METC - Earnings call transcript Q1 2019

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Operator

Good morning, my name is Nora, and I'll be your conference operator today. At this time, I'd like to welcome, everyone, to the Ramaco Resources Incorporated First Quarter 2019 Earnings Conference Call. [Operator instructions] Thank you. Speaker Michael Windisch, Chief Accounting Officer.

You may begin your conference.

Michael Windisch

Nora. you, Thank Ramaco of of Conference would to like On to Resources, our all you Earnings First welcome behalf I Quarter Call. XXXX Chairman; and this Atkins, our me is Mike Officer. Executive Bauersachs, With Chief Operating our and CEO; morning President Chris Blanchard, our Randy

and expectations forward-looking constitute Private start, regarding forward-looking of the of would the statements Litigation cautionary Ramaco's I achieved. or to actual of which discussed date could many any statement the result factors, made, is to information, Ramaco's Any concerning discussed Reform results is statements the These are control, future as except statements results differ we it represent a the from only events of Ramaco XXXX. and of by to share forward-looking update results law, forward-looking forward-looking subject whether within Certain Before and statements. any otherwise. normal speaks on beliefs or to it on Securities in revise forward-looking Act possible discussed our like statement future outside cause events, obligation statements. not statements statement required other materially today's are uncertainties undertake new of as risks, call meaning will These does or the that which not be as which forward-looking

With The could from said, factors in on let introduce actual to cause Form Chairman, the in and statements, including considering factors found forward-looking statement. XX-K with is for risk Securities Company's our me Exchange Ramaco that possible materially cautionary these statements and should to XX-Q. risk mind not emerge such and Company's factors factors other in filings it to Atkins. all report factors. time Commission, noted filings other New contained forward-looking differ our Randy its When results time, from any keep SEC those and the our and predict the the you annual Form in

Randy Atkins

Mike. Thanks,

to I for first operations. growth joining us to today always, our share discuss remarks XXXX be offering analysts, Mike the plan. to many footprint some to organic at you As making today this of rare want on I thank want everyone some are quarter our take mining also your will we morning call I formerly results. And on are and you a own remarks opportunity on of since one fraternity. realize shot the

As the we member welcome CFO, of team Jeremy our newest and Sussman.

well in on week Ramaco Jeremy We thrown the the will his some he be investment have thesis on as and as making on some end provide macro first remarks later perspective market. deep the

overview, we an from from last had still especially As call, stemming what year. quarter, first affectionately issues dealing the we're silo I a with operational hangover considering strong

are throughout I for generating adjusted of to on the be fully Company. and although, be for balance the also some we sit record the anticipate substantial will track we resiliency our EBITDA We are extremely we proud emerge to headwinds, we were overcome these several able today, still out, even weeks substantial quarter stronger. are Also, Ramaco cash the year. demonstrate that second from highest where

of As to unfair produce metrics is are would almost It QX where to up on still book QX on the quarter. end because we $XX with XX% headwinds we at QX of would run in we 'XX. prep capacity was silo. back many from adjusted the reinforcing because We face knew well X-week the the we remaining a second silos. in best But below carryover year-over-year comparison, X EBITDA process was which QX, to the of on million, Elk, probably plant stoppage managed work look comparison our EBITDA due

Bauersachs we will at this with dealing a mines XXX,XXX full ability at would as to Elk produced we had Elk, we ton. situation stockpile Elk which Elk also to curtailed explain, cost to were operate indeed, Creek our able Mike have $XX $XX $XX this, our at to massive at all per overall lowered between are to We more cost hold shifts. coal back have capacity. roughly raw tons guidance cut per quarter Indeed, XXXX now Despite our not ton, and

operational end the plant As At dealing in with before impacts functioning This Creek frankly we prior we financial expectations. full with alleviate have look track November. forward, at the is that still we at remains will capacity line on Elk to our be burden June. the and been since the point, of

quarter margins And were of as fourth have XX% QX. XX% So of let's on curtailments, up noted, $XX 'XX. Revenues coal start QX. hit for from production been tons, XX% production Cash ton by without per higher. from improved some Company company-produced the up XXX,XXX QX. with metrics from could

We a also million I'm that sales, year-over-year also spent CapEx on $X pleased QX, which ton. quarter in On was decline. pricing was per XX% $XXX first

year. of about for could this not in these it XX% now over our us. been year and news million, would from good basically ton being been rest carryover per tons of a than these it continue the are the We a from Without as have replacement is this QX nothing impact year. the higher While negative record. carryover $XX adjusted back The in last and materially tons, record, QX volume have a $X ahead hope that 'XX, would was we almost look strong from the we tons better carryover priced end have remaining XXXX. And for lower-priced predicting We have of lower-priced to been XX,XXX quarterly behind are start. quarterly were shipments EBITDA only as

estimate continue to For Elk we X.X Creek, roughly million production at tons.

per the which of mid-XXXX. tons XXX,XXX expect ultimate XX-inch million of at lower lower year. volume development the year X at tons Pocahontas through in reach number about mining expect the low-vol we We When production cost Seam continue X.XX X Berwind, Berwind Pocahontas number Seam next full roughly will we

the cost for X the On some seam our of Combined, tons also $X.X in complexes work ton stockpiles. improvement. for X, potential logistical thickness $XX number 'XX, cost is the we range with that Given we in future over Elk future Berwind bump overall our mining Poci as and per anticipate a production X XX% in million last us down million about over about sell marketing, tons put should to also we year. hope from which mine

today, we of million As or XX% X tons sales. our forward overall have sold projected almost of about

indexed and both pricing. sold for at fixed We have both and and export domestically

pleased this We is very domestic all our repeat of customers. are year also to that business

the margins continue of fixed-price levels $XX Our wears sales Elk throughout year price roughly in $XX ton range. We'd from the ton expand from QX provide the lower as us the margins the off. cash to in per per should tons to Creek expect carryover effect

originally explore month accelerating to increase Having from for near-term to the later to in the We of At various ways had the rebounded opportunities are in Board overall years. failure, possibility production, we silo later with Elk and sales. we Creek, we development discuss also by production per some to this start planned will continuing increase plan we throughput attractive at in Glen which to we period. at the year in When had the the Two which Gas XXXX, some tons will are Number expanding accelerate production current plant looking 'XX nameplate. new slated Alum seams, mine we capacity the the that, roughly above do prep XXX,XXX

A an complex, would adding at We production the our Knox us in give considering XXX,XXX production at tons some high-vol Creek which Jawbone are full new additional seam capacity. also of

be we would in most the XXXX in said, of impact these I've assuming forward. year, As we are not the yet, CapEx projects but green-lighting start later and

close Berwind million approaching a continues to ton to annual ramps X.X and X expect 'XX production X we and to production have to Creek million we by expect range. ton million As up as expected, rate 'XX, in to 'XX, Elk produce

to of especially three they to can cash to cash years, new we the or we've before, believe free start taking several few being we say our recurring to anticipate company in the dividend. shareholders we debt shareholders. of over return next ARO form peers returns our a said to that lot flow, with as I without grows of a other As the times generating liabilities. Ultimately, cash as size a coal meaningful anticipate four their Board and start company both of that on aim double well exploring as

we and over hope themselves will demonstrate be can XXXX momentum now we year speak And So Bauersachs. reflects the market flows to floor that the in where appropriately for a cash the that. like hope and to Mike I summary, turn let would that, our with

Mike Bauersachs

little quarter first are just plan. year-end were quarter XXXX detail Randy. brief call. because a our Overall, operating internal changed last first for relatively quarter the items Thank Most since My results ago. with our first approximated some discussed our has in weeks the few you, comments

shipping carryover by impacted some being plan Our from XXXX. anticipated business lower-price

more which cause anticipated levels. will impacts. also these a reduced slightly reduced would We a key limitations would cause infrastructure production, bit few turn on shipping of that I in elaborate

I first second decrease the started XXX,XXX during As in XXXX. challenged the and over coal XXX,XXX raw tons of call, our raw our size be tons during by the to which quarter, recent inventories at of of mentioned Creek inventories, we half most were Elk slightly raw continue Stockpile to end conference April the exceeded April.

and and this second through the quarters year. accelerate expect continue of remainder reduction the this We to third of

majority to it Elk will process ship first mines XXXX the Creek stockpile quarter, remain production. at and levels at productivities similar this Assuming to the the take of

during lost we shifts opportunity coupled the the the XXX the quarter, rates unit mines capacity limitations at underground to first run Creek at plant at increased miner Creek repairs. the Elk the production During to due continuous Elk silo-related the with

on stockpile, production performance. negative additional our placing on handling In had levels, due impact a measurable in we also addition inventory tons ancillary to an limitation the excess to costs, cost raw which incurred

stronger impacts, ships key silo-related help so. in rest and our feet While deep to metrics on going from financial point and feet clean stockpile Slide and the reduce Creek the of resume is of silo mines forward the shift we in depicts foot our coal utilizes impacts and to at the the slide our dealing mine believe Creek, missed a the do a shape out particular, how taking coal the XX,XXX first we our plant have to clean tons XXX,XXX capacity we the as quarter imagine The and ship resulted from quarter should a Even plans turned the the shipping dissipate. been washed not average into continues one. quarter. the have referenced could interruptions to production few from ships formula were buildup our In less account nameplate easy above our results quarter would normal XX Elk clean budgeted between I that per exceeded half the first up at mines quarters that than put improved of deep at expectations. solid Elk the have missed first per first relatively capacity. missed with we It into the ton the operation for to the tons per as likely exceeding in number preparation only first a quarterly differing year washing quarter calculate

missed obviously for is the when year. have stockpile of remainder we for the and bodes limitations, it against and productivities, well infrastructure due While compared to performance near-term cost, this production improved opportunities temporary shipment

some For all in silos I fully we anticipate safe have have April. allow or permanent potential performance in also utilization remaining long-term our that key turn, the our week bolstering practical the into bypass any utilized, components avoid the coal and the seen and is silos. to purposes, silos usage placed and in for full plant next of so. we in improvements similar We report can had being our a of failure completed

back Creek our normal With these thus far we to second migration at to contrast XXXX, has XXXX. quarter had positive plus the mine geologic advances. milestones in achieved, Elk a some capacity, In quick anticipate variances surface

XXXX, area surface budgeted been XXX,XXX indicated coal XXXX. an to in the which of the We seams where to a sold metallurgical data product to mine steam have Our surface planned up a as be sold upper amount less the plan would would had sell and would transitioning as the in have twice have characteristics and tons product. to thermal

mine As the into have we these coal. favorable results on the has had moved zones, mined more

third expected for metallurgical sold now The product substantial these While X/X bulk this shipping XXXX. quarter, XX,XXX or will tons of in revenue. thermal quarters at tons the of had limited impact be least will and we in the difference a be as of first in this previously second that

both a We the in are for and railroads. good CSX from currently season from our qualities marketing We've reliability. seen NS we Year-to-date, and perspective. the to results performance coal continue shipment shoulder improved see

that be believe market business, to XXXX about great some doubt sort the selective being customers domestic continue shape. believe to on we us business, XX, for likely coal see to especially price if mid-Summer. XXXX that It not of able portion is early domestic fairly more number come our fairly buy Slide market of U.S. coal, to a see that want on it's the illustrated We in As blends. we export the stay allows of a for that in we they in getting This portfolio escalation. will and us no early temporary prefer best matter appears large There's it's metallurgical their coals out very their to

receptive pricing His the into on, Resources predicted pleased its front, both domestic for has direct In that on experience marketing advancing Kevin capacities. in some this on the Senior I'm current efforts it Asia. except run their Wholesales call. the agreed our international to summary, marketing both hope earnings the announce on in Our this the day summary, the updates with to level. targeted next make [Kevin coal has agents. mines during our as to about opportunity We're point many Resources next the excited exclusive goes Karasia] This are with our actually have where sales year see while pleased We from continue have year. and have domestically position agents, to full Ramaco have areas step at to and sense to the join is Company been focused to to Vice we internationally. declines sales Marketing. Ramaco at a international marketplace take first away today. we migrating also President first as In is the and

include coming to first guidance focused to to the our that who'll peer we over of some discuss like will over synergistic a at and Resources Additionally, now overall changes comparisons the would to Resources. and remain of financial some things years. positive quarter, can Ramaco our organic Jeremy metrics propel our reminder to the I on previously investment key growth thesis provide group. This issued Ramaco relative provide opportunities some turn growth highlights Sussman, opportunities

Jeremy Sussman

Thank Mike. you,

many guidance. has Creek In tremendous of at of on terms of points, bit hit of quarter overcoming operating first a as the failure. only November team I one the in two key financial silo revisions challenges further was highlights, touch to cost Randy job to The want a but the Elk this done

Elk first despite over and Our year-over-year at quarter came just Creek, cost ton XXXX carrying in stockpile the up cash quarter. per prep plant $XX per fourth ton issues our at $X from

ability operational to quarter this guiding of to outlook Creek XXXX to cash now $XX we our costs from at challenging $XX $XX Elk those in to ton lower the per are cost overall control issues, $XX to ton. Given per per face ton an

total million to and expenditures sales X.X reflect Randy of million key guidance other that tons, the million including million noted, potential coal to note X.X Mike X.X capital XXXX production X.X expenditure almost of guidance spoke of developments purchased all including tons expenditures does I reiterated, of $XX As total to company million. was I $XX not total about. our and would of any capital XXXX the million

mix. XX% sales I'm metallurgical remarks, proceed be XXXX to say to The this in we for that X% thermal anticipated we to coal, mix in the coal. just pleased now metallurgical year to will his that change provide being be Mike favorable our XX% surface sales guidance relates we had our these sales projects, expect that of with of the about remaining coal. would other Prior our analysis approval guidance. developments As only mine and further we talked the to

to the carryover the net XXXX environment. Now income of due million. from tons this forward volumes for now in market million. quarter $X to negative income turning like conditions Without was previously that deficit back $X.X first net supply to I'd was This the turn quarter, views future. The quarter some foreseeable resulting of obviously been was macro have on XXXX. million we first like remain and silo compared price lower $X.X first approximately in to from failure, a will We increase price as to the the in November the in mentioned. would expect impact higher XXXX our

a of balance operators metallurgical there sheets this fact, large are are balance players more facing challenges sheets with with Frankly, coal a are challenging a favorable number financial while good current healthy In higher-cost Lower-cost the market in that of players struggling. condition. sign view as solid margin, are generated even market. we

has that remain legs beyond. As and well such, still continue encouraged XXXX the market to we into

Now signposts that a are looking at. we couple of

in coal per vast is the majority stock prices met of $XXX a was ton and curve $XXX a our above The of call, per the year. the XXXX beginning just per have $XXX the XXXX earnings ago $XXX metric to was time curve ton. curve this March, First, per At few remained ton. for up coal year, met at the of weeks ton, the XXXX

So to higher. continues curve forward while to continue prices march be the volatile, spot

Second, Chinese coal is XX% is at XXXX, year-over-year early on the fact the is This Chinese the since ground of high. which a despite October. quarter lowest first stockpiles metallurgical in are up record levels production the that their

delighted download to to a the from is slide prepared the remarks, a admired encourage table, here, have Randy our I'd is Now all employees. and let Mike a strong on slides. the that talented that be company first-class their of organization have say listeners the referred In call now to deck. clear I it we Ramaco. very am group I of me and on other long note, I personal that joining that the am in It side a

earnings refer I'll than Ramaco, of I moved a what loved. part really said Or, become investment job calls they know my reason leaving the wanted we to highlight I You'll Kentucky Ramaco a to to that way, thesis. many are notice the you bit as that as on the past call of the another different to family behind

Ramaco is its next returning little years in As along hope Company or legacy core, the shareholders while of size the debt to very to X X And way. the low-cost with the producer a liabilities. cash double we to

quartile are Slide you believe for like XX, for believe, many on tap curve to the in see first met coal. cost their we U.S. structures, we the producers As cost we metallurgical coal truly while of

the balance position At in our very $XX have per open ton may XX the have that concludes among while have people, and our end per at in and much the prepared I'd year cash net discussed that direct a Elk shows on came the of the Creek any In you quarter at group. right This on by the far time, Our all sheet we of remarks. in generally At this assets, XXXX last shows to right first ago. questions Slide to we our Slide we costs XX peers. to for management's legacy up same are liabilities time, now outlook. us $XX ton to results short, ahead moment I or lower the peer EBITDA that of peer the execute line lowest levels group, put believe like goals first towards Operator? that debt XXXX, right a our quarter

Operator

Yes.

Mark from Global. question have the Seaport of Levin a of We line

Mark Levin

Knox couple And then now. potential Congratulations, Elk of Jeremy. production prep quick related the Creek. mostly also capacity questions plant comments you this a new regarding Good and just to to on expansion, at talk Creek, to end

I -- production when sanctioning expect would So potentially better type be Elk CapEx Knox then have able soon both XXX,XXX million soon think that a And at How maybe of the that color what would that XXXX tons full How around to impact? piece timing if some ramped those Is a to incremental? were full a any projects. be to be? you Creek mentioned on might you to idea and color -- tons Creek. more around sanction year a Is you it. of that

Randy Atkins

Randy. this Mark, is

to market this be I do expect we time guidance to want more reiterate do give would with that to I'm up future doing later have to probably let taken metrics And the file the you we we some through this to First, mining it -- we the the and Blanchard But we expect also more that once Chris on have which not would being with exactly pick Board, further metrics. would there. what just granular month. yet some some detail the so transparency on said, going that,

Chris Blanchard

second the of production see assuming was the appropriately we in Mark, start effects 'XX. second would greenlighted to to in quarter, new this the with the of half regard the ramp, production sometime

we'd So run it rate 'XX be backloaded additional 'XX. the in and would be full at in million

I CapEx the any until think that color actually are As it's far probably impact, greenlighted. the projects best defer on as to

Mark Levin

-- would That well? make to do as it maybe profile sense, in of what And terms just of then even the mix Chris. And what business? the overall cost the

Chris Blanchard

at The production, rate million Knox Elk X.X the then annual million A. The mix additional would and would be would X.X Creek all million at be high-vol stronger. Creek high-vol tons full A

running. mix bit. a So than what stronger. profile than The creep currently These have would overall they cost are higher little Closer Creek going would probably to are to up profile the cost Elk Berwind. we're mines to slightly a get

Mark Levin

then versus Creek when the Berwind Berwind, you it. think for getting is Berwind. do the look And this in XXXX, you year, Elk your production year Got you up of to Seam think for to 'XX than step in you 'XX? next Pocahontas year. when about I think, a mentioned guidance Closer at And middle reasonable what #X

Chris Blanchard

those thicker sections full back can won't Seam. four the until be July will number see we number XXXX the half we We operating 'XX. Perhaps there won't of and reach into at 'XX really before Seam June, Berwind. the as XXXX then development some four more in year step change in XX% much of move work the as until in than We have the

Mark Levin

of do my just then And the cadence last it. to question with EBITDA. has Got

the a some release will QX you in do think your the mentioned press best that carryover quarter, I be have and Mike be QX behind in issues QX, remarks, think about record the will tons would you, quarter. When of been behind you you and than continue you. would do the trend of QX QX, of QX I Should a it. Better QX -- will than that QX, QX? lot better than better and But the be assuming kind stays it with is. where getting market QX being realize QX have of mentioned pricing think I just QX, expect, given

Randy Atkins

think QX year, -- would obviously, favorably. we to I for will say where further we of print sort we of Mark, get hope, that balance would that into quarter. point at I QX. is give little like least, bit very you certainly going guidance at the we this the guide flat out be after we as to But a hit the in more to able from to,

Jeremy Sussman

for A It's than purposes. remind about QX. but lot QX, volume tons in in less modeling still carryover do of Jeremy. just in I'd you keep XX,XXX mind just have that we that

Mark Levin

Got I one lied, And it. last question.

like you I Mike be closer high, year. staying have $XX And X cost to cost, to what call, could you rail I all-in wrong, the year increase a good a of and a maybe are and think logistics, ton. prices I the impacts about but logistics are increase $X I question kind import kind seeing this of cost? logistics over year-over-year rail of which believe, cost $X Bauersachs on referenced which guys or thing, might, seen as met that side? asked the is and rail to I the relates it on it months What a guys in sort last last an last the are know trends

Mike Bauersachs

Even that stable. than we out that pretty last been number less have quarter. threw Things Yes. slightly

I we've thing levels at much marketplace the seen rail pretty Mark. the these side, So on in same think the stability and

Mark Levin

your and on great Jeremy, on you, the position. a progress, to and Congrats new good it. Appreciate quarter specifically, all

Jeremy Sussman

Mark. you, Thank

Operator

We FBR. have another of of from line Pipes B. Lucas question the Riley

Lucas Pipes

happy move. is exciting, very and you. Congratulations, Jeremy. great great, This Very great, for

Jeremy Sussman

Lucas. you, Thank

Lucas Pipes

ton prepared on XXXX, ask some bit walk follow X.X to question, And be evolve? maybe with I of of could up more little it of a CapEx volumes that And year-by-year growth? kind a of, the then that's, question, by Mark's you associated wanted kind million how I Mark's bridge the in through us pointedly. sort could remarks. touched on it similar what would you to target know

Mike Bauersachs

Yes.

to production still through thrown out all think, to Berwind bit a tons, got a we little finish if Creek Mine, et kind to maker, 'XX, at lot challenge the continue think maybe we that anticipate million than of do to look progress on make sure some But RAM to I work to make of this you way our with other X.X a or of we've But Just do, with and 'XX, midpoint that million we've say cetera. get lets between production million tons permitting-wise. again, bring our about additional with to walking X to way which so, the, at better that just our in million line. I X.X X.X to I up try our X.X working Board, and in around and Pennsylvania a working Knox do probably somewhere bit to continues 'XX, in to X.X be good The one difference things continue is million and million we in mean, 'XX. work

we on XXX,XXX how XXX,XXX the mine. choose So depending that's approximately tons to

Lucas Pipes

in And terms would yardstick it. think to what good Got of a be about? CapEx,

Mike Bauersachs

RAM and Yes. vary deal range how does take the I'd Mine. rough It's with think, we'll I maybe. that, let a similar Chris

Chris Blanchard

per this of ton the $XX for purposes, just years annual and think out, use back at I in envelope incremental mean the of I five modeling neighborhood point, you production. somewhere want to

CapEx, all for mines. get the ballpark in that into everything equipment, these I new think you that will development permitting maintenance goes

Lucas Pipes

market, Okay. All domestic right. fixed-year prices, position, contract and course. think in XXXX switching I mostly topics. about your $XXX, of the sales Maybe mostly When

that. back So of a questions on couple of the

of of First, in your with potential relates curious shift you look you price but out kind it market. this also to course, earnings preference any more some the realizations moving Just there could booked the of then, two, it the for domestic year sense XXXX. Do -- potentially the carryover as into look export to contract what on a current sort to tons, as of the like XXXX, and a market for have thoughts. lot pieces your into And the were selling appreciate much then mark-to-market? Very market?

Randy Atkins

sort all, our Mike let of going we're first I'll coal to with of what not for you that for to being to at going try look, give XXXX. balance. we're price speak But We, the quote said, international

Mike Bauersachs

Yes.

Jeremy, -- and of -- just lot mean, a have kind position mean we are think guys I domestically. an think, were coal. who like really at we a we I our I of I interesting

felt was price we see things forward, especially were course, good We're of the on of we et cetera. think lot sort working with of directly. and I were very of the very we as you'll to good. things there. numbers enter it think go do I back, ahead Asian that market a like hard And balance couple a doing, tip

now, mix wise place are more we I better of And type selling, of for some course, XX-XX otherwise and the market we're could think right as back levels forward. $XXX. our sales look low-vol to shift than the coals

the numbers as shifts. up year overall depending I price could of kind on our how think you market on the goes see move

So...

Lucas Pipes

best And helpful. all congratulations very That's Okay. again. to you, Jeremy, luck of and

Operator

have We of of Gagliano Capital Markets. another line David from question BMO the

David Gagliano

take forward the Jeremy, opportunity. looking move. opened shots going some you Randy, -- on you I'm of First all, since really to... up I'm take the on Jeremy, to door, since congrats at that

Jeremy Sussman

I'm [indiscernible] here. right David. you, Thank

David Gagliano

move. in a Yes. congrats. forward estimates I'm hope I And And realistic now really am. know your CFO Jeremy, the the your by much right. you're more you as than for the now you. analyst. time way. more Randy, Thank not looking that sell-side you being to the I'm is Jeremy, mix. I opportunity. kidding, successful congrats on thank consensus All as time

So...

Jeremy Sussman

Nothing but David. love,

Randy Atkins

In David. program, part of our analyst outreach

David Gagliano

All right. Exactly.

the to Turning questions.

some and on here, of of details. Just hit questions. those some lot I Obviously, missed pretty clarification quickly, topics a

questions. Just on some near-term

inventory quite sold follow the Should didn't assume XXX,XXX sales were think XXXX, inventory about On I each timing the inventory tons tons But believe. didn't commentary, XQ out sales. inventory also of I the I of of none of XX,XXX near-term to those for quarter implied I we of XQ? quite, which sales sales in first quarter, about it's

Randy Atkins

about tons, talking carryover You're David?

Jeremy Sussman

inventory. Yes, the about he's talking

David Gagliano

The actually. inventory

Randy Atkins

Pretty good. Yes.

of that's on clean tons side I pretty it. inventory, assumption Yes. think, it's sales good, pretty of yes, So the a good in a

David Gagliano

pricing the sales? those inventory are on sold there to of to then those deferrals contract market be inventory at are going those tons, tied spot And Okay. prices or any

Mike Bauersachs

those No, specs got that sales. mean of our those basically any be qualities, I will same in cetera, anticipate all wouldn't our being spot. existing we've business. on I Yes. placed for et they're existing

David Gagliano

term, longer said Did thought tons now just and million 'XX million to I then get XXXX XXXX. into 'XX those clarification. in And be in million expected just you then and one X.X numbers I you Okay. X.X X.X go right? and

Jeremy Sussman

You're off David. year, a by

X.X to year, tons million and X.X X mentioned X.X to XXXX. million kind we million then up think I of this million next million X.X 'XX, year, in to moving

David Gagliano

All right. Perfect. congrats, what That's Again, I needed. Jeremy.

Jeremy Sussman

you. Thank

Operator

Research. of the Vertical from question Michael Dudas line of Another

Michael Dudas

but in introduction, done, that be Day and Lexington ditto comedic big, here you'll Investor hosting. Can't gentlemen, we're Dave's Analyst first forward to compete Jeremy. well on hiring very all those with looking that for And thoughts,

Jeremy Sussman

We're looking to forward that. hosting

Michael Dudas

and maybe years? ahead that rate curve stronger some demand ability Absolutely. several over the more just that the more efficient you maybe ahead develop chase what market that trying effectively level Randy on The past? and has much the plants gotten about Mike, than of you and Or the a to to little of at be getting better, today comfort next to projects. in others a we've CapEx your operation? much thoughts with better it what on some curve Is where mines the development might and of get accelerating the the market a announcement of seen maybe want the that drove the

Randy Atkins

Yes.

I of not we have we factors. a I mean done Creek probably think, in combination happened ourselves but several the well. the to good look fourth from had think pat quarter, Mike, us I those a, back, to Elk of of we've body it's to a that when pretty closure And coming done you respect on think back at number what pretty a for weeks. a back of job really I the blow

kind frankly, started, Tiller where step a do to when comfortable, was we and wind a particularly our very the that for to say, of to think didn't deploy were started frankly, now that, and right, out some we cash of kind little all we we're to us. opportunities, think I we we discovered of our terms forward in generation and attractive what able nearer sails, there, developing menu for bit think we've Jawbone we some have So other we down particularly back look several we that's term additional of first knew think opportunity really some that of next years, with in be our think looking our We got the we that, in tonnage.

So serious a think some and the we think this number to I result, glean years. a discussions of comfortable earlier but about factors, be forward are bit in moving Board start going that of of think that able some I it's as to I we'll do hopefully little performance to a

Mike Bauersachs

other to Knox one the us, we for others many Tiller back at we indicated, think opportunity mines see a I large of us what seeing Seam opportunity And the is did gone competitors the many with we and the we've to as we're trend dividends cases very coal go we buying think in. as best, Randy do the reviewed Mike, is shares. which and have put surprise direction as dividends know We and do Creek. times opposite to paying you as in our pleasant that

would aligned work the shape washing than planets have capacity we the thought coal. There's at was still of we our kind better in do The to those would placed it to get prep of plant point much Tiller all Creek metallurgical in be. to All that's but be Jawbone, excess of where is to a Mine with there. and infrastructure Knox

get answer think us to right I the after it. for is

anything, hopefully, So that in to... helps

Randy Atkins

little frankly, of company, And started We that as this future in our had think, look pretty some contrarian. comfortable in there's bright out, a be recession we've a I is we're space. coal the DNA worst the And Mike, bit that we quite I in to time. think reasonably in met the of depths

some comfortable that fight So direction. in bets in to trying we're

Michael Dudas

No.

as the certainly You're years. contrarian been was watching throughout over I -- career Mike the you especially

and know maybe my early in structures diligence vision recognizing all Jeremy, the your married in I mentioned then dived appreciate coal in a other remarks of about in organization, not general seen seen but sector to and sheet, what due the you we've allocation into bet those prospect. on your So flow might different the sheet that certainly capital be balance -- we've strong thoughts. particular, to first optimal kind of shareholders, as stronger -- something in have that, balance mining great cash getting levels for your follow-up, And with a relative you've week cash the ahead mining setting up very you too balancing throughout I and yourself which and very at the

Jeremy Sussman

just Yes. kind the Randy come of what Echoing the I for on mean Mike. -- said thanks side. contrarian question,

years. places XX it's whether see production supply met virtually going abroad. whether they look have where their forward, And And clearly doubled steel I challenged last like it's being here, no the you over coal. we at think they've India,

about three million coal of X% every that growing kind need to steel, -- a you million of new if So year, means they're met million year. X tons they're today, at of four XXX tons they million think that's tons

or demand. keep all when should the supply think to lack that's up thereof, at with say, it's I not So you coming I look online enough

So Elk beats vols long is, the want grow look the of low-XXs per to ton continue the we certainly, at but grow our to to $XX range. you mean to I right view we in way costs want Creek, and some that out there.

at time, production, investors same are low-cost grow to continue do mindful to about dividends. we want the but care we that So

Randy remarks, are we to that as forward, and said his one in mean a continue going -- think I we to discussion balance have. certainly look I that's that's going that ongoing So an to

you for question. thank the So

Michael Dudas

No. I the response. appreciate

Mike. final follow-up, for one Just maybe

Jeremy remarks seeing? that argument market? the And Asia? of that quality Or coal about some the diversity with mentioned they're what not is look how or You Asia at to supply a looking name that, of sell those mentioned that is the in the comfortable you get you for And like there's are to company tons -- your traditional need there? base a given Ramaco there to you're product. over a targeting response that like customers that that's you at we're could can supplier Is

Mike Bauersachs

seem know that with being the like more we're reasoning, more we out And blends question. continued production part with in first we'll his customers particular found mean no that course, is, great And cases. happen. And coal, from It or Australia impacts Yes. always of the Kevin in area, of board there was really It's experience main it in be in of world. a of to the is they never spending it. now on some what their in with I of high-vol, of diversity. just seeing many getting I some time what about time the that fails. quality all, question spent and, But

with can And suppliers only mid-vol, diversity. few And only want Steel coal such think industry. as Of are want growth mentioned, there make. which want would customers of that suppliers about India, makes also the a really Authority these you course, U.S. they when But that for we a of it in there. they lot Jeremy sense additional that example, ship the entities

Operator

We line the Scott question of Schier have from another of Clarksons.

Scott Schier

Jeremy. move, the on Congratulations

This Just impact carryover one question XXXX tons. little earlier, a of was but the touched was today. elaborate the I bit left for you on little me a could bit hoping on

going any second remaining in forward? we you impact the think of quarter. potential this? about some should to Or mentioned these it quantify Would have how possible be You

Randy Atkins

us. it's much pretty think really behind I

customers. or with like impact. that's was With made more shipped was, noted, have our Just of XX,XXX per QX big XX% nice $XX tons, minor. certainly would of in like, is very it Pretty we're you behind for volumes, so that was business proud say than the so. XX,XXX the it $XX the But ton that as margin us. difference December going obviously, almost more I'll or or Shipping us so about a $XXX in also tons most on business that forward. up tons we we've impact tailwind it,

happy. Our customers are

base customer XXXX XXXX. existing our from tons of in All took

from we standpoint. forced able a through to with issues maturity our really impact all minimal And work very were these so way

Mike Bauersachs

between up would've to XXX,XXX tons. comments probably did would X the that opportunity a frankly, the tons. there that the roll are wash XXX it like mean was. additional quarter. I results we should like, have say full routine, make I quarter. both tons pretty I those Scott, at which really the shows clean closer and life look have roughly to X. the second, you washing the at. been what don't you didn't it incident, absolutely good just which opportunity capacity don't third And which be tons the But capacity of And is we all basically that, what And think when have, to it interesting as slide, what can in production, per might looked been I have would for in mean I really now and foot do to than shows, as the the we had not multiply also, even want would take fourth by XXX,XXX somewhere to at have silo XX-handle is XX-handle in old terms will we but have, could look and had

So...

Operator

[indiscernible] We have from Corporation. another the instructions] line Steven of question [Operator

Unidentified Analyst

silo this provide wonder status conference the in your that on your call related the claims failure any to you insurance if of discussed I year? further could color just you earlier

Mike Bauersachs

say we a the think what think, the insurance were to that The the some we're it. least caused going at we're not of remaining not they've at to silo happen think, closely point we'll they've Since actually we're a insurance met had denied what the of enough, for prevent physically exactly I the will that the they But cause be Sure. because a ever of don't know course, with that I of the we again forward, silos. contact laid and, we're bolstering doing making at we have the the that call, would out, the claim, point including also to of with claim. points the where would accepted things potentially thesis believe where company. of silos changes looking number is and company We at anyone whatever not

site so. of the expect the or should next if visit next in from know, couple weeks. do more or accepted maybe And the week one in is standpoint claim least, the we So we at not

issue. obviously, things So that fine been it proceeds, we're any without -- continue should we've we've believe we to covered made be a But work.

Operator

[Operator are There like the instructions] no questions further this to Atkins. at to time. call speaker, over I'd Randy back turn

Randy Atkins

thank few We to happy on here so Thank much. -- look everyone very to speaking you forward Well, gave a being insight. Great. you much we Again, for you gave with more hope the a we're bit today. line the second And in we Jeremy quarter. very you you on here. little months the welcome clan to

Operator

This concludes today's call. conference

may You disconnect. now all

Ramaco Resources (METC) 11 May 192019 Q1 Earnings call transcript