Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 28, 2023 | Jun. 30, 2022 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 318.8 | ||
Entity Common Stock, Shares Outstanding (in shares) | 44,451,850 | ||
Auditor Name | Crowe LLP | ||
Auditor Firm ID | 2276 | ||
Auditor Location | Houston, Texas | ||
Entity Central Index Key | 0001687187 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Stock, $0.01 par value | |||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | METC | ||
Security Exchange Name | NASDAQ | ||
9.00% Senior Notes due 2026 | |||
Title of 12(b) Security | 9.00% Senior Notes due 2026 | ||
Trading Symbol | METCL | ||
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 35,613 | $ 21,891 |
Accounts receivable | 41,174 | 44,453 |
Inventories | 44,973 | 15,791 |
Prepaid expenses and other | 25,729 | 4,626 |
Total current assets | 147,489 | 86,761 |
Property, plant and equipment, net | 429,842 | 227,077 |
Financing lease right-of-use assets, net | 12,905 | 9,128 |
Advanced coal royalties | 3,271 | 5,576 |
Other | 2,832 | 491 |
Total Assets | 596,339 | 329,033 |
Current liabilities | ||
Accounts payable | 34,825 | 15,346 |
Accrued expenses | 41,806 | 19,410 |
Asset retirement obligations | 29 | 489 |
Current portion of long-term debt | 35,639 | 7,674 |
Current portion of related party debt | 40,000 | |
Current portion of financing lease obligations | 5,969 | 3,461 |
Insurance financing liability | 4,577 | 280 |
Total current liabilities | 162,845 | 46,660 |
Asset retirement obligations | 28,856 | 22,060 |
Long-term debt, net | 18,757 | 3,339 |
Long-term financing lease obligations, net | 4,917 | 4,599 |
Senior notes, net | 32,830 | 32,363 |
Deferred tax liability, net | 35,637 | 6,406 |
Other long-term liabilities | 3,299 | 2,532 |
Total liabilities | 287,141 | 117,959 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued and outstanding | ||
Common stock, $0.01 par value, 260,000,000 shares authorized, 44,155,735 at December 31, 2022 and 44,092,981 at December 31, 2021 shares issued and outstanding | 442 | 441 |
Additional paid-in capital | 168,711 | 163,566 |
Retained earnings | 140,045 | 47,067 |
Total stockholders' equity | 309,198 | 211,074 |
Total Liabilities and Stockholders' Equity | $ 596,339 | $ 329,033 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Consolidated Balance Sheets | ||
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 | 44,092,981 |
Common stock, shares outstanding (in shares) | 44,155,735 | 44,092,981 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Statements of Operations | |||
Revenue | $ 565,688 | $ 283,394 | $ 168,915 |
Costs and expenses | |||
Cost of sales (exclusive of items shown separately below) | 332,960 | 195,412 | 145,503 |
Asset retirement obligations accretion | 1,115 | 615 | 570 |
Depreciation and amortization | 41,194 | 26,205 | 20,912 |
Selling, general and administrative | 40,032 | 21,629 | 21,023 |
Total costs and expenses | 415,301 | 243,861 | 188,008 |
Operating income (loss) | 150,387 | 39,533 | (19,093) |
Other income (expense), net | 2,637 | 7,429 | 11,926 |
Interest expense, net | (6,829) | (2,556) | (1,224) |
Income (loss) before tax | 146,195 | 44,406 | (8,391) |
Income tax expense (benefit) | 30,153 | 4,647 | (3,484) |
Net income (loss) | $ 116,042 | $ 39,759 | $ (4,907) |
Earnings (loss) per common share | |||
Basic | $ 2.63 | $ 0.90 | $ (0.12) |
Diluted | $ 2.60 | $ 0.90 | $ (0.12) |
Weighted average common shares outstanding | |||
Basic weighted average shares outstanding | 44,164 | 43,964 | 42,460 |
Diluted weighted average shares outstanding | 44,702 | 44,257 | 42,460 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital. | Retained Earnings (Deficit) | Total |
Balance at Dec. 31, 2019 | $ 410 | $ 154,957 | $ 14,716 | $ 170,083 |
Restricted stock surrendered for withholding taxes payable | (1) | (220) | (221) | |
Stock-based compensation | 18 | 4,122 | 4,140 | |
Net income (loss) | (4,907) | (4,907) | ||
Balance at Dec. 31, 2020 | 427 | 158,859 | 9,809 | 169,095 |
Restricted stock surrendered for withholding taxes payable | (1) | (538) | (539) | |
Stock-based compensation | 15 | 5,245 | 5,260 | |
Dividends declared | (2,501) | (2,501) | ||
Net income (loss) | 39,759 | 39,759 | ||
Balance at Dec. 31, 2021 | 441 | 163,566 | 47,067 | 211,074 |
Restricted stock surrendered for withholding taxes payable | (2) | (3,181) | (3,183) | |
Stock options exercised | 107 | 107 | ||
Stock-based compensation | 3 | 8,219 | 8,222 | |
Dividends declared | (23,064) | (23,064) | ||
Net income (loss) | 116,042 | 116,042 | ||
Balance at Dec. 31, 2022 | $ 442 | $ 168,711 | $ 140,045 | $ 309,198 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 116,042 | $ 39,759 | $ (4,907) |
Adjustments to reconcile net income to net cash from operating activities: | |||
Accretion of asset retirement obligations | 1,115 | 615 | 570 |
Depreciation and amortization | 41,194 | 26,205 | 20,912 |
Amortization of debt issuance costs | 491 | 214 | 58 |
Stock-based compensation | 8,222 | 5,260 | 4,140 |
Loss on disposal of equipment | 756 | ||
Other income - gain on sale of mineral rights | (2,113) | ||
Other income - employee retention tax credit | (5,407) | ||
Other income - PPP loan | (8,444) | ||
Deferred income taxes | 29,229 | 4,644 | (3,503) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 3,279 | (24,154) | (1,043) |
Prepaid expenses and other current assets | (14,378) | 5,519 | 986 |
Inventories | (29,182) | (3,844) | 3,314 |
Other assets and liabilities | 1,127 | 1,124 | (1,270) |
Accounts payable | 12,727 | (1,820) | 2,753 |
Accrued expenses | 19,361 | 5,225 | (254) |
Net cash provided by operating activities | 187,870 | 53,340 | 13,312 |
Cash flow from investing activities: | |||
Capital expenditures | (123,012) | (29,466) | (24,753) |
Proceeds from sale of mineral rights | 2,000 | ||
Other | (1,061) | ||
Net cash used for investing activities | (145,708) | (59,613) | (24,753) |
Cash flows from financing activities: | |||
Proceeds from PPP Loan | 8,444 | ||
Proceeds from borrowings | 42,000 | 54,368 | 50,043 |
Proceeds from stock options exercised | 107 | ||
Payments of debt issuance cost | (2,356) | ||
Payment of dividends | (20,041) | ||
Repayment of borrowings | (26,026) | (26,300) | (45,598) |
Repayment of Ramaco Coal acquisition financing - related party | (15,000) | ||
Repayments of insurance financing | (1,290) | (862) | (1,382) |
Repayments of equipment finance leases | (5,062) | (1,942) | |
Shares surrendered for withholding taxes payable | (3,183) | (539) | (221) |
Net cash (used for) provided by financing activities | (28,495) | 22,369 | 11,286 |
Net change in cash and cash equivalents and restricted cash | 13,667 | 16,096 | (155) |
Cash and cash equivalents and restricted cash, beginning of period | 22,806 | 6,710 | 6,865 |
Cash and cash equivalents and restricted cash, end of period | 36,473 | 22,806 | 6,710 |
Supplemental cash flow information: | |||
Cash paid for interest | 5,997 | 1,601 | 1,095 |
Cash paid for taxes | 15,500 | 9 | 19 |
Non-cash investing and financing activities: | |||
Leased assets obtained under new financing leases | 7,888 | 10,002 | |
Financed equipment purchases | 6,409 | ||
Capital expenditures included in accounts payable and accrued expenses | 13,404 | 6,652 | 1,228 |
Financed insurance | 5,587 | 280 | $ 1,588 |
Accrued dividends payable | 5,524 | 2,501 | |
Ramaco Coal Asset Acquisition | |||
Cash flow from investing activities: | |||
Acquisition of assets | (11,738) | ||
Non-cash investing and financing activities: | |||
Coal acquisition | 56,551 | ||
Maben Asset Acquisition | |||
Cash flow from investing activities: | |||
Acquisition of assets | (11,897) | ||
Non-cash investing and financing activities: | |||
Coal acquisition | $ 21,000 | ||
Amonate Asset Acquisition | |||
Cash flow from investing activities: | |||
Acquisition of assets | $ (30,147) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Consolidated Statements of Cash Flows | |
Interest capitalized | $ 1,061 |
Note 1 - Description of Busines
Note 1 - Description of Business | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
DESCRIPTION OF BUSINESS | Ramaco Resources, Inc. Notes to Consolidated Financial Statements NOTE 1—DESCRIPTION OF BUSINESS Ramaco Resources, Inc. (“Ramaco”) is a Delaware corporation formed in October 2016. Our principal corporate offices are located in Lexington, Kentucky. We are an operator and developer of high-quality, low-cost metallurgical coal in southern West Virginia, southwestern Virginia, and southwestern Pennsylvania. As used herein, “the Company,” “we,” “us,” “our,” and similar terms include Ramaco Resources, Inc. and its subsidiaries, unless the context indicates otherwise. Our development portfolio primarily includes the following properties: Elk Creek, Berwind, Knox Creek and RAM Mine. 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. In addition, the Company completed acquisitions of Ramaco Coal, LLC (“Ramaco Coal”) and Maben Coal, LLC (“Maben Coal”) in the second and third quarter of 2022, respectively. With the Ramaco Coal acquisition, we control mineral deposits near Sheridan, Wyoming along with facilities that house research and development activities. With the Maben Coal acquisitions, the Company has obtained control of additional coal deposits in Wyoming County and Raleigh County, West Virginia. Our operations include three deep mines and a surface mine at our Elk Creek mining complex (the “Elk Creek Complex”). Development of this complex commenced in 2016 and included construction of a preparation plant and rail load-out facilities. The Elk Creek property consists of approximately 20,200 acres of controlled mineral rights and contains approximately 16 seams that we have targeted for production. The Company commenced expansion of the Elk Creek preparation plant during 2022 to increase production in future periods. Development of our Berwind mining complex (the “Berwind Complex”) began in late-2017. In 2020, we suspended development at the Berwind Complex due to lower pricing and demand largely caused by the COVID-19 outbreak. In early-2021, as pricing and demand improved, Berwind development was restarted. We successfully reached the thicker Pocahontas No. 4 seam in late 2021. In December 2021, we completed the acquisition of “Amonate Assets” from subsidiaries of Coronado Global Resources Inc. (“Coronado”), which include controlled mineral rights and a processing plant located in our Berwind Complex, saving us transportation costs to our Knox Creek plant 26 miles away. The Berwind Complex experienced an ignition event during 2022 that resulted in idling mining operations for one of the active mines. Production from the affected mine restarted in the first quarter of 2023. Our Knox Creek facility includes a preparation plant and controlled mineral rights that we expect to develop in the future. The Knox Creek preparation plant processes coal from our Berwind Complex (until the newly acquired plant at the Berwind Complex is placed into operation) as well as coal mined from the rights acquired in the Maben Coal transaction and coal purchased from third parties. Our RAM Mine property is located in southwestern Pennsylvania and is scheduled for initial production after a mining permit is issued and market conditions warrant development. COVID-19— Russia/Ukraine Conflict products, may have a significant effect on market prices and overall demand for our coal and the cost of supplies and equipment. We are closely monitoring the potential effects on the market. We have no meaningful direct financial exposure to Russia and Ukraine; however, the European Union ban on Russian coal has put upward pressure on international thermal coal prices. In addition, fear of economic contraction may affect future demand for coking coal. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation Use of estimates Revenue Recognition Our coal sales generally include up to 90-day payment terms following the transfer of control of the goods to our customer. In the case of some of our foreign customers, our contracts also require that letters of credit are posted to secure payment of any outstanding receivable. We do not include extended payment terms in our contracts. Our contracts with customers typically provide for minimum specifications or qualities of the coal we deliver. Variances from these specifications or qualities are settled by means of price adjustments. Generally, these price adjustments are settled within 30 days of delivery and are insignificant. Certain of our contracts with customers include provisions in which the price is derived from an index. If control of the goods transfers to the customer in the period before the final price is determined, revenue is recorded based on the estimated consideration to be received. The Company estimates the amount to which it expects to receive by reference to forward curve or other relevant data. These estimates have not been constrained for accounting purposes due to the short period of time over which the uncertainty is resolved. Freight Revenue and Expense Cash and Cash Equivalents Inventories depreciation and amortization. Coal inventory quantities are adjusted periodically based on aerial surveys of coal stockpiles. Supply inventories are valued at average cost. Coal inventories at December 31, 2022, were made up of $22.4 million of raw coal, $18.2 million of saleable coal, and $4.4 million of supplies. Coal inventories at December 31, 2021, were made up of $12.5 million of saleable coal, $2.6 million of supplies, and $0.7 million of raw coal. Property, Plant and Equipment Coal exploration costs are expensed as incurred. Coal exploration costs include those incurred to ascertain existence, location, extent or quality of ore or minerals before beginning the development stage of the mine. Mining property and mineral rights costs represent the costs incurred to acquire the rights to access and mine certain coal property either through deeds, leases, or other conveyance agreements. These costs include costs of acquiring, and accessing mineral reserves, resources and surface areas for mining activities. Mine development begins when the facts and circumstances clearly establish the presence of a commercial mineralized deposit. Capitalized mine development costs represent the costs incurred to prepare mine sites and/or seams of coal for future mining. These costs include costs of acquiring, permitting, planning, research, and developing access to identified mineral reserves and other preparations for commercial production as necessary to develop and permit the properties for mining activities. When components of capitalized mine development costs are replaced with new components, the Company capitalizes the replacement as a separate component and charges off the net book value of the component that was replaced at the cease-use date. If it is determined that an undeveloped mineral interest cannot be economically converted into proven and probable reserves, capitalized costs are assessed for impairment and future development costs are expensed as incurred. Operating expenditures including certain professional fees and overhead costs are not capitalized but are expensed as incurred. Mineral rights and capitalized mine development costs are depleted and amortized on a units-of-production basis as mining of that mine’s assigned reserves takes place. Depreciation of plant and equipment is calculated on the straight-line method over their estimated useful lives ranging from three Advanced Coal Royalties Impairment of Long-lived Assets Asset Retirement Obligations value of a liability for an asset retirement obligation in the period in which it is incurred and a corresponding increase in the carrying amount of the related long-lived asset. The liability is accreted to its present value each period and the capitalized cost is amortized using the units-of-production method over estimated recoverable reserves upon commencement of mining. We review our asset retirement obligations on at least an annual basis for significant changes in the estimated timing or amount of cash flows. Occupational Disease (Pneumoconiosis) Obligations Estimating our occupational disease (pneumoconiosis) benefits obligation requires management to make estimates and judgments regarding timing and existence of a liability utilizing third-party actuaries to assist in preparing what constitutes adequate liability amounts. Inherent in the calculation are numerous assumptions and judgments including the ultimate costs, inflation factors, credit adjusted discount rates, timing of settlement awards in the legal and regulatory environments. Adjustments to estimated liabilities due to changes in actuarial assumptions are recorded immediately in earnings in the period in which the change in estimate occurs. O ther Income In addition, we recognized $5.4 million associated with the Coronavirus Aid, Relief and Economic Security Act Employee Retention Tax Credit as other income within the consolidated statements of operations for 2021. Leases ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating and finance lease ROU assets and liabilities are recognized at commencement date based on the present value of the fixed lease payments over the lease term. The Company does not separate lease and non-lease components for all leases as permitted under the accounting guidance for leases. As most of our leases do not contain a readily determinable implicit rate, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating and finance lease ROU assets also include lease prepayments made by the Company and are reduced by any lease incentives received by the Company prior to commencement. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. For operating leases, lease expense is recorded in the income statement based on a straight-line recognition of the total fixed payments over the lease term. For finance leases, accretion of the liability is recognized as interest expense and the ROU asset is amortized separately on a straight-line basis similar to the depreciation of equipment owned by the Company. Leases of mineral reserves and the related land leases are exempted under U.S. GAAP from recognition on the consolidated balance sheets. Fair Value Measurements indirectly observable through market-corroborated inputs; and Level 3 - inputs are unobservable, or observable but cannot be market-corroborated, requiring us to make assumptions about pricing by market participants. The fair values of cash and cash equivalents, accounts receivable, restricted cash, and accounts payable approximate their carrying amounts at each reporting date. The Company’s Senior Notes have an estimated fair value of $36 million and $38 million at December 31, 2022 and 2021, respectively. The fair values of the Company’s Senior Notes were based on observable market prices and were considered a Level 2 measurement at December 31, 2022 and a Level 1 measurement at December 31, 2021 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. Nonrecurring fair value measurements of the Company include asset retirement obligations and estimated values used to allocate the acquisition cost of long-lived assets to individual assets, neither of which are subject to the fair value disclosure requirements. The fair value of asset retirement obligations is determined as the present value of estimated cash flows related to reclamation obligations, which is likely a Level 3 measurement due the use of unobservable inputs such as estimates regarding the amount and timing of costs to be incurred, the Company’s credit-adjusted discount rate, and inflation rates. The consideration for the Company’s acquisitions was allocated based on the relative fair values of the assets acquired, the primary asset of which was mineral rights. The fair values of mineral rights were determined based on Level 3 inputs, which are generally unobservable, requiring the Company to make assumptions about future coal prices, capital expenditures, future coal production, costs of production, and an appropriate rate at which to discount the future cash flows. Income Taxes Uncertain tax positions are recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. We had no uncertain tax positions requiring liability recognition as of December 31, 2022 and 2021. We file income tax returns in the U.S. and in various state and local jurisdictions which may be routinely examined by tax authorities. The statute of limitations is currently open for all tax returns filed. Segment Reporting The Ramaco Coal acquisition in 2022, as discussed in greater detail in Note 4, provides the Company with royalty savings and controlled mineral rights as well as a research and pilot facility located near Sheridan, Wyoming related to the Company’s possible expansion into the manufacturing and commercialization of advanced carbon products and materials from coal. The Wyoming property includes a thermal coal deposit and permit and is currently undergoing mineral analysis and core drilling to assess potential concentrations of rare earth elements. The Company refers to this potentially new business line as “CORE” (Carbon Ore-Rare Earth), signifying its focus on carbon ore and rare earth elements. 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. The chief operating decision maker does not regularly review segment asset information for the purpose of assessing performance and making resource allocation decisions. Stock-Based Compensation The fair values of restricted stock and restricted stock unit awards having only a service condition were determined using the publicly-traded price of our common stock on the grant date. The fair value of performance stock units, which vest based on the achievement of relative total shareholder return goals, was determined on the date of grant based on a Monte Carlo simulation. The fair value of stock option awards was calculated using the Black-Scholes option-pricing model. The Black-Scholes model requires us to make assumptions and judgments about the variables used in the calculation, including the expected term, expected volatility, risk-free interest rate, dividend rate and service period. Concentrations Financial instruments that potentially subject us to a significant concentration of credit risk consist primarily of cash and cash equivalents, restricted cash and accounts receivable. We maintain deposits in federally insured financial institutions in excess of federally insured limits. We monitor the credit ratings and concentration of risk with these financial institutions on a continuing basis to safeguard cash deposits. We have a limited number of customers. Contracts with these customers provide for billings principally upon shipment and compliance with payment terms is monitored on an ongoing basis. Outstanding receivables beyond payment terms are promptly investigated and discussed with the specific customer. We estimate an allowance for doubtful accounts by taking into consideration the age of past due accounts and an assessment of our customers’ ability to pay. An allowance for doubtful accounts was not necessary as of December 31, 2022 and 2021. During 2022, sales to two customers accounted for approximately 38% of total revenue. The total balance due from these customers at December 31, 2022 was approximately 32% of total accounts receivable. During 2021, sales to three customers accounted for approximately 58% of total revenue. The total balance due from these customers at December 31, 2021 was approximately 58% of total accounts receivable. During 2020, sales to three customers accounted for approximately 70% of total revenue. The number of customers comprising the concentrations above is based on a threshold of 10% or more of total revenues and related receivables. Recent Accounting Pronouncements Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses In August 2018, the FASB issued ASU 2018-15, Internal-Use Software hosting arrangement. We adopted this standard as of January 1, 2020, on a prospective basis. The adoption of this ASU did not have a material impact on our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, |
Note 3 - Property, Plant and Eq
Note 3 - Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 3—PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following: December 31, (In thousands) 2022 2021 Plant and equipment $ 232,885 $ 167,019 Mining property and mineral rights 120,760 26,064 Construction in process 34,698 9,972 Capitalized mine development costs 153,436 104,291 Less: accumulated depreciation and amortization (111,937) (80,269) Total property, plant and equipment, net $ 429,842 $ 227,077 Capitalized amounts related to coal reserves at properties where we are not currently engaged in mining operations totaled $33.4 million as of December 31, 2022 and $25.1 million as of December 31, 2021. In addition to the amounts discussed above, 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. The overall impact to pre-tax earnings in 2022 was immaterial except for idle mine costs of $9.5 million recognized during the year. Production from the Berwind No. 1 mine restarted in the first quarter of 2023. Mining property and mineral rights are made up primarily of significant asset acquisitions that occurred in 2022 and 2021. Refer to Note 4 for more information. Depreciation, depletion, and amortization included: Year ended December 31, (In thousands) 2022 2021 2020 Depreciation of plant and equipment $ 24,132 $ 17,945 $ 17,094 Amortization of right of use assets (finance leases) 4,846 1,109 — Amortization and depletion of capitalized mine development costs and mineral rights 12,216 7,151 3,818 Total depreciation, depletion, and amortization $ 41,194 $ 26,205 $ 20,912 |
Note 4 - Acquisitions
Note 4 - Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Acquisitions | |
ACQUISITIONS | NOTE 4—ACQUISITIONS Ramaco Coal On April 29, 2022, the acquisition of Ramaco Coal, an entity owned by an investment fund managed by Yorktown Partners and certain members of the Company's management, was completed pursuant to a Purchase and Sale Agreement, dated February 23, 2022. The purchase price was approximately $65 million, consisting of an initial payment of $10 million paid at closing and a deferred purchase price of $55 million to be paid during the remainder of 2022 in $5 million ratable quarterly installments, and $10 million ratable quarterly installments to be paid in 2023 plus interest at a rate of 9%. Ramaco Coal controls certain coal mineral interests of principally metallurgical coal properties which are owned in fee or leased under long-term leases that are, in turn, leased or subleased to the Company and various third parties. Such lessees pay a royalty based on the amount of metallurgical coal mined and the realized price per ton. Ramaco Coal also controls a large thermal coal deposit and permit near Sheridan, Wyoming covering approximately 16 thousand acres, including a research and development facility and associated equipment and has a goal of converting coal to carbon products, such as graphene, graphite and carbon fiber. Concurrent with this acquisition, the Company and Ramaco Coal each sold certain mineral rights located in West Virginia (the “Split Ridge Arrangement”). To compensate for the sale of these rights, we received an overriding royalty arrangement which included $2 million up front and $125 thousand quarterly minimum royalty payment beginning in January 2024 until December 2028. The fair value of this arrangement was $3.7 million, of which, $1.6 million was treated as an allocation of the fair value of this disposed component of Ramaco Coal and, separately, a $2.1 million gain on the sale of the Company’s mineral rights included in Other income (expense), net on the 2022 Consolidated Statement of Operations. The acquisition of Ramaco Coal was accounted for as a purchase of assets due to substantially all of the fair value being concentrated in a single asset, the rights to metallurgical coal deposits. The consideration paid in connection with the acquisition of Ramaco Coal, including $1.6 million in closing costs, relinquishment of $1.6 million of prepaid royalties and $0.1 million paid to a mineral owner as part of the acquisition, was approximately $68.3 million and was allocated based on fair values to mining property and mineral rights ($65.1 million), buildings ($2.6 million) and equipment ($0.6 million). Refer to Note 7 for a description of the acquisition financing. Maben Coal On September 23, 2022, the Company completed the acquisition of 100% of the equity interests of Maben Coal, LLC (“Maben Coal”) pursuant to the Securities Purchase Agreement dated August 8, 2022, with Appleton Coal, LLC. The purchase price was approximately $30.0 million, consisting of an initial payment of $9.0 million and proceeds from a new two-year loan in the amount of $21.0 million. The Company also paid approximately $1.7 million of transaction costs and recognized liabilities of $1.3 million on the closing date, primarily related to $1.2 million of cash bond replacement obligations incurred by the Company as part of the transaction. In October 2022, the Company paid off the $1.2 million cash bond replacement obligation to Appleton Coal, LLC, which has been included in the investing activities section of the statement of cash flows. We acquired a large coal deposit on approximately 28 thousand leased acres located in Wyoming County and Raleigh County, West Virginia. We assumed existing mining permits issued by the West Virginia Department of Environmental Protection, which authorize mining by both surface and highwall mining methods as well as by underground methods. The property also has issued permits covering an existing haul road, as well as an active refuse disposal area together with a preparation plant and unit train loadout, neither of which had been constructed as of the closing date. The acquisition of Maben Coal was accounted for as a purchase of assets due to substantially all of the fair value being concentrated in a single asset, the rights to leased metallurgical coal deposits. The total consideration of approximately $33.0 million was allocated to mining property and mineral rights ($30.6 million), capitalized mine development costs ($1.0 million), receivable for the right to recover cash bond replacement payments made by the Company as discussed above ($1.2 million), and recoupable royalties ($0.2 million). Refer to Note 7 for information regarding the acquisition financing. Amonate Assets In December 2021, we acquired what are referred to as the “Amonate Assets” from Coronado, pursuant to an asset purchase agreement. The acquisition, for a total cash consideration of $30 million, included a mine complex located in McDowell County, West Virginia and Tazewell County, Virginia adjacent and contiguous to the Company’s existing Berwind Complex. The acquisition primarily consists of high quality, low and mid-vol metallurgical coal reserves and resources, much of which will be mined from the Company’s Berwind Complex. Also purchased were several additional permitted mines and a currently idled 1.3-million-ton per annum capacity coal preparation plant. |
Note 5 - Asset Retirement Oblig
Note 5 - Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
ASSET RETIREMENT OBLIGATIONS | NOTE 5—ASSET RETIREMENT OBLIGATIONS We estimate asset retirement obligations (“ARO”) for final reclamation based upon detailed engineering calculations of the amount and timing of the future cash spending for a third-party to perform the required work. Amounts recorded related to asset retirement obligations were as follows: December 31, (In thousands) 2022 2021 Balance at beginning of year $ 22,549 $ 15,156 Additional asset retirement obligations acquired/incurred 1,440 6,919 Expenditures made — (62) Accretion expense 1,115 615 Revisions to estimates 3,781 (79) Balance at end of year $ 28,885 $ 22,549 |
Note 6 - Accrued Expenses and O
Note 6 - Accrued Expenses and Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Notes To Financial Statements | |
ACCRUED EXPENSES AND OTHER LONG-TERM LIABILITIES | NOTE 6—ACCRUED EXPENSES AND OTHER LONG-TERM LIABILITIES Accrued expenses at December 31, 2022 consisted of accrued compensation and related benefits of $14.3 million, accrued purchases of $11.5 million, and various other liabilities. Accrued expenses at December 31, 2021 consisted of accrued compensation and related benefits of $5.6 million, accrued purchases of $2.8 million, and various other liabilities. The Company sponsors a defined contribution plan to assist eligible employees in providing for their future retirement needs. The Company’s contributions to the plan totaled $2.3 million, $1.2 million, and $0.9 million for the years ended December 31, 2022, 2021, and 2020, respectively. Other long-term liabilities were comprised primarily of worker’s compensation and occupational disease obligations discussed below. Workers’ Compensation and Occupational Disease Obligations We are 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. We purchase insurance coverage to reduce our 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. The occupational disease benefit obligation represents the present value of the actuarially computed liabilities for such benefits over the employees’ applicable years of service. The occupational disease benefit liability was calculated using a discount rate of 5.60% and 3.26% at December 31, 2022 and 2021, respectively. As of December 31, 2022, the estimated aggregate liability for uninsured claims totaled $3.6 million, including $1.5 million of occupational disease obligations. Of the aggregate liability, $2.7 million was included in other long-term liabilities within the consolidated balance sheets. As of December 31, 2021, the estimated aggregate liability for uninsured claims totaled $3.9 million, including $1.4 million of occupational disease obligations. Of the aggregate liability, $2.4 million was included in other long-term liabilities within the consolidated balance sheets. |
Note 7 - Debt
Note 7 - Debt | 12 Months Ended |
Dec. 31, 2022 | |
Notes To Financial Statements | |
DEBT | NOTE 7—DEBT Our outstanding debt consisted of the following: December 31, (In thousands) 2022 2021 Term loan $ — $ 3,334 Revolving Credit Facility 25,000 — Equipment loans 8,396 7,679 Senior Notes, net 32,830 32,363 Financing of Ramaco Coal acquisition - Related party debt 40,000 — Financing of Maben Coal acquisition 21,000 — Total debt $ 127,226 $ 43,376 Current portion of long-term debt 75,639 7,674 Long-term debt, net $ 51,587 $ 35,702 Revolving Credit Facility and Term Loan — The Revolving Credit Facility has a maturity date of December 31, 2024 and bears interest based on the Secured Overnight Financing Rate (“SOFR”) + 2.0% or Base Rate + 1.5%. “Base Rate” is the highest of (i) KeyBank’s prime rate, (ii) Federal Funds Effective Rate + 0.5%, or (iii) SOFR + 2.0%. Advances under the Revolving Credit Facility are made initially as Base Rate loans but may be converted to SOFR rate loans at certain times at our discretion. At December 31, 2021, the borrowing base was $38.5 million and there were $25.0 million of borrowings outstanding under the facility, leaving $13.5 million of remaining availability. The Term Loan is secured under a Master Security Agreement with a pledge of certain underground and surface mining equipment, bears interest at LIBOR + 5.15% and is required to be repaid in monthly installments of $278 thousand including accrued interest. The term loan was repaid in full as of December 31, 2022. The Credit Agreement contains usual and customary covenants including limitations on liens, additional indebtedness, investments, restricted payments, asset sales, mergers, affiliate transactions and other customary limitations, as well as financial covenants. At December 31, 2022, we were in compliance with all financial covenants under the Credit Agreement. Key Equipment Finance Loan— J. H. Fletcher & Co. Loan— Komatsu Financial Limited Partnership Loan— Brandeis Machinery & Supply Company— 9.00% Senior Unsecured Notes due 2026— Ramaco Coal Deferred Purchase Price— and $10 million for each quarter in 2023 until maturity. The outstanding principal balance of the Ramaco Coal Loan was $40.0 million at December 31, 2022 and is secured by the membership interests of Ramaco Coal, LLC. In the event we make an initial public offering of the equity interests of all or substantially all of the acquired assets of Ramaco Coal, the seller shall have the option to convert up to fifty percent (50%) of the then outstanding principal balance, not to exceed $30 million, into a proportionate equity ownership in such initial public offering. Financing of Maben Coal Acquisition – On September 23, 2022, we acquired 100% of the equity interests of Maben Coal, LLC (see Note 4) and entered into a secured loan with Investec Bank PLC in the amount of $21.0 million to pay a portion of the purchase price. The loan bears interest at the applicable secured overnight financing rate (“SOFR”) plus a margin of 3.0% payable in cash, compounded monthly. Beginning in January 2023, the Company must start making monthly repayments of the outstanding principal in the amount of $800 thousand per month until the maturity date of September 23, 2024. The outstanding principal balance was $21.0 million at December 31, 2022. The loan contains certain financial covenants, including minimum cash balance, leverage ratio, and interest coverage ratio requirements. At December 31, 2022, we were in compliance with the financial covenants related to the loan. Current portion of long-term debt SBA Paycheck Protection Program Loan— Insurance financing one-year Maturities of our debt, which include $1.7 million of discounts and issuance costs to be accreted over future periods, are as follows: (In thousands) Years ending December 31: 2023 $ 75,639 2024 18,406 2025 351 2026 34,500 2027 — Total debt $ 128,896 |
Note 8 - Leases
Note 8 - Leases | 12 Months Ended |
Dec. 31, 2022 | |
Notes To Financial Statements | |
LEASES | NOTE 8—LEASES The Company has various finance leases for mining equipment, which are generally for terms up to 36 months and expire through 2025. In addition, we have one operating lease for office space with a term of approximately five years that runs through 2027. Amortization of right of use assets associated with finance leases was $4.8 million, $1.1 million, and $0.0 million in 2022, 2021, and 2020, respectively, as discussed in Note 3. Interest expense recognized for financing lease liabilities was $0.4 million, $0.1 million, and $0.0 million in 2022, 2021, and 2020, respectively. Operating lease expense was $0.2 million in 2022 and $0.1 million per year in 2021 and 2020. Right-of-use assets and lease liabilities are determined as the present value of the lease payments, discounted using either the implicit interest rate in the lease or our estimated incremental borrowing rate based on similar terms, payments and the economic environment where the leased asset is located. Below is a summary of our leases: (In thousands) Classification December 31, 2022 December 31, 2021 Right-of-use assets Financing Financing lease right-of-use assets, net $ 12,905 $ 9,128 Operating Other assets 694 25 Total right-of-use assets $ 13,599 $ 9,153 Current lease liabilities Financing Current portion of financing lease obligations $ 5,969 $ 3,461 Operating Accrued expenses 122 25 Non-current lease liabilities Financing Long-term portion of financing lease obligations $ 4,917 $ 4,599 Operating Other long-term liabilities 585 — Total lease liabilities $ 11,593 $ 8,085 Minimum lease payments for our lease obligations are as follows: December 31, 2022 (In thousands) Financing Operating Total Future minimum lease payments: 2023 $ 6,302 $ 161 $ 6,463 2024 4,005 161 4,166 2025 1,032 164 1,196 2026 — 168 168 2027 — 168 168 Total undiscounted lease payments 11,339 822 12,161 Less: Amounts representing interest (453) (115) (568) Present value of lease obligations $ 10,886 $ 707 $ 11,593 Weighted average remaining term (years) 2.0 5.0 Weighted average discount rate 4.2% 6.0% Coal Leases and Associated Royalty Commitments |
Note 9 - Equity
Note 9 - Equity | 12 Months Ended |
Dec. 31, 2022 | |
Notes To Financial Statements | |
EQUITY | NOTE 9—EQUITY We are authorized to issue up to a total of 260,000,000 shares of common stock and 50,000,000 shares of preferred The Company routinely allows employees to surrender common stock to pay estimated taxes upon the vesting or exercise of stock-based compensation awards. The value of common stock tendered by employees is determined based on the price of the Company’s common stock at the time of relinquishment. There were no other repurchases of common shares. Stock-Based Compensation Awards Our Long-Term Incentive Plan (“LTIP”) is currently authorized by shareholders for the issuance of awards of up to approximately 10.9 million shares of common stock. As of December 31, 2022, there were approximately 5.4 million shares of common stock available for grant under the LTIP, which includes 4.0 million authorized shares that became effective on February 23, 2022. Additionally, granted but unvested shares are forfeited upon termination of employment, unless an employee enters into another written arrangement, and may not be sold, assigned, transferred, pledged or otherwise encumbered. As of December 31, 2022, we had four types of stock-based awards outstanding: stock options, restricted stock, restricted stock units, and performance stock units. Stock-based compensation expense for all stock-based awards totaled $8.2 million in 2022, $5.3 million in 2021, and $4.1 million in 2020. Options— The following table summarizes the remaining stock-based awards outstanding, as well as activity for the periods: Restricted Stock Restricted Stock Units Performance Stock Units Weighted Weighted Weighted Average Grant Average Grant Average Grant Shares Date Fair Value Shares Date Fair Value Shares Date Fair Value Outstanding at December 31, 2020 2,845,525 4.28 — — — — Granted 1,592,659 4.37 — — — — Vested (567,135) 6.55 — — — — Forfeited (129,279) 4.11 — — — — Outstanding at December 31, 2021 3,741,770 $ 3.98 — $ — — $ — Granted 214,363 14.59 248,706 15.65 248,706 22.21 Vested (809,539) 6.57 (82,903) 15.65 — — Forfeited (637) 15.65 — — — — Outstanding at December 31, 2022 3,145,957 $ 4.04 165,803 $ 15.65 248,706 $ 22.21 The total fair value of awards vested was $11.0 million during 2022, $5.1 million during 2021, and $1.5 million during 2020. Restricted Stock — one three and a half years In December 2019, we entered into modification agreements with 14 executives and employees holding 1.4 million shares of unvested restricted stock whereby the vesting periods for these share grants was extended an additional six months. In exchange for the modification, we made an additional restricted stock grant to each of these executives and employees. In all, we granted 22,000 additional restricted shares in the modification. Incremental compensation costs associated with these modifications totaled $0.8 million and was recognized during 2020. Restricted Stock Units— three years The 248,706 restricted stock units granted during 2022 are linked to the Company’s common stock value which was fair valued on the date of grant at $15.65 per share and is recognized ratably over the service period. At December 31, 2022, there was $2.7 million of total unrecognized compensation cost related to unvested restricted stock units to be recognized over the next two years. The fair value of restricted stock unit awards that vested during 2022 was $0.7 million. The fair value of the outstanding restricted stock unit awards was $1.5 million based on the year-end 2022 closing stock price. Performance Stock Units— three years 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 Company’s 248,706 performance stock units were valued relative to the stock price performance of a peer group of companies, which was fair valued at $22.21 per share at the date of grant based on a Monte Carlo simulation. The fair value of the performance stock units on the date of the grant is recognized ratably over the service period. At December 31, 2022, there was $3.8 million of total unrecognized compensation cost related to unvested performance stock units to be recognized over the next two years. The intrinsic value of the outstanding performance stock units, at target, was $2.2 million at December 31, 2022. Dividends 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. 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. Dividends in the amount of $5.0 million, or approximately $0.11 per share of common stock, were paid on December 15, 2022, to shareholders of record on December 1, 2022. On December 8, 2022, the Company announced that its Board of Directors declared a quarterly cash dividend of approximately $0.1250 per share of common stock. Dividends of $5.5 million were accrued in December 2022, and are payable on March 15, 2023, to shareholders of record on March 1, 2023. For the full year 2022, the Company recognized $23.1 million of cash dividends declared against retained earnings, including $5.5 million that were unpaid as of December 31, 2022. For the full year 2022, the Company paid $20.0 million of dividends, including $2.5 million that were accrued at December 31, 2021. |
Note 10 - Commitments and Conti
Note 10 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Notes To Financial Statements | |
COMMITMENTS AND CONTINGENCIES. | NOTE 10—COMMITMENTS AND CONTINGENCIES Environmental Liabilities — Surety Bond — Coal Leases and Associated Royalty Commitments royalty obligations under coal leases total $27.1 million and are broken down as follows: $3.3 million for 2023, $3.3 million for 2024, $3.4 million for 2025, $3.1 million for 2026, $2.9 million for 2027, and $11.1 million thereafter. Please refer to Note 12 for information regarding related party transactions. Contingent Transportation Purchase Commitments Litigation 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. The parties fully briefed the motion, and it stood submitted on August 31, 2021. 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, based largely on the court’s decision to vacate 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. The matter has been fully briefed by the parties, and the court heard oral argument on January 27, 2023. The matter is now pending before the court. |
Note 11 - Revenue
Note 11 - Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
REVENUE. | NOTE 11—REVENUES Our revenue is derived from contracts for the sale of coal and is recognized when the performance obligations under the contracts 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 a fixed price or a price 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: (In thousands) 2022 2021 2020 Coal Sales North American revenue $ 328,322 $ 143,946 $ 119,981 Export revenue, excluding Canada 237,366 139,448 48,934 Total revenue $ 565,688 $ 283,394 $ 168,915 Fourth quarter 2022 revenue that can be derived from the Company’s periodic filings includes a $2.8 million downward adjustment to revenue related to performance obligations that were satisfied in the previous quarter. This adjustment was due to the true-up of the Company’s previous estimate of certain provisional pricing provisions. As of December 31, 2022, the Company had outstanding performance obligations of approximately 1.5 million tons for contracts with fixed sales prices averaging $202 per ton, excluding freight, which will generally be satisfied within the next year, and 0.7 million tons for contracts with index-based pricing mechanisms . Sales into individual foreign countries equaling or exceeding 10% of our total revenues included Canada and South Africa at 12% and 10%, respectively, for 2022. |
Note 12 - Related Party Transac
Note 12 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
RELATED PARTY TRANSACTIONS | NOTE 12—RELATED PARTY TRANSACTIONS Mineral Lease and Surface Rights Agreements Administrative Services Legal Services —Some of the professional legal services we receive are provided by Jones & Associates (“Jones”), a related party. Ramaco Coal Deferred Purchase Price— Ramaco Foundation-- |
Note 13 - Income Taxes
Note 13 - Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
INCOME TAXES | NOTE 13—INCOME TAXES Income tax expense (benefit) consisted of the following: Years ended December 31, (In thousands) 2022 2021 2020 Current taxes: Federal $ 517 $ — $ — State 407 3 19 Current taxes 924 3 19 Deferred taxes: Federal 28,389 6,518 (3,164) State 840 (1,874) (339) Deferred taxes 29,229 4,644 (3,503) Provision for income tax expense (benefit), net $ 30,153 $ 4,647 $ (3,484) The items accounting for differences between income taxes computed at the federal statutory rate and the provision recorded for income taxes were as follows: Years ended December 31, (In thousands) 2022 2021 2020 Income taxes computed at the federal statutory rate $ 30,701 $ 9,325 $ (1,762) Effect of: State taxes, net of federal benefits 1,422 796 (253) State tax rate changes, net of federal benefits (546) (2,274) — Percentage depletion (3,314) (3,363) (714) PPP Loan forgiveness — — (1,773) Stock-based compensation (1,499) (194) 473 162(m) compensation limitation 3,481 — — Other, net (92) 357 545 Total $ 30,153 $ 4,647 $ (3,484) Deferred tax assets and liabilities were as follows: December 31, (In thousands) 2022 2021 Deferred tax assets: Loss carryforwards U.S. - Federal/States $ 6,598 $ 15,975 Asset retirement obligations 6,359 5,175 Accrued expenses 3,257 744 Stock-based compensation 2,249 2,331 Total deferred tax assets 18,463 24,225 Deferred tax liabilities: Depreciation & amortization (54,100) (30,631) Net deferred tax liabilities $ (35,637) $ (6,406) As of December 31, 2022, our federal net operating loss carryforwards were approximately $24 million. Total state loss carryforwards were approximately $32 million. The Company’s net operating loss carryforwards have no statutory expiration. Cash paid for income taxes totaled $15.5 million in 2022. The Company recognized an income tax receivable of $14.6 million included in prepaid expenses and other current assets at December 31, 2022. |
Note 14 - Earnings (Loss) Per S
Note 14 - Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
EARNINGS (LOSS) PER SHARE | NOTE 14—EARNINGS (LOSS) PER SHARE The following table is a calculation of the net earnings (loss) per basic and diluted share: Years ended December 31, (In thousands, except per share amounts) 2022 2021 2020 Numerator Net income (loss) $ 116,042 $ 39,759 $ (4,907) Denominator Weighted average shares used to compute basic earnings per share 44,164 43,964 42,460 Dilutive effect of stock option awards 532 293 — Dilutive effect of restricted stock units 6 Weighted average shares used to compute diluted earnings per share 44,702 44,257 42,460 Earnings (loss) per share Basic $ 2.63 $ 0.90 $ (0.12) Diluted $ 2.60 $ 0.90 $ (0.12) Diluted EPS for 2022 excludes 248,706 of target performance stock units based on the guidance for contingently issuable shares, which requires exclusion when, based on current period results, the shares would not be issuable if the end of the reporting period were the end of the contingency period. Refer to Note 9 for additional information regarding performance stock unit awards. Diluted EPS for 2020 excludes 937,424 options to purchase our common stock because their effect would be anti-dilutive. |
Note 15 - Subsequent Events
Note 15 - Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Notes To Financial Statements | |
SUBSEQUENT EVENTS | NOTE 15—SUBSEQUENT EVENTS Shortly after the balance sheet date, the Company repaid $20 million of the $25 million of borrowings under the Revolving Credit Facility using funds from current operations. At a later date, 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 million subject to certain terms and conditions, including lender’s consent. The aggregate revolving commitment had a borrowing base of $66.3 million at the closing date of the new facility after consideration of collateral and reserve requirements. The Company utilized the new facility to borrow an additional $20 million and used $10 million of the proceeds to pay down related-party debt associated with the acquisition of Ramaco Coal. The remaining availability under the new facility was $41.3 million at the closing date after outstanding borrowings of $25.0 million. 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 contain a financial covenant that requires the Company to maintain a fixed charge coverage ratio of not less than 1.10:1.00 calculated as of the last day of each fiscal quarter starting with the first quarter of 2023. The new facility also contains certain compensating balance requirements, which include that the Company maintain an average daily cash balance of $5 million, as determined on a monthly basis, to assure future credit availability. * * * * * |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies. | |
Basis of Presentation | Basis of Presentation and Consolidation |
Use of estimates | Use of estimates |
Revenue Recognition | Revenue Recognition Our coal sales generally include up to 90-day payment terms following the transfer of control of the goods to our customer. In the case of some of our foreign customers, our contracts also require that letters of credit are posted to secure payment of any outstanding receivable. We do not include extended payment terms in our contracts. Our contracts with customers typically provide for minimum specifications or qualities of the coal we deliver. Variances from these specifications or qualities are settled by means of price adjustments. Generally, these price adjustments are settled within 30 days of delivery and are insignificant. Certain of our contracts with customers include provisions in which the price is derived from an index. If control of the goods transfers to the customer in the period before the final price is determined, revenue is recorded based on the estimated consideration to be received. The Company estimates the amount to which it expects to receive by reference to forward curve or other relevant data. These estimates have not been constrained for accounting purposes due to the short period of time over which the uncertainty is resolved. Freight Revenue and Expense |
Cash and cash equivalents | Cash and Cash Equivalents |
Inventories | Inventories depreciation and amortization. Coal inventory quantities are adjusted periodically based on aerial surveys of coal stockpiles. Supply inventories are valued at average cost. Coal inventories at December 31, 2022, were made up of $22.4 million of raw coal, $18.2 million of saleable coal, and $4.4 million of supplies. Coal inventories at December 31, 2021, were made up of $12.5 million of saleable coal, $2.6 million of supplies, and $0.7 million of raw coal. |
Property, Plant and Equipment | Property, Plant and Equipment Coal exploration costs are expensed as incurred. Coal exploration costs include those incurred to ascertain existence, location, extent or quality of ore or minerals before beginning the development stage of the mine. Mining property and mineral rights costs represent the costs incurred to acquire the rights to access and mine certain coal property either through deeds, leases, or other conveyance agreements. These costs include costs of acquiring, and accessing mineral reserves, resources and surface areas for mining activities. Mine development begins when the facts and circumstances clearly establish the presence of a commercial mineralized deposit. Capitalized mine development costs represent the costs incurred to prepare mine sites and/or seams of coal for future mining. These costs include costs of acquiring, permitting, planning, research, and developing access to identified mineral reserves and other preparations for commercial production as necessary to develop and permit the properties for mining activities. When components of capitalized mine development costs are replaced with new components, the Company capitalizes the replacement as a separate component and charges off the net book value of the component that was replaced at the cease-use date. If it is determined that an undeveloped mineral interest cannot be economically converted into proven and probable reserves, capitalized costs are assessed for impairment and future development costs are expensed as incurred. Operating expenditures including certain professional fees and overhead costs are not capitalized but are expensed as incurred. Mineral rights and capitalized mine development costs are depleted and amortized on a units-of-production basis as mining of that mine’s assigned reserves takes place. Depreciation of plant and equipment is calculated on the straight-line method over their estimated useful lives ranging from three |
Advanced Coal Royalties | Advanced Coal Royalties |
Impairment of Long-lived Assets | Impairment of Long-lived Assets |
Asset Retirement Obligations | Asset Retirement Obligations value of a liability for an asset retirement obligation in the period in which it is incurred and a corresponding increase in the carrying amount of the related long-lived asset. The liability is accreted to its present value each period and the capitalized cost is amortized using the units-of-production method over estimated recoverable reserves upon commencement of mining. We review our asset retirement obligations on at least an annual basis for significant changes in the estimated timing or amount of cash flows. Occupational Disease (Pneumoconiosis) Obligations Estimating our occupational disease (pneumoconiosis) benefits obligation requires management to make estimates and judgments regarding timing and existence of a liability utilizing third-party actuaries to assist in preparing what constitutes adequate liability amounts. Inherent in the calculation are numerous assumptions and judgments including the ultimate costs, inflation factors, credit adjusted discount rates, timing of settlement awards in the legal and regulatory environments. Adjustments to estimated liabilities due to changes in actuarial assumptions are recorded immediately in earnings in the period in which the change in estimate occurs. O ther Income In addition, we recognized $5.4 million associated with the Coronavirus Aid, Relief and Economic Security Act Employee Retention Tax Credit as other income within the consolidated statements of operations for 2021. |
Other income | O ther Income |
Leases | Leases ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating and finance lease ROU assets and liabilities are recognized at commencement date based on the present value of the fixed lease payments over the lease term. The Company does not separate lease and non-lease components for all leases as permitted under the accounting guidance for leases. As most of our leases do not contain a readily determinable implicit rate, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating and finance lease ROU assets also include lease prepayments made by the Company and are reduced by any lease incentives received by the Company prior to commencement. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. For operating leases, lease expense is recorded in the income statement based on a straight-line recognition of the total fixed payments over the lease term. For finance leases, accretion of the liability is recognized as interest expense and the ROU asset is amortized separately on a straight-line basis similar to the depreciation of equipment owned by the Company. Leases of mineral reserves and the related land leases are exempted under U.S. GAAP from recognition on the consolidated balance sheets. |
Fair Value Measurements | Fair Value Measurements indirectly observable through market-corroborated inputs; and Level 3 - inputs are unobservable, or observable but cannot be market-corroborated, requiring us to make assumptions about pricing by market participants. The fair values of cash and cash equivalents, accounts receivable, restricted cash, and accounts payable approximate their carrying amounts at each reporting date. The Company’s Senior Notes have an estimated fair value of $36 million and $38 million at December 31, 2022 and 2021, respectively. The fair values of the Company’s Senior Notes were based on observable market prices and were considered a Level 2 measurement at December 31, 2022 and a Level 1 measurement at December 31, 2021 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. Nonrecurring fair value measurements of the Company include asset retirement obligations and estimated values used to allocate the acquisition cost of long-lived assets to individual assets, neither of which are subject to the fair value disclosure requirements. The fair value of asset retirement obligations is determined as the present value of estimated cash flows related to reclamation obligations, which is likely a Level 3 measurement due the use of unobservable inputs such as estimates regarding the amount and timing of costs to be incurred, the Company’s credit-adjusted discount rate, and inflation rates. The consideration for the Company’s acquisitions was allocated based on the relative fair values of the assets acquired, the primary asset of which was mineral rights. The fair values of mineral rights were determined based on Level 3 inputs, which are generally unobservable, requiring the Company to make assumptions about future coal prices, capital expenditures, future coal production, costs of production, and an appropriate rate at which to discount the future cash flows. |
Income Taxes | Income Taxes Uncertain tax positions are recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. We had no uncertain tax positions requiring liability recognition as of December 31, 2022 and 2021. We file income tax returns in the U.S. and in various state and local jurisdictions which may be routinely examined by tax authorities. The statute of limitations is currently open for all tax returns filed. |
Segment Reporting | Segment Reporting The Ramaco Coal acquisition in 2022, as discussed in greater detail in Note 4, provides the Company with royalty savings and controlled mineral rights as well as a research and pilot facility located near Sheridan, Wyoming related to the Company’s possible expansion into the manufacturing and commercialization of advanced carbon products and materials from coal. The Wyoming property includes a thermal coal deposit and permit and is currently undergoing mineral analysis and core drilling to assess potential concentrations of rare earth elements. The Company refers to this potentially new business line as “CORE” (Carbon Ore-Rare Earth), signifying its focus on carbon ore and rare earth elements. 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. The chief operating decision maker does not regularly review segment asset information for the purpose of assessing performance and making resource allocation decisions. |
Stock-Based Compensation | Stock-Based Compensation The fair values of restricted stock and restricted stock unit awards having only a service condition were determined using the publicly-traded price of our common stock on the grant date. The fair value of performance stock units, which vest based on the achievement of relative total shareholder return goals, was determined on the date of grant based on a Monte Carlo simulation. The fair value of stock option awards was calculated using the Black-Scholes option-pricing model. The Black-Scholes model requires us to make assumptions and judgments about the variables used in the calculation, including the expected term, expected volatility, risk-free interest rate, dividend rate and service period. |
Concentrations | Concentrations Financial instruments that potentially subject us to a significant concentration of credit risk consist primarily of cash and cash equivalents, restricted cash and accounts receivable. We maintain deposits in federally insured financial institutions in excess of federally insured limits. We monitor the credit ratings and concentration of risk with these financial institutions on a continuing basis to safeguard cash deposits. We have a limited number of customers. Contracts with these customers provide for billings principally upon shipment and compliance with payment terms is monitored on an ongoing basis. Outstanding receivables beyond payment terms are promptly investigated and discussed with the specific customer. We estimate an allowance for doubtful accounts by taking into consideration the age of past due accounts and an assessment of our customers’ ability to pay. An allowance for doubtful accounts was not necessary as of December 31, 2022 and 2021. During 2022, sales to two customers accounted for approximately 38% of total revenue. The total balance due from these customers at December 31, 2022 was approximately 32% of total accounts receivable. During 2021, sales to three customers accounted for approximately 58% of total revenue. The total balance due from these customers at December 31, 2021 was approximately 58% of total accounts receivable. During 2020, sales to three customers accounted for approximately 70% of total revenue. The number of customers comprising the concentrations above is based on a threshold of 10% or more of total revenues and related receivables. |
Recent Accounting Pronouncements Adopted | Recent Accounting Pronouncements Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses In August 2018, the FASB issued ASU 2018-15, Internal-Use Software hosting arrangement. We adopted this standard as of January 1, 2020, on a prospective basis. The adoption of this ASU did not have a material impact on our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, |
Note 3 - Property, Plant and _2
Note 3 - Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment. | |
Schedule of property, plant, and equipment | December 31, (In thousands) 2022 2021 Plant and equipment $ 232,885 $ 167,019 Mining property and mineral rights 120,760 26,064 Construction in process 34,698 9,972 Capitalized mine development costs 153,436 104,291 Less: accumulated depreciation and amortization (111,937) (80,269) Total property, plant and equipment, net $ 429,842 $ 227,077 |
Schedule of depreciation and amortization | Year ended December 31, (In thousands) 2022 2021 2020 Depreciation of plant and equipment $ 24,132 $ 17,945 $ 17,094 Amortization of right of use assets (finance leases) 4,846 1,109 — Amortization and depletion of capitalized mine development costs and mineral rights 12,216 7,151 3,818 Total depreciation, depletion, and amortization $ 41,194 $ 26,205 $ 20,912 |
Note 5 - Asset Retirement Obl_2
Note 5 - Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Amounts recorded related to asset retirement obligations | December 31, (In thousands) 2022 2021 Balance at beginning of year $ 22,549 $ 15,156 Additional asset retirement obligations acquired/incurred 1,440 6,919 Expenditures made — (62) Accretion expense 1,115 615 Revisions to estimates 3,781 (79) Balance at end of year $ 28,885 $ 22,549 |
Note 7 - Debt (Tables)
Note 7 - Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding debt | December 31, (In thousands) 2022 2021 Term loan $ — $ 3,334 Revolving Credit Facility 25,000 — Equipment loans 8,396 7,679 Senior Notes, net 32,830 32,363 Financing of Ramaco Coal acquisition - Related party debt 40,000 — Financing of Maben Coal acquisition 21,000 — Total debt $ 127,226 $ 43,376 Current portion of long-term debt 75,639 7,674 Long-term debt, net $ 51,587 $ 35,702 |
Schedule of maturities of long-term debt | (In thousands) Years ending December 31: 2023 $ 75,639 2024 18,406 2025 351 2026 34,500 2027 — Total debt $ 128,896 |
Note 8 - Leases (Tables)
Note 8 - Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Summary of Leases | December 31, 2022 (In thousands) Financing Operating Total Future minimum lease payments: 2023 $ 6,302 $ 161 $ 6,463 2024 4,005 161 4,166 2025 1,032 164 1,196 2026 — 168 168 2027 — 168 168 Total undiscounted lease payments 11,339 822 12,161 Less: Amounts representing interest (453) (115) (568) Present value of lease obligations $ 10,886 $ 707 $ 11,593 Weighted average remaining term (years) 2.0 5.0 Weighted average discount rate 4.2% 6.0% |
Schedule of right-of-use assets and lease liabilities | (In thousands) Classification December 31, 2022 December 31, 2021 Right-of-use assets Financing Financing lease right-of-use assets, net $ 12,905 $ 9,128 Operating Other assets 694 25 Total right-of-use assets $ 13,599 $ 9,153 Current lease liabilities Financing Current portion of financing lease obligations $ 5,969 $ 3,461 Operating Accrued expenses 122 25 Non-current lease liabilities Financing Long-term portion of financing lease obligations $ 4,917 $ 4,599 Operating Other long-term liabilities 585 — Total lease liabilities $ 11,593 $ 8,085 |
Note 9 - Equity (Tables)
Note 9 - Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity | |
Schedule of restricted awards outstanding | Restricted Stock Restricted Stock Units Performance Stock Units Weighted Weighted Weighted Average Grant Average Grant Average Grant Shares Date Fair Value Shares Date Fair Value Shares Date Fair Value Outstanding at December 31, 2020 2,845,525 4.28 — — — — Granted 1,592,659 4.37 — — — — Vested (567,135) 6.55 — — — — Forfeited (129,279) 4.11 — — — — Outstanding at December 31, 2021 3,741,770 $ 3.98 — $ — — $ — Granted 214,363 14.59 248,706 15.65 248,706 22.21 Vested (809,539) 6.57 (82,903) 15.65 — — Forfeited (637) 15.65 — — — — Outstanding at December 31, 2022 3,145,957 $ 4.04 165,803 $ 15.65 248,706 $ 22.21 |
Note 11 - Revenue (Tables)
Note 11 - Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | (In thousands) 2022 2021 2020 Coal Sales North American revenue $ 328,322 $ 143,946 $ 119,981 Export revenue, excluding Canada 237,366 139,448 48,934 Total revenue $ 565,688 $ 283,394 $ 168,915 |
Note 13 - Income Taxes (Tables)
Note 13 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes. | |
Schedule of income tax expense | Years ended December 31, (In thousands) 2022 2021 2020 Current taxes: Federal $ 517 $ — $ — State 407 3 19 Current taxes 924 3 19 Deferred taxes: Federal 28,389 6,518 (3,164) State 840 (1,874) (339) Deferred taxes 29,229 4,644 (3,503) Provision for income tax expense (benefit), net $ 30,153 $ 4,647 $ (3,484) |
Schedule of accounting for differences between income taxes computed at the federal statutory rate and the provision recorded for income taxes | Years ended December 31, (In thousands) 2022 2021 2020 Income taxes computed at the federal statutory rate $ 30,701 $ 9,325 $ (1,762) Effect of: State taxes, net of federal benefits 1,422 796 (253) State tax rate changes, net of federal benefits (546) (2,274) — Percentage depletion (3,314) (3,363) (714) PPP Loan forgiveness — — (1,773) Stock-based compensation (1,499) (194) 473 162(m) compensation limitation 3,481 — — Other, net (92) 357 545 Total $ 30,153 $ 4,647 $ (3,484) |
Schedule of deferred tax assets and liabilities | December 31, (In thousands) 2022 2021 Deferred tax assets: Loss carryforwards U.S. - Federal/States $ 6,598 $ 15,975 Asset retirement obligations 6,359 5,175 Accrued expenses 3,257 744 Stock-based compensation 2,249 2,331 Total deferred tax assets 18,463 24,225 Deferred tax liabilities: Depreciation & amortization (54,100) (30,631) Net deferred tax liabilities $ (35,637) $ (6,406) |
Note 14 - Earnings (Loss) Per_2
Note 14 - Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule computation of basic and diluted EPS | Years ended December 31, (In thousands, except per share amounts) 2022 2021 2020 Numerator Net income (loss) $ 116,042 $ 39,759 $ (4,907) Denominator Weighted average shares used to compute basic earnings per share 44,164 43,964 42,460 Dilutive effect of stock option awards 532 293 — Dilutive effect of restricted stock units 6 Weighted average shares used to compute diluted earnings per share 44,702 44,257 42,460 Earnings (loss) per share Basic $ 2.63 $ 0.90 $ (0.12) Diluted $ 2.60 $ 0.90 $ (0.12) |
Note 1 - Description of Busin_2
Note 1 - Description of Business (Details) | Dec. 31, 2022 a item |
Number of mines in operation | item | 3 |
Elk Creek Property | |
Mining complex | a | 20,200 |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Restricted Cash | ||
Restricted Cash | $ 0.9 | $ 0.9 |
Inventories | ||
Raw Coal | 22.4 | 12.5 |
Saleable Coal | 18.2 | 2.6 |
Coal Supplies | $ 4.4 | $ 0.7 |
Note 2 - Summary of Significa_3
Note 2 - Summary of Significant Accounting Policies - Property, plant, and equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | |
Property, plant, and equipment | |
Estimated useful life | 3 years |
Maximum | |
Property, plant, and equipment | |
Estimated useful life | 30 years |
Note 2 - Summary of Significa_4
Note 2 - Summary of Significant Accounting Policies - Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of Significant Accounting Policies. | ||
Excess fair value of debt over carrying value | $ 36 | $ 38 |
Other income recognized related to Coronavirus Aid, Relief and Economic Security Act Employee Retention Tax Credit | $ 5.4 |
Note 2 - Summary of Significa_5
Note 2 - Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Taxes | ||
Unrecognized tax positions | $ 0 | $ 0 |
Note 2 - Summary of Significa_6
Note 2 - Summary of Significant Accounting Policies - Concentrations (Details) - Customer Concentration Risk - customer | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue Benchmark | |||
Concentrations | |||
Number of Major Customers | 2 | 3 | 3 |
Revenue Benchmark | Customer A | North America | |||
Concentrations | |||
Concentration Risk, Percentage | 58% | ||
Revenue Benchmark | Customer B | North America | |||
Concentrations | |||
Concentration Risk, Percentage | 51% | ||
Revenue Benchmark | Customer C | North America | |||
Concentrations | |||
Concentration Risk, Percentage | 71% | ||
Revenue Benchmark | Total Customer Base | |||
Concentrations | |||
Concentration Risk, Percentage | 38% | 58% | 70% |
Accounts Receivable. | Total Customer Base | |||
Concentrations | |||
Concentration Risk, Percentage | 32% | 58% |
Note 3 - Property, Plant and _3
Note 3 - Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) $ in Thousands | 12 Months Ended | ||
Jul. 10, 2022 employee | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Property, plant, and equipment | |||
Less: Accumulated depreciation and amortization | $ (111,937) | $ (80,269) | |
Total property, plant and equipment, net | 429,842 | 227,077 | |
Idle mine costs | 9,500 | ||
Number of personnel in the mine | employee | 0 | ||
Plant and equipment | |||
Property, plant, and equipment | |||
Property, plant and equipment, gross | 232,885 | 167,019 | |
Mining property and mineral rights | |||
Property, plant, and equipment | |||
Property, plant and equipment, gross | 120,760 | 26,064 | |
Construction in process | |||
Property, plant, and equipment | |||
Property, plant and equipment, gross | 34,698 | 9,972 | |
Capitalized mine development costs | |||
Property, plant, and equipment | |||
Property, plant and equipment, gross | 153,436 | 104,291 | |
Coal Properties | |||
Property, plant, and equipment | |||
Capitalized amounts related to coal reserves | $ 33,400 | $ 25,100 |
Note 3 - Property, Plant and _4
Note 3 - Property, Plant and Equipment - Depreciation and amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment. | |||
Depreciation of plant and equipment | $ 24,132 | $ 17,945 | $ 17,094 |
Amortization of right of use assets (finance leases) | 4,846 | 1,109 | |
Amortization and depletion of capitalized mine development costs and mineral rights | 12,216 | 7,151 | 3,818 |
Total depreciation and amortization | $ 41,194 | $ 26,205 | $ 20,912 |
Note 4 - Acquisitions (Details)
Note 4 - Acquisitions (Details) a in Thousands, $ in Thousands, MT in Millions | 1 Months Ended | 12 Months Ended | |||
Sep. 23, 2022 USD ($) a | Apr. 29, 2022 USD ($) a | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) MT | |
Asset Acquisition | |||||
Fair value of assets | $ 227,077 | $ 429,842 | $ 227,077 | ||
Payment of cash bond replacement obligation | $ 1,200 | ||||
Maben Coal, LLC | |||||
Asset Acquisition | |||||
Voting interest acquired | 100% | ||||
Ramaco Coal Asset Acquisition | |||||
Asset Acquisition | |||||
Purchase price | $ 65,000 | ||||
Initial payment | 10,000 | ||||
Deferred purchase price payable due in remainder of 2022 | 55,000 | ||||
Quarterly Installment amount in remainder of 2022 | 5,000 | ||||
Quarterly Installment amount in remainder of 2023 | $ 10,000 | ||||
Interest rate (as a percent) | 9% | ||||
Area of thermo coal deposit Wyoming | a | 16 | ||||
Upfront payment receivable on royalty | $ 2,000 | ||||
Minimum quarterly royalty payment receivable | 125 | ||||
Fair value of acquisition | 3,700 | ||||
Reduction in purchase price payable | 1,600 | ||||
Gain on sale of mineral rights | 2,100 | ||||
Consideration paid | 68,300 | ||||
Closing cost on asset acquisition | 1,600 | ||||
Relinquishment cost on prepaid royalties | 1,600 | ||||
Amount paid to a mineral owner as part of the acquisition | 100 | ||||
Ramaco Coal Asset Acquisition | Mining property and mineral rights | |||||
Asset Acquisition | |||||
Fair value of assets | 65,100 | ||||
Ramaco Coal Asset Acquisition | Building | |||||
Asset Acquisition | |||||
Fair value of assets | 2,600 | ||||
Ramaco Coal Asset Acquisition | Equipment | |||||
Asset Acquisition | |||||
Fair value of assets | $ 600 | ||||
Maben Coal, LLC | |||||
Asset Acquisition | |||||
Purchase price | $ 30,000 | ||||
Initial payment | $ 9,000 | ||||
Area of Real Estate Property | a | 28 | ||||
Consideration paid | $ 33,000 | ||||
Closing cost on asset acquisition | 1,700 | ||||
Liabilities recognized | 1,300 | ||||
Amount of cash bond replacement obligations incurred by the Company as part of the transaction | 1,200 | ||||
Aggregate principal amount | 21,000 | ||||
Maben Coal, LLC | Mining property and mineral rights | |||||
Asset Acquisition | |||||
Consideration paid | 30,600 | ||||
Maben Coal, LLC | Capitalized mine development cost | |||||
Asset Acquisition | |||||
Consideration paid | 1,000 | ||||
Maben Coal, LLC | Cash bond replacement | |||||
Asset Acquisition | |||||
Consideration paid | 1,200 | ||||
Maben Coal, LLC | Recoupable royalties | |||||
Asset Acquisition | |||||
Consideration paid | $ 200 | ||||
Coronado Global Resources Inc. | |||||
Asset Acquisition | |||||
Purchase price | $ 30,000 | ||||
Asset acquisition, capacity of coal preparation plant | MT | 1.3 |
Note 5 - Asset Retirement Obl_3
Note 5 - Asset Retirement Obligations - Schedule of Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |||
Balance at beginning of year | $ 22,549 | $ 15,156 | |
Additional asset retirement obligations acquired/incurred | 1,440 | 6,919 | |
Expenditures made | (62) | ||
Accretion expense | 1,115 | 615 | $ 570 |
Revisions to estimates | 3,781 | (79) | |
Balance at end of year | $ 28,885 | $ 22,549 | $ 15,156 |
Note 6 - Accrued Expenses and_2
Note 6 - Accrued Expenses and Other Long-Term Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accrued compensation and related benefits | $ 14.3 | $ 5.6 | |
Various other liabilities | $ 11.5 | $ 2.8 | |
Annual occupational disease benefits discount rate | 5.60% | 3.26% | |
Uninsured claims | $ 3.6 | $ 3.9 | |
Amount of occupational disease obligation | 1.5 | 1.4 | |
Contributions to defined contribution plan | 2.3 | 1.2 | $ 0.9 |
Other long-term liabilities | |||
Uninsured claims | $ 2.7 | $ 2.4 |
Note 7 - Debt (Details)
Note 7 - Debt (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||
Sep. 23, 2022 USD ($) | Apr. 29, 2022 USD ($) installment | Jan. 11, 2022 USD ($) installment | Oct. 29, 2021 USD ($) | Aug. 16, 2021 USD ($) | Jul. 13, 2021 USD ($) | Apr. 20, 2020 USD ($) | Apr. 16, 2020 USD ($) | Jan. 31, 2023 USD ($) | Apr. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) installment | Dec. 31, 2022 USD ($) installment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Oct. 31, 2022 USD ($) | Nov. 24, 2021 USD ($) | Jul. 23, 2021 USD ($) | |
Debt | ||||||||||||||||||
Unamoritzed discounts and issuance costs | $ 1,700 | $ 1,700 | ||||||||||||||||
Frequency of periodic payment | monthly | |||||||||||||||||
Debt issuance costs incurred | $ 2,356 | |||||||||||||||||
Current portion of long-term debt | 35,639 | 35,639 | 7,674 | |||||||||||||||
Long-term Debt, Total | 128,896 | 128,896 | ||||||||||||||||
Other income | 2,637 | 7,429 | $ 11,926 | |||||||||||||||
Outstanding principal amount | $ 127,226 | 127,226 | 43,376 | |||||||||||||||
Insurance financing | ||||||||||||||||||
Debt | ||||||||||||||||||
Term of debt | 1 year | |||||||||||||||||
Long-term Debt, Total | $ 4,600 | |||||||||||||||||
Premium payments | 5,600 | |||||||||||||||||
Insurance premiums | 5,100 | 5,100 | ||||||||||||||||
Maben Coal, LLC | ||||||||||||||||||
Debt | ||||||||||||||||||
Aggregate principal amount | $ 21,000 | |||||||||||||||||
Maben Coal, LLC | ||||||||||||||||||
Debt | ||||||||||||||||||
Voting interest acquired | 100% | |||||||||||||||||
Revolving Credit Facility | ||||||||||||||||||
Debt | ||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 38,500 | |||||||||||||||||
Amount of remaining availability | 13,500 | |||||||||||||||||
Current portion of long-term debt | 20,000 | 20,000 | ||||||||||||||||
Outstanding on Revolving Credit Facility | 25,000 | |||||||||||||||||
Senior Notes. | ||||||||||||||||||
Debt | ||||||||||||||||||
Aggregate principal amount | $ 34,500 | |||||||||||||||||
Long-term Debt, Total | $ 32,800 | $ 32,800 | ||||||||||||||||
Effective interest rate | 10.45% | 10.45% | ||||||||||||||||
Interest rate | 9% | |||||||||||||||||
Redemption price percentage | 100% | |||||||||||||||||
Amount of note offering costs | $ 2,400 | |||||||||||||||||
Unamortized discounts and issuance costs | $ 1,700 | |||||||||||||||||
Equipment Loan | ||||||||||||||||||
Debt | ||||||||||||||||||
Current portion of long-term debt | $ 6,000 | $ 6,000 | ||||||||||||||||
PPP Loan | ||||||||||||||||||
Debt | ||||||||||||||||||
Long-term Debt, Total | 0 | $ 0 | ||||||||||||||||
Proceeds from loan | $ 8,400 | |||||||||||||||||
Other income | $ 8,400 | |||||||||||||||||
Ramaco Coal Loan | ||||||||||||||||||
Debt | ||||||||||||||||||
Aggregate principal amount | $ 55,000 | |||||||||||||||||
Number of installments | installment | 7 | |||||||||||||||||
Frequency of periodic payment | quarterly | |||||||||||||||||
Current portion of long-term debt | 40,000 | 40,000 | ||||||||||||||||
Long-term Debt, Total | 40,000 | 40,000 | ||||||||||||||||
Interest rate | 9% | |||||||||||||||||
Outstanding principal amount | 40,000 | 40,000 | ||||||||||||||||
Ramaco Coal Loan | Maximum | ||||||||||||||||||
Debt | ||||||||||||||||||
Percentage available for conversion | 50% | |||||||||||||||||
Amount available for conversion | $ 30,000 | |||||||||||||||||
Ramaco Coal Loan | 2022 | ||||||||||||||||||
Debt | ||||||||||||||||||
Amount paid per installment | $ 5,000 | |||||||||||||||||
Ramaco Coal Loan | 2023. | ||||||||||||||||||
Debt | ||||||||||||||||||
Amount paid per installment | $ 10,000 | |||||||||||||||||
Maben Coal Loan | ||||||||||||||||||
Debt | ||||||||||||||||||
Current portion of long-term debt | 9,600 | $ 9,600 | ||||||||||||||||
Maben Coal Loan | Forecast | ||||||||||||||||||
Debt | ||||||||||||||||||
Frequency of periodic payment | monthly | |||||||||||||||||
Maben Coal Loan | Secured overnight financing rate | ||||||||||||||||||
Debt | ||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3% | |||||||||||||||||
KeyBank National Association | Revolving Credit Facility | ||||||||||||||||||
Debt | ||||||||||||||||||
Aggregate principal amount | $ 30,000 | |||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 40,000 | |||||||||||||||||
KeyBank National Association | Revolving Credit Facility | Secured overnight financing rate | ||||||||||||||||||
Debt | ||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2% | |||||||||||||||||
KeyBank National Association | Revolving Credit Facility | Base Rate | ||||||||||||||||||
Debt | ||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||||||||||||
KeyBank National Association | Revolving Credit Facility | Fed Funds Effective Rate Overnight Index Swap Rate | ||||||||||||||||||
Debt | ||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||||||||||||
KeyBank National Association | Letter of Credit | ||||||||||||||||||
Debt | ||||||||||||||||||
Aggregate principal amount | $ 3,000 | |||||||||||||||||
KeyBank National Association | Term Loan | ||||||||||||||||||
Debt | ||||||||||||||||||
Aggregate principal amount | $ 10,000 | |||||||||||||||||
Frequency of periodic payment | monthly | |||||||||||||||||
Amount of monthly installments | 278 | $ 278 | ||||||||||||||||
KeyBank National Association | Term Loan | London Interbank Offered Rate (LIBOR) | ||||||||||||||||||
Debt | ||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 5.15% | |||||||||||||||||
KeyBank National Association | Equipment Loan | ||||||||||||||||||
Debt | ||||||||||||||||||
Aggregate principal amount | $ 4,700 | |||||||||||||||||
Amount paid per installment | $ 147 | |||||||||||||||||
Number of installments | installment | 36 | |||||||||||||||||
Frequency of periodic payment | monthly | |||||||||||||||||
Long-term Debt, Total | 600 | $ 600 | ||||||||||||||||
Annual percent of premium prepayment | 3% | |||||||||||||||||
Annual premium decline in premium prepayment | 1% | |||||||||||||||||
Interest rate | 7.45% | |||||||||||||||||
J. H. Fletcher & Co | Equipment Loan | ||||||||||||||||||
Debt | ||||||||||||||||||
Aggregate principal amount | $ 4,400 | $ 3,900 | $ 900 | |||||||||||||||
Amount paid per installment | $ 195 | |||||||||||||||||
Number of installments | installment | 24 | |||||||||||||||||
Frequency of periodic payment | monthly | |||||||||||||||||
Long-term Debt, Total | 6,100 | $ 6,100 | ||||||||||||||||
Interest rate | 0% | |||||||||||||||||
Amount of monthly installments | $ 200 | |||||||||||||||||
Number Of Monthly Installments | 24 months | |||||||||||||||||
Komatsu Financial Limited Partnership | Equipment Loan | ||||||||||||||||||
Debt | ||||||||||||||||||
Aggregate principal amount | $ 1,000 | |||||||||||||||||
Amount paid per installment | $ 28 | |||||||||||||||||
Frequency of periodic payment | monthly | |||||||||||||||||
Long-term Debt, Total | 500 | $ 500 | ||||||||||||||||
Interest rate | 4.60% | |||||||||||||||||
Number Of Monthly Installments | 36 months | |||||||||||||||||
Komatsu Financial Limited Partnership | Equipment Loan | Initial Period For Periodic Payments Under Debt Instrument [Member] | ||||||||||||||||||
Debt | ||||||||||||||||||
Amount of monthly installments | $ 36 | |||||||||||||||||
Brandeis Machinery & Supply Company | Equipment Loan | ||||||||||||||||||
Debt | ||||||||||||||||||
Aggregate principal amount | $ 1,400 | $ 600 | ||||||||||||||||
Number of installments | installment | 48 | |||||||||||||||||
Frequency of periodic payment | monthly | |||||||||||||||||
Long-term Debt, Total | 1,200 | $ 1,200 | ||||||||||||||||
Interest rate | 4.80% | |||||||||||||||||
Investec Bank PLC | Maben Coal Loan | ||||||||||||||||||
Debt | ||||||||||||||||||
Aggregate principal amount | $ 21,000 | $ 21,000 | $ 21,000 | |||||||||||||||
Investec Bank PLC | Maben Coal Loan | Forecast | ||||||||||||||||||
Debt | ||||||||||||||||||
Amount of monthly installments until maturity | $ 800,000 |
Note 7 - Debt - Summary of Outs
Note 7 - Debt - Summary of Outstanding Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Total debt | $ 127,226 | $ 43,376 |
Current portion of long-term debt | 75,639 | 7,674 |
Long term debt, net | 51,587 | 35,702 |
Term Loan | ||
Total debt | 3,334 | |
Revolving Credit Facility | ||
Total debt | 25,000 | |
Equipment loans | ||
Total debt | 8,396 | 7,679 |
Senior Notes, net | ||
Total debt | 32,830 | $ 32,363 |
Financing of Ramaco Coal acquisition - Related party debt | ||
Total debt | 40,000 | |
Financing of Maben Coal acquisition | ||
Total debt | $ 21,000 |
Note 7 - Debt - Maturities of D
Note 7 - Debt - Maturities of Debt (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 75,639 |
2024 | 18,406 |
2025 | 351 |
2026 | 34,500 |
Total debt | $ 128,896 |
Note 8 - Leases (Details)
Note 8 - Leases (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) lease | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Amortization of right of use assets with finance lease | $ 4,800 | $ 1,100 | $ 0 |
Interest expense recognized for financing lease liabilities | $ 400 | 100 | 0 |
Number of operating leases | lease | 1 | ||
Operating lease expenses | $ 200 | 100 | $ 100 |
Financing lease right-of-use assets, net | 12,905 | 9,128 | |
Operating Lease, Right-of-Use Asset | $ 694 | $ 25 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |
Total right-of-use assets | $ 13,599 | $ 9,153 | |
Finance Lease, Liability, Current | 5,969 | 3,461 | |
Operating Lease, Liability, Current | $ 122 | $ 25 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses | Accrued expenses | |
Finance Lease, Liability, Noncurrent | $ 4,917 | $ 4,599 | |
Operating Lease, Liability, Noncurrent | $ 585 | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | ||
Present value of lease obligations | $ 11,593 | $ 8,085 | |
Office Space | |||
Lessee, Lease, Description [Line Items] | |||
Term of financing leases | 5 years | ||
Maximum | Mining equipment | |||
Lessee, Lease, Description [Line Items] | |||
Term of financing leases | 36 months |
Note 8 - Leases - Maturities of
Note 8 - Leases - Maturities of operating lease liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Weighted average remaining lease term, operating | 5 years | |
Weighted average remaining lease term, financing | 2 years | |
Weighted average discount rate, operating | 6% | |
Weighted average discount rate, financing | 4.20% | |
Maturities of financing lease liabilities | ||
2023 | $ 6,302 | |
2024 | 4,005 | |
2025 | 1,032 | |
Total undiscounted lease payments | 11,339 | |
Less: Amounts representing interest | (453) | |
Present value of lease obligations | 10,886 | |
Maturities of operating lease liabilities | ||
2023 | 161 | |
2024 | 161 | |
2025 | 164 | |
2026 | 168 | |
2027 | 168 | |
Total undiscounted lease payments | 822 | |
Less: Amounts representing interest | (115) | |
Present value of lease obligations | 707 | |
Maturities of lease liabilities | ||
2023 | 6,463 | |
2024 | 4,166 | |
2025 | 1,196 | |
2026 | 168 | |
2027 | 168 | |
Total | 12,161 | |
Less: Amounts representing interest | (568) | |
Present value of lease obligations | $ 11,593 | $ 8,085 |
Note 9 - Equity (Details)
Note 9 - Equity (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 15, 2022 USD ($) $ / shares | Dec. 08, 2022 $ / shares | Sep. 15, 2022 USD ($) $ / shares | Jun. 15, 2022 USD ($) $ / shares | Mar. 15, 2022 $ / shares | Feb. 18, 2022 USD ($) | Aug. 31, 2016 $ / shares shares | Sep. 30, 2022 USD ($) shares | Dec. 31, 2022 USD ($) employee $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | Mar. 01, 2023 USD ($) | |
EQUITY | ||||||||||||
Authorized (in shares) | shares | 10,900,000 | |||||||||||
Shares available for grant | shares | 5,400,000 | |||||||||||
Additional shares authorized | shares | 4,000,000 | |||||||||||
Compensation costs | $ | $ 8,200 | $ 5,300 | $ 4,100 | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||||||||||||
Options granted | shares | 937,424 | |||||||||||
Option exercise price (per share) | $ / shares | $ 5.34 | |||||||||||
Number of Executives | 2 | |||||||||||
Options outstanding, intrinsic value | $ | $ 3,200 | |||||||||||
Shares delivered per unit awarded | shares | 1 | |||||||||||
Common stock, shares authorized (in shares) | shares | 260,000,000 | 260,000,000 | ||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||||
Preferred stock, shares authorized (in shares) | shares | 50,000,000 | 50,000,000 | ||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||||
Fair value of awards | $ | $ 11,000 | $ 5,100 | 1,500 | |||||||||
Quarterly Dividend | $ | $ 5,000 | $ 5,000 | $ 5,000 | $ 5,000 | ||||||||
Payment of dividends | $ | 20,000 | |||||||||||
Cash dividends declared | $ | 23,100 | |||||||||||
Dividends paid | $ / shares | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | ||||||||
Quarterly cash dividend declared per share | $ / shares | $ 0.1250 | |||||||||||
Dividend payable | $ | 5,524 | 2,501 | $ 5,500 | |||||||||
Options | ||||||||||||
EQUITY | ||||||||||||
Compensation costs | $ | $ 0 | $ 0 | $ 0 | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||||||||||||
Options exercised | shares | 20,000 | |||||||||||
Balance options | shares | 917,424 | |||||||||||
Options exercised, intrinsic value | $ | $ 124 | |||||||||||
Expiration period | 10 years | |||||||||||
Restricted Stock | ||||||||||||
EQUITY | ||||||||||||
Shares available for grant | shares | 22,000 | |||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||||||||||||
Number of Executives | employee | 14 | |||||||||||
Vesting period | 6 months | |||||||||||
Outstanding, Weighted average grant date fair value (in dollars per share) | $ / shares | $ 4.04 | $ 3.98 | $ 4.28 | |||||||||
Outstanding, shares (in shares) | shares | 3,145,957 | 3,741,770 | 2,845,525 | |||||||||
Granted | shares | 214,363 | 1,592,659 | ||||||||||
Fair value of awards | $ | $ 10,300 | |||||||||||
Outstanding, fair value | $ | 27,700 | |||||||||||
Incremental compensation costs associated with modifications | $ | $ 800 | |||||||||||
Restricted Stock | Executives and Employees | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||||||||||||
Outstanding, Weighted average grant date fair value (in dollars per share) | $ / shares | $ 14.59 | |||||||||||
Unrecognized compensation cost | $ | $ 5,000 | |||||||||||
Weighted-average period for recognition | 9 months 18 days | |||||||||||
Outstanding, shares (in shares) | shares | 1,400,000 | |||||||||||
Restricted Stock | Minimum | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||||||||||||
Vesting period | 1 year | |||||||||||
Restricted Stock | Maximum | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||||||||||||
Vesting period | 3 years 6 months | |||||||||||
Restricted Stock Units | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||||||||||||
Vesting period | 3 years | |||||||||||
Outstanding, Weighted average grant date fair value (in dollars per share) | $ / shares | $ 15.65 | |||||||||||
Unrecognized compensation cost | $ | $ 2,700 | |||||||||||
Weighted-average period for recognition | 2 years | |||||||||||
Outstanding, shares (in shares) | shares | 165,803 | |||||||||||
Granted | shares | 248,706 | |||||||||||
Delivery Period | 30 days | |||||||||||
Fair value of awards | $ | $ 700 | |||||||||||
Outstanding, fair value | $ | $ 1,500 | |||||||||||
Performance Stock Units | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||||||||||||
Vesting period | 3 years | |||||||||||
Outstanding, Weighted average grant date fair value (in dollars per share) | $ / shares | $ 22.21 | |||||||||||
Unrecognized compensation cost | $ | $ 3,800 | |||||||||||
Weighted-average period for recognition | 2 years | |||||||||||
Intrinsic value of the outstanding | $ | $ 2,200 | |||||||||||
Outstanding, shares (in shares) | shares | 248,706 | |||||||||||
Granted | shares | 248,706 | |||||||||||
Delivery Period | 30 days | |||||||||||
Shares delivered per unit awarded | shares | 1 | |||||||||||
Performance Stock Units | Minimum | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||||||||||||
Potential earnings (as a percentage) | 0% | |||||||||||
Performance Stock Units | Maximum | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||||||||||||
Potential earnings (as a percentage) | 200% |
Note 9 - Equity - Summary of Re
Note 9 - Equity - Summary of Restricted Awards Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock | ||
Outstanding, shares (in shares) | 3,741,770 | 2,845,525 |
Outstanding, Weighted average grant date fair value (in dollars per share) | $ 3.98 | $ 4.28 |
Granted, shares (in shares) | 214,363 | 1,592,659 |
Granted, Weighted average grant date fair value (in dollars per share) | $ 14.59 | $ 4.37 |
Vested, shares (in shares) | (809,539) | (567,135) |
Vested, Weighted average grant date fair value (in dollars per share) | $ 6.57 | $ 6.55 |
Forfeited, shares (in shares) | (637) | (129,279) |
Forfeited, Weighted average grant date fair value (in dollars per share) | $ 15.65 | $ 4.11 |
Outstanding, shares (in shares) | 3,145,957 | 3,741,770 |
Outstanding, Weighted average grant date fair value (in dollars per share) | $ 4.04 | $ 3.98 |
Restricted Stock Units | ||
Granted, shares (in shares) | 248,706 | |
Granted, Weighted average grant date fair value (in dollars per share) | $ 15.65 | |
Vested, shares (in shares) | (82,903) | |
Vested, Weighted average grant date fair value (in dollars per share) | $ 15.65 | |
Outstanding, shares (in shares) | 165,803 | |
Outstanding, Weighted average grant date fair value (in dollars per share) | $ 15.65 | |
Performance Stock Units | ||
Granted, shares (in shares) | 248,706 | |
Granted, Weighted average grant date fair value (in dollars per share) | $ 22.21 | |
Outstanding, shares (in shares) | 248,706 | |
Outstanding, Weighted average grant date fair value (in dollars per share) | $ 22.21 | |
Executives and Employees | Restricted Stock | ||
Outstanding, shares (in shares) | 1,400,000 | |
Outstanding, Weighted average grant date fair value (in dollars per share) | $ 14.59 |
Note 10 - Commitments and Con_2
Note 10 - Commitments and Contingencies (Details) - USD ($) $ in Thousands | Mar. 04, 2022 | Jul. 16, 2021 | Jul. 15, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
COMMITMENTS AND CONTINGENCIES | ||||||
Reclamation bonding requirements | $ 25,900 | |||||
Amount of contingent liability | 0 | |||||
Compensatory damages | $ 1,800 | $ 25,000 | $ 7,700 | |||
Asset Retirement Obligation | 28,885 | $ 22,549 | $ 15,156 | |||
Take-or-pay Purchase Commitments | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||
Commitments | 5,100 | |||||
Environmental Restoration Costs [Member] | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||
Regulatory Liabilities | 0 | |||||
Environmental | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||
Regulatory Liabilities | $ 0 |
Note 10 - Commitments and Con_3
Note 10 - Commitments and Contingencies - Future Minimum Lease and Royalty Payments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Note 8 - Commitments and Contingencies - Future Minimum Lease and Royalty Payments (Details) | |||
Royalty Expense | $ 34.2 | $ 18.5 | $ 11.8 |
2023, Coal Lease and Royalty Obligations | 3.3 | ||
2024, Coal Lease and Royalty Obligations | 3.3 | ||
2025, Coal Lease and Royalty Obligations | 3.4 | ||
2026, Coal Lease and Royalty Obligations | 3.1 | ||
2027, Coal Lease and Royalty Obligations | 2.9 | ||
Thereafter, Coal Lease and Royalty Obligations | 11.1 | ||
Total minimum payments, Coal Lease and Royalty Obligations | $ 27.1 |
Note 11 - Revenue (Details)
Note 11 - Revenue (Details) T in Millions, $ in Millions | 3 Months Ended |
Dec. 31, 2022 USD ($) T | |
REVENUES | |
Contract term | 1 year |
Downward adjustment to revenue | $ | $ 2.8 |
Contracts with Indexed Based Pricing Mechanisms | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
REVENUES | |
Outstanding performance obligation, mass | 0.7 |
Fixed Priced Contracts | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
REVENUES | |
Outstanding performance obligation, mass | 1.5 |
Note 11 - Revenue - Domestic Re
Note 11 - Revenue - Domestic Revenues an Export Revenues (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) $ / T | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
REVENUES | ||||
Revenues | $ 565,688 | $ 283,394 | $ 168,915 | $ 168,915 |
CANADA | ||||
REVENUES | ||||
Percentage of Sales | 12% | |||
SOUTH AFRICA | ||||
REVENUES | ||||
Percentage of Sales | 10% | |||
Domestic Coal Revenues | ||||
REVENUES | ||||
Revenues | $ 328,322 | 143,946 | 119,981 | |
Export Revenues | ||||
REVENUES | ||||
Revenues | $ 237,366 | $ 139,448 | $ 48,934 | |
Percentage of Sales | 10% | |||
Fixed Priced Contracts | ||||
REVENUES | ||||
Average per ton | $ / T | 202 |
Note 12 - Related Party Trans_2
Note 12 - Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 29, 2022 | |
Interest expense, net | $ (6,829) | $ (2,556) | $ (1,224) | |
Long term debt | 128,896 | |||
Ramaco Coal Loan | ||||
Interest rate | 9% | |||
Long term debt | 40,000 | |||
Ramaco Coal, LLC | ||||
Royalties paid | 3,100 | 5,700 | 4,500 | |
Interest expense, net | 3,000 | |||
Ramaco Coal, LLC | On-Going Administrative Services | ||||
Related party fees | 44 | 100 | $ 200 | |
Ramaco Coal, LLC | Accounts Payable and Accrued Liabilities | Mineral Lease and Surface Rights Agreements | ||||
Due to Related Parties, Total | 400 | |||
Jones | Legal Services | ||||
Payments for legal services | 800 | $ 0 | ||
Ramaco Foundation | ||||
Amount of charitable cash contribution | $ 1,000 |
Note 13 - Income Taxes (Details
Note 13 - Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current taxes: | |||
Federal | $ 517 | ||
State | 407 | $ 3 | $ 19 |
Current taxes | 924 | 3 | 19 |
Deferred taxes: | |||
Federal | 28,389 | 6,518 | (3,164) |
State | 840 | (1,874) | (339) |
Deferred taxes | 29,229 | 4,644 | (3,503) |
Total income tax expense (benefit), net | $ 30,153 | $ 4,647 | $ (3,484) |
Note 13 - Income Taxes - Reconc
Note 13 - Income Taxes - Reconciliation of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income taxes computed at the federal statutory rate | $ 30,701 | $ 9,325 | $ (1,762) |
State taxes, net of federal benefits | 1,422 | 796 | (253) |
State tax rate changes, net of federal benefits | (546) | (2,274) | |
Percentage depletion | (3,314) | (3,363) | (714) |
PPP Loan forgiveness | (1,773) | ||
Stock-based compensation | (1,499) | (194) | 473 |
162(m) compensation limitation | 3,481 | ||
Other, net | (92) | 357 | 545 |
Total income tax expense (benefit), net | $ 30,153 | $ 4,647 | $ (3,484) |
Note 13 - Income Taxes - Compon
Note 13 - Income Taxes - Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Loss carryforwards U.S. - Federal/States | $ 6,598 | $ 15,975 |
Asset retirement obligations | 6,359 | 5,175 |
Accrued expenses | 3,257 | 744 |
Stock-based compensation | 2,249 | 2,331 |
Total deferred tax assets | 18,463 | 24,225 |
Deferred tax liabilities: | ||
Depreciation & amortization | (54,100) | (30,631) |
Net deferred tax liabilities | $ (35,637) | $ (6,406) |
Note 13 - Income Taxes - Operat
Note 13 - Income Taxes - Operating Carryforwards (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | |||
Cash paid for income taxes | $ 15,500 | $ 9 | $ 19 |
Prepaid expenses and other current assets | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax receivable | 14,600 | ||
Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 24,000 | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 32,000 |
Note 14 - Earnings (Loss) Per_3
Note 14 - Earnings (Loss) Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
EARNINGS (LOSS) PER SHARE | |||
Net income (loss) | $ 116,042 | $ 39,759 | $ (4,907) |
Weighted average shares used to compute basic EPS (in shares) | 44,164,000 | 43,964,000 | 42,460,000 |
Weighted average shares used to compute diluted EPS (in shares) | 44,702,000 | 44,257,000 | 42,460,000 |
Basic (in dollars per share) | $ 2.63 | $ 0.90 | $ (0.12) |
Diluted (in dollars per share) | $ 2.60 | $ 0.90 | $ (0.12) |
Antidilutive shares | 937,424 | ||
Options | |||
EARNINGS (LOSS) PER SHARE | |||
Dilutive effect of stock-based awards (in shares) | 532,000 | 293,000 | |
Restricted Stock Units | |||
EARNINGS (LOSS) PER SHARE | |||
Dilutive effect of stock-based awards (in shares) | 6,000 | ||
Performance Stock Units | |||
EARNINGS (LOSS) PER SHARE | |||
Antidilutive shares | 248,706 |
Note 15 - Subsequent Events (De
Note 15 - Subsequent Events (Details) - USD ($) $ in Thousands | Feb. 15, 2023 | Dec. 15, 2022 | Sep. 15, 2022 | Jun. 15, 2022 | Mar. 04, 2022 | Feb. 18, 2022 | Jul. 16, 2021 | Jul. 15, 2021 | Mar. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Subsequent Events | |||||||||||
Quarterly Dividend | $ 5,000 | $ 5,000 | $ 5,000 | $ 5,000 | |||||||
Compensatory damages | $ 1,800 | $ 25,000 | $ 7,700 | ||||||||
Dividend payable | $ 5,500 | $ 5,524 | $ 2,501 | ||||||||
Revolving Credit Facility | |||||||||||
Subsequent Events | |||||||||||
Outstanding on Revolving Credit Facility | 25,000 | ||||||||||
Amount of remaining availability | $ 13,500 | ||||||||||
Subsequent Event | Revolving Credit Facility | |||||||||||
Subsequent Events | |||||||||||
Repayment of line of credit | $ 20,000 | ||||||||||
Outstanding on Revolving Credit Facility | 25,000 | ||||||||||
Subsequent Event | Revolving loans under the new facility | |||||||||||
Subsequent Events | |||||||||||
Outstanding on Revolving Credit Facility | 25,000 | ||||||||||
Initial aggregate revolving commitment | 125,000 | ||||||||||
Amount borrowed under accordian feature | 50,000 | ||||||||||
Borrowing base | 66,300 | ||||||||||
Proceeds from borrowings | 20,000 | ||||||||||
Repayment of related party debt | 10,000 | ||||||||||
Amount of remaining availability | $ 41,300 | ||||||||||
Fixed charge coverage ratio | 1.10 | ||||||||||
Average daily cash balance | $ 5,000 | ||||||||||
Subsequent Event | Revolving loans under the new facility | Base Rate | |||||||||||
Subsequent Events | |||||||||||
Interest rate, basis spread | 1.50% | ||||||||||
Debt instrument, interest rate during period | 3% | ||||||||||
Subsequent Event | Revolving loans under the new facility | Secured overnight financing rate | |||||||||||
Subsequent Events | |||||||||||
Interest rate, basis spread | 2% | ||||||||||
Subsequent Event | Revolving loans under the new facility | Federal funds | |||||||||||
Subsequent Events | |||||||||||
Interest rate, basis spread | 0.50% |