On Monday, Benchmark increased its price target on shares of Ramaco Resources Inc . (NASDAQ: NASDAQ:METC) to $24 from the previous $20 while sustaining a Buy rating on the stock. This adjustment follows Ramaco Resources' announcement of its fourth-quarter adjusted EBITDA, which met the upper end of its projected range of $56 million to $58 million.
Ramaco Resources confirmed its guidance for the full year of 2024, with the only change being a $5 million rise in its depreciation, depletion, and amortization (DD&A) target. The company also shared its expectation to achieve a production rate of approximately 5 million tons per year in the second half of 2024.
In addition to these operational updates, the company is on track to finish rebuilding the Maben preparation plant, which it recently acquired, by the end of the year. Once operational, this facility is expected to save Ramaco Resources nearly $40 per ton in trucking costs and provide the capacity required for future growth at the Maben site.
On the sales front, Ramaco Resources has successfully diversified its customer base, securing several long-term agreements with Asian customers. The company also anticipates an improvement in the production quality mix over the medium term.
Regarding the Brook mine rare earth project, management awaits an updated independent Exploration Target (NYSE:TGT) report from Weir (LON:WEIR) International, which is due later this month. Following the release of this report, the company plans to conduct a call to discuss the findings and offer further insights. It is important to note that an initial economic analysis report from consulting firm SRK is still underway.
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