Ramaco Resources Raises Sales, Production Guidance for 2024 — Commodity Comment

By Stephen Nakrosis

Coal producer Ramaco Resources said on Monday it was raising its 2024 sales and production guidance, and also said it “anticipates further ongoing sale of and reduction in inventory levels.”
Outlook for 2024 production:

Ramaco said it anticipates production of 4 million to 4.4 million tons, above its prior guidance of 3.9 million to 4.4 million tons. Depending on market conditions, the company said, “a higher level of production may be achievable.”
The company now has 3.8 million tons committed for delivery this year, up roughly 90% since it last provided guidance. “This level of sales would be 96% of the low end of our original 2024 production guidance of 3.9 million tons,” the company said.
Ramaco expects base level sales of 4.2 million to 4.6 million tons, up from 4.1 million to 4.6 million tons previously. The company also said its customer mix for 2024 “would be approximately one-third domestic fixed price and two-thirds export index priced business at the midpoint of sales guidance.”
Depending on continuing market conditions, Ramaco believes “that an annual sales run-rate level of approximately 5 million tons may be achievable by year-end 2024.”
Operations at the Maben complex:
An existing coal preparation plant that was recently purchased will be relocated the company’s Maben complex in West Virginia. The deal was in line with Ramaco’s goal of reducing the costs of trucking raw coal from Maben to its Berwind preparation facility, the company said.
“We anticipate the Maben plant will be operational by the fourth quarter of 2024. This will materially reduce both overall trucking and mine cash costs at that mine complex,” Ramaco said.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com