Ramaco Resources, a metallurgical coal developer based in Lexington, Ky., has announced better-than-expected third-quarter profits due to a surge in demand for coal. According to preliminary results, the company anticipates a profit of $18 million to $20 million, or 42 cents to 45 cents per share on an adjusted basis. This surpasses the analysts’ consensus of 22 cents per share.
Increased Coal Shipments
In the third quarter, Ramaco Resources shipped a total of 996,000 tons of coal, representing a significant 39% increase compared to the previous quarter. This boost in shipments can be attributed to strong customer demand overseas.
Revised Guidance for Full Year Shipments
As a result of the robust international demand, Ramaco Resources has revised its full-year guidance for coal shipments. The company now expects to ship between 3.25 million and 3.5 million tons, compared to the previous range of 3.1 million to 3.6 million tons.
Inflation Impacts Mine Costs
Ramaco Resources highlighted that inflation has led to increased mine costs in the quarter. As a result, the company expects mine costs for 2023 to be at the higher end of the previously guided range of $102 to $108 per ton.