Ramaco Resources (METC) 8 Nov 232023 Q3 Earnings call transcript

Welcome to the Ramaco Resources Third Quarter 2023 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Jeremy Sussman, Chief Financial Officer. Sir, please go ahead.

Thank you. On behalf of Ramaco Resources, I'd like to welcome all of you to our third quarter 2023 earnings conference call. is our our Chief morning and and this Blanchard, Chris Operating me Randy Chairman Atkins, CEO; With Officer.

differ forward-looking on Before share we Litigation represent call Reform discussed forward-looking XXXX. Private Ramaco's our to the constitute today's of concerning materially statements actual many of factors, normal uncertainties cautionary Act and of start, future other cause statement. discussed results Certain events. These the Securities I'd could are from statements Ramaco's the statements outside in are within like expectations These results statements. which subject to to risks, forward-looking control, meaning which the of items

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

reconciliation financial discuss also to on find remind you that be can www.ramacoresources.com. our plan our to can you we viewed website, non-GAAP of a today release, which that I'd the press in like measures

go everyone to today's this call investor our to Lastly, I'd and encourage presentation. website on on download

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

to Good everyone, for Jeremy. call. thanks morning Thanks, the joining and

morning lot developments a of We have spoke to since unpack positive in this we August.

Ramaco, From somewhat idiosyncratic the generally have started time within we been we our industry.

investing For over X geologically developing and were coal in we advantaged went we years before XXXX, reserves. public

was letting own in our the invest coal peers During and to in Since bankruptcy direction. reserves business deplete tonnage. of growth. we've reserves have scratch. most from They're industry new certainly expansion in replacement in of develop then, another investing not heavily of time, Many of rapid majority our a buying without moved in their essentially production to a and aggressively greenfield that continued

point, capital in the acquisition. invested prove $X.XX production years, To we've for of last growth almost couple over and the billion

because I that this wanted this For growth a essentially reflects the And results number. of space, meaningful background to our a young third company highlight differentiated is in quarter platform. the

almost in annum fell to from And a a In of being X per in of million-ton one course, done went we swoop, growth. company. production simple quarter, terms, million we're not terms this X

differently, and done we years, frame -- do this or to To past a at several once. little step over tried the back have things

We XX% shareholder have tons invested distributions. grow paid the we in have million made off we our million paid 'XX debt. At have year. to we down substantial of production, from year, and X.X million $XX this have This same we over over time, production to by still X.X XX% term grown or debt, tons

which distributions the Lastly, stock. we $XXX cash of value total million, and of made shareholder of equity the include distributions capital tracking -- dividends

been fortunate that results the have our have We of this. seen shareholders positive

by years. rose XXX% and this price stock quarter the XX% X past by Our over

have had shareholder We over a also that period return same total of XXX%.

hopefully the down started We right track. are now getting

turning to And QX.

QX earnings, As margins a a to result second Also, year-end. term lower by debt based just was caused overall down we quarter's the we million our from of expect by by index XX% on over surge, spite in grew this This decline EBITDA of $XX quarter. pricing. in reduce to sales

at For $XXX million. debt was point reference, 'XX in this our total

demand, we quarter guidance 'XX both overseas of Because and stronger-than-anticipated shipments increased coal our third customer shipments. on recently increased

quarters in few sell did we working existing inventories reduce continue enjoy a continue down also capital third over quarter. to as to we to and expect benefit We the next the as

among trend run continues, complexes months, the roughly done in operating deep highest -- an mine to per and deep the to be country. low-vol mine sections. produced in margin team Switching the were from last ton expect per complement X.X costs the annualized X the tons this Berwind developing has Mine In gears mine operations. the the $XX the of to lowest of of work sections metallurgic million I Mine. year. If largest want rate Berwind both Berwind metallurgic Cash low-vol we couple

took to we what our thought a marketing. to sales Moving business. approach domestic prudent was 'XX and sales We

committed X.X million of now to American an XXXX this next compliment sales per North of for $XXX price public an to customers average sales figure at have appears against ton, index. We tons price highest To the be coal our and XXX,XXX our tons additional peers. of group, price year, export

the the when of lock-in at early in backdrop, we a near out as the low came what price July, business declined mills then cycle. felt a domestic the And we bottom steel was

pivot We decided to roughly production. of business of anticipated XX% the to our size increasing the instead have basically 'XX export

roughly point while X.X million ton we level next to X be this little And the largely million at that very million -- we macro feel position I with direction. the we in in would continue dominating the only at X market production and to few this our from to tons of our the produce economic to over since near-term headlines path years, unsettled future, a could CapEx. increasing current march foreseeable the number to clarity maintenance are settled is advantaged note on worldwide I for factors

some next develop. preserve plan we depending the how maintain or providing our 'XX will to month. formal see On to on increase But markets production, guidance we December be next optionality meeting we levels either after production Board year,

I'd western report Mine. Earth commenced Rare to to overall like to am the development month, now operations mine I that update pleased last Brook at an in turn our Wyoming. on

been from larger obtain weeks development working test to an material with past have to CORE goal initial of meaningful for mine few testing. quantities samples only began over ago the We years. a We

the the phase the of of moving areas metallurgic help be chemical into of extensive deposit. us a now compositions multiple and material. the sequential will will overall testing extent This and of of nature We determine

over deeper that our this more larger may has has We've now large of NETL, we any an both unique testing told no mine from have and as earth rare be The us CORE figures will at mine established its unconventional extremely partner, increase deposit. they that geologically the areas almost size doubt do deposits depths. examined.

optimal perform techniques, used to which estimate from overall extraction, us for to be the separation economics. of an assessment is the then can mine's and challenge here recovery The

be will this with SRK with consultants doing at and our NETL. We

novel in progress We on be national with project will this area our as also labs, working this technologies some forward. on update other will and it we goes continually

center front, involving products carbon on to areas the Wyoming. iCAM exciting in we focused On I at highlight X want work research our are

you to of electronic other regulate many recently and a China may export for batteries restrict EV of the seen, both As used and of host graphite have decided applications.

synthetic for strategic added coal a now to of assumed Ramaco's process graphite Opportunistically, has conversion multiyear of development electrochemical importance. revolutionary

this to has partnership with our work Oakridge been Our on technology innovative Labs. done National pursuant creative

the synthetic build we low-cost DOE developed technology a capture also recently continuous to applications. graphite. activated Mine comprehensive for used using for air of fiber direct have bituminous the Berwind of this be have application plant a filed carbon process pilot for Also, rights We Ramaco's with into coal filtering conversion property production intellectual to and an monoliths with from the other

produce going blowing on monoliths This activate capability quarter, we the look market established forward. to and We in in-house these commercialization them updating at the activities the iCAM of forward quantities. melt to

for at I'd like believe were we point to inflection that finish an Ramaco. reflecting I by

acquisitions years, to have paying and Over couple than Xx done we the dividends. more of have toward spent past we compared capital production growth

will returning dividends I currently more to in shareholders point, that alone this at would on anticipate in than 'XX be substantially expecting to or we spend capital for we Importantly, production cash are growth M&A.

team of to our the I'd to floor the And over discuss turn with and operations rest to like that, markets. finances,

markets. So a metrics Jeremy, rundown please start our and with financial of

Randy. you, Thank

noted, enjoyed a quarter. especially you in light weaker throughout coal of in of the pricing third we As markets quarter, strong much

X% versus versus million. Despite QX Specifically, QX than net to income decline, more Platts than more and EBITDA this U.S. to grew in East grew fell XX% Coast Indices $XX XXX% million $XX.X by QX. adjusted QX roughly

Elk $X from in impact During in the Mine company would and September, -- a silo reflected refund QX our insurance our EBITDA million cash would proceeds in by quarter, third of combined million with the proceeds failure $X mid-XXXX claims note outage is connection figure. Elk received I which Berwind million. in are the million insurance mid-XXXX, $XX.X was $X balance cash Creek received September I XXXX. XX. reflected tax also received the income Creek that late that benefited as The with of in in net in connection not adjusted note

reaching Turning a million run a of been coal, the was to ratable per The increase The tons million tons Creek million The as from the of key the we sales plant volume. was X its tons. largest as X QX ramp-up million metrics. our variance well to figure on roughly that culmination relative annualized million our upon. company taking multiyear roughly as previously is X per tonne a Mine XX% per million to to guidance investment tons This at run up capacity X previous Randy at rate. from had achieved X shipping touched of Elk rate annum Berwind which QX shipped X in annum year of

which the ton. at X% of XXX,XXX due in down have come to taken QX on XX% Elk Production was QX versus in increased vacation decline was to This in cash tons, indices. X% QX Average in down coal Creek largely $XXX substantially. paid to July levels, ton, per inventory back per fell $XXX realized price versus the X-week high line the since to with and costs

we will After ship second We quarter, the rate allowed X both railroads trend in reduce annum us continue. and ton which quarter, run meaningfully at to a that this inventory. a disappointing applaud anticipate per efforts third million

are a we ahead, refining XXXX related areas guidance. number Looking our of to

the First, million to million unchanged X.X with guidance. to from produce X.X we midpoint expect prior now tons,

Balanced unchanged of X.X and sales update sell the expectations strong mid-October which on increased million both fixed demand. XXXX of including now million from tons, expect X.XX note X.X We back tons, ton is per the overseas to an our have $XXX where QX tons we to results million would million at we average X.X that Price increased Index. in price I contracted,

to of $XXX the in The largely guidance, due industry peers increasing guidance cases, increase continued high end substantially, facing pressures in versus is ton. cost cost the of is month $XXX $XXX to some the inflationary as that of also range per to witnessed ton $XXX to our so. per the past the majority increased have or by just We previous

SG&A payments. CapEx, our in CapEx which tightened the XXXX and down approved We Board. have tables. is CapEx you on after XXXX we meaningfully all the range we'll timing you would the the this and in related guidance by to see will The to front largely is on XXXX be DD&A, budget increase anticipate update versus Lastly, of

substantial We the liquidity sheet. year-end level everyone million would the $XX The down which to earlier. liquidity the double repayments, has XX, to year. debt doubled continue a million XXXX. And of balance net despite would we in anticipate remind in Randy position as September if debt to next company went hold, through has pay I of also would year-to-date $XX Moving of as cash being also XXXX. prices expect that current

now update. Since marketing While commitments, this to concludes a brief Randy and our itself. going touched financial my give on upon I'm and market I'm sales going the remarks, focus both sales more to I

Despite challenging to production despite conditions subdued of supply almost to A coal the This major roughly of side, Canada. countries U.S. collectively higher The is a in steel European revisions the the U.S. with supply. and on X at major began September. and players that compared the are globally, strike remains ton demand metallurgical the downward markets July in large today XX% in seaborne substantially coal prices the X-month-long muted Australia, is and U.S. endured High-Vol metallurgical good automakers. $XX there fact production per August, These improve middle for is news from August. account the that,

not reason depleting The strong a demand. our is very growing Global to coal despite majority financing part and asset base, what been production Asian are it coal CapEx due has reinvesting In in companies opinion, historically these met of pressures. large the disappointments continual is a ESG for and of in simple. fraction

This country of surpassed On India met now the coal. has importing is seaborne reasons. important that as for X China largest front,

very metallurgical thus for of has supply substantially all India domestic and limited its reliance of high-quality on First, this met imports coal coal.

this strong year Second, has extremely steel been India. in demand

Indian XX% Specifically, up production year-over-year, up bringing saw total year-to-date to XX% September steel year-over-year. increase the

put Asia, and markets placing coke Indonesia metallurgical both to this and which the only this just of tons the new where those mentioned. up customers. bright existing team increasingly bring demand To an Jason roughly exists is larger specifically have to annual I this the not spot. is production. This is XX and X began online continued some set ramp than to context, million do coke figure in excellent to near-term his majority earlier capacity, is tons entire into States United in year. job of India

that of increased remains in and Asian we bottom is U.S. constraints and overall the are The terms Europe, by in tepid encouraged line increasingly demand. supply demand market, the while both relatively continued

of the ton on this In Australian addition, per us operations low number workforce close meaningfully curve has into in high-cost when we cut cost of saw materially tells earlier high inflation. recent or a the the fell that range summer. benchmark price mid-$XXX their global This to years back either the steepened

over levels to said, Amid a market Operating demand above I backdrop, supply this future. turn now prices Chief to remain Blanchard. the where see expect would like to Officer, historical Chris our that we With call we for the foreseeable

everyone. to inherent that industry. Jeremy, on to about in ramp-up, touch both positive and and milestones with wanted morning, to Jeremy all first, on Mine nice talk safety it's and performance. are Randy detail. start steps the a I'll Ramaco's mentioned But you, I the the comment that Berwind despite good challenges Thank and Operationally, more

for of a Sentinel the in extremely having Annually, only those, plant not the of the recognized preparation year Creek Award Safety entire is for a Elk the preparation are XXXX. fluke. our across in row X plant team only coal X years To proud as second a are and win operations, nation best plants, X nation. the large preparation at the in earned performance We for consecutive

we daily the As goes effort a all that and from our compliance safety towards employees. salute company,

and production step the to change. Turning sales

During the final pieces we the of third the quarter, Creek throughput plant completed upgrade. Elk

the roughly time, clean have X late are At upgrades much had sales more but we additional updated, operating and quarter, in higher clean been consistently. feed rates contemplated storage our coal we not September. previously million until this As did flotation annual reached online of the come feed plant higher options at all second completed and rates tons

of raw This extended At coupled an us on throughput levels which to in been the we raw the to be with will stockpile Creek at We built time, inventories period run-of-mine coal quarter increases during allowed to the levels coal that coincide normal exhaustion coal first same brought the expect the the due anticipate the delays lower ramp, project. July, surplus at 'XX. production Elk XXXX. in vacation Elk Creek, additional to of had dramatically with

and Randy discuss Jeremy we'll guidance have 'XX metrics both more concrete As the mentioned, on later this year.

roughly operation, somewhat Maben of into production annual settled have is At our initial we a comfortable our that cadence above tons XXX,XXX expectations.

Now and low-cost these their and highwall turning we reached miner are areas methods. permit initial surface to mining have additional to state, that the the by spread mine steady

through is preparation We underground will sold Berwind our the mine planning explore and also future regarding more potential of the and from plant. operations facilities. coal Maben detailed being Most processed now

and at accordingly. there the our look As grow, expand reduce may to operations Maben's at mines continue we to Berwind costs logistics

the Finally, to Berwind complex. turning

in Berwind Pocahontas at #X now X are the sections We the Mine super Seam. running

few production production been mine. onto believe continued some reductions for the leased tons owned first progresses position meet these additional months, but that are from improvement sustainable, cost and produced as not We our the a for levels our room in coal During coal. is only budget there to able current for mine we've targets

this. air next the mine additional which the do section of shafts construct enhance dictates we to year, start-up ventilation if in will market plan that low-vol we future, allow third near the In at the the Berwind should and

to reserves. from idle be mine Triad continues Triad of Berwind. Triple-S the Also, now is continues. during equipment mines at and with third its the months growth of surface XXXX smaller Ultimately, our will as the started to #X infrastructure Mine Mine the few The the and grow, we mine wind-down last Berwind its used capital completing associated minimize is the which section

as quickly conditions continue the pivot the the feeder look Berwind to production and drive of mines evaluate We rest us. to small markets will into and complex

management's for the up call line operator the would I please the like This and Operator, question-and-answer the questions. to call. now concludes return portion remarks, the to open prepared of for

is comes Lucas our for you. line Thank floor [Operator the Pipes from B. this The Riley of questions time. Instructions] And question Securities. first at now with open

comments But my XXXX on contract, the those and the that XXXX domestic keep I'll to good to minimum, will job spectrum? to be on go get over little I appreciate a the quality a and would more it is your questions. it perspective is higher-end great it where on standard contracts, on thoughts mix the Is quality that. on maybe some there. kind your of Would bit really

Yes. Thanks, I'll that. Lucas. take

about mix. XX% what of it's of And say kind is low about, overall and I'd is of frankly, a So similar our vol, call to high-vol. XX% mid-vol, committed sort we've pretty it,

we're in in overall as on As Randy less it the high-vol speak. we But probably budget X/X. certainly, than 'XX little kind noted, terms of of mix, working the of kind refining come will a

certainly, mean, I Jason kudos job for a team and overall, done. So well his to

Jason. your returns. exact Randy, along but Good and to you transition lines in something prepared your as this job, down capital Yes. towards going mentioned My don't more question, remarks, of second have is the you be here, moment pivotal a you said Great. I wording

I I if to think that. was can wondered the And speak you that essence.

also reduction debt in for I further targets 'XX. there think are

should could sheet for to So put dividends back go the would how some much around that. the appreciate How if you details or trying it together, maybe kind going would flexibility? of flow of investors in I towards much buybacks? kind of additional all free of additional form put anticipate cash balance

Thanks, Lucas.

we've down mean, which We've billion over we've grow, of of nice we've million tried trying a trying spending summer, both to that trying cash the done, highlight and things I has value few deal last been couple return. been great gotten about in years. been debt, term the down dividends CapEx, of pretty pay we've also, remains. I do debt of stock, time. to the distributions, do a what inclusive which, been which think I obviously, then course, same we've did as been it to $X.XX is a So we of that $XX at the to well to trying the And tracking to as

about I million. it's $XXX think

from I moving the of growth So projects forward, bulk in rearview. the CapEx is our think current

have that we look we in as we unless started be development dividends. and out we paying anticipate below So project, level will large-scale dividends, to out, cash the to until CapEx 'XX and going that are another growth

And that of certain indicated buybacks or as certainly in here far terms see. cash will be sheet we build going have We've of as the considering further distributions a get open of also wanted to nature, level in We're that. started we position over types to the of We've few that. stock we that capital cash next the always door left balance to a on before to years. anything

certainly here. So something hope that's that to to able we'll get be we

a we But to in position just million at I too growth of CapEx. ourselves, we're we've much of same And what is tons, spend benefits reap indicated, which find maintenance on sowed a good I don't the starting it's fairly X where more the not production. X.X frankly, million to production to CapEx of have really going pretty where a from much maintain we somewhat could tidy pretty amount -- indeed, level forward, as

of what your asking. addressed that So was I most question hope

for moving a in. as Thank to kind what's Thank a I for few squeeze you into think on But level? A on cost into way color then side one it good also helpful. quarter provide. operational year-end. normalized pieces and the look third any that. think one XXXX, you, you That's can of more about during you the Randy, I'll

it, specifically... think say about costs you When are you which

per The ton production on cost the...

Lucas. Yes, take that, I'll

which increase, yes, a all costs just -- paid of cash done. the we've Creek taking the vacation, frankly, a QX, But Elk a extra by So certainly were to vacation increase, at step mean reduce that we $XXX second, for in was the inventory, now ton. driven I'd back of in week say I took an overall obviously, the July really, bulk

of sort ton, costs August September into about kind normal So and non-holiday context. if to I think cash some costs, of months, are those $XXX per put which averaged about that

you've week's that that. got months obviously, holiday Now QX, a have X in in

got So to that account. -- that into take you've

of through going sort as think year, But as are of we about budget of we kind I the next obviously, kind speak. the

certainly the inflationary and there's continued pressure. negative side, labor On

I by sections think per the at producing and our annum. a just a million from that Elk full the Creek X Mine the kind peers the Berwind in stronger of and given year that's of comments not overall production But full plant year a surprise. prep offset tons of X economy, be of should

But context, refined bit we gives where from we'll kind kind guidance where go. the is to So hopefully, of baked. some more little you certainly hope budget and give after that we're of coming a of

reasonable So would per $XXX low seem with these puts ton and takes?

in certainly that's where we September. August mean I and were

So some I positive But got the would hope you've that variances that's repeatable, again, about. especially talked we inflationary that with pressures.

over the come we'll refined some kind numbers So more you of so. or get month and next guys out

Yes.

good I pretty on can Lucas, we -- alluded a what we environment we've control today. we're have got what economic it's I operating as murky fairly a in think, to, ourselves, handle

externally thoughts within be the able able go the cost. not some few general we'll or may articulate next X. we're get But here drive to a quite hopefully, on sure to month where market we'll that be So pivots would to that

all really I color. the Gentlemen, appreciate

best of luck. Continued

with The Instructions] Company. Benchmark the And next of from [Operator we'll Martin line Nathan take our question

way one the million quarter for million just still the cash guys cost full $XXX for to frame expectations guidance, for on expect the Maybe the ton as well? Is you $XXX year. one quick the clarification fourth per your to that

and vacations, is with worth I'd you of quarter in at always that Christmas. I Thanksgiving than bit lower the fourth little with kind most higher. is that a get the you even can for the X answer variability fourth yes. obviously, and range, the with think, of the paid think the I just the Obviously, Nate, Yes. quarter of I mean, remind so course, kind weeks' midpoint, of one

answers So hopefully, the that question.

then year for appreciate I that. just with guidance sticking Jeremy, second. Perfect, the Yes. And 'XX a maybe full

around sales you imply X seems or end, XXX,XXX as side, million the million plus. at end at low of to even tons the the On maybe shipments and guys X that mentioned, high

what move you the too. the ability high it of guys inventories would to your to kind end to the more So thoughts seem anticipate? to or of Is gets low you be great get there, range? Just

Yes.

I think with of out can nominal before a variability. we've normal left got sales and get of I going the amount push the the which that's making year, et tonnage line we're the obviously try variables we open to cetera. Nate, for across the the year-end. There's think the primary rails, sure that's But

real then Thanks, just Perfect. levels And Chris maybe quickly, year. think stockpile with mentioned of quarter hopefully to next maybe normalized sticking first I getting the Randy. the

think XXX,XXX I What's for Creek? you maybe down of plus minus. normal to you're guys or there kind tons, Elk at

go Chris, ahead.

we'd standpoint, just combined Nate, raw. be run-of-mine to at size and running put But around tons. so from Creek that of raw XXX,XXX is the out a are inventory sort we've clean the like Elk levels somewhere

So some have it ebbs sitting. impacting concerns for flexibilities to we any rehandle But have the a position never without plant. we're production coal and or preparation of flows the about where having in

So if question. your that answers

because guys figure that. of a I more Yes. go. it. to cap was few working to there quarters well, how of you hopefully, think I kind out tailwind trying as for the Got And just was next mentioned much

Okay.

a on inventory our we of X of by kind million that million production million built X tons plant Nate, a year had mean Chris. little up flipping sort X of to fact the bit of we've because to switch and up tons. to funny had anticipation sort to add the prep knock from in at the I of

of little ramped had bit capacity. to plant, then up full delay and open So getting that we a both processing

that's caused what's So the inventory.

our in certainly have at think of refine that general, just probably down back next after the we'll levels, first will normal moment we it, inventory expectation is but quarter the year. I And to

intermediate a plus And term. are where about run kind little a Appreciate maybe you the made there, now, Randy, thoughts just Great. year. next guys the comments of you bit maybe thinking then X-million-ton are rate very guys. you comfortable

macro don't Looking market some what issues and let's But eye bring at say, product. economy to of see the next you we keeping a going the the your we're more on. with know all close demand for year, is cooperates that

growth what What entail? Just projects the of Maybe kind curious Ramaco kind what's on coal of CapEx development looking are of that at? growth for in side? next you would stage the

Yes.

at I basically, We could think that without we reasonably the substantially optionality there. all a as demand you the level. growth give I call the much provide we probably depending see We next we'll the to saw could now, year more X-million-ton it, won't right have, indicated, continue if higher that of I've up to Nate, upon about CapEx bringing how level. year which little clarity into generally based ramp kind some can we a our bit next same, market. try up really tonnage exact on after ramp on we budget, new but

which doubles is operating before on talked of we've taking complex, of prep increases. that possibility horizon, We've about attendant trying of the Maben as of production, down which surface that's looking cetera. going which a company our hits the et projects mine a deep into yet. and facilities, think road, we're there now taking at not But of and I that we're sort a grand high-vol we're a in production proposition forward, number the there of out go for to as kind And opposed singles terms to got slams one mostly

ramp accomplished CapEx. And we're X that million very we over put have years. our a presentation, million which growth has But nominal comfortable tons the Jeremy with I to next think in X.X couple to that gets about us can of be

the helpful. nice That's well that in CapEx. there to to that it it. Yes, as be see of out kind Got broke chart used --

was what get that's I of to. trying So kind to

that. appreciate I So

just final are give REE an you bit. product maybe do a stage product take at those? both available then But what remarks and And on silo just Kind And shifting prepared carbon either? Randy, think the in before one, if could initiatives. it directions update your us you could, on I of you the you appreciate long commercially one could how do have a maybe little I timetables each of there? for

Yes.

I think, different exercise rare is, an I'd to dealing Nate, earth bulk. mining of coal business way the with is you're mine. than type entirely the peculiarly, that In coal answer mining, like

lump per parts a are can find, deposits in When dealing you're You million. and microscopic see with metal rare you're dealing that touch earth, coal. with of measured

really that there's find areas that could to lower. feet And sort we're originally you feet, techniques couple once a appropriate coal possibility things So much what We've been the would processing be to we've to the developed We're there much challenge down since deposits, how going it now from because from some economically fairly get that found cores XXX might XXX missed rare down some to then a of which on. in lower generally some of earth, think extract in able the out was is, metals pretty concentration, only figure that have sufficient we've used real out. there may very test a go got interesting exploration, our to be which we levels. level which much mining to shallow, to would deep hundred those of you be doing level of coring and be refinement going

more be roundabout of importantly, in chemical more which of going on testing, but and way the we're think ultimate economics. involved characteristics, what that's a really define the the not of only dimension saying sort on deposit, the metallurgic is I So to

we'll half, defining but want sometime that in in thoughts solid the don't terms be I'm pretty hopeful to time deposit. to able that in, where frame button-holds on first some year, we have put it I So are on a next by us preliminary probably that of

a And the getting national help only very of deposit important we've we processing aspects with on course, well not out the be could got of production lot from it but of some deposit we're as of we're a on just down national and also standpoint. our conformity from that at the NETL, the only but friends working the host Because frankly, a the ads deposit not labs, national be road. other aspect if a hope, magnetic of size bears and, to

on So are kind of where we that's earth. rare

identified carbon a to air we're what of And around lot promise the national use to is could we've we sort a it type using areas X intellectual sort fiber kind do interesting. and the with and of of been able property we've of using direct develop think got use have we've capture, some essentially very potentially really carbon to a that where interesting, that that a which coal. these coal as products, taking to is trying capture we we're novel activated lot make could On One again. coal And of pretty of carbon, labs form is COX.

developing on some idea a with able [indiscernible] would development put the for from is [indiscernible]. the the we been bridge graphite, be on Chinese to on that where of one other And graphite, several basically graphite other years of where export do synthetic forms essentially working just the we've

plant And little and on be exploit more And Permian to so trying prep thinking a built, that. Virginia able urgency. pilot taking a to actually built, that we're to get plant a about in bit West is importance

of near-term sort those So commercialization to further of probably form we'll sales terms path, I of when about the on of of or so to you and where technology are the say, to a we critical give lot sort X would to of X, more development. us of able the the as sort give commercial months turn some or into we are definition be in able sort actual again, see

for for sure. quickly there carbon be We'll your products would and to initiatives, own the to feedstock I Yes. real just curious use production then or info you guess more plan that the And on Perfect. waiting no?

In the carbon that into terms coal of would go product feedstock, Nate? the

Correct. Yes. Correct.

Yes, great question.

be is would the we production. So answer during

at of where plant. doing We contemplating from testing pilot our Berwind. low-vol that's build sort have a on And been graphite synthetic indeed, our currently coals we're we

we've blown melt capture, that got that. use for And activated would been using terms plenty the and of in we sort the coal, carbon direct we've air our Wyoming of of

we go as it coal general And be has might you higher-value burn. more use my to too it, industry, by, our with the of can something if is it is, theory the that valuable would thesis the coal products So us under in goes to in to use of valuable direction. time make for bandwagon else been that those

of we kind that. that's So where on are

Got it.

to that your to avenue wanted products another just confirm So yet for be could possibly move into.

Okay. Perfect. the the and Guys, really time I fourth quarter. appreciate of information and best in luck

floor remarks. to additional Atkins This of Randall like or over call. would closing turn concludes for now the I today's portion Q&A the to

I'd as had able good being everybody quarter. pretty just to, thank the you. we've us Hopefully, line today. been enlighten to always, a for with on like We've

of will catching good after first day. with up the year-end the And again to everybody, We have for results. a year our forward look everybody

XXXX today's Please Thank concludes Resources This this at Ramaco Call. Quarter time. have lines wonderful a Third day. And your Conference disconnect Earnings you.