Ramaco Resources tumbles after $150 mln stock offering launch

Ramaco Resources

05/08/2025 21:54

** Shares of coal miner firm Ramaco Resources METC.O down 15.3% to $19.60 post-market as it seeks equity raise

** Lexington, Kentucky-based METC commences $150 mln offering of Class A shares

** Co says intends to use net offering proceeds to fund acceleration of its development of its rare earth elements and critical minerals project, for strategic growth opportunities and for general purposes

** Existing stockholder Yorktown Energy Partners would sell an additional $22.5 mln of shares, if the underwriters exercise the over-allotment option; METC would not receive any proceeds from shares sold by Yorktown

** Morgan Stanley and Goldman Sachs are lead joint bookrunners

** As of Jul 31, METC had ~44.5 mln and ~10.7 mln outstanding Class A and Class B shares, respectively, filings show

** METC shares on Tues closed up 6.1% at $23.14, up ~131% YTD

** All 3 analysts covering METC are bullish and median PT is $14, LSEG data reflects

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))