- Wednesday, October 16, 2024
Ramaco Resources, a leading coal producer, announced on Monday that it is increasing its sales and production guidance for 2024. In addition, the company is expecting further sales and a reduction in inventory levels.
Outlook for 2024 Production
Ramaco now projects a production range of 4 million to 4.4 million tons for 2024, surpassing its previous guidance of 3.9 million to 4.4 million tons. The company mentioned that, depending on market conditions, it may be able to achieve even higher production levels.
For this year, Ramaco has already committed 3.8 million tons for delivery, which represents an increase of approximately 90% since its last guidance. The company stated that this sales volume would account for 96% of the low end of its original 2024 production estimate of 3.9 million tons.
Ramaco expects base level sales to be between 4.2 million and 4.6 million tons, up from the previous range of 4.1 million to 4.6 million tons. In terms of customer mix, the company anticipates one-third domestic fixed price sales and two-thirds export index priced business at the midpoint of its sales guidance.
Considering ongoing market conditions, Ramaco believes that it may be able to achieve an annual sales run-rate level of approximately 5 million tons by the end of 2024.
Operations at the Maben Complex
As part of its cost reduction strategy, Ramaco plans to relocate an existing coal preparation plant to its Maben complex in West Virginia. This move aims to reduce the expenses associated with trucking raw coal from Maben to its Berwind preparation facility.
According to Ramaco, the Maben plant is expected to become operational by the fourth quarter of 2024. This development will significantly reduce both overall trucking costs and mine cash costs at the Maben complex.
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