Note 11 - Related Party Transactions

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

RELATED PARTY TRANSACTIONS

NOTE 11—RELATED PARTY TRANSACTIONS

Ramaco Coal Deferred Purchase Price—As part of the financing of the acquisition of Ramaco Coal that occurred in the second quarter of 2022, the Company incurred interest expense of $0.4 million and $1.7 million for the three months and nine months ended September 30, 2023, respectively. The Company incurred interest expense of $1.1 million and $2.0 million for the three months and nine months ended September 30, 2022, respectively. In addition, the Company paid down $30.0 million of its related-party debt during the first nine months of 2023, leaving a balance of $10.0 million at September 30, 2023.

Mineral Lease and Surface Rights Agreements—Prior to the acquisition of Ramaco Coal, much of the coal reserves and surface rights that we control were acquired through a series of mineral leases and surface rights agreements with Ramaco Coal, who was a related party. Royalties paid to Ramaco Coal in 2022 prior to the acquisition totaled $3.1 million.

Administrative Services—Also prior to the acquisition of Ramaco Coal, the Company and Ramaco Coal agreed to share the services of certain of each company’s employees pursuant to a mutual service agreement. Charges to Ramaco Coal in 2022 prior to the acquisition totaled $44 thousand related to this arrangement.

Legal Services—Some of the professional legal services we receive are provided by Jones & Associates (“Jones”), a related party. Legal services payable to Jones totaled $0.6 million at September 30, 2023 and were included in accrued liabilities on the balance sheet. There were no legal fees incurred for Jones during the three months and nine months ended September 30, 2023. Legal fees incurred for Jones during the three months and nine months ended September 30, 2022 were zero and $0.8 million, respectively.

Other Professional Services—The Company has also entered into professional services agreements with two other related parties, neither of which has resulted in material activity at this time.