Note 11 - Segment Reporting

6 Months Ended

Jun. 30, 2025

SEGMENT REPORTING

SEGMENT REPORTING

NOTE 11—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:

		Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)		2025		2024		2025		2024
Significant segment expenses (a):
Cash cost of sales (FOB mine)	$	110,905	$	98,469	$	203,669	$	207,937
Transportation costs		20,673		22,872		39,671		51,748
Alternative mineral development costs		1,918		1,124		3,830		2,255
Other cost of sales (b)		686		305		1,144		543
Cost of sales	$	134,182	$	122,770	$	248,314	$	262,483
(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 and capitalized interest)	$	14,428	$	21,265	$	35,880	$	41,194

Cash cost of sales (FOB mine) is a non-GAAP measure that is calculated as cost of sales less transportation costs, alternative mineral development costs, and idle and other costs. We believe cash cost of sales (FOB mine) provides useful information for comparison against similar measures made by other publicly-traded coal companies and to more effectively monitor changes in coal cost from period to period excluding the impact of transportation costs which are beyond our control, and alternative mineral costs, which are more developmentally focused at the present time.