Ramaco Resources Inc. reported a second-quarter net income of $10.6 million, or 26 cents per fully diluted share, increasing year over year from $10.2 million, or 25 cents per share.
Ramaco's adjusted EBITDA was $19.1 million in the second quarter, compared to $14.9 million in the year-ago quarter. The metallurgical coal producer sold 499,000 company-produced tons of coal, up 13% over the prior quarter as revenue rose from $57.5 million to $65.8 million over the same period.
"We have achieved record results in all of our key financial and operational metrics and are looking forward to continuing our measured production growth throughout the balance of the year and into 2020," said Ramaco Executive Chairman Randall Atkins. "Given the current turbulence in both the financial and coal markets, it is worth reemphasizing the conservative approach which we have deployed to build our company. Ramaco was strategically designed to weather these types of market dislocations."
The company also reported that cash margins on coal produced and sold from the Elk Creek mine in West Virginia improved 32% year over year to approximately $49 per ton in the second quarter. Ramaco, a relatively new company in the coal sector, recorded capital expenditures of approximately $11.5 million during the period, a decrease of about 22% compared to the same quarter a year ago.
Ramaco expects to produce between 1.8 million and 2.2 million tons of coal in 2019 compared to just under 1.8 million tons produced in 2018. The company's sales mix, which was over 96% metallurgical coal in 2018, is expected to remain primarily focused on metallurgical grade coal.
Facing a deceleration in international pricing for metallurgical coal and noting several bankruptcies in the sector, Ramaco President and CEO Michael Bauersachs said the company's "advantaged balance sheet" sets it apart among international coal companies.
"Our well-capitalized mines are becoming the new standard in our operating regions," Bauersachs said. "The reliability and quality that comes from our mines has created one of the strongest North American coal sales portfolios in the space."