | $118 | ​ |
| ​ | ​ | ​ ​ | ​ | ​ ​ | ​ |
| Refer to coal sales information for cost per ton sold (GAAP basis) calculations | ​ | ​ ​ | ​ | ​ ​ | ​ |

## Market risk

As filed, 138 characters.

Disclosures about market risk are included in Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” of our Annual Report.

## Controls and procedures

As filed, 5,101 characters.

As required by Rule 13a-15(b) of the Exchange Act, we have evaluated, under the supervision and with the participation of our management, including our chief executive officer, who serves as our principal executive officer, and our chief financial officer, who serves as our principal financial officer, the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this quarterly report. Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosures, and is recorded, processed, summarized and reported within the periods specified in the rules and forms of the SEC. However, based on that evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were not effective at the reasonable assurance level as of the end of the period covered by this quarterly report as a result of the material weakness in internal control over financial reporting as described below.

### Previously Reported Material Weakness

We previously identified a material weakness and concluded that our disclosure controls and procedures as of December 31, 2024, were not effective at the reasonable assurance level as a result of the material weakness in internal control over financial reporting disclosed below. The Company’s remediation plan for the material weakness in internal control over financial reporting is also discussed below.

Based on this evaluation, management identified a material weakness related to an insufficiency of appropriately qualified and trained professionals to perform certain control activities necessary to achieve our control objectives. The material weakness also resulted in incomplete or inadequate documentation related to accounting policies and procedures, inappropriate conclusions reached regarding non-routine accounting matters, and insufficient evidence of internal control activities. A material weakness is a control deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. Management concluded that its internal control over financial reporting was ineffective as of December 31, 2024.

### Remediation Plan

We are executing on our plan for remediation to address this material weakness, which includes assessing, redesigning, and implementing modifications of our internal controls, and the hiring of additional qualified accounting personnel, or supplementing internal resources with qualified external advisors as needed. We will not be able to fully remediate this material weakness until these steps have been completed and subsequent validation and testing of these internal controls have demonstrated their operating effectiveness over a sustained period of financial reporting cycles.

During the first quarter of 2025, we took continued steps to improve our internal control over financial reporting. We continued to engage the services of a national professional services firm to assist us in evaluating the effectiveness of our disclosure controls and procedures. During the first quarter of 2025, we engaged a number of national recruiting firms to assist us in identifying qualified accounting personnel. We continued to engage the services of a top-five accounting firm to assist us in reviewing technical non-routine accounting matters.

### Changes in Internal Control Over Financial Reporting

We are actively improving our control environment by executing our remediation plan to address the material weakness, as described above. Except as described above, there were no significant changes in our internal control over financial reporting during our first quarter that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

### Inherent Limitations on Effectiveness of Controls and Procedures

Senior members of management do not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

## Risk factors

As filed, 729 characters.

In addition to the other information set forth in this Quarterly Report, you should carefully consider the risk factors and other cautionary statements described under the heading “Item 1A. Risk Factors” included in our Annual Report and the risk factors and other cautionary statements contained in our other SEC filings, which could materially affect our business, financial condition, cash flows, or future results of operations.

Additional risks and uncertainties not currently known to us, or that we currently deem to be immaterial, also may materially adversely affect our business, financial condition, or future results. There have been no material changes in our risk factors from those described in our Annual Report.

Filed May 12, 2025.
Source: SEC EDGAR, the filing index for accession 0001558370-25-007370. Last ingested by Listed: Nov 3, 2026, 20:51 ET. No prices; not investment advice.