Matthew Key

Matthew Key from Texas Capital Securities first asked if Ramaco could eventually pursue rare earth separation at the Brook Mine or if the economics of selling a mixed rare earth carbonate (MREC) are more favorable. He then inquired about the timeline and estimated capital investment for developing deep mining at the Maben complex, facilitated by the new rail loadout, once a go-forward decision is made.

Answer

Michael Woloschuk, EVP of Critical Mineral Operations, stated that with new revenue streams, rare earths are now only about 15% of total project revenue, making on-site separation less economically viable than selling MREC. Jason Fannin, Chief Commercial Officer, explained that Maben deep mines are largely permitted, with a 6-8 month lead time for first production, potentially in 2027. He estimated $12M-$15M per underground section and $60M-$70M total CapEx for an additional 1 million tons, spread over an extended build-out.

Matthew Key asked if rare earth separation could be pursued later at the Brook Mine or if the economics of the new flow sheet, which focuses on MREC, would not justify it. He also inquired about the timing and capital investment required for the eventual development of deep mining at the Maben complex once a go-forward decision is made.

Answer

Michael Woloschuk, EVP of Critical Mineral Operations, stated that with rare earths now representing a smaller portion (around 15%) of the overall project revenue basket, pursuing complicated and capital-intensive separation doesn't make sense; selling MREC is a more strategic simplification. Jason Fannin, Chief Commercial Officer, and Chris Blanchard, EVP of Mine Planning and Development, explained that Maben's deep mines are largely permitted, requiring 6-8 months lead time for first production after a decision, potentially a 2027 event. Each underground section of equipment and development would cost approximately $12 million-$15 million, with a total CapEx of $60 million-$70 million rolled out over an extended build-out period to reach 1.5 million tons per year.

Matthew Key asked for color on why the Brook Mine is viewed as unique compared to other Powder River Basin (PRB) assets for rare earth development, and later inquired if the Strategic Critical Minerals Terminal is expected to add a material amount of CapEx to the overall project.

Answer

Randy Atkins, Chairman and CEO, explained Brook's unique geological anomalies due to its location on the far western edge of the PRB, benefiting from volcanic activity and alluvial deposits, as confirmed by NETL. He also stated that the Strategic Critical Minerals Terminal should add a relatively small amount of CapEx, creating a fee-based terminal services business that leverages existing infrastructure and provides market visibility.

Matthew Key asked for clarification on why Ramaco views its Brook Mine as unique compared to other Powder River Basin (PRB) assets, given hints from other coal companies about REE development in the region. He also inquired about the expected CapEx for the Strategic Critical Minerals Terminal, specifically if it would be a material amount.

Answer

Chairman and CEO Randy Atkins explained that the Brook site's uniqueness stems from its location on the far western edge of the PRB, benefiting from ancient volcanic activity and alluvial deposits, resulting in high, localized REE concentrations. He stated that the Strategic Critical Minerals Terminal is expected to require relatively small CapEx, adding a unique dimension by controlling downstream operations and acting as a regional/national hub for stockpiling, offering price visibility and marketing/finance opportunities.

Matthew Key asked about the expected capacity utilization for the Grundartangi smelter in the first half of 2026 while awaiting new transformers, seeking insight into the shipment cadence. He also inquired whether the put option on the Hawesville data center ownership was intended to fund the new Oklahoma smelter or if it was viewed as a long-term investment for the company.

Answer

President and CEO Jesse Gary explained that until Line 2 at Grundartangi is fully operational, Line 1 is producing about a third of the smelter's normal volume. He added that with the restart of Mt. Holly tons in Q2, Century Aluminum expects to achieve full production capacity across all smelters by the end of July or August. Regarding the Hawesville put option, Mr. Gary stated that while it provides a great liquidity option, the company anticipates generating significant EBITDA and cash flow from regular business operations, which should be sufficient to cover any financing needs for the Oklahoma smelter. He emphasized maximizing the value of the Hawesville stake, whether by holding it, selling it, or exercising the put option.

Matthew Key asked about the expected capacity utilization at the Grundartangi smelter during the first half of 2026, given the ongoing outage and wait for new transformers, to understand the shipment cadence. He also questioned whether Century Aluminum plans to utilize the put option on its Hawesville data center ownership to fund the new Oklahoma smelter or if it's considered a long-term investment.

Answer

Jesse Gary, President and Chief Executive Officer, explained that until Line 2 at Grundartangi is fully operational, Line 1 is producing about one-third of the smelter's normal volume. He added that with the restart of Mt. Holly tons in Q2, Century Aluminum expects to be running at full production capacity across all smelters by August. Regarding the Hawesville stake, Jesse Gary stated that while the put option provides a great liquidity and exit certainty, the company anticipates generating significant EBITDA and cash flow from regular business operations, which should be sufficient to cover the Oklahoma smelter's financing needs. He emphasized maximizing the value of the Hawesville stake, whether through holding it as a long-term investment or exiting via the put option or a third-party sale.

Matthew Key asked for insights into Alliance Resource Partners' expected sales contract cadence for 2026, considering the Mettiki mine's anticipated offline status and scheduled longwall moves. He also inquired about the outlook for export sales in 2026 compared to 2025 levels and the current netbacks observed in the export market.

Answer

Cary P. Marshall, SVP and CFO, indicated that Q1 2026 sales volumes are expected to be the lowest, with slight growth from Q4 2025. Q2 should see improvement despite longwall moves at Hamilton (Q1) and Tunnel Ridge (early Q2), with the back half of the year projected to have the best volumes as longwalls run at full capacity. Joseph W. Craft III, Chairman, President, and CEO, stated that Alliance's only export exposure for 2026 is approximately 200,000 tons from MC Mining, as the company primarily focuses on domestic customers due to higher netbacks. He noted recent netbacks for MC Mining's small tonnage booked were around $83-$85.

Matthew Key inquired about the expected quarterly sales cadence for Alliance Resource Partners in 2026, considering the Mettiki mine's anticipated offline status and scheduled longwall moves. He also asked for a comparison of 2026 export sales to 2025 levels and current netbacks in the export market.

Answer

Cary P. Marshall, SVP and CFO, outlined that Q1 2026 sales volumes are expected to be the lowest, with gradual improvement in Q2, and the best volumes anticipated in the second half of the year due to fewer longwall moves. Joseph W. Craft III, Chairman, President, and CEO, stated that export exposure for 2026 is limited primarily to 200,000 tons from MC Mining, as the company prioritizes domestic customers due to higher netbacks. He noted current MC Mining export netbacks around $83-$85 for recently booked tonnage.

Matthew Key asked for initial expectations regarding 2026 volume, specifically the best-case scenario for shipments compared to 2025, and other opportunities for increasing volumes beyond Tunnel Ridge. He also inquired about Alliance Resource Partners' M&A outlook, asking if the focus remains on coal or if it has shifted more towards oil and gas royalty business or secondary investments.

Answer

Chairman, President, and CEO Joe Craft indicated that the Illinois Basin is also expected to contribute to volume increases, projecting a total overall growth of approximately 2 million tons in 2026 compared to 2025, driven by data center demand. He stated that M&A efforts would be more focused on minerals and infrastructure opportunities, similar to the Gavin investment, with no current expectations for expanding coal operations through acquisitions.

Matthew Key inquired about Alliance Resource Partners' initial volume expectations for 2026, seeking insights into the best-case scenario for shipments compared to 2025 and identifying specific opportunities for increasing volumes beyond Tunnel Ridge. He also asked about the company's M&A outlook, particularly whether future focus would be on coal, oil and gas royalties, or other secondary businesses.

Answer

Chairman, President, and CEO Joe Craft projected a potential increase of approximately 2 million tons in total sales for 2026 compared to 2025, with contributions expected from both the Illinois Basin and Tunnel Ridge, driven by strong demand from data centers. Craft indicated that M&A efforts would primarily focus on expanding mineral positions and pursuing infrastructure opportunities similar to the Gavin investment, with no current expectations for expanding coal operations through M&A.

Matthew Key of B. Riley Securities inquired about the ideal financing structure and timing for the Ewoyaa project in Ghana and asked what spodumene price or market conditions would be necessary for a final investment decision (FID).

Answer

President and CEO Keith Phillips explained that while offtake financing was explored, the focus has shifted to securing lower-cost, joint project-level debt with its partner, potentially through the Development Finance Corporation (DFC). A key near-term catalyst is the parliamentary ratification in H1 2025, which would trigger a $28 million investment from Ghana's sovereign wealth fund. He stated that while there is no bright-line test, spodumene prices need to be 'meaningfully higher' than current levels to justify an FID on a greenfield project.

Matthew Key of B. Riley Securities asked for more detail on the company's plans to monetize noncore assets and requested an update on the remaining permitting and rezoning steps for the Carolina Lithium project.

Answer

Keith Phillips, President and CEO, identified noncore assets as their shareholding in Atlantic Lithium and some non-essential land in North Carolina. He clarified that for the Carolina project, they still need an air permit and must complete a rezoning process, which will be advanced at an appropriate time, likely in 2025 or later.

Matthew Key of B. Riley Securities requested details on the evaluation of lithium recovery methods, the timeline for a customer-ready lithium product, and the potential funding amounts from pending applications with the Department of Defense and Department of Energy.

Answer

CEO Paul Weibel stated that while lithium is present at 40-60 ppm and can be concentrated further, the company is still evaluating the most cost-effective recovery technology and has not set a firm timeline. CSO Jason Starzecki detailed that government funding efforts include a $285 million loan guarantee application to the EXIM Bank, a $20 million appropriations request, and a DPA Title III request for up to $35 million, all of which would be highly impactful for Phase 1 CapEx.

Asked for details on the timing and potential amount of government financing, particularly from the DPA Title III program, and requested guidance on the company's quarterly cash burn rate for fiscal 2024.

Answer

The company explained that Department of Defense (DOD) funding via DPA Title III is a near-term path, while the Department of Energy (DOE) Loan Program Office offers a larger pool of capital over a longer timeline (approx. 12+ months). The target for pure G&A cash burn is about $1.5 million per month, though this may increase as they approach production.

Asked for details on the potential timing and amount of government financing, particularly from the DPA Title III program, and for guidance on the expected quarterly cash burn for fiscal year 2024.

Answer

The company outlined two government funding paths: a near-term route via the DOD's DPA Title III and a longer-term but larger funding opportunity through the DOE's Loan Program Office. The company is targeting a G&A cash burn of approximately $1.5 million per month, which can be adjusted as they get closer to production.

Asked about the company's view on M&A in the uranium space and the timeline and potential CapEx for the updated rare earth Pre-Feasibility Study (PFS).

Answer

The company is open to M&A in the uranium space and is actively looking at opportunities that make sense for its multi-element strategy. The updated rare earth PFS is a high priority, and while an exact timeline isn't set, it could be around 6 months. The previous study for 3,000 tonnes had a CapEx of $350 million, but the company is resourceful and hopes for excellent results on the new studies, leveraging their experience from the successful Phase 1 build-out.

Matthew Key from B. Riley Securities asked about the company's perspective on M&A in the uranium sector and inquired about the timing and potential CapEx for the updated rare earth Pre-Feasibility Study (PFS).

Answer

Executive Mark Chalmers affirmed that Energy Fuels continues to evaluate M&A opportunities in the uranium space, not just in rare earths. Regarding the rare earth PFS, he speculated an updated study for the expanded capacity could be available in approximately six months, noting that while a previous smaller-scale study estimated $350M in CapEx, the company has a track record of completing projects under budget.

Matthew Key from B. Riley Securities questioned the company's perspective on M&A opportunities within the uranium sector. He also asked for the expected timeline and a potential CapEx estimate for the updated rare earth Pre-Feasibility Study (PFS) with increased capacity.

Answer

Executive Mark Chalmers affirmed that Energy Fuels is actively evaluating M&A opportunities in the uranium space, not just in rare earths. For the rare earth PFS, he noted the previous 3,000-ton study had a CapEx of about $350 million and speculated that an updated study for the expanded capacity could be ready in approximately six months, though he stressed this was not a firm timeline.

Matthew Key asked about opportunities to expand production capacity beyond the planned 2.2 million pounds from Lost Creek and Shirley Basin, including the potential for M&A, and inquired about the target inventory level before the company would consider selling into the spot market.

Answer

Chairman and CEO John Cash detailed three growth avenues: disciplined M&A for quality near-term assets, developing its portfolio of exploration projects, and exploring expansions at existing facilities by overcoming technical constraints. On inventory, Mr. Cash stated the target is fluid but he would be comfortable with a minimum of 100,000 to 200,000 pounds before actively participating in the spot market.

Matthew Key of B. Riley Securities asked about potential growth avenues beyond the Shirley Basin expansion, including M&A, and inquired about the target inventory level Ur-Energy wants to achieve before engaging in spot market sales.

Answer

CEO John Cash outlined three primary growth paths: disciplined M&A for quality, near-term properties; developing existing exploration projects; and potentially expanding capacity at current facilities by addressing technical constraints. Regarding inventory, Cash stated a preference for building a stockpile, noting he would be more comfortable with a minimum of 100,000 to 200,000 pounds before considering spot sales.

Inquired about opportunities for production growth beyond the Shirley Basin expansion, including M&A, and asked for the target inventory level before the company would consider selling into the spot market.

Answer

The company is exploring three avenues for growth: disciplined M&A, developing its existing exploration projects, and potentially expanding capacity at current facilities, though technical challenges exist. Regarding inventory, the company would feel more comfortable with a minimum of 100,000 to 200,000 pounds before actively selling on the spot market.