Ramaco Raises 2026 Cash-Cost Outlook After Diesel Spike

The Tip Desk · November 10, 2026 · 4 min read

Third-quarter cash costs reached $104 a ton as the company cut full-year production guidance to 3.5–3.6 million tons.

Ramaco Resources (METC), a Central Appalachian metallurgical coal operator, reported a third-quarter net loss of $18.2 million, or $0.32 a share on Class A diluted earnings, as cash costs rose faster than realized prices and the company lifted its full-year 2026 cash-cost outlook.

Adjusted EBITDA was $3.0 million, down 47% from $5.7 million in the second quarter. The metallurgical coal segment contributed $8.9 million of Adjusted EBITDA. Revenue was $150.1 million.

Non-GAAP cash cost of sales rose to $104 a ton from $99 a ton in the second quarter, a $5 increase the company attributed largely to elevated diesel prices. Non-GAAP revenue of tons sold was $120 a ton, up from $116. Cash margins compressed to $16 a ton from $17.

Production declined 9% sequentially to 851,000 tons from 931,000 tons, which the company said reflected disciplined high-vol output in a challenging market. Sales rose 2% to 1,077,000 tons as inventory was drawn down.

Cash capital expenditures were $35.5 million, up 30% from $27.4 million in the second quarter, driven by low-vol growth at Berwind and Maben. Liquidity was $374.7 million, including about $233.0 million of cash and $141.7 million of revolving-credit availability, with no borrowings outstanding. Liquidity was 38% above the year-ago $272.4 million.

The company raised 2026 cash-cost guidance to $101–$103 a ton from $96–$99, citing diesel at $5.85 a gallon versus $2.50 at the start of the year and U.S. rebar at $952 a ton versus $910. It cut full-year production guidance to 3.5–3.6 million tons from 3.6–3.9 million tons and sales guidance to 4.0–4.1 million tons from 4.0–4.3 million tons. Capital-expenditure guidance rose to $97–$102 million from $92–$97 million.

As of September 30, 2026 sales commitments totaled about 4.2 million tons, more than 100% of 2026 production guidance at the 3.6 million-ton midpoint. Of that, 1.3 million tons were committed to North American customers at an average fixed price of $137 a ton and 2.1 million tons to seaborne customers at $110 a ton. An additional 0.8 million export tons were index-linked and not yet priced.

The company said it had signed 1.7 million tons of 2027 domestic business at an average fixed price of $139 a ton, a volume increase of almost one third from 2026. Combined with 1.1 million tons of 2027 export commitments, those 2.8 million tons would account for a meaningful portion of anticipated 2027 production. Based on year-to-date 2026 cash costs of $100 a ton, the company said those domestic sales alone would represent over $65 million of met coal segment Adjusted EBITDA in 2027. Initial 2027 guidance is expected after a Board meeting in early December.

During the quarter the company won a $30 million jury verdict against Chubb Insurance related to the 2018 Elk Creek coal storage silo failure, including $27.5 million in net economic losses and $2.5 million in additional damages. The final award will depend on post-trial motions. The company is also entitled to an award for attorneys’ fees.

The company said the third section of the Berwind low-vol mine and the first underground section of Maben should be in production before year-end, adding 600,000 tons of annualized low-vol output. With the Laurel Fork restart, it said it will have added almost 1 million annualized tons of low-vol production this year. A new Maben rail loadout is expected in January 2027 and should reduce trucking costs at that complex by roughly $20 a ton.

Inventory stood at about 900,000 tons of clean and clean-equivalent coal, more than 600,000 tons above normal. The company said it has begun selling stockpiled coal into higher-priced markets and anticipates a working-capital liquidity benefit. It said that should prices hold, fourth-quarter Adjusted EBITDA and net income could be higher than the combined amounts generated in the first three quarters of the year.