10-Q

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                 to

Commission File Number: 001-38003

RAMACO RESOURCES, INC.

(Exact name of registrant as specified in its charter)

Delaware	38-4018838
(State or other jurisdiction	(I.R.S. Employer
of incorporation or organization)	Identification No.)
250 West Main Street, Suite 1900
Lexington, Kentucky	40507
(Address of principal executive offices)	(Zip code)
(859) 244-7455
(Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.01 par value	METC	NASDAQ Global Select Market
Class B Common Stock, $0.01 par value	METCB	NASDAQ Global Select Market
9.00% Senior Notes due 2026	METCL	NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  ⌧  No  ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  ⌧    No  ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ☐    No  ☒

As of October 31, 2023, the registrant had 43,902,118 and 8,783,877 outstanding shares of Class A and Class B common stock, respectively.

TABLE OF CONTENTS

		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	30
Item 4.	Controls and Procedures	30
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 3.	Defaults Upon Senior Securities	37
Item 4.	Mine Safety Disclosures	37
Item 5.	Other Information	37
Item 6.	Exhibits	38
SIGNATURES		39

2

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (this “Quarterly Report”) includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements, other than statements of historical fact included in this report, regarding our strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this Quarterly Report, the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described under, but not limited to, the heading “Item 1A. Risk Factors” included in this Quarterly Report and elsewhere in the Annual Report of Ramaco Resources, Inc. (the “Company”) on Form 10-K for the year ended December 31, 2022 (the “Annual Report”) filed with the United States Securities and Exchange Commission (the “SEC”) on March 14, 2023 and amended on April 7, 2023, as well as other filings of the Company with the SEC.

Forward-looking statements may include statements about:

● risks related to the impact of the novel coronavirus “COVID-19” global pandemic, such as the scope and duration of the outbreak, the health and safety of our employees, government actions and restrictive measures implemented in response, delays and cancellations of customer sales, supply chain disruptions and other impacts to the business, or our ability to execute our business continuity plans;

● anticipated production levels, costs, sales volumes, and revenue;

● timing and ability to complete major capital projects;

● economic conditions in the metallurgical coal and steel industries;

● expected costs to develop planned and future mining operations, including the costs to construct necessary processing, refuse disposal and transport facilities;

● estimated quantities or quality of our metallurgical coal reserves;

● our ability to obtain additional financing on favorable terms, if required, to complete the acquisition of additional metallurgical coal reserves as currently contemplated or to fund the operations and growth of our business;

● maintenance, operating or other expenses or changes in the timing thereof;

● the financial condition and liquidity of our customers;

● competition in coal markets;

● the price of metallurgical coal or thermal coal;

● compliance with stringent domestic and foreign laws and regulations, including environmental, climate change and health and safety regulations, and permitting requirements, as well as changes in the regulatory environment, the adoption of new or revised laws, regulations and permitting requirements;

● potential legal proceedings and regulatory inquiries against us;

● the impact of weather and natural disasters on demand, production, and transportation;

● purchases by major customers and our ability to renew sales contracts;

● credit and performance risks associated with customers, suppliers, contract miners, co-shippers and traders, banks, and other financial counterparties;

● geologic, equipment, permitting, site access and operational risks and new technologies related to mining;

● transportation availability, performance, and costs;

● availability, timing of delivery and costs of key supplies, capital equipment or commodities such as diesel fuel, steel, explosives, and tires;

● timely review and approval of permits, permit renewals, extensions, and amendments by regulatory authorities;

● our ability to comply with certain debt covenants;

● tax payments to be paid for the current fiscal year;

● our expectations relating to dividend payments and our ability to make such payments;

● the anticipated benefits and impacts of previous acquisitions;

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● risks related to Russia’s invasion of Ukraine and the international community’s response;

● risks related to weakened global economic conditions and inflation;

● risks related to the Company’s tracking stock structure and separate performance of its Carbon Ore-Rare Earth (“CORE”) assets; and

● other risks identified in this Quarterly Report that are not historical.

We caution you that these forward-looking statements are subject to a number of risks, uncertainties, and assumptions, which are difficult to predict and many of which are beyond our control, incident to the development, production, gathering and sale of coal. Moreover, we operate in a very competitive and rapidly changing environment and additional risks may arise from time to time. It is not possible for our management to predict all of the risks associated with our business, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking statements we make in this Quarterly Report are reasonable, we can give no assurance that these plans, intentions or expectations will be achieved or occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

All forward-looking statements, expressed or implied, included in this Quarterly Report are expressly qualified in their entirety by this cautionary statement and speak only as of the date of this Quarterly Report. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue.

Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this Quarterly Report.

4

PART I - FINANCIAL INFORMATION

Item 1.         Financial Statements

Ramaco Resources, Inc.

Unaudited Condensed Consolidated Balance Sheets

In thousands, except share and per share information	September 30, 2023		December 31, 2022
Assets
Current assets
Cash and cash equivalents	$	42,924	$	35,613
Accounts receivable		63,634		41,174
Inventories		50,242		44,973
Prepaid expenses and other		12,422		25,729
Total current assets		169,222		147,489
Property, plant, and equipment, net		456,712		429,842
Financing lease right-of-use assets, net		13,201		12,905
Advanced coal royalties		3,606		3,271
Other		3,965		2,832
Total Assets	$	646,706	$	596,339
Liabilities and Stockholders' Equity
Liabilities
Current liabilities
Accounts payable	$	51,584	$	34,825
Accrued liabilities		46,485		41,806
Current portion of asset retirement obligations		110		29
Current portion of long-term debt		28,015		35,639
Current portion of related party debt		10,000		40,000
Current portion of financing lease obligations		6,312		5,969
Insurance financing liability		—		4,577
Total current liabilities		142,506		162,845
Asset retirement obligations, net		28,495		28,856
Long-term debt, net		34,157		18,757
Long-term financing lease obligations, net		5,765		4,917
Senior notes, net		33,178		32,830
Deferred tax liability, net		45,685		35,637
Other long-term liabilities		4,322		3,299
Total liabilities		294,108		287,141
Commitments and contingencies		—		—
Stockholders' Equity
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued or outstanding		—		—
Common stock, $0.01 par value, 260,000,000 shares authorized, 44,155,735 shares issued and outstanding at December 31, 2022 *		—		442
Class A common stock, $0.01 par value, 225,000,000 shares authorized, 43,902,118 shares issued and outstanding at September 30, 2023 *		439		—
Class B common stock, $0.01 par value, 35,000,000 shares authorized, 8,783,877 shares issued and outstanding at September 30, 2023		88		—
Additional paid-in capital		275,929		168,711
Retained earnings		76,142		140,045
Total stockholders' equity		352,598		309,198
Total Liabilities and Stockholders' Equity	$	646,706	$	596,339
* Common stock was reclassified to Class A common stock during Q2 2023. Refer to Note 6.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5

Ramaco Resources, Inc.

Unaudited Condensed Consolidated Statements of Operations

	Three months ended September 30,				Nine months ended September 30,
In thousands, except per-share amounts	2023		2022		2023		2022
Revenue	$	186,966	$	136,925	$	490,795	$	430,461
Costs and expenses
Cost of sales (exclusive of items shown separately below)		144,635		79,634		354,383		237,530
Asset retirement obligations accretion		349		495		1,049		1,485
Depreciation, depletion, and amortization		14,443		11,435		39,850		29,898
Selling, general, and administrative		11,458		8,672		37,519		29,282
Total costs and expenses		170,885		100,236		432,801		298,195
Operating income		16,081		36,689		57,994		132,266
Other income (expense), net		11,333		(933)		15,076		1,781
Interest expense, net		(2,447)		(2,255)		(7,274)		(5,323)
Income before tax		24,967		33,501		65,796		128,724
Income tax expense		5,505		6,596		13,521		27,068
Net income	$	19,462	$	26,905	$	52,275	$	101,656
Earnings per common share *
Basic - Single class (through 6/20/2023)	$	N/A	$	0.61	$	0.71	$	2.30
Basic - Class A (6/21/2023 - 9/30/2023)	$	0.41	$	—	$	0.44	$	—
Total	$	0.41	$	0.61	$	1.15	$	2.30
Basic - Class B (6/21/2023 - 9/30/2023)	$	0.17	$	—	$	0.17	$	—
Diluted - Single class (through 6/20/23)	$	N/A	$	0.60	$	0.70	$	2.27
Diluted - Class A (6/21/2023 - 9/30/2023)	$	0.40	$	—	$	0.44	$	—
Total	$	0.40	$	0.60	$	1.14	$	2.27
Diluted - Class B (6/21/2023 - 9/30/2023)	$	0.16	$	—	$	0.16	$	—
* Refer to Note 10 for earnings per common share calculations

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6

Ramaco Resources, Inc.

Unaudited Condensed Consolidated Statements of Stockholders’ Equity

				Class B		Additional				Total
	Common			Common		Paid-		Retained		Stockholders'
In thousands	Stock *			Stock		in Capital		Earnings		Equity
Balance at January 1, 2023	$	442		$	—	$	168,711	$	140,045	$	309,198
Stock-based compensation		3			—		2,934		—		2,937
Shares surrendered for withholding taxes payable		(1)			—		(114)		—		(115)
Adjustment to cash dividends previously declared		—			—		—		(354)		(354)
Net income		—			—		—		25,257		25,257
Balance at March 31, 2023		444			—		171,531		164,948		336,923
Stock-based compensation		—			—		3,568		—		3,568
Cash dividends declared		—			—		—		(5,734)		(5,734)
Stock dividend declared and distributed		—			89		102,831		(102,920)		—
Shares surrendered for withholding taxes payable		(5)			(1)		(5,202)		—		(5,208)
Net income		—			—		—		7,556		7,556
Balance at June 30, 2023		439	*		88		272,728		63,850		337,105
* Common stock was reclassified to Class A common stock during Q2 2023. Refer to Note 6.
Stock-based compensation		—			—		3,201		—		3,201
Cash dividends declared		—			—		—		(7,170)		(7,170)
Net income		—			—		—		19,462		19,462
Balance at September 30, 2023	$	439		$	88	$	275,929	$	76,142	$	352,598
Balance at January 1, 2022	$	441		$	—	$	163,566	$	47,067	$	211,074
Stock-based compensation		2			—		1,885		—		1,887
Cash dividends declared		—			—		—		(2,497)		(2,497)
Net income		—			—		—		41,471		41,471
Balance at March 31, 2022		443			—		165,451		86,041		251,935
Shares surrendered for withholding taxes payable		(2)			—		(2,819)		—		(2,821)
Stock-based compensation		—			—		2,286		—		2,286
Cash dividends declared		—			—		—		(4,998)		(4,998)
Net income		—			—		—		33,280		33,280
Balance at June 30, 2022		441			—		164,918		114,323		279,682
Stock-based compensation		—			—		2,019		—		2,019
Stock options exercised		—			—		107		—		107
Shares surrendered for withholding taxes payable		—			—		(50)		—		(50)
Cash dividends declared		—			—		—		(9,994)		(9,994)
Net income		—			—		—		26,905		26,905
Balance at September 30, 2022	$	441		$	—	$	166,994	$	131,234	$	298,669

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

7

Ramaco Resources, Inc.

Unaudited Condensed Consolidated Statements of Cash Flows

	Nine months ended September 30,
In thousands	2023		2022
Cash flows from operating activities:
Net income	$	52,275	$	101,656
Adjustments to reconcile net income to net cash from operating activities:
Accretion of asset retirement obligations		1,049		1,485
Depreciation, depletion, and amortization		39,850		29,898
Amortization of debt issuance costs		566		367
Stock-based compensation		9,706		6,192
Other income		(4,912)		(2,113)
Deferred income taxes		10,048		11,579
Changes in operating assets and liabilities:
Accounts receivable		(22,460)		(5,905)
Prepaid expenses and other current assets		10,115		1,242
Inventories		(5,269)		(24,237)
Other assets and liabilities		(816)		91
Accounts payable		19,253		12,432
Accrued liabilities		10,071		26,112
Net cash provided by operating activities		119,476		158,799
Cash flows from investing activities:
Capital expenditures		(64,924)		(91,384)
Acquisition of Ramaco Coal assets		—		(11,738)
Acquisition of Maben assets (bond recovery in 2023)		1,182		(10,715)
Other		5,976		2,000
Net cash used for investing activities		(57,766)		(111,837)
Cash flows from financing activities:
Proceeds from borrowings		95,000		17,000
Proceeds from stock options exercised		—		107
Payment of dividends		(18,049)		(14,996)
Repayment of borrowings		(87,225)		(17,066)
Repayment of Ramaco Coal acquisition financing - related party		(30,000)		—
Repayments of insurance financing		(3,848)		(280)
Repayments of equipment finance leases		(4,954)		(3,760)
Shares surrendered for withholding taxes payable		(5,323)		(2,871)
Net cash used for financing activities		(54,399)		(21,866)
Net change in cash and cash equivalents and restricted cash		7,311		25,096
Cash and cash equivalents and restricted cash, beginning of period		36,473		22,806
Cash and cash equivalents and restricted cash, end of period	$	43,784	$	47,902
Non-cash investing and financing activities:
Leased assets obtained under new financing leases		6,144		4,259
Financed equipment purchases		—		5,730
Capital expenditures included in accounts payable and accrued liabilities		10,910		9,004
Ramaco Coal acquisition financing		—		56,551
Maben Coal acquisition financing		—		21,000
Financed insurance		407		—
Accrued dividends payable		733		4,994

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

8

Ramaco Resources, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

NOTE 1—BUSINESS AND BASIS OF PRESENTATION

Ramaco Resources, Inc. (the “Company,” “we,” “us” or “our,”) is a Delaware corporation formed in October 2016. Our principal corporate and executive offices are located in Lexington, Kentucky with operational offices in Charleston, West Virginia and Sheridan, Wyoming. We are an operator and developer of high-quality, low-cost metallurgical coal in southern West Virginia, southwestern Virginia, and southwestern Pennsylvania. We also control mineral deposits near Sheridan, Wyoming as part of the Company’s initiatives regarding the potential recovery of rare earth elements as well as the potential commercialization of coal-to-carbon-based products and materials.

Economic Conditions—Renewed global economic concerns, including those related to the military conflict involving Russia and Ukraine, have caused volatility in the commodity markets. This volatility, including market expectations of potential changes in coal prices and inflationary pressures on steel products, has had a significant effect on market prices and may affect overall demand for our coal as well as the cost of supplies and equipment.

Basis of Presentation—These interim financial statements are unaudited and have been prepared pursuant to the rules and regulations of the SEC regarding interim financial reporting. Certain disclosures have been condensed or omitted from these financial statements. Accordingly, they do not include all the information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022.

In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company’s financial position as of September 30, 2023, as well as the results of operations and cash flows for all periods presented. In preparing the accompanying financial statements, management has made certain estimates and assumptions that affect reported amounts in the condensed consolidated financial statements and disclosures of contingencies. Actual results may differ from those estimates. The results for interim periods are not necessarily indicative of annual results. Intercompany balances and transactions between consolidated entities have been eliminated.

There were no material changes to the Company’s significant accounting policies during the nine months ended September 30, 2023.

Recent Accounting Pronouncements—In October 2023, subsequent to the date of the Company’s financial statements, the FASB issued Accounting Standards Update No. 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”). The amendments in ASU 2023-06 clarify or improve disclosure and presentation requirements for a variety of topics, including debt and earnings per share. The effective date for each amendment in ASU 2023-06 will be the effective date of the SEC’s removal of that related disclosure from existing SEC regulations, and each amendment should be applied prospectively after its effective date. Although the Company is still evaluating this guidance, we do not expect a material impact to our disclosures since the Company is already subject to existing SEC disclosure requirements.

NOTE 2—INVENTORIES

Inventories consisted of the following:

(In thousands)	September 30, 2023		December 31, 2022
Raw coal	$	27,334	$	22,414
Saleable coal		17,645		18,223
Supplies		5,263		4,336
Total inventories	$	50,242	$	44,973

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NOTE 3—PROPERTY, PLANT AND EQUIPMENT

Property, plant, and equipment consisted of the following:

(In thousands)	September 30, 2023		December 31, 2022
Plant and equipment	$	276,813	$	232,885
Mining property and mineral rights		120,532		120,760
Construction in process		17,554		34,698
Capitalized mine development costs		168,646		153,436
Less: accumulated depreciation, depletion, and amortization		(126,833)		(111,937)
Total property, plant and equipment, net	$	456,712	$	429,842

On July 10, 2022, the Company experienced a methane ignition at the Berwind No. 1 mine, which was one of the active mines at our Berwind mining complex. The other mines resumed production while the Berwind No. 1 mine was idled until a full investigation could be conducted. There were no personnel in the mine at the time of the incident and no injuries or fatalities occurred. Production from the Berwind No. 1 mine restarted in the first quarter of 2023. The Company received $6.0 million of insurance proceeds during the nine months ended September 30, 2023 related to this matter, which have been reported as other investing activities on the statement of cash flows, and recognized a $4.9 million gain in other income as the Company had previously accrued a $1.1 million loss recovery asset at December 31, 2022.

On September 30, 2023, the Company updated its estimates of the amount and timing of future spending related to asset retirement obligations. The adjustment resulted in a $1.3 million decrease to capitalized mine development costs and a corresponding decrease to the Company’s asset retirement obligations liabilities ($1.4 million decrease to noncurrent liabilities and a $0.1 million increase to current liabilities).

Depreciation, depletion, and amortization included:

	Three months ended September 30,				Nine months ended September 30,
(In thousands)	2023		2022		2023		2022
Depreciation of plant and equipment	$	8,063	$	5,903	$	22,492	$	15,928
Amortization of right of use assets (finance leases)		2,432		1,710		6,312		3,806
Amortization and depletion of capitalized
mine development costs and mineral rights		3,948		3,822		11,046		10,164
Total depreciation, depletion, and amortization	$	14,443	$	11,435	$	39,850	$	29,898

NOTE 4—DEBT

Outstanding debt consisted of the following:

(In thousands)	September 30, 2023		December 31, 2022
Revolving Credit Facility	$	43,500	$	25,000
Equipment loans		4,872		8,396
Senior Notes, net		33,178		32,830
Financing of Ramaco Coal acquisition - Related party debt		10,000		40,000
Financing of Maben Coal acquisition		13,800		21,000
Total debt	$	105,350	$	127,226
Current portion of long-term debt		38,015		75,639
Long-term debt, net	$	67,335	$	51,587

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Revolving Credit Facility—On February 15, 2023, the Company entered into the Second Amended and Restated Credit and Security Agreement, which includes multiple lending parties and provides additional borrowing capacity compared to the facility utilized in 2022. The new facility, which has a maturity date of February 15, 2026, provides an initial aggregate revolving commitment of $125.0 million as well as an accordion feature of $50.0 million subject to certain terms and conditions, including the lenders’ consents. The remaining availability under the facility at September 30, 2023 was $55.3 million after the determination of the collateralized borrowing base of $98.8 million less $43.5 million of outstanding borrowings.

Revolving loans under the new facility bear interest at either the base rate plus 1.50% or the Secured Overnight Financing Rate plus 2.00%. The base rate equals the highest of the administrative agent’s prime rate, the Federal Funds Effective Rate plus 0.5%, or 3%.

The terms of the new facility include covenants limiting the ability of the Company to incur additional indebtedness, make investments or loans, incur liens, consummate mergers and similar fundamental changes, make restricted payments, and enter into transactions with affiliates. The terms of the new facility also require the Company to maintain certain covenants, including fixed charge coverage ratio and compensating balance requirements, with which the Company was in compliance at September 30, 2023.

Fair Value—The Company’s Senior Notes had an estimated fair value of approximately $35.5 million and $36.3 million at September 30, 2023 and December 31, 2022, respectively. The fair values of the Company’s Senior Notes were based on observable market prices and were considered a Level 2 measurement based on trading volumes. The difference between the fair value and carrying amount of the Company’s remaining debts is not material due to the similarity between the terms of the debt agreements and prevailing market terms available to the Company.

Current Portion of Long-term Debt—Debt repayments occurring over the next twelve months from September 30, 2023 include $14.0 million of borrowings under the Revolving Credit Facility that were repaid shortly after the balance sheet date using funds from current operations, $10.0 million of related party debt shown above, $9.6 million of Maben Coal acquisition financing, and $4.4 million of equipment loans.

Other—Finance lease obligations and liabilities related to insurance premium financing are excluded from the disclosures above.

NOTE 5—ACCRUED LIABILITIES AND OTHER LONG-TERM LIABILITIES

Accrued liabilities at September 30, 2023 were $46.5 million compared to $41.8 million at December 31, 2022. The year-to-date increase was driven primarily by accrued compensation.

Self-Insurance—The Company is self-insured for certain losses relating to workers’ compensation claims and occupational disease obligations under the Federal Mine Safety and Health Act of 1969, as amended. Starting in 2023, the Company also elected to self-insure employee medical expenses. The Company purchases insurance coverage to reduce its exposure to significant levels of these claims. Self-insured losses are accrued based upon estimates of the aggregate liability for uninsured claims incurred as of the balance sheet date using current and historical claims experience and certain actuarial assumptions. These estimates are subject to uncertainty due to a variety of factors, including extended lag times in the reporting and resolution of claims, trends or changes in claim settlement patterns, and future cost trends. As a result, actual costs could differ significantly from the estimated amounts.

The estimated aggregate liability for these items totaled $4.9 million and $3.6 million as of September 30, 2023 and December 31, 2022, respectively. Of the aggregate liability, the amounts included in other long-term liabilities were $3.2 million and $2.7 million as of September 30, 2023 and December 31, 2022, respectively.

Funds held in escrow for potential future workers’ compensation claims are considered restricted cash and have been included in other current assets on the condensed consolidated balance sheets. Restricted cash balances were $0.9 million at September 30, 2023 and December 31, 2022.

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NOTE 6—EQUITY

Common Stock—On June 12, 2023, a charter amendment was approved by shareholder vote to reclassify the Company’s existing common stock as shares of Class A common stock, par value $0.01 per share, and create a separate Class B common stock having a par value of $0.01 per share.

The initial distribution of Class B common stock occurred on June 21, 2023 via a stock dividend to existing holders of common stock as of May 12, 2023. On the date of initial distribution, each holder of common stock received 0.2 shares of Class B common stock for every one share of existing common stock held on the record date. Similar actions or modifications occurred for holders of outstanding stock-based awards.

The distribution of the Class B common stock provides existing holders of the Company’s common stock with an opportunity to participate directly in the financial performance of the Company’s CORE assets on a stand-alone basis, separate from the Company’s metallurgical coal operations. CORE assets were acquired initially as part of the Company’s acquisition of Ramaco Coal in the second quarter of 2022. The financial performance of CORE assets consists of the following non-cost bearing revenue streams based on the Company’s current expectations:

● Royalty fees derived from the royalties associated with the Ramaco Coal and Amonate reserves, which we believe approximates 3% of Company-produced coal sales revenue excluding coal sales revenue from Knox Creek,

● Infrastructure fees based on $5.00 per ton of coal processed at our preparation plants and $2.50 per ton of loaded coal at the Company’s rail load-out facilities, and

● Future income derived, if and when realized, from advanced carbon products and rare earth elements initiatives.

The Company expects to pay a dividend equal to 20% of the total fees above; however, any dividend amounts declared and paid are subject to the sole discretion of the Company’s Board of Directors.

In addition, the Board of Directors retains the power to change or add expense allocation policies related to CORE, redefine CORE assets, and redetermine CORE’s per-ton usage fees at any time, in its sole discretion, without shareholder approval. Holders of shares of Class A common stock continue to be entitled to receive dividends when and if declared by the Board of Directors subject to any statutory or contractual restrictions on the payment of dividends and to any prior rights and preferences that may be applicable to outstanding preferred stock, if any.

CORE is not a separate legal entity and holders of Class B common stock do not own a direct interest in the assets of CORE. Holders of Class B common stock are stockholders of Ramaco Resources, Inc. and are subject to all risks and liabilities of the Company as a whole.

With respect to voting rights, holders of Class A common stock and Class B common stock vote together as a single class on all matters submitted to a vote of the stockholders and are entitled to one vote per share. The holders of Class A common stock and Class B common stock do not have cumulative voting rights in the election of directors. Class B common stock does not have any specific voting rights or governance rights with respect to CORE.

With respect to liquidation rights, holders of common stock are entitled to receive ratably the assets available for distribution to the stockholders after payment of liabilities and the liquidation preference of outstanding preferred stock, if any. That is, the rights to residual net assets upon liquidation are equal between holders of Class A and Class B common stock. Holders of Class B common stock do not have specific rights to CORE assets in the event of liquidation.

The Board of Directors also retains the ability, in its sole discretion, to exchange all outstanding shares of Class B common stock into Class A common stock based on an exchange ratio determined by a 20-day trailing volume-weighted average price for each class of stock.

The initial distribution of the tracking stock was recorded as a stock dividend at fair value, which was estimated to be $11.00 per share based on the closing price of Class B shares on the first day of regular-way trading. The effect of the

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equity restructuring was a $102.9 million reduction in retained earnings and an increase of $102.9 million to Class B common stock and additional paid-in capital during the second quarter of 2023. The Company initially distributed 8,201,956 shares of Class B common shares as well as additional restricted stock, restricted stock units, and performance stock units as discussed below under Effects of Class B Distribution on Outstanding Stock-based Awards.

Stock-Based Awards—Stock-based compensation expense totaled $3.2 million and $2.0 million for the three months ended September 30, 2023 and September 30, 2022, respectively. Stock-based compensation expense totaled $9.7 million and $6.2 million for the nine months ended September 30, 2023 and September 30, 2022, respectively. During 2023, the Company granted new stock-based awards and modified certain awards previously granted as discussed below.

Restricted Stock—We granted 296,115 shares of restricted stock to certain senior executives, key employees, and directors during the first quarter of 2023, having a grant-date fair value of $10.61 per share. The aggregate fair value of these awards was $2.5 million, which is recognized ratably as expense over the three-year service period unless forfeited. The aggregate fair value of restricted stock granted to directors during the same quarter was $0.6 million, which is recognized ratably as expense over 2023 unless forfeited. During the vesting period, the participants have voting rights and receive nonforfeitable dividends on the same basis as fully vested common stockholders.

Restricted Stock Units—We granted 518,348 restricted stock units to certain senior executives and key employees during the first quarter of 2023, having a grant-date fair value of $10.61 per share. The aggregate fair value of these awards was $5.5 million, which is recognized ratably as expense over the three-year service period unless forfeited. During the vesting period, the participants have no voting rights and no dividend rights; however, participants are entitled to receive dividend equivalents, which shall be subject to the same conditions applicable to the units and payable at the time the units vest. Upon vesting and within 30 days thereafter, the recipient will receive one share of common stock for each stock unit.

Performance Stock Units—We granted performance stock units to certain senior executives and key employees during the first quarter of 2023. These awards cliff-vest approximately three years from the date of grant based on the achievement of targeted performance levels related to pre-established relative total shareholder return goals. These performance stock units have the potential to be earned from 0% to 200% of target depending on actual results. During the vesting period, the participants have no voting rights and no dividend rights; however, participants are entitled to receive dividend equivalents, which shall be subject to the same conditions applicable to the units and payable at the time the units vest. Upon vesting and within 30 days thereafter, the recipient will receive one share of common stock for each stock unit.

The target number of performance stock units granted during the first quarter of 2023, or 518,348 units, were valued relative to the total shareholder return of a peer group based on a Monte Carlo simulation, which resulted in a grant date fair value of $18.09 per unit. The aggregate fair value of these awards was $9.4 million, which is recognized ratably as expense over the three-year period.

In addition, performance stock units granted in 2022, or 248,706 units at target, were modified during the first quarter of 2023. Modifications to these awards were made up primarily of changes in the composition of the peer group as well as changes in the way relative total shareholder return is evaluated against the updated peer group. The modification resulted in incremental fair value of $1.2 million, which is recognized as expense over 2023 and 2024.

Performance stock units are accounted for as awards with a market condition since vesting depends on total shareholder return relative to a group of peer companies.

Effects of Class B Distribution on Outstanding Stock-based Awards—Outstanding stock-based awards, including those discussed above, were reclassified to Class A common stock as part of the equity restructuring. In addition, the terms of the Company’s outstanding stock-based awards contained anti-dilution provisions before the contemplation of the equity restructuring. Equitable adjustments were made in accordance with such terms and the Company initially distributed 680,718 of Class B restricted stock as well as 473,707 of Class B stock-based awards (183,484 stock options, 136,819 restricted stock units, and 153,404 performance stock units at target) based on the same factor of 0.2 for every

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outstanding award. Since there were no changes in fair value, vesting conditions, or classification, no incremental compensation expense resulted.

Dividends–On December 8, 2022, the Company announced that its Board of Directors declared a quarterly cash dividend of approximately $0.125 per share of common stock. Estimated dividends of $5.5 million were accrued in December 2022 and were paid on March 15, 2023 to shareholders of record on March 1, 2023 in the amount of $5.6 million.

Dividends in the amount of $5.6 million, or approximately $0.125 per share of common stock, were paid on June 15, 2023, to shareholders of record on June 1, 2023, and dividends in the amount of $5.5 million, or approximately $0.125 per share of Class A common stock, were paid on September 15, 2023 to shareholders of record on September 1, 2023.

The Company also paid on September 15, 2023 its first cash dividend on Class B common stock in the amount of $1.5 million, or approximately $0.165 per share of Class B common stock, to shareholders of record on September 1, 2023, bringing the total cash dividends paid for all classes of common stock for the nine months ended September 30, 2023 to $18.0 million. The Class B dividend was declared in July 2023 and was based on 20% of CORE royalty and infrastructure fees for the second quarter of 2023. CORE financial performance is shown in the table below.

	Three months ended September 30,		Three months ended June 30,
(In thousands)	2023		2023
Royalties
Ramaco Coal	$	3,572	$	1,351
Amonate Assets		614		752
Other		13		—
Total Royalties	$	4,199	$	2,103
Infrastructure Fees
Preparation Plants (Processing at $5.00/ton)	$	4,521	$	3,433
Rail Load-outs (Loading at $2.50/ton)		2,202		1,726
Total Infrastructure Fees (at $7.50/ton)	$	6,723	$	5,159
CORE Royalty and Infrastructure Fees	$	10,922	$	7,262
Total Cash Available for Dividend for Class B Common Stock	$	10,922	$	7,262
20% of Cash Available for Dividend for Class B Common Stock	$	2,184	$	1,452

Refer to Note 12 for information regarding cash dividends declared after the date of the financial statements for holders of Class A and Class B common stock.

On February 18, 2022, the Company announced that its Board of Directors approved an increase in its initial quarterly cash dividend to $5.0 million from the formerly approved $2.5 million that was declared and accrued in December 2021. Dividends in the amount of $5.0 million, or approximately $0.11 per share of common stock, were paid on March 15, 2022 to shareholders of record on March 1, 2022.

Dividends in the amount of $5.0 million, or approximately $0.11 per share of common stock, were paid on June 15, 2022, to shareholders of record on June 1, 2022, and dividends in the amount of $5.0 million, or approximately $0.11 per share of common stock, were paid on September 15, 2022 to shareholders of record on September 1, 2022, bringing the total cash dividends paid for the nine months ended September 30, 2022 to $15.0 million.

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On September 28, 2022, the Company announced that its Board of Directors declared a quarterly cash dividend of approximately $0.11 per share of common stock. Dividends of $5.0 million were accrued at September 30, 2022 and paid on December 15, 2022 to shareholders of record on December 1, 2022.

NOTE 7—COMMITMENTS AND CONTINGENCIES

Environmental Liabilities—Environmental liabilities are recognized when the expenditures are considered probable and can be reasonably estimated. Measurement of liabilities is based on currently enacted laws and regulations, existing technology, and undiscounted site-specific costs. Generally, such recognition would coincide with a commitment to a formal plan of action. No amounts have been recognized for environmental liabilities.

Surety Bond—In accordance with state laws, we are required to post reclamation bonds to assure that reclamation work is completed. We also have a smaller amount of surety bonds that secure performance obligations. Bonds outstanding at September 30, 2023 totaled approximately $28.2 million.

Coal Leases and Associated Royalty Commitments—We lease coal reserves under agreements that require royalties to be paid as the coal is mined and sold. Many of these agreements require minimum annual royalties to be paid regardless of the amount of coal mined and sold. Royalty expense was $9.0 million and $8.1 million for the three months ended September 30, 2023 and September 30, 2022, respectively, and $25.0 million and $25.3 million for the nine months ended September 30, 2023 and September 30, 2022, respectively. These agreements generally have terms running through exhaustion of all the mineable and merchantable coal covered by the respective lease. Royalties or throughput payments are based on a percentage of the gross selling price received for the coal we mine.

Contingent Transportation Purchase Commitments—We secure the ability to transport coal through rail contracts and export terminals that are sometimes funded through take-or-pay arrangements. As of September 30, 2023, the Company’s remaining commitments under take-or-pay arrangements totaled $28.9 million, the majority of which relates to a five-year contract entered into during 2023 with a total remaining commitment of $21.1 million. The level of these commitments will be reduced at a per ton rate as such rail and export terminal services are utilized against the required minimum tonnage amounts over the contract term stipulated in such rail and export terminal contracts. No amounts have been recognized as contingent liabilities related to take-or-pay arrangements.

Litigation—From time to time, we are subject to various litigation and other claims in the normal course of business. No amounts have been accrued in the consolidated financial statements with respect to any matters.

On November 5, 2018, one of our three raw coal storage silos that fed our Elk Creek plant experienced a partial structural failure. A temporary conveying system completed in late-November 2018 restored approximately 80% of our plant capacity. We completed a permanent belt workaround and restored the preparation plant to its full processing capacity in mid-2019. Our insurance carrier, Federal Insurance Company, disputed our claim for coverage based on certain exclusions to the applicable policy and, therefore, on August 21, 2019, we filed suit against Federal Insurance Company and Chubb INA Holdings, Inc. in Logan County Circuit Court in West Virginia seeking a declaratory judgment that the partial silo collapse was an insurable event and to require coverage under our policy. Defendants removed the case to the United States District Court for the Southern District of West Virginia, and upon removal, we substituted ACE American Insurance Company as a defendant in place of Chubb INA Holdings, Inc. The trial in the matter commenced on June 29, 2021, in Charleston, West Virginia. 

On July 15, 2021, the jury returned a verdict in our favor for $7.7 million in compensatory damages and on July 16, 2021, made an additional award of $25.0 million for inconvenience and aggravation. On August 12, 2021, the defendants filed a post-trial motion for judgment as a matter of law or in the alternative to alter or amend the judgment or for a new trial. On March 4, 2022, the court entered its memorandum opinion and order on the motion reducing the jury award to a total of $1.8 million, including pre-judgment interest, and also vacated and set aside, in its entirety, the jury award of damages for inconvenience and aggravation. The same day, the court entered the judgment in accordance with the memorandum opinion and order.

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On April 1, 2022, we filed a notice of appeal with the U.S. Court of Appeals for the Fourth Circuit. On July 20, 2023, the court rendered a decision reinstating the jury’s $7.7 million verdict. The court further determined that we are entitled to attorney’s fees in an amount to be determined on remand. Finally, the court held that we are entitled to damages for inconvenience and aggravation but remanded for a new trial on the amount of such damages after affirming that the original $25 million award was excessive. On August 3, 2023, the Defendants-Appellees filed a Petition of Rehearing and Rehearing En Banc with the Fourth Circuit. The petition was denied by order dated August 15, 2023. On August 29, 2023, the court clarified that the amount of attorney’s fees to be determined on remand included appellate fees. On September 8, 2023, the court entered its amended judgment, which awarded post-judgment interest on the previously awarded and reinstated verdict related to contract (compensatory) damages and the Fourth Circuit thereafter issued its mandate on October 2, 2023. The matter is now pending before the District Court for a new trial on damages for inconvenience and aggravation as well as the court’s determination and award of attorney’s fees.

The defendants fully paid the portion of the judgment related to contract (compensatory) damages in the court’s order, which was received by the Company subsequent to the date of the financial statements, and that portion of the matter is considered closed. The Company recognized a $7.8 million gain in the third quarter of 2023, which was recorded in other income and other current assets. The Company determined the full amount to be realizable as of September 30, 2023 under the accounting guidance for contingencies based on the reinstated verdict above and acknowledgement received from the counterparty prior to the date of the financial statements.

NOTE 8—REVENUE

Our revenue is derived from contracts for the sale of coal and is recognized when the performance obligations under the contract are satisfied, which is at the point in time control is transferred to our customer. Generally, domestic sales contracts have terms of about one year and the pricing is typically fixed. Export sales have spot or term contracts, and pricing can be either fixed or derived against index-based pricing mechanisms. Sales completed with delivery to an export terminal are reported as export revenue.

Disaggregated information about our revenue is presented below:

	Three months ended September 30,				Nine months ended September 30,
(In thousands)	2023		2022		2023		2022
Coal Sales
North American revenue	$	75,143	$	78,442	$	168,571	$	231,365
Export revenue, excluding Canada		111,823		58,483		322,224		199,096
Total revenue	$	186,966	$	136,925	$	490,795	$	430,461

As of September 30, 2023, the Company had outstanding performance obligations of approximately 1.5 million tons for contracts with fixed sales prices averaging $177 per ton, excluding freight, and 0.4 million tons for contracts with index-based pricing mechanisms. For contracts with fixed sales prices, 0.4 million tons are expected to be satisfied in the fourth quarter of 2023 having an average sales price of $197 per ton, excluding freight, and 1.1 million tons are expected to be satisfied in 2024 having an average sales price of $169 per ton, excluding freight. For contracts with index-based pricing, 0.4 million tons are expected to be satisfied in the fourth quarter of 2023. Variable amounts, including index-based prices, have not been estimated for the purpose of disclosing remaining performance obligations as permitted under the revenue recognition guidance when variable consideration is allocated entirely to a wholly unsatisfied performance obligation.

Concentrations—During the three months ended September 30, 2023, sales to our top three customers accounted for approximately 52% of our total revenue. During the nine months ended September 30, 2023, sales to our top four customers accounted for approximately 55% of our total revenue. During the three months ended September 30, 2022, sales to our top four customers accounted for approximately 56% of total revenue. During the nine months ended September 30, 2022, sales to our top two customers accounted for approximately 40% of total revenue. The number of customers comprising the concentrations above is based on a threshold of 10% or more of total revenues. Three

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customers with individual accounts receivable balances equal to 10% or more of total accounts receivable made up approximately 72% of the Company’s accounts receivable balance at September 30, 2023.

Segments—CORE represents a separate operating segment and has economic and geographic differences compared to the Company’s metallurgical operations in the Appalachian basin; however, CORE does not meet the significance tests for separate disclosure as a reportable segment at this time. In addition, reconciling items of the metallurgical coal segment to the Company’s consolidated results are not yet material. CORE royalty and infrastructure fees disclosed in Note 6 are primarily intracompany transactions eliminated upon consolidation and are not included in the disaggregated revenue table above.

NOTE 9—INCOME TAXES

Income tax provisions for interim periods are generally based on an estimated annual effective income tax rate calculated separately from the effect of significant, infrequent, or unusual items related specifically to interim periods. The income tax impacts of discrete items are recognized in the period these occur.

Our effective tax rate for the three months ended September 30, 2023 and September 30, 2022 was 22.0% and 20%, respectively, excluding discrete items. Our effective tax rate for the nine months ended September 30, 2023 and September 30, 2022 was 20.5% and 21.9%, respectively, excluding discrete items. The primary difference from the federal statutory rate of 21% in each period is related to state taxes, non-deductible expenses, the foreign-derived intangible income deduction, and depletion expense for income tax purposes.

In addition, the Company received an income tax refund of $11.8 million in the third quarter of 2023, which drove the decrease in prepaid expenses and other current assets on the balance sheet compared to December 31, 2022.

NOTE 10—EARNINGS PER SHARE

Earnings per share (“EPS”) is not presented retrospectively for periods prior to the issuance of the tracking stock as the tracking stock was not a part of the Company’s capital structure during those periods and the issuance of the tracking stock changes the common shareholders’ relative residual interest in the Company. Therefore, EPS is presented for the Company’s single class of common stock up to the time the tracking stock was issued. EPS is presented prospectively under the two-class method starting on the date of initial distribution of the tracking stock. Refer to Note 6 for information related to the Company’s tracking stock.

The computation of basic and diluted EPS is shown on the following page:

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(In thousands, except per share amounts)	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Earnings attribution
Single class of common stock (through 6/20/2023) *	$	N/A	$	26,905	$	31,382	$	101,656
Class A common stock (6/21/2023 - 9/30/2023)		17,288		—		18,616		—
Class A restricted stock awards (6/21/2023 - 9/30/2023)		721		—		824		—
Class B common stock (6/21/2023 - 9/30/2023)		1,395		—		1,395		—
Class B restricted stock awards (6/21/2023 - 9/30/2023)		58		—		58		—
Net income	$	19,462	$	26,905	$	52,275	$	101,656
* Common stock and restricted stock participated in earnings 1:1 and are shown on a combined basis through 6/20/2023 consistent with historical presentation
	Three months ended September 30,				Jan. 1 - June 20,		Jan. 1 - Sept. 30,
	2023		2022		2023		2022
EPS data for single class of common stock through 6/20/2023
Numerator
Net earnings	$	N/A	$	26,905	$	31,382	$	101,656
Denominator
Weighted average shares used to compute basic earnings per share *		N/A		44,085		44,344		44,179
Dilutive effect of stock option awards		N/A		458		381		560
Dilutive effect of restricted stock units		N/A		—		—		8
Dilutive effect of performance stock units		N/A		—		27		—
Weighted average shares used to compute diluted earnings per share		N/A		44,543		44,752		44,747
Earnings per common share (single class of common stock)
Basic	$	N/A	$	0.61	$	0.71	$	2.30
Diluted	$	N/A	$	0.60	$	0.70	$	2.27
	Three months ended September 30, 2023				June 21, 2023 - September 30, 2023
	Class A		Class B		Class A		Class B
EPS data for dual-class common stock 6/21/2023 - 9/30/2023
Numerator
Net earnings	$	17,288	$	1,395	$	18,616	$	1,395
Denominator
Weighted average shares used to compute basic earnings per share **		42,144		8,432		42,044		8,412
Dilutive effect of stock option awards		352		103		339		97
Dilutive effect of restricted stock units		85		49		62		41
Dilutive effect of performance stock units		302		102		263		92
Weighted average shares used to compute diluted earnings per share		42,883		8,686		42,708		8,642
Earnings per common share (dual-class structure)
Basic	$	0.41	$	0.17	$	0.44	$	0.17
Diluted	$	0.40	$	0.16	$	0.44	$	0.16
** Does not include unvested restricted stock, which averaged 1.8 million and 0.4 million for Class A and Class B, respectively, for the third quarter of 2023 and 1.9 million and 0.4 million for Class A and Class B, respectively, for the period June 21, 2023 through September 30, 2023

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Unvested restricted stock awards have the right to receive nonforfeitable dividends on the same basis as common shares; therefore, unvested restricted stock is considered a participating security for the purpose of calculating EPS. Historically, the Company has shown EPS for its common stock and unvested restricted stock on a combined basis since both instruments participate on the same basis and the resulting EPS is typically the same. Starting under the two-class method, the Company reports separately the net earnings allocated away from holders of Class A and Class B common stock to holders of unvested restricted stock awards.

For accounting purposes, Class B’s participation rights are, in substance, discretionary based on the power of the Company’s Board of Directors to add or modify expense allocation policies, redefine CORE assets, and redetermine CORE’s per-ton usage fees at any time, in its sole discretion, without shareholder approval. Therefore, no amount of the Company’s net earnings shall be allocated to Class B for the purpose of calculating EPS other than actual dividends declared during the period for the tracking stock. Refer to Note 6 for information regarding dividends declared on Class B common stock.

Diluted EPS was calculated using the treasury stock method for stock options and restricted stock units. For performance stock units, the awards were first evaluated under the contingently issuable shares guidance, which requires a determination as to whether shares would be issuable if the end of the reporting period were the end of the contingency period. For shares determined to be issuable under performance stock unit awards, the treasury stock method was then applied to determine the dilutive impact of the awards, if any. Unvested restricted stock awards are considered potential common shares as well as participating securities, as discussed previously, and were included in diluted EPS using the more dilutive of the treasury stock method or the two-class method. Since these awards share in dividends on a 1:1 basis with common shares, applying the treasury stock method was antidilutive compared to the basic EPS calculation that allocates earnings to participating securities under the two-class method discussed previously.

Diluted EPS for the period from January 1, 2023 through June 20, 2023, the period for which a single class of common stock existed, excluded all outstanding restricted stock units, or 684,151 units in total, because the effect would have been antidilutive under the treasury stock method. In addition, diluted EPS for the same period excluded outstanding performance stock units originally granted in 2022, or 248,706 units at target, based on the guidance for contingently issuable shares, which requires exclusion when shares would not be issuable if the end of the reporting period were the end of the contingency period.

For the third quarter of 2023 and the period from June 21,2023 through September 30, 2023, diluted EPS for Class A common stock excluded 165,803 RSUs because the effect would have been antidilutive under the treasury stock method. Class A diluted EPS for these periods also excluded outstanding performance stock units originally granted in 2022, or approximately 153,452 units if September 30, 2023 were the end of the contingency period, because the effect would have been antidilutive under the treasury stock method. The same performance stock unit awards, or 248,706 units at target, were excluded in the previous reporting period based on the guidance for contingently issuable shares. In addition, the Company’s ability to convert Class B common shares into Class A common shares, as discussed previously in Note 6, is a contingency that will not be reflected in the diluted EPS for Class A under the if-converted method until such time that the required Board resolutions occur, if ever.

For the third quarter of 2023 and the period from June 21, 2023 through September 30, 2023, diluted EPS for Class B common stock excluded certain performance stock units, or approximately 30,688 units if September 30, 2023 were the end of the contingency period, because the effect would have been antidilutive under the treasury stock method. The same awards, or 49,737 units at target, were excluded in the previous reporting period based on the guidance for contingently issuable shares.

Diluted EPS for the single class of common stock in the third quarter of 2022 excluded 248,706 RSUs because the effect would have been antidilutive under the treasury stock method and 248,706 performance stock units, at target, based on the guidance for contingently issuable shares. The performance stock units were excluded from diluted EPS for the single class of common stock for the nine months ended September 30, 2022 as well.

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NOTE 11—RELATED PARTY TRANSACTIONS

Ramaco Coal Deferred Purchase Price—As part of the financing of the acquisition of Ramaco Coal that occurred in the second quarter of 2022, the Company incurred interest expense of $0.4 million and $1.7 million for the three months and nine months ended September 30, 2023, respectively. The Company incurred interest expense of $1.1 million and $2.0 million for the three months and nine months ended September 30, 2022, respectively. In addition, the Company paid down $30.0 million of its related-party debt during the first nine months of 2023, leaving a balance of $10.0 million at September 30, 2023.

Mineral Lease and Surface Rights Agreements—Prior to the acquisition of Ramaco Coal, much of the coal reserves and surface rights that we control were acquired through a series of mineral leases and surface rights agreements with Ramaco Coal, who was a related party. Royalties paid to Ramaco Coal in 2022 prior to the acquisition totaled $3.1 million.

Administrative Services—Also prior to the acquisition of Ramaco Coal, the Company and Ramaco Coal agreed to share the services of certain of each company’s employees pursuant to a mutual service agreement. Charges to Ramaco Coal in 2022 prior to the acquisition totaled $44 thousand related to this arrangement.

Legal Services—Some of the professional legal services we receive are provided by Jones & Associates (“Jones”), a related party. Legal services payable to Jones totaled $0.6 million at September 30, 2023 and were included in accrued liabilities on the balance sheet. There were no legal fees incurred for Jones during the three months and nine months ended September 30, 2023. Legal fees incurred for Jones during the three months and nine months ended September 30, 2022 were zero and $0.8 million, respectively.

Other Professional Services—The Company has also entered into professional services agreements with two other related parties, neither of which has resulted in material activity at this time.

NOTE 12—SUBSEQUENT EVENTS

On October 16, 2023, the Company announced that its Board of Directors declared quarterly cash dividends of $0.125 per share of Class A common stock and $0.249 per share of Class B common stock. The Class B dividend was based on 20% of CORE royalty and infrastructure fees for the third quarter of 2023. Both dividends are to be paid on December 15, 2023 to shareholders of record on December 1, 2023.

* * * * *

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report, as well as the financial statements and related notes appearing elsewhere in this Quarterly Report. The following discussion contains forward-looking statements that reflect our future plans, estimates, beliefs and expected performance. The forward-looking statements are dependent upon events, risks and uncertainties that may be outside our control. We caution you that our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to such differences are discussed elsewhere in this Quarterly Report, particularly in the “Cautionary Note Regarding Forward-Looking Statements” and in our Annual Report and in this Quarterly Report under the heading “Item 1A. Risk Factors,” all of which are difficult to predict. In light of these risks, uncertainties and assumptions, the forward-looking events discussed may not occur. We do not undertake any obligation to publicly update any forward-looking statements except as otherwise required by applicable law.

Overview

We are an operator and developer of high-quality, low-cost metallurgical coal in southern West Virginia, southwestern Virginia, and southwestern Pennsylvania. Our executive offices are located in Lexington, Kentucky, with operational offices in Charleston, West Virginia and Sheridan, Wyoming. We are a pure play metallurgical coal company with 62 million reserve tons and 1,156 million of measured and indicated resource tons of high-quality metallurgical coal.

Our development portfolio primarily includes the following properties: Elk Creek, Berwind, Knox Creek and RAM Mine. We believe each of these properties possesses geologic and logistical advantages that make our coal among the lowest delivered-cost U.S. metallurgical coal to our domestic target customer base, North American blast furnace steel mills and coke plants, as well as international metallurgical coal consumers. We also control mineral deposits near Sheridan, Wyoming as part of the Company’s initiatives regarding the potential recovery of rare earth elements as well as the potential commercialization of coal-to-carbon-based products and materials.

On July 10, 2022, the Company experienced a methane ignition at the Berwind No. 1 mine, which was one of the active mines at our Berwind mining complex. The other mines resumed production while the Berwind No. 1 mine was idled until a full investigation could be conducted. There were no personnel in the mine at the time of the incident and no injuries or fatalities occurred. Production from the Berwind No. 1 mine restarted in the first quarter of 2023.

Renewed global economic concerns, including those related to the military conflict involving Russia and Ukraine, have caused volatility in the commodity markets. This volatility, including market expectations of potential changes in coal prices and inflationary pressures on steel products, has had a significant effect on market prices and may affect overall demand for our coal. Furthermore, inflation has affected the cost of supplies and other materials and may continue to negatively impact our profitability.

During the first nine months of 2023, we sold 2.5 million tons of coal and recognized $490.8 million of revenue. Of this amount, 34% was sold in North American markets, including Canada, and 66% was sold into export markets. During the same period of 2022, we sold 1.8 million tons of coal and recognized $430.5 million of revenue. Of this amount, 54% of our sales were sold in North American markets, including Canada, with the remaining 46% being sold into the export markets. The increase in sales into export markets, which often include index-based pricing, has created greater exposure to variability in pricing in 2023 compared to 2022.

As of September 30, 2023, the Company had outstanding performance obligations of approximately 1.5 million tons for contracts with fixed sales prices averaging $177 per ton, excluding freight, and 0.4 million tons for contracts with index-based pricing mechanisms. Subsequent to the date of the financial statements, the Company was able to obtain sales commitments for an additional 0.2 million tons under North America fixed price contracts and an additional 0.2 million tons under index-priced contracts. The Company expects to satisfy its existing sales commitments in 2023 and 2024. Refer to Note 8 of Part I, Item 1 for additional information.

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Recent Developments

The Company continues to assess its potential rare earth elements deposit in Wyoming, and core analysis performed to date shows high relative concentrations of heavy rare earth elements such as Terbium and Dysprosium as well as lighter rare earth elements such as Neodymium and Praseodymium. The exploration target does not represent, and should not be construed to be, a mineral resource or mineral reserve as such terms are used in subpart 1300 of Regulation S-K. The Company also continues its work to advance new carbon product technologies with the goal of commercializing products that use coal in both an improved economic and environmental manner.

On June 21, 2023, the Company distributed Class B common stock, a tracking stock, to provide existing holders of the Company’s common stock an opportunity to participate directly in the financial performance of the Company’s CORE assets on a stand-alone basis, separate from the Company’s metallurgical coal operations. CORE assets were acquired initially by the Company as part of the Company’s acquisition of Ramaco Coal in the second quarter of 2022. The financial performance of CORE assets consists of the following non-cost bearing revenue streams based on the Company’s current expectations:

● Royalty fees derived from the royalties associated with the Ramaco Coal and Amonate reserves, which we believe approximates 3% of Company-produced coal sales revenue excluding coal sales revenue from Knox Creek,

● Infrastructure fees based on $5.00 per ton of coal processed at our preparation plants and $2.50 per ton of loaded coal at the Company’s rail load-out facilities, and

● Future income derived, if and when realized, from advanced carbon products and rare earth elements initiatives.

The Company anticipates paying a quarterly dividend equal to 20% of the total fees above; however, any dividend amounts declared and paid are subject to the sole discretion of the Company’s Board of Directors. Dividends paid on the tracking stock may create additional value for common stockholders and allow the Company to return to investors a portion of the savings from royalties and infrastructure usage fees resulting from the acquisition of Ramaco Coal. In addition, the tracking stock provides an opportunity for investors to participate directly in the potential revenue growth associated with the development of carbon products and rare earth elements. The Company paid its first dividend on Class B common stock during the third quarter of 2023.

Separate financial statements for CORE have not been included as exhibits to this filing since CORE’s financial performance and dividends will be evaluated based on non-cost bearing revenue streams, at least initially, and other potential forms of passive income rather than reduced by allocated costs and expenses. Refer to Note 6 of Part I, Item 1 for additional information related to the tracking stock.

22

Results of Operations

	Three months ended September 30,				Nine months ended September 30,
(In thousands, except per share amounts)	2023		2022		2023		2022
Revenue	$	186,966	$	136,925	$	490,795	$	430,461
Costs and expenses
Cost of sales (exclusive of items shown separately below)		144,635		79,634		354,383		237,530
Asset retirement obligations accretion		349		495		1,049		1,485
Depreciation, depletion, and amortization		14,443		11,435		39,850		29,898
Selling, general and administrative expenses		11,458		8,672		37,519		29,282
Total costs and expenses		170,885		100,236		432,801		298,195
Operating income		16,081		36,689		57,994		132,266
Other income (expense), net		11,333		(933)		15,076		1,781
Interest expense, net		(2,447)		(2,255)		(7,274)		(5,323)
Income before tax		24,967		33,501		65,796		128,724
Income tax expense		5,505		6,596		13,521		27,068
Net income	$	19,462	$	26,905	$	52,275	$	101,656
Earnings per common share
Basic - Single class (through 6/20/2023)	$	N/A	$	0.61	$	0.71	$	2.30
Basic - Class A (6/21/2023 - 9/30/2023)	$	0.41	$	—	$	0.44	$	—
Total	$	0.41	$	0.61	$	1.15	$	2.30
Basic - Class B (6/21/2023 - 9/30/2023)	$	0.17	$	—	$	0.17	$	—
Diluted - Single class (through 6/20/23)	$	N/A	$	0.60	$	0.70	$	2.27
Diluted - Class A (6/21/2023 - 9/30/2023)	$	0.40	$	—	$	0.44	$	—
Total	$	0.40	$	0.60	$	1.14	$	2.27
Diluted - Class B (6/21/2023 - 9/30/2023)	$	0.16	$	—	$	0.16	$	—
Adjusted EBITDA	$	45,407	$	50,705	$	123,675	$	172,622

During the three and nine months ended September 30, 2023, our net income and Adjusted EBITDA were lower compared to the same periods in 2022, which was driven by lower margins on coal sales due to the negative impact of sales pricing coupled with higher per ton cost of sales as discussed below.

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Three Months Ended September 30, 2023 Compared to Three Months Ended September 30, 2022

Revenue. Our revenue includes sales of Company produced coal and coal purchased from third parties. We include amounts billed by us for transportation to our customers within revenue and transportation costs incurred within cost of sales.

Coal sales information is summarized as follows:

	Three months ended September 30,
(In thousands)	2023		2022		Increase (Decrease)
Company Produced
Coal sales revenue	$	177,826	$	135,416	$	42,410
Tons sold		949		602		348
Purchased from Third Parties
Coal sales revenue	$	9,140	$	1,509	$	7,631
Tons sold		46		7		40
Totals
Coal sales revenue	$	186,966	$	136,925	$	50,041
Tons sold		996		608		388

May not foot due to rounding

Coal sales revenue in the third quarter of 2023 was $187.0 million, which increased 37% compared to the third quarter of 2022, despite the negative impact of pricing, due to the 64% increase in tons sold. Revenue per ton sold decreased 17% from $225 per ton in the third quarter of 2022 to $188 per ton in the third quarter of 2023. Revenue per ton sold (FOB mine), which excludes transportation revenues, decreased 22% from $202 per ton in the third quarter of 2022 to $157 per ton in the third quarter of 2023, including company-produced coal and purchased coal.

Cost of sales. Our cost of sales totaled $144.6 million for the third quarter of 2023 as compared to $79.6 million for the third quarter of 2022. The 82% increase versus the prior year was due to the increase in tons sold, as discussed above, as well as the increase in the Company’s cost per ton sold related mostly to inflationary pressures. Total cost per ton sold increased 11% from $131 per ton in the third quarter of 2022 to $145 per ton in the third quarter of 2023. Total cash cost per ton sold (FOB mine), which excludes transportation costs, increased 15% from $99 per ton in the third quarter of 2022 to $114 per ton in the third quarter of 2023, including company-produced coal and purchased coal.

Depreciation, depletion, and amortization. Depreciation, depletion, and amortization expense totaled $14.4 million and $11.4 million for the third quarter of 2023 and third quarter of 2022, respectively. The increase year-to-year occurred across all asset types and was driven by the Company’s initiative to grow production.

Selling, general, and administrative. Selling, general, and administrative expenses were $11.5 million and $8.7 million for the third quarter of 2023 and third quarter of 2022, respectively. The 32% increase in 2023 was primarily due to greater compensation-related expenses on the back of higher headcount as well as increased spending for professional services consistent with the Company’s growth efforts.

Other income (expense), net. The Company had other income, net of $11.3 million in the third quarter of 2023 as compared to other expense, net of $0.9 million for the third quarter of 2022. Other income, net in the third quarter of 2023 was due primarily to recognition of the $7.8 million legal verdict for contract (compensatory) damages related to the 2018 Elk Creek silo failure as well as the receipt of $3.0 million of insurance proceeds related to the methane ignition event that occurred at our Berwind complex in 2022. Other expense, net in the third quarter of 2022 was due primarily to a $1.0 million charitable contribution made by the Company.

Income tax expense. The effective tax rate for the third quarter of 2023 and the third quarter of 2022 was 22% and 20%, respectively, excluding discrete items. The primary difference from the federal statutory rate of 21% in each period is related to state taxes, non-deductible expenses, the foreign-derived intangible income deduction, and depletion expense for income tax purposes.

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Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022

Revenue. Coal sales information is summarized as follows:

	Nine months ended September 30,
(In thousands)	2023		2022		Increase (Decrease)
Company Produced
Coal sales revenue	$	469,356	$	424,058	$	45,298
Tons sold		2,372		1,753		619
Purchased from Third Parties
Coal sales revenue	$	21,439	$	6,403	$	15,036
Tons sold		96		22		74
Totals
Coal sales revenue	$	490,795	$	430,461	$	60,334
Tons sold		2,467		1,775		692

May not foot due to rounding

Coal sales revenue for the nine months ended September 30, 2023 was $490.8 million, approximately 14% higher than the same period in 2022 driven by the 39% increase in tons sold offset partially by the negative impact of pricing. Revenue per ton sold decreased 18% from $243 per ton for the nine months ended September 30, 2022 to $199 per ton for the nine months ended September 30, 2023. Revenue per ton sold (FOB mine), which excludes transportation revenues, decreased 22% from $217 per ton for the nine months ended September 30, 2022 to $169 per ton for the nine months ended September 30, 2023, including company-produced coal and purchased coal.

Cost of sales. Our cost of sales totaled $354.4 million for the nine months ended September 30, 2023 compared to $237.5 million for the same period in 2022. The 49% increase was due to the increase in tons sold, as discussed above, as well as the increase in the Company’s cost per ton sold related mostly to inflationary pressures. Total cost per ton sold increased 7% from $134 per ton for the nine months ended September 30, 2022 to $144 per ton for the nine months ended September 30, 2023. Total cash cost per ton sold (FOB mine), which excludes transportation costs, increased 6% from $106 per ton for the nine months ended September 30, 2022 to $112 per ton for the nine months ended September 30, 2023, including company-produced coal and purchased coal.

Depreciation, depletion, and amortization. Depreciation, depletion, and amortization expense totaled $39.9 million and $29.9 million for the nine months ended September 30, 2023 and September 30, 2022, respectively. The increase year-to-year occurred across all asset types and was driven by the Company’s initiative to grow production.

Selling, general, and administrative. Selling, general, and administrative expenses were $37.5 million and $29.3 million for the nine months ended September 30, 2023 and September 30, 2022, respectively. The 28% increase in 2023 was primarily due to greater compensation-related expenses on the back of higher headcount as well as increased spending for professional services consistent with the Company’s growth efforts.

Other income (expense), net. Other income, net for the nine months ended September 30, 2023 and September 30, 2022 was $15.1 million and $1.8 million, respectively. Other income, net for 2023 was due primarily to recognition of the $7.8 million legal verdict for contract (compensatory) damages related to the 2018 Elk Creek silo failure as well as the $4.9 million gain from the Company’s insurance claim related to the methane ignition event that occurred at our Berwind complex in 2022. The Company received $6.0 million of proceeds during 2023 related to the Berwind ignition event and had previously accrued a $1.1 million loss recovery asset at year-end 2022. Other income, net for 2022 included a $2.1 million gain on the sale of mineral rights offset partially by a $1.0 million charitable contribution made by the Company.

Income tax expense. The effective tax rate for the nine months ended September 30, 2023 and 2022 was 20.5% and 21.9%, respectively, excluding discrete tax items. The primary difference from the federal statutory rate of 21% is related

25

to state taxes, non-deductible expenses, the foreign-derived intangible income deduction, and depletion expense for income tax purposes.

Liquidity and Capital Resources

At September 30, 2023, we had $42.9 million of cash and cash equivalents and $55.3 million available under our Revolving Credit Facility for future borrowings. The Company is party to an arrangement that began in the first quarter of 2023 whereby our cash and cash equivalents are placed at various banks in amounts no greater than the $250,000 FDIC-insured limit to help safeguard against potential losses in the financial sector.

Significant sources and uses of cash during the first nine months of 2023

Sources of cash:

● Cash flows provided by operating activities were $119.5 million, which were driven primarily by cash earnings as well as the receipt of an $11.8 million income tax refund during the third quarter of 2023. Other factors included:

o Accounts payable increased $19.3 million, excluding unfunded capital expenditures, due to increased spending as well as the timing of payments

o Accounts receivable increased $22.5 million during the year driven by the increase in quarterly revenues for the third quarter of 2023 compared to the fourth quarter of 2022.

● Net borrowings from the Revolving Credit Facility increased by $18.5 million (gross proceeds of $95.0 million less repayments of $76.5 million). The proceeds were used primarily for the management of our normal operating cash position.

● The Company received $6.0 million of insurance proceeds during 2023 related to the methane ignition that occurred at our Berwind Complex in 2022. The proceeds were reported as other investing activities on the statement of cash flows.

Uses of cash:

● Capital expenditures were $64.9 million driven by investments in growth projects. We expect to spend approximately $70 million to $75 million on capital expenditures for the full year 2023.

● We made repayments of $30.0 million and $7.2 million against debt incurred from the 2022 acquisitions of Ramaco Coal (which was a related party) and Maben assets, respectively.

● We paid dividends of $18.0 million, which includes the Company’s first cash dividend payment on Class B common stock in the amount of $1.5 million. Refer to Note 6 of Part I, Item 1 for information regarding dividends.

Future sources and uses of cash

Our primary use of cash includes capital expenditures for mine development, ongoing operating expenses, and deferred cash payments in connection with the Ramaco Coal and Maben Coal acquisitions. We expect to fund our capital and liquidity requirements for the next twelve months and the reasonably foreseeable future with cash on hand, borrowings under the Revolving Credit Facility, and projected cash flows from operations. Factors that could adversely impact our future liquidity and ability to carry out our capital expenditure program include the following:

● Timely delivery of our product by rail and other transportation carriers;

● Late payments of accounts receivable by our customers;

● Cost overruns in our purchases of equipment needed to complete our mine development plans;

● Delays in completion of development of our various mines, processing plants and refuse disposal facilities, which would reduce the coal we would have available to sell and our cash flow from operations; and

● Adverse changes in the metallurgical coal markets that would reduce the expected cash flow from operations.

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If future cash flows were to become insufficient to meet our liquidity needs or capital requirements, due to changes in macroeconomic conditions or otherwise, we may reduce our expected level of capital expenditures for new mine production and/or fund a portion of our capital expenditures through the issuance of debt or equity securities, new debt arrangements, or from other sources such as asset sales.

On September 1, 2023, the Company filed a shelf registration statement to sell any combination of Class A common stock, Class B common stock, preferred stock, depositary shares, debt securities, warrants, and rights at an aggregate initial offering price of up to $400.0 million. However, the Company has no specific plans to raise capital at this time and no securities may be sold until a prospectus supplement describing the method and terms of any future offering is delivered.

The Company anticipates paying a separate quarterly dividend on Class B common stock based on the financial performance of CORE in addition to the quarterly cash dividend on Class A common stock. Although both dividends are subject to the discretion of the Board of Directors, dividends paid on the Class B common stock will likely result in a new use of cash compared to prior periods. The Company paid its first cash dividend on Class B common stock during the third quarter of 2023 as discussed above. In addition, the Company declared a second cash dividend on Class B common stock during October 2023 of approximately $2.2 million, or $0.249 per share, to be paid in the fourth quarter of 2023.

Indebtedness

Refer to Note 4 of Part I, Item 1 for information regarding the Company’s indebtedness. During October 2023, shortly after the balance sheet date, the Company repaid $14.0 million of its outstanding borrowings under the Revolving Credit Facility using funds from current operations.

Critical Accounting Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amounts of revenue and expenses reported for the period then ended. A discussion of our critical accounting policies and estimates is included in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates” of the Annual Report. There were no material changes to our critical accounting policies during the first nine months of 2023.

Off-Balance Sheet Arrangements

A discussion of off-balance sheet arrangements is included under the heading “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Off-Balance Sheet Arrangements” in the Annual Report. There were no material changes during the first nine months of 2023.

Non-GAAP Financial Measures

Adjusted EBITDA - Adjusted EBITDA is used as a supplemental non-GAAP financial measure by management and external users of our financial statements, such as industry analysts, investors, lenders, and rating agencies. We believe Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance.

We define Adjusted EBITDA as net income plus net interest expense; stock-based compensation expense; depreciation, depletion, and amortization expenses; income taxes; accretion of asset retirement obligations; and, when applicable, certain non-operating expenses (charitable contributions). A reconciliation of net income to Adjusted EBITDA is included below. Adjusted EBITDA is not intended to serve as a substitute to U.S. GAAP measures of performance and may not be comparable to similarly-titled measures presented by other companies.

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	Three months ended September 30,				Nine months ended September 30,
(In thousands)	2023		2022		2023		2022
Reconciliation of Net Income to Adjusted EBITDA
Net income	$	19,462	$	26,905	$	52,275	$	101,656
Depreciation, depletion, and amortization		14,443		11,435		39,850		29,898
Interest expense, net		2,447		2,255		7,274		5,323
Income tax expense		5,505		6,596		13,521		27,068
EBITDA		41,857		47,191		112,920		163,945
Stock-based compensation		3,201		2,019		9,706		6,192
Other non-operating expenses		—		1,000		—		1,000
Accretion of asset retirement obligation		349		495		1,049		1,485
Adjusted EBITDA	$	45,407	$	50,705	$	123,675	$	172,622

Non-GAAP revenue per ton - Non-GAAP revenue per ton (FOB mine) is calculated as coal sales revenue less transportation costs, divided by tons sold. We believe revenue per ton (FOB mine) provides useful information to investors as it enables investors to compare revenue per ton we generate against similar measures made by other publicly-traded coal companies and more effectively monitor changes in coal prices from period to period excluding the impact of transportation costs which are beyond our control. The adjustments made to arrive at these measures are significant in understanding and assessing our financial performance. Revenue per ton sold (FOB mine) is not a measure of financial performance in accordance with U.S. GAAP and, therefore, should not be considered as a substitute to revenue under U.S. GAAP.

	Three months ended September 30, 2023						Three months ended September 30, 2022
	Company		Purchased				Company		Purchased
(In thousands, except per ton amounts)	Produced		Coal		Total		Produced		Coal		Total
Revenue	$	177,826	$	9,140	$	186,966	$	135,416	$	1,509	$	136,925
Less: Adjustments to reconcile to Non-GAAP revenue (FOB mine)
Transportation costs		(28,928)		(1,505)		(30,433)		(14,158)		—		(14,158)
Non-GAAP revenue (FOB mine)	$	148,898	$	7,635	$	156,533	$	121,258	$	1,509	$	122,767
Tons sold		949		46		996		602		7		608
Revenue per ton sold (FOB mine)	$	157	$	164	$	157	$	202	$	231	$	202

May not foot due to rounding

	Nine months ended September 30, 2023						Nine months ended September 30, 2022
	Company		Purchased				Company		Purchased
(In thousands, except per ton amounts)	Produced		Coal		Total		Produced		Coal		Total
Revenue	$	469,356	$	21,439	$	490,795	$	424,058	$	6,403	$	430,461
Less: Adjustments to reconcile to Non-GAAP revenue (FOB mine)
Transportation costs		(72,489)		(2,121)		(74,610)		(44,749)		(239)		(44,988)
Non-GAAP revenue (FOB mine)	$	396,867	$	19,318	$	416,185	$	379,309	$	6,164	$	385,473
Tons sold		2,372		96		2,467		1,753		22		1,775
Revenue per ton sold (FOB mine)	$	167	$	202	$	169	$	216	$	279	$	217

May not foot due to rounding

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Non-GAAP cash cost per ton sold - Non-GAAP cash cost per ton sold is calculated as cash cost of sales less transportation costs and idle mine costs, divided by tons sold. We believe cash cost per ton sold provides useful information to investors as it enables investors to compare our cash cost per ton against similar measures made by other publicly-traded coal companies and more effectively monitor changes in coal cost from period to period excluding the impact of transportation costs which are beyond our control. The adjustments made to arrive at these measures are significant in understanding and assessing our financial performance. Cash cost per ton sold is not a measure of financial performance in accordance with U.S. GAAP and, therefore, should not be considered as a substitute to cost of sales under U.S. GAAP.

	Three months ended September 30, 2023						Three months ended September 30, 2022
	Company		Purchased				Company		Purchased
(In thousands, except per ton amounts)	Produced		Coal		Total		Produced		Coal		Total
Cost of sales	$	138,959	$	5,676	$	144,635	$	78,818	$	816	$	79,634
Less: Adjustments to reconcile to Non-GAAP cash cost of sales
Transportation costs		(29,249)		(1,005)		(30,254)		(14,156)		—		(14,156)
Idle mine costs		(378)		—		(378)		(5,037)		—		(5,037)
Non-GAAP cash cost of sales	$	109,332	$	4,671	$	114,003	$	59,625	$	816	$	60,441
Tons sold		949		46		996		602		7		608
Cash cost per ton sold	$	115	$	101	$	114	$	99	$	125	$	99

May not foot due to rounding

	Nine months ended September 30, 2023						Nine months ended September 30, 2022
	Company		Purchased				Company		Purchased
(In thousands, except per ton amounts)	Produced		Coal		Total		Produced		Coal		Total
Cost of sales	$	338,629	$	15,754	$	354,383	$	232,536	$	4,994	$	237,530
Less: Adjustments to reconcile to Non-GAAP cash cost of sales
Transportation costs		(72,894)		(1,573)		(74,467)		(44,749)		(239)		(44,988)
Idle mine costs		(2,937)		—		(2,937)		(5,037)		—		(5,037)
Non-GAAP cash cost of sales	$	262,798	$	14,181	$	276,979	$	182,750	$	4,755	$	187,505
Tons sold		2,372		96		2,467		1,753		22		1,775
Cash cost per ton sold	$	111	$	148	$	112	$	104	$	215	$	106

May not foot due to rounding

29

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Disclosures about market risk are included in Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” of our Annual Report.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

As required by Rule 13a-15(b) of the Exchange Act, we have evaluated, under the supervision and with the participation of our management, including our chief executive officer, who serves as our principal executive officer, and chief financial officer, who serves as our principal financial officer, the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this quarterly report. Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosures, and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. Based upon that evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this quarterly report.

Changes in Internal Control over Financial Reporting

There were no changes in our system of internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the quarter ended September 30, 2023, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Controls and Procedures

We regularly review our system of internal control over financial reporting and make changes to our processes and systems to improve controls and increase efficiency, while ensuring that we maintain an effective internal control environment. Changes may include such activities as implementing new, more efficient systems, consolidating activities, and migrating processes.

Our senior members of management do not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Due to the nature of our business, we may become, from time to time, involved in routine litigation or subject to disputes or claims related to our business activities. While the outcome of these proceedings cannot be predicted with certainty, in the opinion of our management, there are no pending litigation, disputes or claims against us which, if decided adversely, individually or in the aggregate, will have a material adverse effect on our financial condition, cash flows or results of operations. For a description of our legal proceedings, see Note 7 to the Condensed Consolidated Financial Statements included in Part I of this Quarterly Report.

Item 1A. Risk Factors

In addition to the other information set forth in this Quarterly Report, you should carefully consider the risk factors and other cautionary statements described under the heading “Item 1A. Risk Factors” included in our Annual Report and the risk factors and other cautionary statements contained in our other SEC filings, which could materially affect our business, financial condition, cash flows, or future results of operations. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, or future results.

There have been no material changes in our risk factors from those described in our Annual Report except as set forth below:

Risks Related to our Class B Common Stock Structure

Holders of Class B common stock are common stockholders of the Company and, therefore, are subject to risks associated with an investment in the Company as a whole, even if a holder does not own shares of Class A common stock.

We retain legal title to all of our assets and our tracking stock capitalization does not limit our legal responsibility, or that of our subsidiaries, for the liabilities included in any set of financial statement schedules. Holders of Class B common stock do not have any legal rights related to specific assets attributed to CORE and, in any liquidation, holders of Class B common stock and Class A common stock will be entitled to receive a pro rata share of our available net assets based on their respective numbers of shares.

Our Board’s ability to reattribute businesses, assets and expenses between the Class A common stock and Class B common stock may make it difficult to assess the future prospects of a class of common stock based on past performance.

Our Board currently expects to attribute 100% of the costs associated with the CORE Assets to Ramaco Resources and zero such costs to CORE; however, our Board is vested with discretion to reattribute businesses, assets and liabilities that are attributed to one class of common stock to another class of common stock, without the approval of any of our stockholders. Any such reattribution made by our Board, as well as the existence, in and of itself, of the right to effect a reattribution may impact the ability of investors to assess the future prospects of the businesses and assets attributed to a class of common stock, including liquidity and capital resource needs to pay the projected dividend to holders of our Class B common stock, based on past performance. Stockholders may also have difficulty evaluating the liquidity and capital resources of the businesses and assets attributed to each class of common stock based on past performance, as our Board may use the liquidity of one class to fund the liquidity of another class and capital expenditure requirements through the use of loans and interests between classes.

We could be required to use assets attributed to one class of common stock to pay liabilities attributed to another class.

The assets attributed to one class are potentially subject to the liabilities attributed to another class, even if those liabilities arise from lawsuits, contracts or indebtedness that are attributed to such other class. No provision of our

31

Second Amended and Restated Certificate of Incorporation (the “Amended Charter”) prevents us from satisfying liabilities of one class with assets of another class, and our creditors will not in any way be limited by our tracking stock capitalization from proceeding against any assets they could have proceeded against if we did not have a tracking stock capitalization.

Dividends on our Class B common stock are discretionary and may fluctuate materially quarter to quarter. We cannot guarantee that we will be able to pay dividends in the future or what the actual dividends will be for any future periods.

Our ability to pay dividends is subject to the discretion of our Board, the requirements of applicable law, any statutory or contractual restrictions on the payment of dividends, any prior rights and preferences that may be applicable to any outstanding preferred stock and commercial factors, whether or not attributable to the CORE Assets. We may lack sufficient cash to pay dividends to our Class B stockholders due to cash flow shortfalls attributable to a number of factors, many of which are beyond our control, as well as increases in corporate level general and administrative expenses, principal and interest payments on our outstanding debt, tax expenses, working capital requirements and anticipated cash needs. The timing and amount of dividends declared in future periods will depend on, among other things, (a) our earnings, earnings outlook, production, processing and shipping levels, financial condition, cash flow, cash requirements and our outlook on current and future market conditions, (b) our overall liquidity, (c) the restrictive covenants in the Second Amended and Restated Credit and Security Agreement and any future debt instruments that we may enter into and (d) provisions of applicable law governing the dividends. We have not established a minimum dividend payment for any class of our Common Stock, including our Class B common stock. Further our ability to pay and the amount of dividends declared in future periods may be harmed by other risk factors described herein and incorporated by reference herein. Our ability to pay dividends may fluctuate materially from quarter to quarter, and any quarterly estimate is subject to uncertainty due to the factors described above and elsewhere herein.

The market price of the Class B common stock may not reflect the performance of CORE attributed to it, as we intend.

We cannot assure the holders of Class B common stock that the market price of the Class B common stock related to CORE will, in fact, reflect the performance of CORE attributed to it. Holders of Class B common stock are common stockholders of the Company as a whole and, as such, are subject to all risks associated with an investment in the Company and all of our businesses, assets and liabilities. As a result, the market price of Class B common stock may, in part, reflect events that are intended to be reflected by the Class A common stock of the Company. In addition, investors may discount the value of Class B common stock because it is part of a common enterprise rather than a stand-alone entity.

The market price of the Class B common stock may be volatile, could fluctuate substantially and could be affected by factors that do not affect traditional common stock.

To the extent the market price of the Class B common stock tracks the performance of more focused classes of businesses and assets than our existing common stock does, the market price of the Class B common stock may be more volatile than the market price of our existing common stock has been historically. The market price of the Class B common stock may be materially affected by, among other things:

● actual or anticipated fluctuations CORE’s operating results;

● potential acquisition activity by the Company (regardless of the class to which it is attributed) or the companies in which we invest;

● issuances of debt or equity securities to raise capital by the Company or the companies in which we invest and the manner in which that debt or the proceeds of an equity issuance are attributed to each of the classes;

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● changes in financial estimates by securities analysts regarding the Class B common stock, the Class A common stock or CORE attributable to the Class B common stock;

● the complex nature and the potential difficulties investors may have in understanding the terms of our new tracking stock, as well as concerns regarding the possible effect of certain of those terms on an investment in our stocks; and

● general market conditions.

Until an orderly trading market develops for the Class B common stock, the trading price of the Class B common stock may fluctuate significantly.

The market value of the Class B common stock could be adversely affected by events involving the other assets and businesses of the Company.

Because we are the issuer of the Class B common stock, an adverse market reaction to events relating to any of our assets and businesses, such as earnings announcements or announcements of new products or services, acquisitions or dispositions that the market does not view favorably, may cause an adverse market reaction in a particular class of common stock. This could occur even if the triggering event is not material to us as a whole. Certain events may also have a greater impact on one class than the same triggering event would have on another class due to the asset composition of the affected class. In addition, the incurrence of significant indebtedness by us or any of our subsidiaries on behalf of one class, including indebtedness incurred or assumed in connection with acquisitions of or investments in businesses, could affect our credit rating and that of our subsidiaries and, therefore, could increase the borrowing costs of businesses attributable to our other classes or the borrowing costs of the Company as a whole.

We may not pay dividends equally or at all on our classes of common stock.

We have the right to pay dividends on the shares of Class A common stock and Class B common stock in equal or unequal amounts, and we may pay dividends on one class of common stock and not pay dividends on another class. In addition, any dividends or distributions on, or repurchases of, shares relating to a class will reduce our assets legally available to be paid as dividends on another class.

Our new tracking stock capital structure could create conflicts of interest, and our Board may make decisions that could adversely affect only some holders of our common stock.

Our tracking stock capital structure could give rise to occasions when the interests of holders of one class of common stock might diverge or appear to diverge from the interests of holders of another class of common stock. Our Class B common stock is not issued by a separate entity and thus holders of Class B common stock do not have the right to elect a separate board of directors. As a result, the Company’s officers and directors owe fiduciary duties to the Company as a whole and all of our stockholders as opposed to only holders of a particular class of common stock. Decisions deemed to be in the best interest of the Company and all of our stockholders may not be in the best interest of a particular class of common stock when considered independently. Examples include:

● decisions as to the terms of any business relationships between classes of common stock;

● the terms of any reattributions of assets between classes of common stock;

● decisions as to the allocation of consideration among the holders of Class B common stock and Class A common stock to be received in connection with a merger involving the Company;

● decisions as to the allocation of corporate opportunities between the classes, especially where the opportunities might meet the strategic business objectives of both classes;

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● decisions as to operational and financial matters that could be considered detrimental to one class but beneficial to the other;

● decisions as to the conversion of shares of Class B common stock into shares of Class A common stock;

● decisions regarding the creation of, and, if created, the subsequent increase or decrease of any interest that one class of common stock may own in the other class of common stock;

● decisions as to the internal or external financing attributable to businesses or assets attributed to any of our classes of common stock;

● decisions as to the dispositions of assets of any of our classes of common stock; and

● decisions as to the payment of dividends on any of our classes of common stock.

Our directors’ or officers’ equity ownership may create or appear to create conflicts of interest.

If directors or officers own disproportionate interests (in percentage or value terms) in Class A common stock or Class B common stock, that disparity could create or appear to create conflicts of interest when they are faced with decisions that could have different implications for the holders of Class A common stock or Class B common stock.

We have not adopted any specific procedures for consideration of matters involving a divergence of interests among holders of Class A common stock or Class B common stock. Rather than develop additional specific procedures in advance, our Board intends to exercise its judgment from time to time, depending on the circumstances, as to how best to:

● obtain information regarding the divergence (or potential divergence) of interests;

● determine under what circumstances to seek the assistance of outside advisers;

● determine whether a committee of our Board should be appointed to address a specific matter and the appropriate members of that committee; and

● assess what is in the Company’s best interests and the best interests of all of our stockholders.

Our Board believes the advantage of retaining flexibility in determining how to fulfill its responsibilities in any such circumstances as they may arise outweighs any perceived advantages of adopting additional specific procedures in advance.

Our Board does not expect to formally adopt any management or allocation policies with respect to the CORE Assets.

The Board does not expect to formally adopt any management or allocation policies with respect to the CORE Assets to serve as guidelines in making decisions regarding the relationship between the Company’s overall business and CORE with respect to matters such as tax liabilities and benefits, loans between the two, attribution of assets, financing alternatives, corporate opportunities and similar items. Such determinations are in the sole discretion of our Board and our Board may at any time change or make exceptions to the relationship between CORE and Ramaco Resources. A decision to change, or make exceptions to, these arrangements could disadvantage one class of stockholder while advantaging the other.

Holders of a class of common stock may not have any remedies if any action by our directors or officers has an adverse effect on only that class of common stock.

Principles of applicable law and the provisions of our Amended Charter may protect decisions of our Board that have a disparate impact upon a particular class of common stock. Under applicable law, our Board has a duty to act with

34

due care and in the best interests of all of our stockholders, regardless of the class of stock, or series, they hold. Principles of applicable law established in cases involving differing treatment of multiple classes or series of stock provide that a Board owes an equal duty to all stockholders and does not have separate or additional duties to any subset of stockholders. Judicial opinions in Delaware involving tracking stocks have established that decisions by directors or officers involving differing treatment of holders of tracking stocks may be judged under the business judgment rule. In some circumstances, our directors or officers may be required to make a decision that is viewed as adverse to the holders of a particular series of that stock. Under the principles of applicable law and the business judgment rule referred to above, the holders of Class B common stock may not be able to successfully challenge decisions that they believe have a disparate impact upon the stockholders of one of our classes if a majority of our Board is disinterested and independent with respect to the action taken, is adequately informed with respect to the action taken and acts in good faith and in the honest belief that our Board is acting in the best interest of the Company and all of our stockholders.

Stockholders will not vote on how to attribute consideration received in connection with a merger involving the Company among holders of Class A common stock and Class B common stock.

Our Amended Charter does not contain any provisions governing how consideration received in connection with a merger or consolidation involving the Company is to be to the holders of Class A common stock and Class B common stock, and none of the holders of Class A common stock and Class B common stock will have a separate class vote in the event of such a merger or consolidation. Consistent with applicable principles of applicable law, our Board will seek to divide the type and amount of consideration received in a merger or consolidation involving the Company among holders of Class A common stock and Class B common stock in a fair manner. As the different ways our Board may divide the consideration between holders of the different classes of stock might have materially different results, the consideration to be received by holders of Class B common stock in any such merger or consolidation may be materially less valuable than the consideration they would have received if they had a separate class vote on such merger or consolidation.

We may dispose of assets of CORE without the approval of the Class B common stock holders.

Applicable law requires stockholder approval only for a sale or other disposition of all or substantially all of the assets of the Company taken as a whole, and our Amended Charter does not require a separate class vote in the case of a sale of a significant amount of assets attributed to any of our classes of common stock. As long as the assets attributed to a certain class of common stock proposed to be disposed of represent less than substantially all of our assets, we may approve sales and other dispositions of any amount of the assets of such class without any stockholder approval.

Our Board will decide, in its sole discretion, how to proceed and is not required to select the option that would result in the highest value to holders of any particular class of stock.

Holders of Class B common stock may receive less consideration upon a sale of the assets attributed to that class than if that class were a separate company.

If CORE was a separate, independent company and its shares were acquired by another person, certain costs of that sale, including corporate level taxes, might not be payable in connection with that acquisition. As a result, stockholders of a separate, independent company with the same assets might receive a greater amount of proceeds than the holders of Class B common stock would receive upon a sale of all or substantially all of the assets of CORE. In addition, we cannot assure the holders of Class B common stock that in the event of such a sale the per share consideration to be paid to holders of Class B common stock will be equal to or more than the per share value of that share of stock prior to or after the announcement of a sale of all or substantially all of the assets of CORE. Further, there is no requirement that the consideration paid be tax-free to the holders of Class B common stock. Accordingly, if we sell all or substantially all of the assets attributed to CORE, our Class B stockholders could suffer a loss in the value of their investment in our Class B common stock.

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In the event of a liquidation of Ramaco Resources, holders of Class B common stock will not have a priority with respect to the assets attributed to CORE remaining for distribution to stockholders.

Under the Amended Charter, upon Ramaco Resources’ liquidation, dissolution or winding up, holders of Class A common stock and Class B common stock will be entitled to receive, in respect of their shares of such stock, their proportionate interest in all of Ramaco Resources’ assets, if any, remaining for distribution to holders of common stock in proportion to their respective number of shares. Hence, the assets to be distributed to a holder of either class of common stock upon a liquidation, dissolution or winding up of Ramaco Resources will have nothing to do with the value of the assets attributed to the class of common stock or to changes in the relative value of the Class B common stock over time.

Our Board may, in its sole discretion, elect to convert the Class B common stock to Class A common stock, thereby changing the nature of an investment in the Class B common stock and possibly diluting the economic interest in the Company of Class B common stock holders, which could result in a loss in value to such holders.

Our Amended Charter permits our Board, in its sole discretion, to convert all of the outstanding shares of Class B common stock into shares of Class A common stock based on an exchange ratio determined by a 20-day trailing VWAP for each class of stock. A conversion would preclude the holders of Class B common stock from retaining their investment in a security that is intended to reflect separately the performance of CORE. We cannot predict the impact on the market value of our stock of (1) our Board’s ability to effect any such conversion or (2) the exercise of this conversion right by our Board. In addition, our Board may effect such a conversion at a time when the market value of our different stocks could cause the stockholders of one group to be disadvantaged.

Holders of Class A common stock and Class B common stock vote together and have limited separate voting rights.

Holders of Class A common stock and Class B common stock vote together as a single class, except in certain limited circumstances prescribed under applicable law. When holders of Class A common stock and Class B common stock vote together as a single class, holders having a majority of the votes will be in a position to control the outcome of the vote even if the matter involves a conflict of interest among our stockholders or has a greater impact on one class than another.

Transactions in Class B common stock by our insiders could depress the market price of those stocks.

Sales of, or hedging transactions such as collars relating to, shares of Class B common stock by any of our directors or executive officers, could cause a perception in the marketplace that the stock price of the Class B common stock has peaked or that adverse events or trends have occurred or may be occurring at the Company or with respect to the Class B common stock. This perception can result notwithstanding any personal financial motivation for these transactions. As a result, insider transactions could depress the market price for shares of the Class B common stock.

Our capital structure, as well as the fact that CORE is not an independent company, may inhibit or prevent acquisition bids for CORE attributed to the Class B common stock and may make it difficult for a third party to acquire us, even if doing so may be beneficial to our stockholders.

If CORE were a separate independent company, any person interested in acquiring CORE without negotiating with management could seek control of that class by obtaining control of its outstanding voting stock, by means of a tender offer or a proxy contest. Although we intend Class B common stock to reflect the separate economic performance of CORE, it is not a separate entity, and a person interested in acquiring that class of common stock without negotiation with our management could obtain control of that class only by obtaining control of a majority in voting power of all of the outstanding voting shares of the Company. The existence of different classes of common stock could present complexities and in certain circumstances pose obstacles, financial and otherwise, to an acquiring person that are not present in companies that do not have a capital structure similar to ours.

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Certain provisions of our Amended Charter and bylaws may discourage, delay, or prevent a change in control of the Company that a stockholder may consider favorable.

These provisions include:

● authorizing a capital structure with multiple classes of common stock: a Class A common stock and Class B common stock;

● classifying our Board with staggered three-year terms, which may lengthen the time required to gain control of our Board;

● prohibiting stockholder action by written consent, thereby requiring all stockholder actions to be taken at a meeting of the stockholders;

● limiting who may call special meetings of stockholders;

● establishing advance notice requirements for nominations of candidates for election to our Board or for proposing matters that can be acted upon by stockholders at stockholder meetings;

● requiring stockholder approval by holders of at least 66 2/3% of our aggregate voting power with respect to certain extraordinary matters, such as an amendment to our Amended Charter (excluding amendments to Section 4.1 thereof) or bylaws, and the approval by holders of at least 75% of our aggregate voting power for the removal of a director; and

● the existence of authorized and unissued stock, including “blank check” preferred stock, which could be issued by our Board to persons friendly to our then current management, thereby protecting the continuity of our management, or which could be used to dilute the stock ownership of persons seeking to obtain control of the Company. 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None

Item 3. Defaults Upon Senior Securities

None

Item 4. Mine Safety Disclosures

The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95.1 to this Quarterly Report.

Item 5. Other Information

During the period covered by this Quarterly Report, none of the Company’s directors or executive officers has adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (each as defined in Item 408 of Regulation S-K under the Securities Exchange Act of 1934, as amended).

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Item 6. Exhibits

*31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
*31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
**32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
**32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
*95.1	Mine Safety Disclosure
*101.INS	Inline XBRL Instance Document
*101.SCH	XBRL Taxonomy Extension Schema Document
*101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
*101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
*101.LAB	XBRL Taxonomy Extension Labels Linkbase Document
*101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

*     Exhibit filed herewith.

**   Furnished herewith. Pursuant to SEC Release No. 33-8212, this certification will be treated as “accompanying” this Quarterly Report and not “filed” as part of such report for purposes of Section 18 of the Exchange Act or otherwise subject to the liability under Section 18 of the Exchange Act, and this certification will not be deemed to be incorporated by reference into any filing under the Securities Act, except to the extent that the registrant specifically incorporates it by reference.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	RAMACO RESOURCES, INC.
November 9, 2023	By:	/s/ Randall W. Atkins
		Randall W. Atkins
		Chairman, Chief Executive Officer and Director
		(Principal Executive Officer)
November 9, 2023	By:	/s/ Jeremy R. Sussman
		Jeremy R. Sussman
		Chief Financial Officer
		(Principal Financial Officer)

39

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULE 13A-14(A) AND RULE 15D-14(A)

OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Randall W. Atkins, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023 of Ramaco Resources, Inc. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 9, 2023	/s/ Randall W. Atkins
	Randall W. Atkins Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO RULE 13A-14(A) AND RULE 15D-14(A)

OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Jeremy R. Sussman, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023 of Ramaco Resources, Inc. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 9, 2023	/s/ Jeremy R. Sussman
	Jeremy R. Sussman Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF

CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023 of Ramaco Resources, Inc. (the “Company”), as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Randall W. Atkins, Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 9, 2023	/s/ Randall W. Atkins
	Randall W. Atkins Chairman and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION OF

CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023 of Ramaco Resources, Inc. (the “Company”), as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jeremy R. Sussman, Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 9, 2023	/s/ Jeremy R. Sussman
	Jeremy R. Sussman Chief Financial Officer

EX-95.1

Exhibit 95.1

Federal Mine Safety and Health Act Information

We work to prevent accidents and occupational illnesses. We have in place health and safety programs that include extensive employee training, safety incentives, drug and alcohol testing and safety audits. The objectives of our health and safety programs are to provide a safe work environment, provide employees with proper training and equipment and implement safety and health rules, policies and programs that foster safety excellence.

Our mining operations are subject to extensive and stringent compliance standards established pursuant to the Federal Mine Safety and Health Act of 1977 (the “Mine Act”). Mine Safety and Health Administration (“MSHA”) monitors and rigorously enforces compliance with these standards, and our mining operations are inspected frequently. Citations and orders are issued by MSHA under Section 104 of the Mine Act for violations of the Mine Act or any mandatory health or safety standard, rule, order or regulation promulgated under the Mine Act.

Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and Item 104 of Regulation S-K require issuers to include in periodic reports filed with the U.S. Securities and Exchange Commission certain information relating to citations or orders for violations of standards under the Mine Act. We present information below regarding certain mining safety and health violations, orders and citations, issued by MSHA and related assessments and legal actions and mine-related fatalities with respect to our coal mining operations. In evaluating this information, consideration should be given to factors such as: (i) the number of violations, orders and citations will vary depending on the size of the coal mine, (ii) the number of violations, orders and citations issued will vary from inspector to inspector and mine to mine, and (iii) violations, orders and citations can be contested and appealed, and in that process, are often reduced in severity and amount, and are sometimes dismissed.

The following tables include information required by the Dodd-Frank Act and Item 104 of Regulation S-K for the current quarter. The mine data retrieval system maintained by MSHA may show information that is different than what is provided herein. Any such difference may be attributed to the need to update that information on MSHA’s system and/or other factors. The tables below do not include any orders or citations issued to independent contractors at our mines.

Mine or Operating Name / MSHA Identification Number	Section104(a)S&SCitations(1)	Section104(b)Orders(2)	Section104(d)Citations andOrders(3)	Section110(b)(2)Violations(4)	Section107(a)Orders(5)	Total DollarValue of MSHAAssessmentsProposed(in thousands)(6)
Active Operations
Eagle Seam Deep Mine - 46-09495	5	0	0	0	0	$	113.04
Stonecoal Branch Mine No. 2 - 46-08663	8	1	0	0	0	$	33.52
No. 2 Gas Deep Mine - 46-09541	3	0	0	0	0	$	8.07
Michael Powellton Deep Mine – 46-09602	0	0	0	0	0	$	0.88
Crucible Deep Mine - 46-09614	1	0	0	0	0	$	4.51
Ram Surface Mine No. 1 - 46-09537	1	0	0	0	0	$	2.46
Highwall Miner No. 1 - 46-09219	1	0	0	0	0	$	0
Elk Creek Prep Plant - 46-02444	1	0	0	0	0	$	5.98
Maben Surface Mine - 46-09637	0	0	0	0	0	$	0.16
Highwall Miner No. 2 - 46-09638	0	0	0	0	0	$	0.14
Berwind Deep Mine - 46-09533	5	0	0	0	0	$	74.26
Laurel Fork - 46-09084	13	0	0	0	0	$	26.24
Jawbone Mine No. 1 - 44-07369	4	0	1	0	0	$	6.89
Triad No. 2 - 46-09628	5	0	0	0	0	$	20.73
Big Creek Surface Mine - 44-07162	0	0	0	0	0	$	0.14
HWM No. 3 - 15-19557	0	0	0	0	0	$	0
Coal Creek Prep Plant (VA) - 44-05236	0	0	0	0	0	$	0
Berwind Prep Plant - 46-05449	1	0	0	0	0	$	0

Mine or Operating Name /MSHA Identification Number	Total NumberofMining RelatedFatalities	Received Notice ofPattern ofViolations UnderSection 104(e)(yes/no)(7)	Legal ActionsPending as ofLastDay of Period	Legal ActionsInitiated DuringPeriod	Legal ActionsResolved DuringPeriod
Active Operations
Eagle Seam Deep Mine - 46-09495	0	No	13	3	6
Stonecoal Branch Mine No. 2 - 46-08663	0	No	5	2	3
No. 2 Gas - 46-09541	0	No	3	2	0
Michael Powellton Deep Mine - 46-09602	0	No	2	0	0
Crucible Deep Mine - 46-09614	0	No	3	0	0
Ram Surface Mine No. 1 - 46-09537	0	No	2	0	0
Highwall Miner No. 1 - 46-09219	0	No	0	0	0
Elk Creek Prep Plant - 46-02444	0	No	1	1	0
Maben Surface Mine - 46-09637	0	No	0	0	0
Highwall Miner No. 2 - 46-09638	0	No	0	0	0
Berwind Deep Mine - 46-09533	0	No	7	4	5
Laurel Fork - 46-09084	0	No	25	13	0
Jawbone Mine No. 1 - 44-07369	0	No	0	0	0
Triad No. 2 - 46-09628	0	No	10	4	0
Big Creek Surface Mine - 44-07162	0	No	0	0	0
HWM No. 3 - 15-19557	0	No	0	0	0
Coal Creek Prep Plant (VA) - 44-05236	0	No	0	0	0
Berwind Prep Plant - 46-05449	0	No	0	0	0

The number of legal actions pending before the Federal Mine Safety and Health Review Commission as of September 30, 2023 that fall into each of the following categories is as follows:

Mine or Operating Name /MSHA Identification Number	Contests ofCitations andOrders	Contests ofProposedPenalties	Complaints forCompensation	Complaints ofDischarge /Discrimination /Interference	Applicationsfor TemporaryRelief	Appeals ofJudge’sRuling
Active Operations
Eagle Seam Deep Mine - 46-09495	0	13	0	0	0	0
Stonecoal Branch Mine No. 2 - 46-08663	0	5	0	0	0	0
No. 2 Gas - 46-09541	0	3	0	0	0	0
Michael Powellton Deep Mine - 46-09602	0	2	0	0	0	0
Crucible Deep Mine - 46-09614	0	3	0	0	0	0
Ram Surface Mine No. 1 - 46-09537	0	2	0	0	0	0
Highwall Miner No. 1 - 46-09219	0	0	0	0	0	0
Elk Creek Prep Plant - 46-02444	0	1	0	0	0	0
Maben Surface - 46-09637	0	0	0	0	0	0
Highwall Miner No. 2 - 46-09638	0	0	0	0	0	0
Berwind Deep Mine - 46-09533	0	7	0	0	0	0
Laurel Fork - 46-09084	0	25	0	0	0	0
Jawbone Mine No. 1 - 44-07369	0	0	0	0	0	0
Triad No. 2 - 46-09628	0	10	0	0	0	0
Big Creek Surface - 44-07162	0	0	0	0	0	0
HWM No. 3 - 15-19557	0	0	0	0	0	0
Coal Creek Prep Plant (VA) - 44-05236	0	0	0	0	0	0
Berwind Prep Plant - 46-05449	0	0	0	0	0	0

(1) Mine Act Section 104(a) significant and substantial (“S&S”) citations shown above are for alleged violations of mandatory health or safety standards that could significantly and substantially contribute to a coal mine health and safety hazard. It should be noted that, for purposes of this table, S&S citations that are included in another column, such as Section 104(d) citations, are not also included as Section 104(a) S&S citations in this column.

(2) Mine Act Section 104(b) orders are for alleged failures to totally abate a citation within the time period specified in the citation.

(3) Mine Act Section 104(d) citations and orders are for an alleged unwarrantable failure (i.e., aggravated conduct constituting more than ordinary negligence) to comply with mandatory health or safety standards.

(4) Mine Act Section 110(b)(2) violations are for an alleged “flagrant” failure (i.e., reckless or repeated) to make reasonable efforts to eliminate a known violation of a mandatory safety or health standard that substantially and proximately caused, or reasonably could have been expected to cause, death or serious bodily injury.

(5) Mine Act Section 107(a) orders are for alleged conditions or practices which could reasonably be expected to cause death or serious physical harm before such condition or practice can be abated and result in orders of immediate withdrawal from the area of the mine affected by the condition.

(6) Amounts shown include assessments proposed by MSHA on all citations and orders, including those citations and orders that are not required to be included within the above chart.

(7) Mine Act Section 104(e) written notices are for an alleged pattern of violations of mandatory health or safety standards that could significantly and substantially contribute to a coal mine safety or health hazard.

XML

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2023	Oct. 31, 2023
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-38003
Entity Registrant Name	Ramaco Resources, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	38-4018838
Entity Address, Address Line One	250 West Main Street
Entity Address, Address Line Two	Suite 1900
Entity Address, City or Town	Lexington
Entity Address, State or Province	KY
Entity Address, Postal Zip Code	40507
City Area Code	859
Local Phone Number	244-7455
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001687187
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false
9.00% Senior Notes due 2026
Title of 12(b) Security	9.00% Senior Notes due 2026
Trading Symbol	METCL
Security Exchange Name	NASDAQ
Class A Common Stock
Title of 12(b) Security	Class A Common Stock, $0.01 par value
Trading Symbol	METC
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding (in shares)		43,902,118
Class B Common Stock
Title of 12(b) Security	Class B Common Stock, $0.01 par value
Trading Symbol	METCB
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding (in shares)		8,783,877

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 42,924	$ 35,613
Accounts receivable	63,634	41,174
Inventories	50,242	44,973
Prepaid expenses and other	12,422	25,729
Total current assets	169,222	147,489
Property, plant, and equipment, net	456,712	429,842
Financing lease right-of-use assets, net	13,201	12,905
Advanced coal royalties	3,606	3,271
Other	3,965	2,832
Total Assets	646,706	596,339
Current liabilities
Accounts payable	51,584	34,825
Accrued liabilities	46,485	41,806
Current portion of asset retirement obligations	110	29
Current portion of long-term debt	28,015	35,639
Current portion of related party debt	10,000	40,000
Current portion of financing lease obligations	6,312	5,969
Insurance financing liability		4,577
Total current liabilities	142,506	162,845
Asset retirement obligations, net	28,495	28,856
Long-term debt, net	34,157	18,757
Long-term financing lease obligations, net	5,765	4,917
Senior notes, net	33,178	32,830
Deferred tax liability, net	45,685	35,637
Other long-term liabilities	4,322	3,299
Total liabilities	294,108	287,141
Commitments and contingencies
Stockholders' Equity
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued and outstanding
Common stock		442
Additional paid-in capital	275,929	168,711
Retained earnings	76,142	140,045
Total stockholders' equity	352,598	309,198
Total Liabilities and Stockholders' Equity	646,706	$ 596,339
Class A Common Stock
Stockholders' Equity
Common stock	439
Class B Common Stock
Stockholders' Equity
Common stock	$ 88

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Consolidated Balance Sheets (Parentheticals) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares outstanding (in shares)	0	0
Preferred stock, shares Issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	260,000,000	260,000,000
Common stock, shares issued (in shares)	44,155,735	44,155,735
Common stock, shares outstanding (in shares)	44,155,735	44,155,735
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.01
Common stock, shares authorized (in shares)	225,000,000
Common stock, shares issued (in shares)	43,902,118
Common stock, shares outstanding (in shares)	43,902,118
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.01
Common stock, shares authorized (in shares)	35,000,000
Common stock, shares issued (in shares)	8,783,877
Common stock, shares outstanding (in shares)	8,783,877

XML

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue	$ 186,966	$ 136,925	$ 490,795	$ 430,461
Costs and expenses
Cost of sales (exclusive of items shown separately below)	144,635	79,634	354,383	237,530
Asset retirement obligations accretion	349	495	1,049	1,485
Depreciation, depletion, and amortization	14,443	11,435	39,850	29,898
Selling, general, and administrative	11,458	8,672	37,519	29,282
Total costs and expenses	170,885	100,236	432,801	298,195
Operating income	16,081	36,689	57,994	132,266
Other income (expense), net	11,333	(933)	15,076	1,781
Interest expense, net	(2,447)	(2,255)	(7,274)	(5,323)
Income before tax	24,967	33,501	65,796	128,724
Income tax expense	5,505	6,596	13,521	27,068
Net income	$ 19,462	$ 26,905	$ 52,275	$ 101,656
Earnings per share
Basic (in dollars per share)	$ 0.41	$ 0.61	$ 1.15	$ 2.30
Diluted (in dollars per share)	$ 0.40	$ 0.60	$ 1.14	$ 2.27
Class A Common Stock
Costs and expenses
Net income	$ 17,288
Earnings per share
Basic (in dollars per share)	$ 0.41
Diluted (in dollars per share)	$ 0.40
Class B Common Stock
Costs and expenses
Net income	$ 1,395
Earnings per share
Basic (in dollars per share)	$ 0.17
Diluted (in dollars per share)	$ 0.16

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Consolidated Statements of Equity - USD ($) $ in Thousands	Common Stock Class B Common Stock	Common Stock	Additional Paid-in Capital.	Retained Earnings (Deficit)	Class B Common Stock	Total
Balance at Dec. 31, 2021		$ 441	$ 163,566	$ 47,067		$ 211,074
Stock-based compensation		2	1,885			1,887
Cash dividends declared				(2,497)		(2,497)
Net income				41,471		41,471
Balance at Mar. 31, 2022		443	165,451	86,041		251,935
Balance at Dec. 31, 2021		441	163,566	47,067		211,074
Net income						101,656
Balance at Sep. 30, 2022		441	166,994	131,234		298,669
Balance at Mar. 31, 2022		443	165,451	86,041		251,935
Stock-based compensation			2,286			2,286
Cash dividends declared				(4,998)		(4,998)
Shares surrendered for withholding taxes payable		(2)	(2,819)			(2,821)
Net income				33,280		33,280
Balance at Jun. 30, 2022		441	164,918	114,323		279,682
Stock-based compensation			2,019			2,019
Stock options exercised			107			107
Cash dividends declared				(9,994)		(9,994)
Shares surrendered for withholding taxes payable			(50)			(50)
Net income				26,905		26,905
Balance at Sep. 30, 2022		441	166,994	131,234		298,669
Balance at Dec. 31, 2022		442	168,711	140,045		309,198
Stock-based compensation		3	2,934			2,937
Shares surrendered for withholding taxes payable		(1)	(114)			(115)
Adjustment to cash dividends previously declared				(354)		(354)
Net income				25,257		25,257
Balance at Mar. 31, 2023		444	171,531	164,948		336,923
Balance at Dec. 31, 2022		442	168,711	140,045		309,198
Net income						52,275
Balance at Sep. 30, 2023	$ 88	439	275,929	76,142		352,598
Balance at Mar. 31, 2023		444	171,531	164,948		336,923
Stock-based compensation			3,568			3,568
Cash dividends declared				(5,734)		(5,734)
Stock dividend declared and distributed	89		102,831	(102,920)
Shares surrendered for withholding taxes payable	(1)	(5)	(5,202)			(5,208)
Net income				7,556		7,556
Balance at Jun. 30, 2023	88	439	272,728	63,850		337,105
Stock-based compensation			3,201			3,201
Cash dividends declared				(7,170)		(7,170)
Net income				19,462	$ 1,395	19,462
Balance at Sep. 30, 2023	$ 88	$ 439	$ 275,929	$ 76,142		$ 352,598

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net income	$ 52,275	$ 101,656
Adjustments to reconcile net income to net cash from operating activities:
Accretion of asset retirement obligations	1,049	1,485
Depreciation, depletion, and amortization	39,850	29,898
Amortization of debt issuance costs	566	367
Stock-based compensation	9,706	6,192
Other income	(4,912)	(2,113)
Deferred income taxes	10,048	11,579
Changes in operating assets and liabilities:
Accounts receivable	(22,460)	(5,905)
Prepaid expenses and other current assets	10,115	1,242
Inventories	(5,269)	(24,237)
Other assets and liabilities	(816)	91
Accounts payable	19,253	12,432
Accrued liabilities	10,071	26,112
Net cash provided by operating activities	119,476	158,799
Cash flows from investing activities:
Capital expenditures	(64,924)	(91,384)
Acquisition of Ramaco Coal assets		(11,738)
Other	5,976	2,000
Net cash used for investing activities	(57,766)	(111,837)
Cash flows from financing activities:
Proceeds from borrowings	95,000	17,000
Proceeds from stock options exercised		107
Payment of dividends	(18,049)	(14,996)
Repayment of borrowings	(87,225)	(17,066)
Repayment of Ramaco Coal acquisition financing - related party	(30,000)
Repayments of insurance financing	(3,848)	(280)
Repayments of equipment finance leases	(4,954)	(3,760)
Shares surrendered for withholding taxes payable	(5,323)	(2,871)
Net cash used for financing activities	(54,399)	(21,866)
Net change in cash and cash equivalents and restricted cash	7,311	25,096
Cash and cash equivalents and restricted cash, beginning of period	36,473	22,806
Cash and cash equivalents and restricted cash, end of period	43,784	47,902
Non-cash investing and financing activities:
Leased assets obtained under new financing leases	6,144	4,259
Financed equipment purchases		5,730
Capital expenditures included in accounts payable and accrued liabilities	10,910	9,004
Financed insurance	407
Accrued dividends payable	733	4,994
Ramaco Coal Asset Acquisition
Non-cash investing and financing activities:
Coal acquisition		56,551
Maben Asset Acquisition
Cash flows from investing activities:
Acquisition of Maben assets (bond recovery in 2023)	$ 1,182	(10,715)
Non-cash investing and financing activities:
Coal acquisition		$ 21,000

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Note 1 - Business and Basis of Presentation

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

BUSINESS AND BASIS OF PRESENTATION

NOTE 1—BUSINESS AND BASIS OF PRESENTATION

Ramaco Resources, Inc. (the “Company,” “we,” “us” or “our,”) is a Delaware corporation formed in October 2016. Our principal corporate and executive offices are located in Lexington, Kentucky with operational offices in Charleston, West Virginia and Sheridan, Wyoming. We are an operator and developer of high-quality, low-cost metallurgical coal in southern West Virginia, southwestern Virginia, and southwestern Pennsylvania. We also control mineral deposits near Sheridan, Wyoming as part of the Company’s initiatives regarding the potential recovery of rare earth elements as well as the potential commercialization of coal-to-carbon-based products and materials.

Economic Conditions—Renewed global economic concerns, including those related to the military conflict involving Russia and Ukraine, have caused volatility in the commodity markets. This volatility, including market expectations of potential changes in coal prices and inflationary pressures on steel products, has had a significant effect on market prices and may affect overall demand for our coal as well as the cost of supplies and equipment.

Basis of Presentation—These interim financial statements are unaudited and have been prepared pursuant to the rules and regulations of the SEC regarding interim financial reporting. Certain disclosures have been condensed or omitted from these financial statements. Accordingly, they do not include all the information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022.

In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company’s financial position as of September 30, 2023, as well as the results of operations and cash flows for all periods presented. In preparing the accompanying financial statements, management has made certain estimates and assumptions that affect reported amounts in the condensed consolidated financial statements and disclosures of contingencies. Actual results may differ from those estimates. The results for interim periods are not necessarily indicative of annual results. Intercompany balances and transactions between consolidated entities have been eliminated.

There were no material changes to the Company’s significant accounting policies during the nine months ended September 30, 2023.

Recent Accounting Pronouncements—In October 2023, subsequent to the date of the Company’s financial statements, the FASB issued Accounting Standards Update No. 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”). The amendments in ASU 2023-06 clarify or improve disclosure and presentation requirements for a variety of topics, including debt and earnings per share. The effective date for each amendment in ASU 2023-06 will be the effective date of the SEC’s removal of that related disclosure from existing SEC regulations, and each amendment should be applied prospectively after its effective date. Although the Company is still evaluating this guidance, we do not expect a material impact to our disclosures since the Company is already subject to existing SEC disclosure requirements.

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Note 2 - Inventories

9 Months Ended

Sep. 30, 2023

Inventories.

INVENTORIES

NOTE 2—INVENTORIES

Inventories consisted of the following:

(In thousands)	September 30, 2023		December 31, 2022
Raw coal	$	27,334	$	22,414
Saleable coal		17,645		18,223
Supplies		5,263		4,336
Total inventories	$	50,242	$	44,973

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Note 3 - Property, Plant and Equipment

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

PROPERTY, PLANT AND EQUIPMENT

NOTE 3—PROPERTY, PLANT AND EQUIPMENT

Property, plant, and equipment consisted of the following:

(In thousands)	September 30, 2023		December 31, 2022
Plant and equipment	$	276,813	$	232,885
Mining property and mineral rights		120,532		120,760
Construction in process		17,554		34,698
Capitalized mine development costs		168,646		153,436
Less: accumulated depreciation, depletion, and amortization		(126,833)		(111,937)
Total property, plant and equipment, net	$	456,712	$	429,842

On July 10, 2022, the Company experienced a methane ignition at the Berwind No. 1 mine, which was one of the active mines at our Berwind mining complex. The other mines resumed production while the Berwind No. 1 mine was idled until a full investigation could be conducted. There were no personnel in the mine at the time of the incident and no injuries or fatalities occurred. Production from the Berwind No. 1 mine restarted in the first quarter of 2023. The Company received $6.0 million of insurance proceeds during the nine months ended September 30, 2023 related to this matter, which have been reported as other investing activities on the statement of cash flows, and recognized a $4.9 million gain in other income as the Company had previously accrued a $1.1 million loss recovery asset at December 31, 2022.

On September 30, 2023, the Company updated its estimates of the amount and timing of future spending related to asset retirement obligations. The adjustment resulted in a $1.3 million decrease to capitalized mine development costs and a corresponding decrease to the Company’s asset retirement obligations liabilities ($1.4 million decrease to noncurrent liabilities and a $0.1 million increase to current liabilities).

Depreciation, depletion, and amortization included:

	Three months ended September 30,				Nine months ended September 30,
(In thousands)	2023		2022		2023		2022
Depreciation of plant and equipment	$	8,063	$	5,903	$	22,492	$	15,928
Amortization of right of use assets (finance leases)		2,432		1,710		6,312		3,806
Amortization and depletion of capitalized
mine development costs and mineral rights		3,948		3,822		11,046		10,164
Total depreciation, depletion, and amortization	$	14,443	$	11,435	$	39,850	$	29,898

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Note 4 - Debt

9 Months Ended

Sep. 30, 2023

Notes To Financial Statements

DEBT

NOTE 4—DEBT

Outstanding debt consisted of the following:

(In thousands)	September 30, 2023		December 31, 2022
Revolving Credit Facility	$	43,500	$	25,000
Equipment loans		4,872		8,396
Senior Notes, net		33,178		32,830
Financing of Ramaco Coal acquisition - Related party debt		10,000		40,000
Financing of Maben Coal acquisition		13,800		21,000
Total debt	$	105,350	$	127,226
Current portion of long-term debt		38,015		75,639
Long-term debt, net	$	67,335	$	51,587

Revolving Credit Facility—On February 15, 2023, the Company entered into the Second Amended and Restated Credit and Security Agreement, which includes multiple lending parties and provides additional borrowing capacity compared to the facility utilized in 2022. The new facility, which has a maturity date of February 15, 2026, provides an initial aggregate revolving commitment of $125.0 million as well as an accordion feature of $50.0 million subject to certain terms and conditions, including the lenders’ consents. The remaining availability under the facility at September 30, 2023 was $55.3 million after the determination of the collateralized borrowing base of $98.8 million less $43.5 million of outstanding borrowings.

Revolving loans under the new facility bear interest at either the base rate plus 1.50% or the Secured Overnight Financing Rate plus 2.00%. The base rate equals the highest of the administrative agent’s prime rate, the Federal Funds Effective Rate plus 0.5%, or 3%.

The terms of the new facility include covenants limiting the ability of the Company to incur additional indebtedness, make investments or loans, incur liens, consummate mergers and similar fundamental changes, make restricted payments, and enter into transactions with affiliates. The terms of the new facility also require the Company to maintain certain covenants, including fixed charge coverage ratio and compensating balance requirements, with which the Company was in compliance at September 30, 2023.

Fair Value—The Company’s Senior Notes had an estimated fair value of approximately $35.5 million and $36.3 million at September 30, 2023 and December 31, 2022, respectively. The fair values of the Company’s Senior Notes were based on observable market prices and were considered a Level 2 measurement based on trading volumes. The difference between the fair value and carrying amount of the Company’s remaining debts is not material due to the similarity between the terms of the debt agreements and prevailing market terms available to the Company.

Current Portion of Long-term Debt—Debt repayments occurring over the next twelve months from September 30, 2023 include $14.0 million of borrowings under the Revolving Credit Facility that were repaid shortly after the balance sheet date using funds from current operations, $10.0 million of related party debt shown above, $9.6 million of Maben Coal acquisition financing, and $4.4 million of equipment loans.

Other—Finance lease obligations and liabilities related to insurance premium financing are excluded from the disclosures above.

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Note 5 - Accrued Liabilities and Other Long-Term Liabilities

9 Months Ended

Sep. 30, 2023

Notes To Financial Statements

ACCRUED LIABILITIES AND OTHER LONG-TERM LIABILITIES

NOTE 5—ACCRUED LIABILITIES AND OTHER LONG-TERM LIABILITIES

Accrued liabilities at September 30, 2023 were $46.5 million compared to $41.8 million at December 31, 2022. The year-to-date increase was driven primarily by accrued compensation.

Self-Insurance—The Company is self-insured for certain losses relating to workers’ compensation claims and occupational disease obligations under the Federal Mine Safety and Health Act of 1969, as amended. Starting in 2023, the Company also elected to self-insure employee medical expenses. The Company purchases insurance coverage to reduce its exposure to significant levels of these claims. Self-insured losses are accrued based upon estimates of the aggregate liability for uninsured claims incurred as of the balance sheet date using current and historical claims experience and certain actuarial assumptions. These estimates are subject to uncertainty due to a variety of factors, including extended lag times in the reporting and resolution of claims, trends or changes in claim settlement patterns, and future cost trends. As a result, actual costs could differ significantly from the estimated amounts.

The estimated aggregate liability for these items totaled $4.9 million and $3.6 million as of September 30, 2023 and December 31, 2022, respectively. Of the aggregate liability, the amounts included in other long-term liabilities were $3.2 million and $2.7 million as of September 30, 2023 and December 31, 2022, respectively.

Funds held in escrow for potential future workers’ compensation claims are considered restricted cash and have been included in other current assets on the condensed consolidated balance sheets. Restricted cash balances were $0.9 million at September 30, 2023 and December 31, 2022.

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Note 6 - Equity

9 Months Ended

Sep. 30, 2023

Notes To Financial Statements

EQUITY

NOTE 6—EQUITY

Common Stock—On June 12, 2023, a charter amendment was approved by shareholder vote to reclassify the Company’s existing common stock as shares of Class A common stock, par value $0.01 per share, and create a separate Class B common stock having a par value of $0.01 per share.

The initial distribution of Class B common stock occurred on June 21, 2023 via a stock dividend to existing holders of common stock as of May 12, 2023. On the date of initial distribution, each holder of common stock received 0.2 shares of Class B common stock for every one share of existing common stock held on the record date. Similar actions or modifications occurred for holders of outstanding stock-based awards.

The distribution of the Class B common stock provides existing holders of the Company’s common stock with an opportunity to participate directly in the financial performance of the Company’s CORE assets on a stand-alone basis, separate from the Company’s metallurgical coal operations. CORE assets were acquired initially as part of the Company’s acquisition of Ramaco Coal in the second quarter of 2022. The financial performance of CORE assets consists of the following non-cost bearing revenue streams based on the Company’s current expectations:

● Royalty fees derived from the royalties associated with the Ramaco Coal and Amonate reserves, which we believe approximates 3% of Company-produced coal sales revenue excluding coal sales revenue from Knox Creek,

● Infrastructure fees based on $5.00 per ton of coal processed at our preparation plants and $2.50 per ton of loaded coal at the Company’s rail load-out facilities, and

● Future income derived, if and when realized, from advanced carbon products and rare earth elements initiatives.

The Company expects to pay a dividend equal to 20% of the total fees above; however, any dividend amounts declared and paid are subject to the sole discretion of the Company’s Board of Directors.

In addition, the Board of Directors retains the power to change or add expense allocation policies related to CORE, redefine CORE assets, and redetermine CORE’s per-ton usage fees at any time, in its sole discretion, without shareholder approval. Holders of shares of Class A common stock continue to be entitled to receive dividends when and if declared by the Board of Directors subject to any statutory or contractual restrictions on the payment of dividends and to any prior rights and preferences that may be applicable to outstanding preferred stock, if any.

CORE is not a separate legal entity and holders of Class B common stock do not own a direct interest in the assets of CORE. Holders of Class B common stock are stockholders of Ramaco Resources, Inc. and are subject to all risks and liabilities of the Company as a whole.

With respect to voting rights, holders of Class A common stock and Class B common stock vote together as a single class on all matters submitted to a vote of the stockholders and are entitled to one vote per share. The holders of Class A common stock and Class B common stock do not have cumulative voting rights in the election of directors. Class B common stock does not have any specific voting rights or governance rights with respect to CORE.

With respect to liquidation rights, holders of common stock are entitled to receive ratably the assets available for distribution to the stockholders after payment of liabilities and the liquidation preference of outstanding preferred stock, if any. That is, the rights to residual net assets upon liquidation are equal between holders of Class A and Class B common stock. Holders of Class B common stock do not have specific rights to CORE assets in the event of liquidation.

The Board of Directors also retains the ability, in its sole discretion, to exchange all outstanding shares of Class B common stock into Class A common stock based on an exchange ratio determined by a 20-day trailing volume-weighted average price for each class of stock.

The initial distribution of the tracking stock was recorded as a stock dividend at fair value, which was estimated to be $11.00 per share based on the closing price of Class B shares on the first day of regular-way trading. The effect of the

equity restructuring was a $102.9 million reduction in retained earnings and an increase of $102.9 million to Class B common stock and additional paid-in capital during the second quarter of 2023. The Company initially distributed 8,201,956 shares of Class B common shares as well as additional restricted stock, restricted stock units, and performance stock units as discussed below under Effects of Class B Distribution on Outstanding Stock-based Awards.

Stock-Based Awards—Stock-based compensation expense totaled $3.2 million and $2.0 million for the three months ended September 30, 2023 and September 30, 2022, respectively. Stock-based compensation expense totaled $9.7 million and $6.2 million for the nine months ended September 30, 2023 and September 30, 2022, respectively. During 2023, the Company granted new stock-based awards and modified certain awards previously granted as discussed below.

Restricted Stock—We granted 296,115 shares of restricted stock to certain senior executives, key employees, and directors during the first quarter of 2023, having a grant-date fair value of $10.61 per share. The aggregate fair value of these awards was $2.5 million, which is recognized ratably as expense over the three-year service period unless forfeited. The aggregate fair value of restricted stock granted to directors during the same quarter was $0.6 million, which is recognized ratably as expense over 2023 unless forfeited. During the vesting period, the participants have voting rights and receive nonforfeitable dividends on the same basis as fully vested common stockholders.

Restricted Stock Units—We granted 518,348 restricted stock units to certain senior executives and key employees during the first quarter of 2023, having a grant-date fair value of $10.61 per share. The aggregate fair value of these awards was $5.5 million, which is recognized ratably as expense over the three-year service period unless forfeited. During the vesting period, the participants have no voting rights and no dividend rights; however, participants are entitled to receive dividend equivalents, which shall be subject to the same conditions applicable to the units and payable at the time the units vest. Upon vesting and within 30 days thereafter, the recipient will receive one share of common stock for each stock unit.

Performance Stock Units—We granted performance stock units to certain senior executives and key employees during the first quarter of 2023. These awards cliff-vest approximately three years from the date of grant based on the achievement of targeted performance levels related to pre-established relative total shareholder return goals. These performance stock units have the potential to be earned from 0% to 200% of target depending on actual results. During the vesting period, the participants have no voting rights and no dividend rights; however, participants are entitled to receive dividend equivalents, which shall be subject to the same conditions applicable to the units and payable at the time the units vest. Upon vesting and within 30 days thereafter, the recipient will receive one share of common stock for each stock unit.

The target number of performance stock units granted during the first quarter of 2023, or 518,348 units, were valued relative to the total shareholder return of a peer group based on a Monte Carlo simulation, which resulted in a grant date fair value of $18.09 per unit. The aggregate fair value of these awards was $9.4 million, which is recognized ratably as expense over the three-year period.

In addition, performance stock units granted in 2022, or 248,706 units at target, were modified during the first quarter of 2023. Modifications to these awards were made up primarily of changes in the composition of the peer group as well as changes in the way relative total shareholder return is evaluated against the updated peer group. The modification resulted in incremental fair value of $1.2 million, which is recognized as expense over 2023 and 2024.

Performance stock units are accounted for as awards with a market condition since vesting depends on total shareholder return relative to a group of peer companies.

Effects of Class B Distribution on Outstanding Stock-based Awards—Outstanding stock-based awards, including those discussed above, were reclassified to Class A common stock as part of the equity restructuring. In addition, the terms of the Company’s outstanding stock-based awards contained anti-dilution provisions before the contemplation of the equity restructuring. Equitable adjustments were made in accordance with such terms and the Company initially distributed 680,718 of Class B restricted stock as well as 473,707 of Class B stock-based awards (183,484 stock options, 136,819 restricted stock units, and 153,404 performance stock units at target) based on the same factor of 0.2 for every

outstanding award. Since there were no changes in fair value, vesting conditions, or classification, no incremental compensation expense resulted.

Dividends–On December 8, 2022, the Company announced that its Board of Directors declared a quarterly cash dividend of approximately $0.125 per share of common stock. Estimated dividends of $5.5 million were accrued in December 2022 and were paid on March 15, 2023 to shareholders of record on March 1, 2023 in the amount of $5.6 million.

Dividends in the amount of $5.6 million, or approximately $0.125 per share of common stock, were paid on June 15, 2023, to shareholders of record on June 1, 2023, and dividends in the amount of $5.5 million, or approximately $0.125 per share of Class A common stock, were paid on September 15, 2023 to shareholders of record on September 1, 2023.

The Company also paid on September 15, 2023 its first cash dividend on Class B common stock in the amount of $1.5 million, or approximately $0.165 per share of Class B common stock, to shareholders of record on September 1, 2023, bringing the total cash dividends paid for all classes of common stock for the nine months ended September 30, 2023 to $18.0 million. The Class B dividend was declared in July 2023 and was based on 20% of CORE royalty and infrastructure fees for the second quarter of 2023. CORE financial performance is shown in the table below.

	Three months ended September 30,		Three months ended June 30,
(In thousands)	2023		2023
Royalties
Ramaco Coal	$	3,572	$	1,351
Amonate Assets		614		752
Other		13		—
Total Royalties	$	4,199	$	2,103
Infrastructure Fees
Preparation Plants (Processing at $5.00/ton)	$	4,521	$	3,433
Rail Load-outs (Loading at $2.50/ton)		2,202		1,726
Total Infrastructure Fees (at $7.50/ton)	$	6,723	$	5,159
CORE Royalty and Infrastructure Fees	$	10,922	$	7,262
Total Cash Available for Dividend for Class B Common Stock	$	10,922	$	7,262
20% of Cash Available for Dividend for Class B Common Stock	$	2,184	$	1,452

Refer to Note 12 for information regarding cash dividends declared after the date of the financial statements for holders of Class A and Class B common stock.

On February 18, 2022, the Company announced that its Board of Directors approved an increase in its initial quarterly cash dividend to $5.0 million from the formerly approved $2.5 million that was declared and accrued in December 2021. Dividends in the amount of $5.0 million, or approximately $0.11 per share of common stock, were paid on March 15, 2022 to shareholders of record on March 1, 2022.

Dividends in the amount of $5.0 million, or approximately $0.11 per share of common stock, were paid on June 15, 2022, to shareholders of record on June 1, 2022, and dividends in the amount of $5.0 million, or approximately $0.11 per share of common stock, were paid on September 15, 2022 to shareholders of record on September 1, 2022, bringing the total cash dividends paid for the nine months ended September 30, 2022 to $15.0 million.

On September 28, 2022, the Company announced that its Board of Directors declared a quarterly cash dividend of approximately $0.11 per share of common stock. Dividends of $5.0 million were accrued at September 30, 2022 and paid on December 15, 2022 to shareholders of record on December 1, 2022.

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Note 7 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2023

Notes To Financial Statements

COMMITMENTS AND CONTINGENCIES.

NOTE 7—COMMITMENTS AND CONTINGENCIES

Environmental Liabilities—Environmental liabilities are recognized when the expenditures are considered probable and can be reasonably estimated. Measurement of liabilities is based on currently enacted laws and regulations, existing technology, and undiscounted site-specific costs. Generally, such recognition would coincide with a commitment to a formal plan of action. No amounts have been recognized for environmental liabilities.

Surety Bond—In accordance with state laws, we are required to post reclamation bonds to assure that reclamation work is completed. We also have a smaller amount of surety bonds that secure performance obligations. Bonds outstanding at September 30, 2023 totaled approximately $28.2 million.

Coal Leases and Associated Royalty Commitments—We lease coal reserves under agreements that require royalties to be paid as the coal is mined and sold. Many of these agreements require minimum annual royalties to be paid regardless of the amount of coal mined and sold. Royalty expense was $9.0 million and $8.1 million for the three months ended September 30, 2023 and September 30, 2022, respectively, and $25.0 million and $25.3 million for the nine months ended September 30, 2023 and September 30, 2022, respectively. These agreements generally have terms running through exhaustion of all the mineable and merchantable coal covered by the respective lease. Royalties or throughput payments are based on a percentage of the gross selling price received for the coal we mine.

Contingent Transportation Purchase Commitments—We secure the ability to transport coal through rail contracts and export terminals that are sometimes funded through take-or-pay arrangements. As of September 30, 2023, the Company’s remaining commitments under take-or-pay arrangements totaled $28.9 million, the majority of which relates to a five-year contract entered into during 2023 with a total remaining commitment of $21.1 million. The level of these commitments will be reduced at a per ton rate as such rail and export terminal services are utilized against the required minimum tonnage amounts over the contract term stipulated in such rail and export terminal contracts. No amounts have been recognized as contingent liabilities related to take-or-pay arrangements.

Litigation—From time to time, we are subject to various litigation and other claims in the normal course of business. No amounts have been accrued in the consolidated financial statements with respect to any matters.

On November 5, 2018, one of our three raw coal storage silos that fed our Elk Creek plant experienced a partial structural failure. A temporary conveying system completed in late-November 2018 restored approximately 80% of our plant capacity. We completed a permanent belt workaround and restored the preparation plant to its full processing capacity in mid-2019. Our insurance carrier, Federal Insurance Company, disputed our claim for coverage based on certain exclusions to the applicable policy and, therefore, on August 21, 2019, we filed suit against Federal Insurance Company and Chubb INA Holdings, Inc. in Logan County Circuit Court in West Virginia seeking a declaratory judgment that the partial silo collapse was an insurable event and to require coverage under our policy. Defendants removed the case to the United States District Court for the Southern District of West Virginia, and upon removal, we substituted ACE American Insurance Company as a defendant in place of Chubb INA Holdings, Inc. The trial in the matter commenced on June 29, 2021, in Charleston, West Virginia. 

On July 15, 2021, the jury returned a verdict in our favor for $7.7 million in compensatory damages and on July 16, 2021, made an additional award of $25.0 million for inconvenience and aggravation. On August 12, 2021, the defendants filed a post-trial motion for judgment as a matter of law or in the alternative to alter or amend the judgment or for a new trial. On March 4, 2022, the court entered its memorandum opinion and order on the motion reducing the jury award to a total of $1.8 million, including pre-judgment interest, and also vacated and set aside, in its entirety, the jury award of damages for inconvenience and aggravation. The same day, the court entered the judgment in accordance with the memorandum opinion and order.

On April 1, 2022, we filed a notice of appeal with the U.S. Court of Appeals for the Fourth Circuit. On July 20, 2023, the court rendered a decision reinstating the jury’s $7.7 million verdict. The court further determined that we are entitled to attorney’s fees in an amount to be determined on remand. Finally, the court held that we are entitled to damages for inconvenience and aggravation but remanded for a new trial on the amount of such damages after affirming that the original $25 million award was excessive. On August 3, 2023, the Defendants-Appellees filed a Petition of Rehearing and Rehearing En Banc with the Fourth Circuit. The petition was denied by order dated August 15, 2023. On August 29, 2023, the court clarified that the amount of attorney’s fees to be determined on remand included appellate fees. On September 8, 2023, the court entered its amended judgment, which awarded post-judgment interest on the previously awarded and reinstated verdict related to contract (compensatory) damages and the Fourth Circuit thereafter issued its mandate on October 2, 2023. The matter is now pending before the District Court for a new trial on damages for inconvenience and aggravation as well as the court’s determination and award of attorney’s fees.

The defendants fully paid the portion of the judgment related to contract (compensatory) damages in the court’s order, which was received by the Company subsequent to the date of the financial statements, and that portion of the matter is considered closed. The Company recognized a $7.8 million gain in the third quarter of 2023, which was recorded in other income and other current assets. The Company determined the full amount to be realizable as of September 30, 2023 under the accounting guidance for contingencies based on the reinstated verdict above and acknowledgement received from the counterparty prior to the date of the financial statements.

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Note 8 - Revenue

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

REVENUE.

NOTE 8—REVENUE

Our revenue is derived from contracts for the sale of coal and is recognized when the performance obligations under the contract are satisfied, which is at the point in time control is transferred to our customer. Generally, domestic sales contracts have terms of about one year and the pricing is typically fixed. Export sales have spot or term contracts, and pricing can be either fixed or derived against index-based pricing mechanisms. Sales completed with delivery to an export terminal are reported as export revenue.

Disaggregated information about our revenue is presented below:

	Three months ended September 30,				Nine months ended September 30,
(In thousands)	2023		2022		2023		2022
Coal Sales
North American revenue	$	75,143	$	78,442	$	168,571	$	231,365
Export revenue, excluding Canada		111,823		58,483		322,224		199,096
Total revenue	$	186,966	$	136,925	$	490,795	$	430,461

As of September 30, 2023, the Company had outstanding performance obligations of approximately 1.5 million tons for contracts with fixed sales prices averaging $177 per ton, excluding freight, and 0.4 million tons for contracts with index-based pricing mechanisms. For contracts with fixed sales prices, 0.4 million tons are expected to be satisfied in the fourth quarter of 2023 having an average sales price of $197 per ton, excluding freight, and 1.1 million tons are expected to be satisfied in 2024 having an average sales price of $169 per ton, excluding freight. For contracts with index-based pricing, 0.4 million tons are expected to be satisfied in the fourth quarter of 2023. Variable amounts, including index-based prices, have not been estimated for the purpose of disclosing remaining performance obligations as permitted under the revenue recognition guidance when variable consideration is allocated entirely to a wholly unsatisfied performance obligation.

Concentrations—During the three months ended September 30, 2023, sales to our top three customers accounted for approximately 52% of our total revenue. During the nine months ended September 30, 2023, sales to our top four customers accounted for approximately 55% of our total revenue. During the three months ended September 30, 2022, sales to our top four customers accounted for approximately 56% of total revenue. During the nine months ended September 30, 2022, sales to our top two customers accounted for approximately 40% of total revenue. The number of customers comprising the concentrations above is based on a threshold of 10% or more of total revenues. Three

customers with individual accounts receivable balances equal to 10% or more of total accounts receivable made up approximately 72% of the Company’s accounts receivable balance at September 30, 2023.

Segments—CORE represents a separate operating segment and has economic and geographic differences compared to the Company’s metallurgical operations in the Appalachian basin; however, CORE does not meet the significance tests for separate disclosure as a reportable segment at this time. In addition, reconciling items of the metallurgical coal segment to the Company’s consolidated results are not yet material. CORE royalty and infrastructure fees disclosed in Note 6 are primarily intracompany transactions eliminated upon consolidation and are not included in the disaggregated revenue table above.

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Note 9 - Income Taxes

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

INCOME TAXES

NOTE 9—INCOME TAXES

Income tax provisions for interim periods are generally based on an estimated annual effective income tax rate calculated separately from the effect of significant, infrequent, or unusual items related specifically to interim periods. The income tax impacts of discrete items are recognized in the period these occur.

Our effective tax rate for the three months ended September 30, 2023 and September 30, 2022 was 22.0% and 20%, respectively, excluding discrete items. Our effective tax rate for the nine months ended September 30, 2023 and September 30, 2022 was 20.5% and 21.9%, respectively, excluding discrete items. The primary difference from the federal statutory rate of 21% in each period is related to state taxes, non-deductible expenses, the foreign-derived intangible income deduction, and depletion expense for income tax purposes.

In addition, the Company received an income tax refund of $11.8 million in the third quarter of 2023, which drove the decrease in prepaid expenses and other current assets on the balance sheet compared to December 31, 2022.

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Note 10 - Earnings Per Share

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

EARNINGS PER SHARE

NOTE 10—EARNINGS PER SHARE

Earnings per share (“EPS”) is not presented retrospectively for periods prior to the issuance of the tracking stock as the tracking stock was not a part of the Company’s capital structure during those periods and the issuance of the tracking stock changes the common shareholders’ relative residual interest in the Company. Therefore, EPS is presented for the Company’s single class of common stock up to the time the tracking stock was issued. EPS is presented prospectively under the two-class method starting on the date of initial distribution of the tracking stock. Refer to Note 6 for information related to the Company’s tracking stock.

The computation of basic and diluted EPS is shown on the following page:

(In thousands, except per share amounts)	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Earnings attribution
Single class of common stock (through 6/20/2023) *	$	N/A	$	26,905	$	31,382	$	101,656
Class A common stock (6/21/2023 - 9/30/2023)		17,288		—		18,616		—
Class A restricted stock awards (6/21/2023 - 9/30/2023)		721		—		824		—
Class B common stock (6/21/2023 - 9/30/2023)		1,395		—		1,395		—
Class B restricted stock awards (6/21/2023 - 9/30/2023)		58		—		58		—
Net income	$	19,462	$	26,905	$	52,275	$	101,656
* Common stock and restricted stock participated in earnings 1:1 and are shown on a combined basis through 6/20/2023 consistent with historical presentation
	Three months ended September 30,				Jan. 1 - June 20,		Jan. 1 - Sept. 30,
	2023		2022		2023		2022
EPS data for single class of common stock through 6/20/2023
Numerator
Net earnings	$	N/A	$	26,905	$	31,382	$	101,656
Denominator
Weighted average shares used to compute basic earnings per share *		N/A		44,085		44,344		44,179
Dilutive effect of stock option awards		N/A		458		381		560
Dilutive effect of restricted stock units		N/A		—		—		8
Dilutive effect of performance stock units		N/A		—		27		—
Weighted average shares used to compute diluted earnings per share		N/A		44,543		44,752		44,747
Earnings per common share (single class of common stock)
Basic	$	N/A	$	0.61	$	0.71	$	2.30
Diluted	$	N/A	$	0.60	$	0.70	$	2.27
	Three months ended September 30, 2023				June 21, 2023 - September 30, 2023
	Class A		Class B		Class A		Class B
EPS data for dual-class common stock 6/21/2023 - 9/30/2023
Numerator
Net earnings	$	17,288	$	1,395	$	18,616	$	1,395
Denominator
Weighted average shares used to compute basic earnings per share **		42,144		8,432		42,044		8,412
Dilutive effect of stock option awards		352		103		339		97
Dilutive effect of restricted stock units		85		49		62		41
Dilutive effect of performance stock units		302		102		263		92
Weighted average shares used to compute diluted earnings per share		42,883		8,686		42,708		8,642
Earnings per common share (dual-class structure)
Basic	$	0.41	$	0.17	$	0.44	$	0.17
Diluted	$	0.40	$	0.16	$	0.44	$	0.16
** Does not include unvested restricted stock, which averaged 1.8 million and 0.4 million for Class A and Class B, respectively, for the third quarter of 2023 and 1.9 million and 0.4 million for Class A and Class B, respectively, for the period June 21, 2023 through September 30, 2023

Unvested restricted stock awards have the right to receive nonforfeitable dividends on the same basis as common shares; therefore, unvested restricted stock is considered a participating security for the purpose of calculating EPS. Historically, the Company has shown EPS for its common stock and unvested restricted stock on a combined basis since both instruments participate on the same basis and the resulting EPS is typically the same. Starting under the two-class method, the Company reports separately the net earnings allocated away from holders of Class A and Class B common stock to holders of unvested restricted stock awards.

For accounting purposes, Class B’s participation rights are, in substance, discretionary based on the power of the Company’s Board of Directors to add or modify expense allocation policies, redefine CORE assets, and redetermine CORE’s per-ton usage fees at any time, in its sole discretion, without shareholder approval. Therefore, no amount of the Company’s net earnings shall be allocated to Class B for the purpose of calculating EPS other than actual dividends declared during the period for the tracking stock. Refer to Note 6 for information regarding dividends declared on Class B common stock.

Diluted EPS was calculated using the treasury stock method for stock options and restricted stock units. For performance stock units, the awards were first evaluated under the contingently issuable shares guidance, which requires a determination as to whether shares would be issuable if the end of the reporting period were the end of the contingency period. For shares determined to be issuable under performance stock unit awards, the treasury stock method was then applied to determine the dilutive impact of the awards, if any. Unvested restricted stock awards are considered potential common shares as well as participating securities, as discussed previously, and were included in diluted EPS using the more dilutive of the treasury stock method or the two-class method. Since these awards share in dividends on a 1:1 basis with common shares, applying the treasury stock method was antidilutive compared to the basic EPS calculation that allocates earnings to participating securities under the two-class method discussed previously.

Diluted EPS for the period from January 1, 2023 through June 20, 2023, the period for which a single class of common stock existed, excluded all outstanding restricted stock units, or 684,151 units in total, because the effect would have been antidilutive under the treasury stock method. In addition, diluted EPS for the same period excluded outstanding performance stock units originally granted in 2022, or 248,706 units at target, based on the guidance for contingently issuable shares, which requires exclusion when shares would not be issuable if the end of the reporting period were the end of the contingency period.

For the third quarter of 2023 and the period from June 21,2023 through September 30, 2023, diluted EPS for Class A common stock excluded 165,803 RSUs because the effect would have been antidilutive under the treasury stock method. Class A diluted EPS for these periods also excluded outstanding performance stock units originally granted in 2022, or approximately 153,452 units if September 30, 2023 were the end of the contingency period, because the effect would have been antidilutive under the treasury stock method. The same performance stock unit awards, or 248,706 units at target, were excluded in the previous reporting period based on the guidance for contingently issuable shares. In addition, the Company’s ability to convert Class B common shares into Class A common shares, as discussed previously in Note 6, is a contingency that will not be reflected in the diluted EPS for Class A under the if-converted method until such time that the required Board resolutions occur, if ever.

For the third quarter of 2023 and the period from June 21, 2023 through September 30, 2023, diluted EPS for Class B common stock excluded certain performance stock units, or approximately 30,688 units if September 30, 2023 were the end of the contingency period, because the effect would have been antidilutive under the treasury stock method. The same awards, or 49,737 units at target, were excluded in the previous reporting period based on the guidance for contingently issuable shares.

Diluted EPS for the single class of common stock in the third quarter of 2022 excluded 248,706 RSUs because the effect would have been antidilutive under the treasury stock method and 248,706 performance stock units, at target, based on the guidance for contingently issuable shares. The performance stock units were excluded from diluted EPS for the single class of common stock for the nine months ended September 30, 2022 as well.

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Note 11 - Related Party Transactions

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

RELATED PARTY TRANSACTIONS

NOTE 11—RELATED PARTY TRANSACTIONS

Ramaco Coal Deferred Purchase Price—As part of the financing of the acquisition of Ramaco Coal that occurred in the second quarter of 2022, the Company incurred interest expense of $0.4 million and $1.7 million for the three months and nine months ended September 30, 2023, respectively. The Company incurred interest expense of $1.1 million and $2.0 million for the three months and nine months ended September 30, 2022, respectively. In addition, the Company paid down $30.0 million of its related-party debt during the first nine months of 2023, leaving a balance of $10.0 million at September 30, 2023.

Mineral Lease and Surface Rights Agreements—Prior to the acquisition of Ramaco Coal, much of the coal reserves and surface rights that we control were acquired through a series of mineral leases and surface rights agreements with Ramaco Coal, who was a related party. Royalties paid to Ramaco Coal in 2022 prior to the acquisition totaled $3.1 million.

Administrative Services—Also prior to the acquisition of Ramaco Coal, the Company and Ramaco Coal agreed to share the services of certain of each company’s employees pursuant to a mutual service agreement. Charges to Ramaco Coal in 2022 prior to the acquisition totaled $44 thousand related to this arrangement.

Legal Services—Some of the professional legal services we receive are provided by Jones & Associates (“Jones”), a related party. Legal services payable to Jones totaled $0.6 million at September 30, 2023 and were included in accrued liabilities on the balance sheet. There were no legal fees incurred for Jones during the three months and nine months ended September 30, 2023. Legal fees incurred for Jones during the three months and nine months ended September 30, 2022 were zero and $0.8 million, respectively.

Other Professional Services—The Company has also entered into professional services agreements with two other related parties, neither of which has resulted in material activity at this time.

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Note 12 - Subsequent Events

9 Months Ended

Sep. 30, 2023

Notes To Financial Statements

SUBSEQUENT EVENTS

NOTE 12—SUBSEQUENT EVENTS

On October 16, 2023, the Company announced that its Board of Directors declared quarterly cash dividends of $0.125 per share of Class A common stock and $0.249 per share of Class B common stock. The Class B dividend was based on 20% of CORE royalty and infrastructure fees for the third quarter of 2023. Both dividends are to be paid on December 15, 2023 to shareholders of record on December 1, 2023.

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Note 1 - Business and Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2023

Summary of Significant Accounting Policies.

Basis of Presentation

Basis of Presentation—These interim financial statements are unaudited and have been prepared pursuant to the rules and regulations of the SEC regarding interim financial reporting. Certain disclosures have been condensed or omitted from these financial statements. Accordingly, they do not include all the information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022.

In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company’s financial position as of September 30, 2023, as well as the results of operations and cash flows for all periods presented. In preparing the accompanying financial statements, management has made certain estimates and assumptions that affect reported amounts in the condensed consolidated financial statements and disclosures of contingencies. Actual results may differ from those estimates. The results for interim periods are not necessarily indicative of annual results. Intercompany balances and transactions between consolidated entities have been eliminated.

There were no material changes to the Company’s significant accounting policies during the nine months ended September 30, 2023.

Recent Accounting Pronouncements

Recent Accounting Pronouncements—In October 2023, subsequent to the date of the Company’s financial statements, the FASB issued Accounting Standards Update No. 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”). The amendments in ASU 2023-06 clarify or improve disclosure and presentation requirements for a variety of topics, including debt and earnings per share. The effective date for each amendment in ASU 2023-06 will be the effective date of the SEC’s removal of that related disclosure from existing SEC regulations, and each amendment should be applied prospectively after its effective date. Although the Company is still evaluating this guidance, we do not expect a material impact to our disclosures since the Company is already subject to existing SEC disclosure requirements.

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Note 2 - Inventories (Tables)

9 Months Ended

Sep. 30, 2023

Inventories.

Summary of inventories

Inventories consisted of the following:

(In thousands)	September 30, 2023		December 31, 2022
Raw coal	$	27,334	$	22,414
Saleable coal		17,645		18,223
Supplies		5,263		4,336
Total inventories	$	50,242	$	44,973

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Note 3 - Property, Plant and Equipment (Tables)

9 Months Ended

Sep. 30, 2023

Property, Plant and Equipment.

Schedule of property, plant, and equipment

(In thousands)	September 30, 2023		December 31, 2022
Plant and equipment	$	276,813	$	232,885
Mining property and mineral rights		120,532		120,760
Construction in process		17,554		34,698
Capitalized mine development costs		168,646		153,436
Less: accumulated depreciation, depletion, and amortization		(126,833)		(111,937)
Total property, plant and equipment, net	$	456,712	$	429,842

Schedule of depreciation and amortization

	Three months ended September 30,				Nine months ended September 30,
(In thousands)	2023		2022		2023		2022
Depreciation of plant and equipment	$	8,063	$	5,903	$	22,492	$	15,928
Amortization of right of use assets (finance leases)		2,432		1,710		6,312		3,806
Amortization and depletion of capitalized
mine development costs and mineral rights		3,948		3,822		11,046		10,164
Total depreciation, depletion, and amortization	$	14,443	$	11,435	$	39,850	$	29,898

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Note 4 - Debt (Tables)

9 Months Ended

Sep. 30, 2023

Debt

Schedule of outstanding debt

Outstanding debt consisted of the following:

(In thousands)	September 30, 2023		December 31, 2022
Revolving Credit Facility	$	43,500	$	25,000
Equipment loans		4,872		8,396
Senior Notes, net		33,178		32,830
Financing of Ramaco Coal acquisition - Related party debt		10,000		40,000
Financing of Maben Coal acquisition		13,800		21,000
Total debt	$	105,350	$	127,226
Current portion of long-term debt		38,015		75,639
Long-term debt, net	$	67,335	$	51,587

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Note 6 - Equity (Tables)

9 Months Ended

Sep. 30, 2023

Stockholders' Equity

Schedule of CORE financial performance

	Three months ended September 30,		Three months ended June 30,
(In thousands)	2023		2023
Royalties
Ramaco Coal	$	3,572	$	1,351
Amonate Assets		614		752
Other		13		—
Total Royalties	$	4,199	$	2,103
Infrastructure Fees
Preparation Plants (Processing at $5.00/ton)	$	4,521	$	3,433
Rail Load-outs (Loading at $2.50/ton)		2,202		1,726
Total Infrastructure Fees (at $7.50/ton)	$	6,723	$	5,159
CORE Royalty and Infrastructure Fees	$	10,922	$	7,262
Total Cash Available for Dividend for Class B Common Stock	$	10,922	$	7,262
20% of Cash Available for Dividend for Class B Common Stock	$	2,184	$	1,452

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Note 8 - Revenue (Tables)

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Schedule of disaggregation of revenue

	Three months ended September 30,				Nine months ended September 30,
(In thousands)	2023		2022		2023		2022
Coal Sales
North American revenue	$	75,143	$	78,442	$	168,571	$	231,365
Export revenue, excluding Canada		111,823		58,483		322,224		199,096
Total revenue	$	186,966	$	136,925	$	490,795	$	430,461

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Note 10 - Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2023

Notes Tables

Schedule computation of basic and diluted EPS

(In thousands, except per share amounts)	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Earnings attribution
Single class of common stock (through 6/20/2023) *	$	N/A	$	26,905	$	31,382	$	101,656
Class A common stock (6/21/2023 - 9/30/2023)		17,288		—		18,616		—
Class A restricted stock awards (6/21/2023 - 9/30/2023)		721		—		824		—
Class B common stock (6/21/2023 - 9/30/2023)		1,395		—		1,395		—
Class B restricted stock awards (6/21/2023 - 9/30/2023)		58		—		58		—
Net income	$	19,462	$	26,905	$	52,275	$	101,656
* Common stock and restricted stock participated in earnings 1:1 and are shown on a combined basis through 6/20/2023 consistent with historical presentation
	Three months ended September 30,				Jan. 1 - June 20,		Jan. 1 - Sept. 30,
	2023		2022		2023		2022
EPS data for single class of common stock through 6/20/2023
Numerator
Net earnings	$	N/A	$	26,905	$	31,382	$	101,656
Denominator
Weighted average shares used to compute basic earnings per share *		N/A		44,085		44,344		44,179
Dilutive effect of stock option awards		N/A		458		381		560
Dilutive effect of restricted stock units		N/A		—		—		8
Dilutive effect of performance stock units		N/A		—		27		—
Weighted average shares used to compute diluted earnings per share		N/A		44,543		44,752		44,747
Earnings per common share (single class of common stock)
Basic	$	N/A	$	0.61	$	0.71	$	2.30
Diluted	$	N/A	$	0.60	$	0.70	$	2.27
	Three months ended September 30, 2023				June 21, 2023 - September 30, 2023
	Class A		Class B		Class A		Class B
EPS data for dual-class common stock 6/21/2023 - 9/30/2023
Numerator
Net earnings	$	17,288	$	1,395	$	18,616	$	1,395
Denominator
Weighted average shares used to compute basic earnings per share **		42,144		8,432		42,044		8,412
Dilutive effect of stock option awards		352		103		339		97
Dilutive effect of restricted stock units		85		49		62		41
Dilutive effect of performance stock units		302		102		263		92
Weighted average shares used to compute diluted earnings per share		42,883		8,686		42,708		8,642
Earnings per common share (dual-class structure)
Basic	$	0.41	$	0.17	$	0.44	$	0.17
Diluted	$	0.40	$	0.16	$	0.44	$	0.16
** Does not include unvested restricted stock, which averaged 1.8 million and 0.4 million for Class A and Class B, respectively, for the third quarter of 2023 and 1.9 million and 0.4 million for Class A and Class B, respectively, for the period June 21, 2023 through September 30, 2023

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Note 2 - Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Inventories
Raw coal	$ 27,334	$ 22,414
Saleable coal	17,645	18,223
Supplies	5,263	4,336
Total inventories	$ 50,242	$ 44,973

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Note 3 - Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Property, plant, and equipment
Less: accumulated depreciation, depletion, and amortization	$ (126,833)	$ (111,937)
Total property, plant and equipment, net	456,712	429,842
Plant and equipment
Property, plant, and equipment
Property, plant and equipment, gross	276,813	232,885
Mining property and mineral rights
Property, plant, and equipment
Property, plant and equipment, gross	120,532	120,760
Construction in process
Property, plant, and equipment
Property, plant and equipment, gross	17,554	34,698
Capitalized mine development costs
Property, plant, and equipment
Property, plant and equipment, gross	$ 168,646	$ 153,436

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Note 3 - Property, Plant and Equipment - Depreciation and amortization (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Property, Plant and Equipment.
Depreciation of plant and equipment	$ 8,063	$ 5,903	$ 22,492	$ 15,928
Amortization of right of use assets (finance leases)	2,432	1,710	6,312	3,806
Amortization and depletion of capitalized mine development costs and mineral rights	3,948	3,822	11,046	10,164
Total depreciation, depletion, and amortization	$ 14,443	$ 11,435	$ 39,850	$ 29,898

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Note 3 - Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Property, plant, and equipment
Proceeds from insurance for methane ignition on mine	$ 6,000
Gain on Insurance Recovery	4,900
Accrued loss recovery asset		$ 1,100
Decrease decrease to capitalized mine development costs and a corresponding decrease to the Company's asset retirement obligations liabilities	1,300
Current liabilities	142,506	$ 162,845
Capitalized mine development costs
Property, plant, and equipment
Noncurrent liabilities	1,400
Current liabilities	$ 100

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Note 4 - Debt - Summary of Outstanding Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Total debt	$ 105,350	$ 127,226
Current portion of long-term debt	38,015	75,639
Long-term debt, net	67,335	51,587
Revolving Credit Facility
Total debt	43,500	25,000
Current portion of long-term debt	14,000
Equipment loans
Total debt	4,872	8,396
Current portion of long-term debt	4,400
Senior Notes, net
Total debt	33,178	32,830
Financing of Ramaco Coal acquisition - Related party debt
Total debt	10,000	40,000
Maben Coal LLC
Total debt	13,800	$ 21,000
Current portion of long-term debt	$ 9,600

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Note 4 - Debt (Details) - USD ($) $ in Thousands	Feb. 15, 2023	Sep. 30, 2023	Dec. 31, 2022
Debt
Current portion of long-term debt		$ 38,015	$ 75,639
Revolving Credit Facility
Debt
Current portion of long-term debt		14,000
Related Party Debt
Debt
Current portion of long-term debt		10,000
Financing of Maben Coal acquisition
Debt
Current portion of long-term debt		9,600
Equipment loans
Debt
Current portion of long-term debt		4,400
Revolving Credit Facility
Debt
Initial aggregate revolving commitment amount	$ 125,000
Accordion feature	$ 50,000
Amount of remaining availability		55,300
Borrowing base		98,800
Outstanding borrowings		43,500
Revolving Credit Facility | Secured overnight financing rate
Debt
Interest rate, basis spread	2.00%
Revolving Credit Facility | Base Rate
Debt
Interest rate, basis spread	1.50%
Revolving Credit Facility | Base Rate | Minimum
Debt
Effective interest rate	0.50%
Revolving Credit Facility | Base Rate | Maximum
Debt
Effective interest rate	3.00%
Senior Notes, net
Debt
Estimated fair value		$ 35,500	$ 36,300

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Note 5 - Accrued Liabilities and Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Accrued liabilities	$ 46,485	$ 41,806
Estimated aggregate liability	4,900	3,600
Restricted cash	900	900
Other long-term liabilities
Estimated aggregate liability	$ 3,200	$ 2,700

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Note 6 - Equity - Common Stock (Details) $ / shares in Units, $ in Millions			3 Months Ended
	Jun. 21, 2023 $ / shares shares	Jun. 12, 2023 Vote D $ / shares	Sep. 30, 2023 $ / shares $ / T	Jun. 30, 2023 USD ($) $ / T	Jun. 30, 2022 $ / T	Dec. 31, 2022 $ / shares
Class of Stock [Line Items]
Common stock, par value (in dollars per share)			$ 0.01			$ 0.01
Percent of royalty fee income					3.00%
Price per ton of coal processed at preparation plants | $ / T			5.00	5.00	5.00
Price per ton of loaded coal at rail load-out facilities | $ / T			2.50	2.50	2.50
Percentage dividend from financial performance of carbon			20	20	20
Threshold trading days volume weighted average price | D		20
Dividend per share of tracking stock	$ 11.00
Retained Earnings (Deficit)
Class of Stock [Line Items]
Adjustments relating to restructuring of equity | $				$ (102.9)
Additional Paid-in Capital.
Class of Stock [Line Items]
Adjustments relating to restructuring of equity | $				$ 102.9
Class A Common Stock
Class of Stock [Line Items]
Common stock, par value (in dollars per share)		$ 0.01	$ 0.01
Number of votes per common share | Vote		1
Class B Common Stock
Class of Stock [Line Items]
Common stock, par value (in dollars per share)		$ 0.01	$ 0.01
Distribution ratio	0.2
Percentage dividend from financial performance of carbon			20	20
Number of votes per common share | Vote		1
Number of shares issued | shares	8,201,956
Class B Common Stock | Common Stock
Class of Stock [Line Items]
Adjustments relating to restructuring of equity | $				$ 102.9

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Note 6 - Equity - Summary of Restricted Awards Activity (Details)												3 Months Ended					9 Months Ended
	Sep. 15, 2023 USD ($) $ / shares	Jun. 21, 2023 USD ($) shares	Jun. 15, 2023 USD ($) $ / shares	Mar. 15, 2023 USD ($) $ / shares	Dec. 15, 2022 $ / shares	Dec. 08, 2022 $ / shares	Sep. 28, 2022 $ / shares	Sep. 15, 2022 USD ($) $ / shares	Jun. 15, 2022 USD ($) $ / shares	Mar. 15, 2022 $ / shares	Feb. 18, 2022 USD ($)	Sep. 30, 2023 USD ($) shares	Jun. 30, 2023 shares	Mar. 31, 2023 USD ($) $ / shares shares	Sep. 30, 2022 USD ($)	Jun. 30, 2022	Sep. 30, 2023 USD ($) shares	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Compensation costs | $												$ 3,200,000			$ 2,000,000.0		$ 9,700,000	$ 6,200,000
Distribution ratio for outstanding award		0.2
Changes in fair value | $		$ 0
Incremental compensation costs associated with modifications | $		$ 0
Dividend declared | $ / shares						$ 0.125	$ 0.11
Dividend accrued not paid | $											$ 2,500,000			$ 354,000
Dividend payable | $			$ 5,600,000	$ 5,600,000				$ 5,000,000.0	$ 5,000,000.0		$ 5,000,000.0	$ 733,000			$ 4,994,000		733,000	4,994,000	$ 5,500,000
Dividends paid | $ / shares			$ 0.125	$ 0.125	$ 0.11			$ 0.11	$ 0.11	$ 0.11
Payment of dividends | $																	$ 18,000,000.0	$ 15,000,000.0
Percentage dividend from financial performance of carbon												20	20			20
Class A Common Stock
Dividend payable | $	$ 5,500,000
Dividends paid | $ / shares	$ 0.125
Class B Common Stock
Number of shares issued		473,707
Dividends paid amount | $	$ 1,500,000
Dividends paid | $ / shares	$ 0.165
Percentage dividend from financial performance of carbon												20	20
Restricted Stock
Fair value of awards | $														$ 2,500,000
Vesting period														3 years
Restricted Stock | Class A Common Stock
Outstanding, shares (in shares)												1,900,000
Outstanding, shares (in shares)												1,800,000	1,900,000				1,800,000
Restricted Stock | Class B Common Stock
Outstanding, shares (in shares)												400,000					400,000
Shares in restricted stock		680,718
Restricted Stock Units
Granted, shares (in shares)														518,348
Granted, Weighted average grant date fair value (in dollars per share) | $ / shares														$ 10.61
Fair value of awards | $														$ 5,500,000
Vesting period														3 years
Delivery Period														30 days
Shares delivered per unit awarded														1
Restricted Stock Units | Class B Common Stock
Granted, shares (in shares)		136,819
Performance Stock Units
Vesting period														3 years
Delivery Period														30 days
Performance Stock Units | Class B Common Stock
Granted, shares (in shares)		153,404
Employee Stock Option [Member] | Class B Common Stock
Options granted		183,484
Executives and Employees | Restricted Stock
Granted, shares (in shares)														296,115
Granted, Weighted average grant date fair value (in dollars per share) | $ / shares														$ 10.61
Executives and Employees | Performance Stock Units
Granted, shares (in shares)														518,348
Granted, Weighted average grant date fair value (in dollars per share) | $ / shares														$ 18.09
Fair value of awards | $														$ 9,400,000
Vesting period														3 years
Shares delivered per unit awarded														1
Executives and Employees | Performance Stock Units | Minimum
Potential earnings (as a percentage)														0.00%
Executives and Employees | Performance Stock Units | Maximum
Potential earnings (as a percentage)														200.00%
Executives and Employees | Performance Stock Units Granted in 2022
Granted, shares (in shares)														248,706
Fair value of awards | $																	$ 1,200,000
Directors | Restricted Stock
Fair value of awards | $														$ 600,000

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Note 6 - Equity - Dividends (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2023 USD ($) $ / T	Jun. 30, 2023 USD ($) $ / T	Jun. 30, 2022 $ / T
Royalty Revenue	$ 4,199	$ 2,103
Infrastructure Revenue	6,723	5,159
CORE Revenue	$ 10,922	$ 7,262
Price per ton of coal processed at preparation plants | $ / T	5.00	5.00	5.00
Price per ton of loaded coal at rail load-out facilities | $ / T	2.50	2.50	2.50
Price per ton of infrastructure revenue | $ / T	7.50	7.50
Percentage dividend from financial performance of carbon	20	20	20
Class B Common Stock
Total Cash Available for Dividend for Class B Common Stock	$ 10,922	$ 7,262
20% of Cash Available for Dividend for Class B Common Stock	$ 2,184	$ 1,452
Percentage dividend from financial performance of carbon	20	20
Ramaco Coal
Royalty Revenue	$ 3,572	$ 1,351
Amonate Assets
Royalty Revenue	614	752
Other Royalty
Royalty Revenue	13
Preparation Plants
Infrastructure Revenue	4,521	3,433
Rail Load-outs
Infrastructure Revenue	$ 2,202	$ 1,726

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Note 7 - Commitments and Contingencies (Details) $ in Millions						3 Months Ended		9 Months Ended
	Jul. 20, 2023 USD ($)	Mar. 04, 2022 USD ($)	Jul. 16, 2021 USD ($)	Jul. 15, 2021 USD ($)	Nov. 05, 2018 item	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)
COMMITMENTS AND CONTINGENCIES
Royalty Expense						$ 9.0	$ 8.1	$ 25.0	$ 25.3
Compensatory damages	$ 7.7	$ 1.8		$ 7.7
Award to cover inconvenience and aggravation	$ 25.0		$ 25.0
Accrued amount						0.0		0.0
Resolution of a contingency						7.8		7.8
Number of raw coal storage silos, failure | item					1
Number of raw coal storage silos | item					3
Percentage of structural failure					80.00%
Gain recorded from contingency						7.8		7.8
Surety Bond
COMMITMENTS AND CONTINGENCIES
Asset Retirement Obligation						28.2		28.2
Take-or-pay Purchase Commitments
COMMITMENTS AND CONTINGENCIES
Amount of contingent liability						0.0		0.0
Commitment						21.1		21.1
Total commitment								$ 28.9
Commitment term								5 years
Environmental
COMMITMENTS AND CONTINGENCIES
Environmental liabilities						$ 0.0		$ 0.0

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Note 8 - Revenue (Details) T in Millions	9 Months Ended
	Sep. 30, 2023 T $ / T
REVENUES
Term of domestic sales contracts	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
REVENUES
Average per ton | $ / T	197
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
REVENUES
Outstanding performance obligation, mass	1.1
Average per ton | $ / T	169
Contracts with Indexed Based Pricing Mechanisms
REVENUES
Outstanding performance obligation, mass	0.4
Contracts with Indexed Based Pricing Mechanisms | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
REVENUES
Outstanding performance obligation, mass	0.4
Fixed Priced Contracts
REVENUES
Outstanding performance obligation, mass	1.5
Average per ton | $ / T	177
Fixed Priced Contracts | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
REVENUES
Outstanding performance obligation, mass	0.4

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Note 8 - Revenue - Domestic Revenues an Export Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
REVENUES
Revenues	$ 186,966	$ 136,925	$ 490,795	$ 430,461
Domestic Coal Revenues
REVENUES
Revenues	75,143	78,442	168,571	231,365
Export Revenues
REVENUES
Revenues	$ 111,823	$ 58,483	$ 322,224	$ 199,096

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Note 8 - Revenue - Concentrations (Details) - Customer Concentration Risk - customer	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue Benchmark
Concentrations
Number of Major Customers	3	4	4	2
Revenue Benchmark | Top Customers [Member]
Concentrations
Concentration Risk, Percentage	52.00%	56.00%	55.00%	40.00%
Accounts Receivable.
Concentrations
Number of Major Customers			3
Accounts Receivable. | Top Customers [Member]
Concentrations
Concentration Risk, Percentage			72.00%

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Note 9 - Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Taxes.
Effective Income Tax Rate Reconciliation, Percent, Total	22.00%	20.00%	20.50%	21.90%
Statutory rate			21.00%
Income tax refund	$ 11.8		$ 11.8

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Note 10 - Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Details) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended							6 Months Ended	9 Months Ended
	Jun. 30, 2023 USD ($) shares	Jun. 20, 2023 shares	Sep. 30, 2023 USD ($) $ / shares shares	Sep. 30, 2023 USD ($) $ / shares shares	Jun. 30, 2023 USD ($) shares	Mar. 31, 2023 USD ($)	Sep. 30, 2022 USD ($) $ / shares shares	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Jun. 20, 2023 USD ($) $ / shares shares	Sep. 30, 2023 USD ($) item $ / shares shares	Sep. 30, 2022 USD ($) $ / shares shares
EARNINGS PER SHARE
Net income | $			$ 19,462		$ 7,556	$ 25,257	$ 26,905	$ 33,280	$ 41,471	$ 31,382	$ 52,275	$ 101,656
Weighted average shares used to compute basic EPS (in shares)							44,085,000			44,344,000		44,179,000
Weighted average shares used to compute diluted EPS (in shares)							44,543,000			44,752,000		44,747,000
Basic (in dollars per share) | $ / shares			$ 0.41				$ 0.61			$ 0.71	$ 1.15	$ 2.30
Diluted (in dollars per share) | $ / shares			$ 0.40				$ 0.60			$ 0.70	$ 1.14	$ 2.27
Ratio of participation in earnings for common stock and preferred stock										1
Share in dividends for unvested restricted stock awards with common shares | item											1
Restricted Stock Units
EARNINGS PER SHARE
Antidilutive shares										684,151
Performance Stock Units
EARNINGS PER SHARE
Antidilutive shares		248,706					248,706			248,706
Employee Stock Option [Member]
EARNINGS PER SHARE
Dilutive effect of stock-based awards (in shares)							458,000			381,000		560,000
Restricted Stock Units
EARNINGS PER SHARE
Dilutive effect of stock-based awards (in shares)												8,000
Antidilutive shares							248,706
Performance Stock Units
EARNINGS PER SHARE
Dilutive effect of stock-based awards (in shares)										27,000
Class A Common Stock
EARNINGS PER SHARE
Net income | $			$ 17,288	$ 18,616
Weighted average shares used to compute basic EPS (in shares)			42,144,000	42,044,000
Weighted average shares used to compute diluted EPS (in shares)			42,883,000	42,708,000
Basic (in dollars per share) | $ / shares			$ 0.41	$ 0.44
Diluted (in dollars per share) | $ / shares			$ 0.40	$ 0.44
Class A Common Stock | Restricted Stock Units
EARNINGS PER SHARE
Antidilutive shares				165,803
Class A Common Stock | Performance Stock Units
EARNINGS PER SHARE
Antidilutive shares				153,452
Class A Common Stock | Employee Stock Option [Member]
EARNINGS PER SHARE
Dilutive effect of stock-based awards (in shares)			352,000	339,000
Class A Common Stock | Restricted Stock
EARNINGS PER SHARE
Unvested restricted stock	1,900,000		1,800,000	1,800,000	1,900,000						1,800,000
Class A Common Stock | Restricted Stock Units
EARNINGS PER SHARE
Dilutive effect of stock-based awards (in shares)			85,000	62,000
Class A Common Stock | Performance Stock Units
EARNINGS PER SHARE
Dilutive effect of stock-based awards (in shares)			302,000	263,000
Class B Common Stock
EARNINGS PER SHARE
Net income | $			$ 1,395	$ 1,395
Weighted average shares used to compute basic EPS (in shares)			8,432,000	8,412,000
Weighted average shares used to compute diluted EPS (in shares)			8,686,000	8,642,000
Basic (in dollars per share) | $ / shares			$ 0.17	$ 0.17
Diluted (in dollars per share) | $ / shares			$ 0.16	$ 0.16
Class B Common Stock | Performance Stock Units
EARNINGS PER SHARE
Antidilutive shares		49,737		30,688
Class B Common Stock | Employee Stock Option [Member]
EARNINGS PER SHARE
Dilutive effect of stock-based awards (in shares)			103,000	97,000
Class B Common Stock | Restricted Stock
EARNINGS PER SHARE
Unvested restricted stock			400,000	400,000							400,000
Class B Common Stock | Restricted Stock Units
EARNINGS PER SHARE
Dilutive effect of stock-based awards (in shares)			49,000	41,000
Class B Common Stock | Performance Stock Units
EARNINGS PER SHARE
Dilutive effect of stock-based awards (in shares)			102,000	92,000
Class A Restricted Stock
EARNINGS PER SHARE
Net income | $			$ 721	$ 824
Class B Restricted Stock
EARNINGS PER SHARE
Net income | $	$ 58			$ 58

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Note 11 - Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Interest expense, net	$ (2,447)	$ (2,255)	$ (7,274)	$ (5,323)
Legal services payable	10,000		10,000		$ 40,000
Jones & Associates
Legal services payable	600		600
Legal Services
Legal services paid	0	0	0	800
Ramaco Coal, LLC
Interest expense, net	400	$ 1,100	1,700	$ 2,000
Due to Related Parties, Total	$ 10,000		10,000
Amount of related party debt paid			$ 30,000
Royalties paid					3,100
Ramaco Coal, LLC | On-Going Administrative Services
Related party fees					$ 44

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Note 12 - Subsequent Events (Details)	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Jun. 30, 2022	Oct. 16, 2023 $ / shares
Subsequent Events
Percentage dividend from financial performance of carbon	20	20	20
Class B Common Stock
Subsequent Events
Percentage dividend from financial performance of carbon	20	20
Subsequent Event | Class A Common Stock
Subsequent Events
Dividend payable per share				$ 0.125
Subsequent Event | Class B Common Stock
Subsequent Events
Dividend payable per share				$ 0.249

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						6 Months Ended	9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 20, 2023	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 19,462	$ 7,556	$ 25,257	$ 26,905	$ 33,280	$ 41,471	$ 31,382	$ 52,275	$ 101,656

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Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false