Ramaco Resources : Q1 2024 Ramaco Resources Inc. Earnings Presentation

INVESTOR PRESENTATION

F i r s t Q u a r t e r 2 0 2 4 R e s u l t s

DISCLAIMER

Forward Looking Statements:

The information in this presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the

"Exchange Act"). All statements, other than statements of historical fact included in this presentation, regarding our strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects, plans and objectives of

management are forward-looking statements. When used in this presentation, the words "could," "believe," "anticipate," "intend," "estimate," "expect," "project" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on

management's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. When considering forward-looking statements, you should keep in mind the risk

factors and other cautionary statements described under, but not limited to, the heading "Risk Factors" included in Ramaco's Quarterly Report and elsewhere in the Annual Report on Form 10-K.

Forward-looking statements may include statements about:

• risks related to the impact of the novel coronavirus ("COVID-19") global pandemic, such as the scope and duration of the
  outbreak, the health and safety of our employees, government actions and restrictive measures implemented in response, delays and cancellations of customer sales, supply chain disruptions and other impacts to the business, or our ability to execute our business continuity plans;
• anticipated production levels, costs, sales volumes and revenue;
• timing and ability to complete major capital projects;
• economic conditions in the metallurgical coal and steel industries generally;
• expected costs to develop planned and future mining operations, including the costs to construct necessary processing, refuse disposal and transport facilities;
• estimated quantities or quality of our metallurgical coal reserves;
• our ability to obtain additional financing on favorable terms, if required, to complete the acquisition of additional metallurgical coal reserves as currently contemplated or to fund the operations and growth of our business;
• maintenance, operating or other expenses or changes in the timing thereof;
• the financial condition and liquidity of our customers;
• competition in coal markets;
• the price of metallurgical coal or thermal coal;
• compliance with stringent domestic and foreign laws and regulations, including environmental, climate change and health and safety regulations, and permitting requirements, as well as changes in the regulatory environment, the adoption of new or revised laws, regulations and permitting requirements;
• potential legal proceedings and regulatory inquiries against us;
• the impact of weather and natural disasters on demand, production and transportation;
• purchases by major customers and our ability to renew sales contracts;
• credit and performance risks associated with customers, suppliers, contract miners, co-shippers and traders, banks and other financial counterparties;
• geologic, equipment, permitting, site access and operational risks and new technologies related to mining;
• transportation availability, performance and costs;
• availability, timing of delivery and costs of key supplies, capital equipment or commodities such as diesel fuel, steel, explosives and tires;
• timely review and approval of permits, permit renewals, extensions and amendments by regulatory authorities;
• our ability to comply with certain debt covenants;
• tax payments to be paid for the current fiscal year;
• our expectations relating to dividend payments and our ability to make such payments;
• the anticipated benefits and impacts of the Ramaco Coal, LLC ("Ramaco Coal") and Maben acquisitions;
• risks related to Russia's recent invasion of Ukraine and the international community's response;
• our ability to successfully pursue our rare earth element mining activities, which is a type of mining we have not previously pursued;
• whether the estimates of rare earth oxides in the deposits in our Brook mine are realized;
• risks related to weakened global economic conditions and inflation; and
• other risks identified in this Quarterly Report that are not historical.

We caution you that these forward-looking statements are subject to a number of risks, uncertainties and assumptions, which are difficult to predict and many of which are beyond our control, incident to the development, production, gathering and sale

of coal. Moreover, we operate in a very competitive and rapidly changing environment and additional risks may arise from time to time. It is not possible for our management to predict all of the risks associated with our business, including those described

under the heading "Risk Factors" included in Ramaco's Annual Report on Form 10-K, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Although we believe that our plans, intentions and

expectations reflected in or suggested by the forward-looking statements we make in this presentation are reasonable, we can give no assurance that these plans, intentions or expectations will be achieved or occur, and actual results could differ

materially and adversely from those anticipated or implied in the forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

All forward-looking statements, expressed or implied, included in this presentation are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or

oral forward-looking statements that we or persons acting on our behalf may issue. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this presentation.

2

RAMACO AT A GLANCE

Key Highlights

"Pure play" metallurgical coal company

This is a key component in steel production, which is crucial to national defense, infrastructure development, electric vehicles, and the energy transition.

Strong Growth Pipeline

Potential production of >7 million tons over the medium term, up from just 0.5 million tons produced in 2017.

Strong Financial Performance

Looking past 2022 with record price levels, 2023 net income of $82 million was up >100% from 2021 levels. With only $83 million in 2023 capex, the Company generated strong free cash flow ("FCF").

Industry Leading TSR

Ramaco has a total shareholder return ("TSR") of 745% since March of 2020 and a 1-year TSR of 168%2.

Attractive Capital Structure

We have minimal AROs, net debt and legacy liabilities, as well as strong free cash flow generation.

Rare Earth Element Optionality

Despite our Rare Earth Element discovery, METC trades in-line with its coal peers at ~4x trailing EV/EBITDA.

Dual Class Structure

Two Ways to Play

1 METC: Met Coal + REE Operations

• Pure-play,low-cost met coal producer, with strong production growth
• Potential Rare Earth Element development
• Attractive dividend

2 METCB: Royalties, Infrastructure + IP

• Attractive Royalty Stream and Infrastructure income
• Exposure to Rare Earth Element royalty and Carbon Product IP opportunities
• Unique dividend strategy

The Path Forward

We expect continued production and free cash flow

growth from our core metallurgical coal business.

Independent findings from NETL and Weir International announced that our Brook Mine in Sheridan, WY possesses a significant unconventional deposit of Rare Earth Elements, with high relative concentrations of Neodymium, Praseodymium, Terbium, Dysprosium, Gallium, and Germanium.

Our Class B common Stock, was distributed in mid-2023.The METC + METCB (Class B) dividends to be paid in 1H24 annualize to >$30 million.

Key US Supplier of Critical Materials

Ramaco is a low-cost, "pure play" metallurgical coal company. Our core product is a key component in the production of primary steel and is not used in power generation. We have a strong pipeline to more than double production.

When combined with our Rare Earth Element deposit, Ramaco has the potential to be a major US supplier of critical materials for many decades.

Key	145%	107%	130%	<0.4x
Revenue	Net Income	Adjusted	Net Debt to
Highlights	Growth	Growth	EBITDA1 Growth	Adjusted EBITDA
	2023 Vs. 2021	2023 Vs. 2021	2023 Vs. 2021	3/31/24

1. See "Reconciliation of Non-GAAP Measures" in the Appendix.
2. Per Jefferies May 3, 2024 report.

$33 MM	745%	~4% Dividend Yield
AROs & Legacy Liabilities	TSR Since	Current METC/METCB
3/31/24	March 20202	Combined Dividend Yield

3

RAMACO RESOURCES BUSINESS LINES

Multiple ways to invest in our businesses; each with unique value characteristics

In mid-2023, Ramaco Resources distributed a new class of common stock, the Class B common stock (Ticker: METCB) to existing shareholders. It provides a direct participation in the financial performance of the CORE assets (as defined below). Under the dual

class structure, METC represents the interest in the mining operations of both Met coal mining and Rare Earth Elements, while METCB represents an interest in the Coal Infrastructure Assets, Coal Royalties, potential future Royalties from Rare Earth Elements,

and IP Licensing from Advanced Carbon Products.

METC - Met Coal Operations

Large, high-quality met coal reserve base. Goal of more than doubling production to >7 millions tons per year over the medium term.

Among the lowest cost domestic met coal producers (historically in the first quartile of the cost curve). Committed to maintaining its position on the low-end of the cost curve over the long-term.

Well-positioned to sell into both domestic and export markets. Diversified existing customer base, with legacy sales into North America, South America, Europe, Africa and now Asia.

Advantaged infrastructure and geographic flexibility.

A deposit of rare earth elements which has the potential for being developed into an important domestic source.

Class A Common Stock (METC); general dividend. Current dividend yield of ~3.5%.

METCB - CORE

CORE stands for "Carbon Ore - Rare Earth".

Significant current income from non-cost bearing royalties on coal

reserves mined primarily by Ramaco. This income is tied to coal prices and production growth.

Significant fixed fee-based income from Ramaco's preparation

plants and rail loadouts. This income is tied to Ramaco's production growth.

Potential future royalties from a deposit of rare earth elements which may be developed into an important domestic source.

Potential future IP licensing income from leading technology to convert coal into advanced carbon products.

Class B Common Stock (METCB); dividend associated with CORE. Current forward dividend yield of ~8%.

4

FIRST QUARTER OF 2024 RESULTS

FIRST QUARTER HIGHLIGHTS

Setting the stage for meaningful 2H24 low-cost production growth

First Quarter Highlights and Commentary

Setting The Stage For A Strong 2H24 - 1Q24 net income of $2 million and Adjusted EBITDA of $24 million

were down QoQ and YoY in large part on the back of a meaningful decline in metallurgical coal indices, which led to lower realized prices. In addition, costs were negatively affected by challenging geology and

labor, both of which are now largely behind us. In addition, the Company is in the process of bringing online almost 1 million tons of low-cost (<$100/ton on average) tonnage throughout 2024 from its growth initiates at its Stonecoal Alma, Ram 3, and Berwind mines, which should take the Company to a ~5 million ton per

annum exit rate by the end of this year.

Debt Continues To Move Lower - The Company reduced total debt by $4 million in 1Q24. Total debt is $52 million lower YoY, and net debt to trailing 12-month EBITDA is now less than 0.4x.

2024 Contracting Update - The Company now has total sales commitments for delivery in 2024 of 4.2 million tons, which means the Company is fully sold out at the midpoint of production guidance. This consists of 1.4 million tons committed to North American customers at an average realized price of $167 per ton, 0.7 million tons committed to seaborne customers at an average realized fixed price of $150 per ton, and 2.0 million tons committed at index-linked pricing for delivery to export customers.

Guidance Update - All key operational guidance is maintained. 2024 production guidance is 4.0 - 4.4 mm

tons vs. 3.2 mm tons in 2023. 2024 sales guidance is maintained at 4.2 - 4.6 mm tons vs. 3.5 mm tons in 2023. 2024 cash costs are maintained at $105 - $111 per ton vs. $110 per ton in 2023. 2024 Capital Expenditures are

maintained at $53 - $63 mm vs. $83 mm in 2023.

6

FIRST QUARTER OF 2024 OVERVIEW

Setting the stage to increase production by ~1 mtpa later this year

Continued to reinvest in low-cost production, which should allow for sales to go from ~4 mtpa on average the past few quarters to ~5 mtpa by year-end 2024.

First quarter sales of 929,000 tons were up 23% YoY, on the back of the Company's continued strong growth pipeline.

First quarter net income of $2 million and Adjusted EBITDA of $24 million were down QoQ and YoY in large part on the back of a meaningful decline in metallurgical coal indices, which led to lower realized prices. In addition, costs were negatively affected by challenging geology and labor, both of which are now largely behind us.

The Company is in the process of bringing online almost 1 million tons of low-cost (<$100/ton on average) tonnage throughout 2024 from its growth initiatives at its Stonecoal Alma, Ram 3, and Berwind mines.

			Chg. vs		Chg.
	1Q24	4Q23	4Q	1Q23	YoY
Total Tons Sold (000)	929	988	(6)%	757	23%
Revenue ($MM)	$172.7	$202.7	(15)%	$166.4	4%
Cost of Sales ($MM)	$139.7	$139.4	0%	$110.5	26%
Non-GAAP Pricing of Tons Sold ($/Ton) 1	$155	$175	(11)%	$188	(18)%
Non-GAAP Cash Cost of Sales l( $/Ton)1	$118	$107	10%	$109	8%
Non-GAAP Cash Margins on Tons Soldl($/Ton)	$37	$68	(46)%	$79	(53)%
Net Income ($MM)	$2.0	$30.0	(93)%	$25.3	(92)%
Diluted EPS - Class A Common Stock	$(0.00)	$0.60	(100%)	$0.57	(100%)
Adjusted EBITDA1 ($MM)	$24.2	$58.5	(59)%	$48.3	(50)%
Capital Expenditures ($MM)	$18.7	$18.0	4%	$23.5	(20)%
Adjusted EBITDA less Capex ($MM)	$5.4	$40.5	(87)%	$24.7	(78)%

(1) See "Reconciliations of Non-GAAP Measures" in the Appendix.

7

FIRST QUARTER PERFORMANCE REVIEW

Strong growth platform coupled with a conservative balance sheet remain core principles

1Q24 sales of 929,000 tons were up 23%

from 1Q23 of 757,000 tons, as the Company's strong growth platform continues to showcase Ramaco's differentiation versus its peers.

Ramaco has one of the industry's most

conservative balance sheets, with net debt to trailing 12-month Adjusted EBITDA of less than 0.4x, down from 0.7x on June 30, 2023.

Total debt has been reduced by almost

40% since June 30, 2023. During that timeframe, Ramaco has reduced debt by $56 million, while also paying out almost $25 million in dividends.

Ramaco has the lowest AROs plus legacy

liabilities among its direct peer group, 93% below the group average(2).

Total coal sales (000s of tons)

996 988 929

757 715

1Q23

2Q23

3Q23

4Q23

1Q24

Total Debt1 (in $MM)

$500
$400
$300
$200	$86
$100
$0
1	Ramaco		2		3		4		5		6
Peer	Peer		Peer		Peer		Peer		Peer

Total debt (in $ MM)

$138 $142

$105

$90 $86

1Q23

2Q23

3Q23

4Q23

1Q24

Legacy Liabilities + AROs2 (in $MM)

$1,000

$800 $600 $400

$200 $33 $0

Ramaco	1		2		3		4		5		6
Peer	Peer		Peer		Peer		Peer		Peer

1. Debt through 1Q24. Peers include (alphabetically): Alpha, Arch, Consol, Coronado, Peabody, Warrior. (Same peer group below.)
2. Legacy liabilities include workers' comp, black lung, pension & post-retirement benefits, and other, through 2023.

8

SOLID MARGINS DESPITE DECLINE IN MET COAL PRICING

Our margins remained strong despite the fall in metallurgical coal prices to begin 2024

Despite industry-wide inflationary

Solid Quarterly Margins 1

2023 Met Coal Cash Costs 2

pressures, we are committed to staying at the low end of the U.S. cost curve. We anticipate costs per ton will decline throughout 2024 on the back of stronger production.

	$140																						$250
	$120
																			$200	Price
Margins	$100
																															$150
$80
$60																																$100

$150

$130

$110

$109

While 1Q24 cash margins declined

mostly due to lower index pricing, they remain at healthy levels that allow for strong free cash flow generation.

While U.S. met coal prices have declined in the beginning of 2024, they appear to have stabilized as some higher cost production has recently shut down.

Total coal capital expenditures in major developed met coal producing countries is estimated to have fallen 70% in real terms over the past decade per Jefferies.

$40											Realized
	$50
$20
$0										$0

Margins Per Ton Realized Price

U.S. Met Coal Spot Price 3

$500

$400

$300

$200

$100

$0 Apr-20Dec-20Aug-21Apr-22Dec-22Aug-23Apr-24

$90

$70

$50

Peer 1 Peer 2 Ramaco Peer 3 Peer 4 Peer 5

Global Coal Capex 4

$12 $10 $8 $6 $4 $2 $0

2009

2011

2013

2015

2017

2019

2021

2023

2024E

2025E

(1) $/short ton FOB mine.

(2) $/short ton FOB mine; Results are for full-year 2023. Peers include (alphabetically): Alpha, Arch, Coronado, Peabody, Warrior. Source: Company documents, Bloomberg.

(3) In $/metric tonne FOB port for U.S. High Vol A (monthly average). Source: Bloomberg.

(4) In $ Billion, adjusted for inflation in 2023 dollars. Source: Jefferies, Nov. 2023.

9

KEY HIGHLIGHTS