Ramaco Resources tumbles after upsized $200 mln stock offering

Ramaco Resources

06/08/2025 10:59

** Shares of coal miner Ramaco Resources METC.O down 16.4% before the bell to $19.35 after overnight follow-on priced

** Lexington, Kentucky-based METC late Tues announced ~10.7 mln shares at $18.75 for $200 mln gross proceeds

** Offering size increased from $150 mln, priced at 19% discount to last sale

** Co said 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 general purposes

** Existing stockholder Yorktown Partners would sell an additional $30 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 for the offering

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

** METC shares on Tues closed up 6.1%, 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))