METC - Earnings call transcript Q1 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to Ramaco Resources Inc., First Quarter 2020 Earnings Conference Call. At this time all participants are in a listen-only mode. [Operator Instructions]. Please be advised that today’s conference is being recorded. [Operator Instructions].

to Sussman, conference Chief like speaker to now Jeremy today, Financial would hand over the your I Officer. Thank you. Please go ahead sir.

Jeremy Sussman

behalf you Chris Chief quarter Mike Bauersachs, On welcome Blanchard, is Randy With our you. of President Executive I'd morning Resources, Thank Chairman; our like me all this of earnings and to Operating XXXX first our Officer. Atkins, our conference call. Ramaco to CEO; and

call XXXX. items constitute like I'd share normal discussed to it meaning on results that Certain the expectations Reform today's statements is statements Before Securities we start, the and Ramaco's discussed of forward-looking cautionary our future the These within Litigation statement. not events will represent achieved. possible concerning Private Act forward-looking of be

are many statements. to other to Ramaco's subject outside of differ and uncertainties discussed of forward-looking results which the are in statements could actual factors, control, risks, the materially These cause results which forward-looking from

of forward-looking it as Any any on and result any not update does law, obligation speaks future made forward-looking as undertake to which information, as or or events is statement required of a whether Ramaco otherwise. revise by only the statements, date new except

on ramacoresources.com encourage Presentation this go I’d our to website, everyone Lastly, the Events to and on Investor today's download call under Calendar.

me With Randy Atkins. Executive let our that said, Chairman, introduce

Randy Atkins

Thank you, Jeremy.

life moment, quarter a There curse at an be old a is As always, that I’m indeed in I discuss “yours operating want afraid. to We're thank all shall everyone results. such to our Chinese for joining interesting the us first under today goes, times”. curse lived

balance landscape, can will to to people changing that safety This that attempt do we and is we we strategy operations. at months the thesis me comment of least let the will to longer: essentially of the we a can all and turn health, First, continuing probably is legs six our what rapidly keep I results, Before next but our do three safe. for all stool on our

the structure. to Secondly, we this shield liability in much calling prudently, take time we going us cost lowest to as the already enable cleanest at sheet, balance some work what same preserve well the on balance and sword sheet business as We're liquidity have the as create can to to the of we're but side, the as approach to a market.

indeed few We months. next industry Ramaco know tested the and the over be whole will

So taken being later. payroll will we This speak we some and to which done add of new through in revolver steps recent changes combination about of new have liquidity. all is our and operational a cuts, borrowing,

the unclear. falls, deteriorate We by that disadvantaged the market quarters, next market costs think doubt some but no and are at for us, for for create others two pit by will who plenty That are mining how and for long certainly may least debt. much deterioration higher one how or

called sword feel that shield the XXXX brings or liquidity, XX% the the X.X that behind a million weather which added Ramaco our the sold third fact so about of shield. stool, me of should We provide plus forward storm, production, leg to we've tons this the to already

Notwithstanding development production initiating low-vol months that term growing away taking roughly reserve. on in once Pocahontas slope is that Due doing and in long X been but market are we've our low-cost we project the Seam active six to planning front. construction five we defensive to also the stopped from the upheaval future March, measures, reinitiated, development reaching in

the four we Board, we and new Berwind, within the XXX,XXX tons X.X the add run low where of on ground. to we from low-vol about also have Triad six these months This landscape market to then with roughly mines mid-vol of tons. our months and to on combine We two could low-vol bring about and breaking little mines, as normalize mid-vol Creek our added refer of relative and with compares ongoing When could Big light projects, XXX,XXX from and [ph] production CapEx mining two new within production. and million rate which them a would coal clear of heat of annual course additional current tons an green we basis

Creek level We million poise some tons roughly development estimate we year. as meaningful and Berwind in That CapEx, This relatively we mines X an of is and much us million potentially to $XX with the until light Elk CapEx XXXX tons projects to Again, XX% these see levels, to better million. production. obviously require per and these and would will average low as our production Creek. could lead tons $XX time break of new produce but increase mine clarity, of cost from green XXX,XXX ton the will like approximately production low add high-vol about above X.X and we market next down as short cost low-mine Knox low-vol from not additional

price lower markedly turn average me results of XXXX, ton. which lower environment to a in $XX.XX locked-in At we year. pricing going at than of Met-Coal almost last Thus sales was course about with which our a detail of per fill Jeremy $XXX in for average faced let Now the QX, the had in ton. XX% the more an In price moment. is some start to domestic financial our is XXXX, XXXX of far we

$X.XX an million EBITDA XXX,XXX coal $XX about of In to or This roughly realize out in worked ton. share. on million a earnings QX priced sales $X.X at tons, we average of $XX of a diluted

strong cost pleased a under XX% quarter just ton are complex maintain $XX the prior from Creek about million. that to of and discipline, CapEx averaging Elk operating mine-costs main by falling $X We with our we

no Atlantic benchmark the looks hovering have is at to costs The by landscape, a sales markets. Turning right at $XX now ton about and low-vol U.S. this with quarter prices marketing and in meaningful now the it still best export seaborne [ph], dropped difficult over $XXX.

to China, prudent weakness, we from probably some truly domestic before Although recent expect news. has there see encouraging more been it is bounce

beginning As XXXX of and we real the any perhaps second QX. last do quarter, half we not until not market said actually until expect resilience

are As really production these production maintain in any providing times, term of even for million the to continue of our such, challenging But long X year. further million guidance to balance not we guidance the tons. X.X we

these slides who For of those which to our keep of you encourage ramp, our deck, track would you look like to earnings at in a outlines I take projects. production the

like, long to structural taking by to term months some recently several a shield fundamental which knows what steps same, the strategy liability none us we're strengthen unfold liquidity. low of next ARO the maintain Our improving Because low-deck, capital the structure. remains is will

added new our bring In QX and functional about million we we almost QX the us down a have the of which a XXX new in $XX received also enables furloughed capacity the paycheck In line million, loan to equipment miles drew $X we protection of April. back million $X to of weeks over revolver. early

development further took at cuts. and G&A idle strong Berwind also some The construction

market liquidity All some as additional we're is steps prepared of combined, new much add and million these to ones in plus QX $XX deterioration. there initiate QX as further if in could

XXXX are going at Cap contraction, more. to see continue in to we supply but some assume We in seen we some expect have that point. To-date reduction

long, is about at with benchmarks now cost mid-XXs equating only to in and mine, that with mid-XXs. particularly in the average the to ability sense defy exists per ton gravity the this Our current so mine business for

often mines many irrational the tell. old the liquid suspect time longer goes, peers We are levered cost saying still so our will stay these operating of both, can markets over who or higher you potentially are stay than can and as -

overview, that I turn it give to granular a Jeremy over on more finances. with like Now to to would discussion

Jeremy Sussman

Randy. you, Thank

adjusted to $X.X XXXX. the which X% In Frankly, $XX decrease ton a from a than fourth had per of compared X% quarter to that sales the was terms given price EBITDA quarter the financial decline per first XXXX fourth quarter-over-quarter was we ton in of fact first in anticipated. $XXX the quarter, quarter better declined million, our was highlights,

at team period per quarter, same the in Berwind ton ton and per at down and cash per per year-on-year to both an excellent the quarter which in XXXX. development mine of quarter ton, first also operating our fourth costs compares company was $XX include ton with Creek of $XX had Chris’s which $XX costs in Elk Overall which quarter-over-quarter. the in came $XX

Rounding from fourth was X% up and down XX% down the $XX from the financial million, revenue first quarter metrics, quarter period XXXX. same

$X.XX quarter was compared ago. share line First results per earnings to XXXX quarter a fourth $X.XX and in year with

press COVID-XX unprecedented our an uncertainty. brought release, has As noted on in amount we of

per our such, annual peers, the sales most our million our tons we $XX forward of commitment at X.X of sales for As of are current giving with like ton. XXXX, exception suspending guidance

I where to the However, upon touch peers. Ramaco our see between many on want front of and three financial differentiation areas I do

Ramaco a this mode has that in been relatively call First, everyone on is growth producer. new aware Med-Coal as

of has extremely fact XXXX are the years. past proud to production good from over few XXX% we paying XXX added and have We jobs roughly that XXXX grown that the over

low a production more ramp will in to Ramaco X.X as the production, when clarity plateau. noted, Randy add there to tons market is cost As continue to new million X we million

clear have very uncertainty, market stopped CapEx. current given be we that all our to growth want I virtually However, of

of was first will press grow, mostly million related see CapEx our million in to you $X.X quarter Berwind. $X.X As release, the at

at quarter, growth high some as into as While second CapEx. capitalized be modest we our CapEx first existing expected be watermark XXXX lead to Berwind expect fulfill there for quarter will that far by payments to contracts, losses well the

plans downturn, in because beginning to that liquidity Second, of live year through protracted now, world have this $XX necessary. can if which we we from place as that roughly of Randy quarter, noted, third add the uncertainty could indeed in out the out be turns million ride ensure a we to of right in

workers balance second of existing now. liquidity come close To-date operational revolver goal, very has safe our in form and always and additional the cuts. right protecting new our debt, keeping our is is modified our number sheet G&A CapEx liquidity adding one a the making While and

$XX debt, million million which to recall Specifically, we debt previously $X.XX in workers. program, of consisting from used payment new the furloughed of new million we all have protection taken equipment and $X.X on

We revolver other increased to availability. things also have our modified among existing

year-end in maturity date Specifically we XXXX. amended and our $XX extended million revolver February to the

true KeyBank year. should base million our by definitions also both the our with borrowing compared internal estimates borrowing average, availability to the the $XX On the base. under previous this course over to increase and modify We receivables worked of of partner our inventory

and balance liquidity operational come existing increases and and from of the Lastly, G&A, CapEx cuts. future

Third, I remind the for advantages Ramaco. everyone of want to competitive key

debt we just million. $XX As EBITDA XX slide are I��d XX, best in our of our remind stood as the everyone metrics on at industry. March to that net debt show the net

to an XXXX on have net EBITDA adjusted industry based leading EBITDA. X.Xx We of debt position

the below of Ramaco a another Given our way interest taxes, get you lack may cash us CapEx remind hold meaningful of items, minus when stress maintenance the I'd EBITDA there. all that downturn almost for line testing cash expense, everyone should in protracted

million, Ramaco’s by Furthermore, very its at at I'd peer legacy cost, liabilities little core, remind just far legacy or that with is low below are and that $XX liabilities. among the opportunistic lowest Ramaco debt average a producer our XX% investors group. group net direct

times We our to be the of the in turbulent course and of take markets have designed in strength good operation times. advantage resilient in

Mike? would that, over call Mike President Bauersachs. turn I now the and to like With to CEO, our

Mike Bauersachs

Thank Cost Operationally at in less mining Creek sales our QX. Elk than ran on well idea exceptional volume Jeremy. complex. was Ramaco you, mines all containment

on continue COVID-XX our all what and As mines to the COVID-XX place. sit in from has we great to impacts relative to was and gone lengths toll to an Ramaco market related take At safety already health address the concerns levels their weak infrastructure. today,

relative to my and the details like have we is that efforts part positioned Chris Ramaco Blanchard remarks focus additional on current to will how coal would to of implemented. the on-the-ground first I provide the markets respond.

coking coal felt Basin. the of relatively market were as yet well QX, performed the COVID-XX of in be to fundamentals much Atlantic During effects

Seaborne rising demand. spike causing end coal QX this quarter to pricing gains give year up nearly period, to year-over-year. followed a Pacific close. came China's mid-March XXXX nearly back were in China's Basin as coking above During a early to XX% logistics issues and created suit, in virus imports first prices, labor most of only lockdowns of related levels XX% these

quarter, was iron impacts spending, and pig for seemingly major iron by pig encouraged steel China year-over-year the first crude production and X.X% steel while post and the of X.X% X.X% to gains the excluding With stimulus production of behind during fell them, a same crude global respectively the period and X.X% able China year-over-year. respectively virus and

and the world confidence continued materialized sectors and auto, of manufacturing are dealing spending various the habits. affected These and consumer the of around and with the have pandemic. impacts construction now impacts countries stages Different regions have in in downstream COVID-XX

coking blast severe. producer which effect pandemic's curtailing The in world, steel coal the on furnaces pricing. major market and been around coal production and coking turn integrated reduced swift the With has has demand at only and

producers supply countries measures, significant by demand and responded we likely curbing response producing occur. stimulus continue it to is implement is yet overall from although temporarily Australia backed economic Canadian that the seaborne outweigh met-coal U.S. Many steel supply a major to government production, destruction will see response. Until

of to the remain recovery. timing demand eventual indices expect around lack and of We uncertainty due subdued to an

customers. our shipment April, able to the through with originally were During first maintain quarter we all and planned existing schedules

demand has has of stability currently and position domestic XXXX revenues. for vulnerable decline schedules shipment seaborne sales market and made the to less in and in seen provided pricing Ramaco Our steep

navigate closely with delays to and we customers maintain remainder minimize we shipments second As the to and work of continue off our planned the quarter, potential take.

working our are also transportation measures. cost partners. are cutting closely They experiencing with key implementing downturn reacting well, are We and by as the

ability do likely that not our hurt our While their need we committed to to volumes. necessary, ship ensure cuts

forward majeure cancel reduce of prepared our continues has committed receipt certainty of committed Lack shipping confirm and to however, clarity forward force tonnage; can clarity market to terms. XXXX majority of around we us its guidance. of ship to volume lack from Ramaco’s schedules, all customers. remaining the This the caused providing of looking product notices

with our global present rolled were sales at prices not existing material first from economy gap suppliers to the us or portfolio international to between order much incumbent quarter to suppliers entrants new those gaining cases, uncommitted year-over-year share already lower export did over production. that any market was In an add opportunities simply maintain business. business for business for weak term to current the and sale advanced, in likely committed bridge term As many

trial tenders stock the gap international our as between making coal on focused to customers. our highly new shipments sources sales, now Ramaco’s production efficient to as bridge and well

With allows to is time levels, competitors, and current pricing same opportunities most at that regard potential market be more a position discriminating of to said, ready our volume staying us than with rebound. smaller and our uncommitted while for the

quality first the best term strategic We quarter placing Ramaco volumes customers also focused make in our for on products the most which during and Europe. the remain return unsold the in downturn, into markets market those relationships long has April, high current with Despite of provide sense. renewed a couple

Asia inroads We and all integrated our by to also first America, for approved South significant our shipped major now we have in tons use having made mills. products

will and Fannin, relationships. wealth our well to to Karazsia of book and team. as pleased our two-pronged Officer of to domestic new extremely experience growing alongside Kevin Marketing welcome business, senior a as our Chief growing We're Jason to Jason management levels brings provide maintaining our approach a our international

due by idle currently receipt KeyBank. The through COVID-XX the restart the loan operating. the mines impacted that from to in funds decision $X.XX was mine previously related All PPP million SBA primary Ramaco were our substantially bank of to are of the furlough

and in the the coal the prompted profile apply uncertainty industry, us Ramaco’s to for loan. obvious

We that issues properly by the met the and the believe granted treasury. that also U.S. all guidance appropriate long SBA we

to both we on the receive criteria met eligibility the all loan. have We advice retain independent subject confident and have substantial are received and

a stockpiles. production while substantial control for the and of a retain Market amount also liquidity uncertainty to way caused With spending standstill, us capital controlling has to of delay at virtual coal sales, markets best match our projects. capital is

is feedback the we this that slope committed the X time firmly can we driving From at on do mine. clarity. it to Pocahontas to standpoint provide Berwind Seam provide at to from our remain is X What a difficult the guidance capital, Seam Pocahontas

our is substantial We and seeing standpoint mine growth Most should We to seeking quality, likely of and a project primarily in reached be Berwind this subsequently first are comfortable growth only that on of began volatile slope. the get currently we our attractive slope we level sales bottom the comfortable Berwind forced competing until with from We markets liquidity. versus Other the high at prospects could our low projects a quarter added competing work will build expansion the working quality high are compete pursued. that being mine the international what in developments the believe projects. markets more volatile be domestically. domestically

of with advancing recovering Management ball new is production market. amounts that more Blanchard switching react focus some its discuss quickly impact to let a relatively of development in near their potential to We're Chris being the impact. detail and capital. several on projects require quick-to-implement, these modest high I’ll able to opportunities term

might these projects to geology synergistic take assets our types from our a on go I as well of relentless and scratch with production, are as acquire add of projects to opportunistically focus are that assets. existing willingness result and decisively that

uncertainty the CapEx are continued ponderable coal competitors and that While many cars. large rail we docks, cash challenges [ph], avoided not. amounts not our large we that believe of deploy piers up amounts at inventory We've maintenance of We've regulate in faced manageable. and and by to tying have mines, while are stranding they

us our Elk prepare us better at issues, in furlough to COVID-XX and allowed coal to it the stockpiles also align April our with address related for sales. While allowed Creek

available of our debt debt, We and stability retirements continue cash to liquidity creating liabilities. and on maintenance and continuity focus non-value generation elevated versus

it's selling cost there our inventory production their potentially cash below realities have more clear that and shifts be and it market and elevated reduced implemented are discourage among the to Many and more like and from and structures wages already generate looks benefits. current cold more levels. reduced will are investment, competitors. cutbacks, The of failures continue to elevated many Cost bankruptcies

coal In in with close. being capital markets the X experience being chapter more of than for look is this of setting our chapter done reorganizations. backdrop liquidations basically type this of All XX bankruptcies like

difficulties we not in. company structured is like prove that it ultimately everything a benefits migrate We one Ramaco the possible and the from that to faces through summary, we that way winning to as difficult prudent of the will is downturn. In that this remain are is to storm weather looking the We're our recovery. be immune what doing confident strategies

like now turn Blanchard. over would to Chris I to things

Chris Blanchard

Thank you, Mike.

the continues health a As all to it through said is Randy emphasis who think “we safeguarding work on interesting the I coal focus at beginning; on protecting workforce to living essential our the and the safety through coal recovery. our of are produce Ramaco navigate particular primary best entire and will economic our times.” and uncertainty, supply with eventual miners continue fuel that

troops In to to began to our best March quickly to shift modifications our equipment Early of virus their our congregations provide staggered mining sick of common more flexibility minors, employees and we adapt cleaning eliminate and COVID-XX, leave employees. of time Ramaco this proactive families. we the workplace implemented for we times our continues and adapt to and in We policy the to of all be to minimized responsive protect areas coronavirus. to and or and extensive our sanitation enhanced

guidelines practices the evolved of local over all to the have policies at best changed state federal, our As have and months, two past the incorporate levels.

the best adopted industry employees. have our suggestions frontline from in and practices solicited We

every at our home both guidance continue use, protect to at all and As checks issued necessary employees all employees, reusable we basis and from events pre-ship take vendors for a work. to the for masks have We're to of also monitor our we to furlough miners. continuing day. We've recall visitors miners all face and steps implemented their will period, April on temperature and

XXXX, operational Looking of to had one of back we in at quarters our results first quarter metrics. of operational date most best the

for the production highest at mines per underground development begin at since mine now its our fee shift XXXX. in is Our Berwind combined company level

productivity Elk Both budgeted Creek exceeded levels. and Berwind

favorable return our From all As QX our a per in has a and a showed resumed as the levels on we dropped standpoint, Elk ton cost improvement operating result, from of levels our guidance furlough. year-over-year. geologic well production below year produced operations conditions basis and quarter-over-quarter Creek remain and previous at

through recalled was at within to both full of all Berwind. section Turning with month. back miners each and who’s furlough period most Elk our of mines The underground operating we contained the Elk April operations have the our furlough, the majority now Creek at paddled Creek and of operation at and

plant reduced our Because existing tons. we Elk our throughout to to to furlough over raw manageable were service to by raw we continue continue XXX,XXX operate to reduce the were the mine levels, preparation able orders, more coal Creek inventories stockpiles

also of curtailment XXX,XXX more not produced month. the production be tons to slightly during the clean However, caused than coal

to any adjust poised to the downturn, will engage with as or advantage As needs. customers during modify mentioned we additional customer and in and remaining our take the of while previously, our continue to operations plan needed market any recovery

X development during Berwind the the excavation. We COVID-XX reached area and markets for as soil April. underground our to to construction we future on thicker on global did slop progressed mining above. we slope construction excavation access the the initial the in in first bottom see and from Seam to At mine and quarter begin Pocahontas quarter, the suspended Unfortunately, and steel, we coke the response, started the mobilize impacts coal

from the see to industry. some rapid had some restart construction we once a stabilization equipment Our their in demobilized site, place in allow but has for of the left subcontractor

sit separating Seam. Pocahontas we and slope than today, we our As vertical feet have excavation the slightly XX X less

these Berwind restart Creek we to mines. the allow excavation at be Elk which during rival in term this near volatile times the makes at will on the delay coal Nevertheless, we reach construction, costs liquidity superior X absolutely the correct project focus our produce high extraordinary or this six decision. even or our mine less will upper Pocahontas of in reserved geology to to months Once The non-cash horizon.

term shovel-ready portfolio reserved other existing into mines strategic to continued and our in have of of and some fit had that Randy made mentioned, to our Mike have controlled of our permit possibilities acquisitions Turning properties. that we projects near some logistically

Reserve, is mine. and permanent X Berwind to the future a existing our X mine, complex which utilize Berwind access and infrastructure located be Seam had for in favorable able outcrop Berwind will incremental area an mines. reserve Pocahontas between two has small will of legacy geology the PX This our surface the to we mine similar have received At Pocahontas

will cost, either with low overall Berwind for X tons reserves, Unfortunately the Berwind this increase profile. contiguous own to give as our an reserve to at vol us number not opportunity our production bridge low is mine mine or an our but main

and Our Creek to quick permitted coal, the is be near in mine, plant. our located Knox already reserve second purchased mine seam potential had the customers mine of of purchase-able previous have been constructed previous lead revolving to a our project in production our as former program. require power of permit [inaudible] mid-volatile will from and to be This in prior in part installed infrastructure This first This that by proximity us which will electric mine sublease years quarter XXXX. was Jawbone acquired a owners. other

of employee Both some until access, these inventory This and mines could green in the time been and on minimal. projects of neither six in safety, is remains development online this started brought management Obviously has current lighting after focus coal be less time has our markets. liquidity, projects. so and visibility stability we outcrop growth see mine these months the also than at

to to both the position portfolio Ramaco as recovers. with be While downturn expand profile cost that’s medium is operations the does frustrating. ready assets this to term our forward and near survive continue its its and clarity, market and low

our line-up to any management's the this questions outlook. for prepared might I'd like This have quarter remarks. XXXX time first At open now you results or on Operator? concludes

Operator

comes Thank of from you. Company. Levin the line Our [Operator first with Instructions] question The Mark Benchmark

is open. line now Your

Mark Levin

think congratulations to much good Great! kind Elk trend of should cost guess very of quarter. of the year. point, cash the best in quarter watermark looks cash cash Related How or I should Creek like that we there? high know cost onward, Elk and demand about uncertain, aren’t cost at but the get pretty cash I’m the to the first persists Thanks trying of you cost on of and I through just get to want that, this Thanks. guidance, how its kind just demand to idea. Creek. think giving QX. at for know an I a environment then but just way if being you

Chris Blanchard

Mark, this is Chris.

I indicative complex cash that at Elk think run we full of can we the in what cost that running at Creek are are quarter first the capacity. saw when

So then see rates and to off, it's able full we’d run we near those all to volume if volume expect slightly. those tapers related. utilization, If the rise we're should

Jeremy Sussman

Jeremy. remind it’s we you high X.X had million we production, if to for annualized that the I’d at was about at Mark, that And end look everyone guidance previous the you which of know companywide, quarter first tons given.

the clearly on in noted, Chris ran as and So, mines volume both cost wise QX.

Mark Levin

That's And very is X maybe referenced goal X the obviously getting you then but to X term from million million you’d know tons, longer helpful. million tons.

the million estimates capital some get annualizing the update like point this from the know million of production to double from what's take and let's X you're get capital to to incremental onward to X to million for think X X then say I annualized provide tons. that million in to your maybe capital million get terms of around to X million you in X you by first to the tons quarter. or amount you million from rate ton your it X Can total would

Randy Atkins

So, question let take me your first the Randy. is Mark. This of part

to Berwind that can it mentioned. I obviously to got we know on just said the and remarks little bit We as spend from pleased million more I for the we the basically slope. three So $XX take a are basically in two you

Triad said mines the mentioned, modest. six about and the and that Big from five that, As the to Chris Creek then I months capital two other we're away are pretty requirements these of

another, tons, a do pretty yet, us we're you sense all attractive until but not to the million market obviously to ready of development gets get to a project pull $XX in which So we is is. roughly million that trigger think proposition, where we're know a going X

Mark Levin

get And from and $XX the two from you three sense three get then to double that four? production, to to Randy, to that get million, know million you then to incremental you is what so $X your

Mike Bauersachs

million Chris, want up of to on so last to speak? the pick you tons

Jeremy Sussman

you are goes before phases for which kind slide, new call, Chris, we those added of these the kind And of that what X of three we’re through calling on a go, slide growth.

Randy incremental, want Phase the Phase and expansion, Creek X, color is what that? Elk on So give – you a which and X Chris, which sort tons, little talked Jawbone and about is our asking million basically you’re of last Mark, to X

Chris Blanchard

X.X production Alright, projects. tons annual plant talked the Knox Jawbone preparation once expanding these the so and we both and started we’ve operation at Creek our Elk million about each provide a about Creek would

Just and $XX light for primarily you and we that green expansion, rough these million equipment for when bit a numbers, than more the Jawbone Creek somewhere projects. mining expansion to between little plant know Elk related the $XX million

Mark Levin

Got of last very question and liquidity made. And a then Jeremy to just some back had it, second, that the for goes helpful. my comments you

of would clarity get I XX-something is get a think Can cash you there? little there it referenced So number. to or at as quarter. just first a provide you might gave where I guys liquidity? when ultimately you a today end then bit how and you the guess is of the and availability Where maybe you

Jeremy Sussman

Mark. Yeah, it’s a question great

Subsequent and we cash-on-hand taken over revolver. of on another know well $XX.X in debt. So our - March $XX.X had new of you of as of we've million that, under of million availability sort $XX about XX, million to April

that about from is million of KeyBank the Payment million Protection with Program. of debt $X.X was So $X.XX equipment that and

of to have as that that’s we March the of course So XX. subsequent number

$XX our a prepared number referenced in remarks. million We

revolver. $XX Randy is coming the on. under availability to of So clearly are as about million debt million $XX additional the that that from we taking referenced $XX I million also and additional of well

in was February beforehand functionally and revolver $XX so us but additional today, which call a we it extended $XX million it's our $XX So functionally amended it revolver was the an gave million what – $XX did full capacity, a of it bucks. million revolver million we and gave

the and also $X remaining referenced furloughs. of phase couple call you combination about us of the to the to a next a million cost cuts, know which Then the G&A cuts lets million million some like grow is it CapEx and is then $XX cuts $X

Sohopefully of flavor you bit with that come a how of a that. up gives we

Mark Levin

I Thanks really it. That's much. appreciate great. very

Jeremy Sussman

Sure.

Operator

Thank you.

Clarksons. a line Schier Our next comes of Scott from question with

line Your now is open.

Scott Schier

Thanks morning around for commentary market was the green giving conditions you've walk I my us projects. you can kind the through taking growth to appreciate looking been light new these investments. hoping questions. what I the Good of everyone. before for all

Mike Bauersachs

to think Sure. we a a number. where Obviously benchmark that I bit benchmark see love don’t soon that we're life begins there’s rosier. little as to significantly for a above right get to we I would XXX magic reasonably above, now. as start are the look looking and say to that general

out a look of think be coming I there's only going and because to to at seems now also bit also you see demand are as but to have a little not equation, But right of price, we Asia. pricing take the the strength

there's You some too maybe know anecdotally business We demand obviously China. do China. don't in in much

weak business of at both the to not it's coming traditional which customers, moment. is the but are only markets, be what Atlantic really seaborne from, So going our domestic

see some underlying think So we're to markets feel I have own before moving our strength ahead. going we in comfortable to

Jeremy Sussman

business and XXXX seen of also just probably likely know. what's for on we the before provide that coming at you certainty finished up year have more will would pull probably trigger to guess some stuff us in next domestic I the the we

Mike Bauersachs

our I pretty we you you time tons one when it us will demand. optionality low-vol know book for these I you pricing near say component be we and production, on some larger like of essentially gives about start the span, could because month to mean significantly comfortable extent ramp at million projects, can to term through the of up are our know ‘XX a which six we north X that a Scott, we to thing the within spreading you customers know know talk of looking is

Scott Schier

from over That’s the some us little well into I as bit give of picture market. that a as tons getting that. gears you're quarter. of you're a any around very customers and any comps helpful, the seaborne kind are a committed committed of pushbacks market, on shipments? about of to a that these and export more going priced question, you X.X market color you I little It where think Can have from you appreciate these like seeing demand million more bit guess I Switching broader the looks

Chris Blanchard

with positive the been last some occurred some about sending the that that customers you months types with we've positive to calls, has of a you thing four the had so. or high-vol Sure. different some – Europe I things of is happened as some spoke have reconnecting past in know and in coals know that

very large that a the shipment good, positive America. South good I that gotten also a Korea for qualified mills what thing we’ve and was very in a us. think be potentially Brazil in Shipping, other customer test into are actually It's South to could

that economies the spot in So number of now but weak which I past you out makes what relationships, been know could Basin we've shape in you from demand and know is the the different got you that there, Atlantic sense reduced term that’s things has and when we our that our, what which type have normally some are volumes the can right fairly is at it longer with a that the been were think term been is primary I business the, tell look focus. deals in result and

that we in add sales had can and what be there we I have Asia remain familiar a our past. very of are that going forward, very place component great both might optimistic guys with market do and successes But big the

gain now pretty volume really anywhere. the So bottom right though, to tough is line

Randy Atkins

that few on senior his think marketing pointed within in very say sales we've we Mike added one last did But Scott, guy I remarks, another months team. as will out the our and

to sales million tons the have going X you So two we for got size million told million the X know – senior to next because guys, few Board know pretty it’s years. or we, from we you over are X our

as So we got we to as broad make want sure in based can put efforts we marketing place.

we're the execute time. next reasonably which comfortable of of I'm in of positioning we're phase ourselves a short our permitting, growth, sort period again for position to on the albeit in So market that

Scott Schier

the again Thanks. all that quarter. and Congratulations luck appreciate color. I Great! quarter on on the good over solid the cost control

Mike Bauersachs

I appreciate it. Thanks Scott.

Operator

question a Thank you. And from Gagliano our of Markets. Capital BMO with David line last comes

Your line is now open.

David Gagliano

down my on majeure. a further taking drill commentary little questions. want the just bit for Thanks Great! force to regarding I

and you deferrals X.X I firm but has obviously think customer's much back know million and the for volume of tons that committed rest XXXX, thing. majeures that how kind of the been and in got of how force the kind you've really of So exposed much is actually of pushing to these

Mike Bauersachs

We of What sort sort know you you this guidance all we writable can is we're to-date that say Dave – of sort look contingent is and XX basically in our business. that, setting customer down from of for difficult it's Really really get in can guidance sort of us, forward. we’ve our that why know what for the we recovery segments in we what happens and know about the it’s days our you it's even customers, it’s taken which difficult on customers, all the service. of key

So it's going to to tell what's difficult happen.

sort seem and say But of looking plants that also their We our XX writable. key be go I be we calls plants. customers can to to days think out some to appear

develops. we’ll So how everything

be to canceling is we course to that means around of of and some expect business. that. majeure, are that the that mean business see Force likely is It shuffled don’t people

our be You go think know calls again being we that resilient, the will where places so. said, somewhat

David Gagliano

just a what not Okay, second the volumes are through and the on here, but pretty term you much basis so are halfway understand through far near second I guidance so shipment we the for volumes, year, and quarter. know quarter

Jeremy Sussman

Jeremy. its Dave,

kind we wish Mike’s we is guidance, on obviously. are think there give it guidance, but lot comments of just front. just, I others – could I leave that like so we’ll uncertainty We we with a of we think pulled

David Gagliano

volume sounds know the an again visibility CapEx into we in XXXX zero XXXX, impact if the out of kind the let's normal as ramps delay that about fourth here. again you things say the know I look we roughly up volumes, Pocahontas the as sort what in would know Okay, is for thinking terms of happened it given much in there’s cuts and how that then that of situation. But cuts, XXXX the of like, excuse have in on are me, CapEx and much you get and comes – quarter if how to of XXXX back

Mike Bauersachs

understood question got your it think to $X correctly, I $X at million our or Berwind Berwind Dave Pocahontas to our and X to Yeah, to slope mostly million spent get another Seam. we've if probably I relates

of on when So get turn to to we of got to have a stopped that it worth we another that spent, months’ work five we and kind six seam.

a round numbers, million decided know round it call light you we that. to $X So green month, it up, once

shape are not there. are And – we we as know good pretty I you said, in

decided, a opposed options when queue keep our to of Just the need the can at spend here and you front know options back question let's we to. that we on as we that turn our so switch liquidity

David Gagliano

you I alright, Okay, leave will Thank much. it. with then. appreciate that I very

Mike Bauersachs

thanks Dave. Sure,

Operator

And to Atkins, further now for Thank concludes I the call remarks. like this you. today's Executive back Randall would Chairman to question-and-answer session. turn

Randall Adkins

look we Okay. in unusual and safe please forward again go, stay guess I call, the Everybody August. on everybody again on did appreciate we'll Once being these it with to times. catching how up

and care again. take thanks So

Operator

today's Thank you for concludes and conference disconnect. your may now this call. gentlemen, you and Ladies participation,

Ramaco Resources (METC) 13 May 202020 Q1 Earnings call transcript