B.Riley FBR analyst Lucas Pipes reiterated a Buy rating on Ramaco Resources Inc (NASDAQ: METC) today and set a price target of $10.50. The company’s shares closed yesterday at $7.91.
“Ramaco (METC) disclosed that it contracted 1.24M tons of domestic met coal sales for delivery in 2019. The average realized price of these new contracts is $113 per ton FOB mine, which represents an increase of 43% from 2018 domestic contract prices. The contracts represent 46% of our projected sales volumes for Ramaco. Assuming $40/t for transportation, Ramaco’s contracts are approximately equivalent to $168/Mt FOB port. This compares to spot prices for HVB and HVA of $170/Mt and $202/Mt, respectively. We note that prices have been showing renewed strength in recent weeks on reports of Chinese production cuts and, most recently, hurricane-related disruptions on the U.S. East Coast. We believe that U.S. met coal contracts are a bullish catalyst for the producers.”
According to TipRanks.com, Pipes is a 4-star analyst with an average return of 7.0% and a 61.4% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Novagold Resources Inc New, and Newmont Mining Corporation.
The word on The Street in general, suggests a Hold analyst consensus rating for Ramaco Resources Inc.
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Based on Ramaco Resources Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $10.2 million. In comparison, last year the company had a GAAP net loss of $3.49 million.
Based on the recent corporate insider activity of 28 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of METC in relation to earlier this year.
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Ramaco Resources, Inc. engages in the operation and development of coal mining properties. The firm deals with metallurgical coal in central and southern West Virginia, southwestern Virginia, and southwestern Pennsylvania. Its portfolio consists of Elk Creek, Berwind, RAM Mine, and Knox Creek. The company is headquartered in Lexington, KY.