SALES COMMITMENTS IN 2024 ARE NOW 3.8 MILLION TONS OR ALMOST 90% ABOVE PRIOR GUIDANCE
- Since the Company’s last guidance update in early December 2023, Ramaco has committed an additional 1.8 million tons for sale into export markets in 2024 at index-linked pricing.
- As of today, the Company now has 3.8 million tons committed for delivery in 2024 which is an increase of roughly 90% since our last guidance. This consists of 1.5 million tons committed to North American customers at an average realized price of $167 per ton and an additional 2.3 million tons committed at mostly index-linked pricing for delivery to export customers. This level of sales would be 96% of the low end of our original 2024 production guidance of 3.9 million tons.
- The Company is now raising both its 2024 sales and production guidance based on this material increase to 2024 committed sales reflective of strong market acceptance of the Company’s coals.
- The Company is increasing its 2024 base level sales guidance to between 4.2 – 4.6 million tons, up from 4.1 – 4.6 million tons previously. The Company’s 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 continued market conditions, the Company believes that an annual sales run-rate level of approximately 5 million tons may be achievable by year-end 2024. This would include sales of an additional more than 0.5 million tons of both purchased coal and carryover inventory from 2023. This 5-million-ton annualized run-rate would represent a year over year increase in sales of roughly 1.5 million tons or roughly 40% above 2023 levels.
- The Company expects 2024 production of between 4.0 – 4.4 million tons, up from a previous guidance of between 3.9 – 4.4 million tons. Depending on market conditions, the Company believes that a higher level of production may be achievable.
