Note 15 - Segment Reporting

12 Months Ended

Dec. 31, 2024

SEGMENT REPORTING

SEGMENT REPORTING

NOTE 15—SEGMENT REPORTING

The Company generates revenue primarily through the production of metallurgical coal for sale to the steel industry. Ramaco also generates revenue through the sale of coal purchased from third parties.

The Company’s chief operating decision maker (“CODM”), the chief executive officer, regularly reviews financial information at the consolidated level for the purpose of allocating resources and assessing operating results and financial performance. Therefore, the Company has one operating and reportable segment.

The CODM uses consolidated net income as the segment profitability measure to evaluate the performance of its segment and make resource allocation decisions. Consolidated net income is used by the CODM to assess operating performance of its Appalachian operations as well as to make decisions regarding capital investments, labor allocation, compensation, and resource development.

The CODM does not regularly review segment asset information at a different asset level or category than those disclosed within the consolidated balance sheet for the purpose of assessing performance and making resource allocation decisions. Significant expenses regularly reviewed by the CODM include cost of sales as reported on the Company’s consolidated statements of operations. Furthermore, significant expenses include more disaggregated cost of sales information, including cash cost of sales (on an FOB mine basis), transportation costs, and alternative mineral development costs, as shown in the following table:

		Year ended December 31,
(In thousands)		2024		2023		2022
Significant segment expenses (a):
Cash cost of sales (FOB mine)	$	420,768	$	380,227	$	263,384
Transportation costs		106,241		105,739		58,113
Alternative mineral development costs		4,755		3,849		1,989
Other cost of sales (b)		1,529		3,978		9,474
Cost of sales	$	533,293	$	493,793	$	332,960
(a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(b) Other cost of sales includes idle costs.
Total capital expenditures (including accrued capital expenditures)	$	71,656	$	75,825	$	136,541

The consolidated statements of operations include a reconciliation from revenue to the segment profitability measure of consolidated net income, wherein the significant expenses above are all included within the cost of sales line.