Ramaco Secures $500M Credit Facility to Fuel Dual-Platform Growth

LEXINGTON, Ky. – December 30, 2025 – Ramaco Resources, Inc. (NASDAQ: METC, METCB) today announced a significant expansion of its financial firepower, securing an amended Revolving Credit Agreement that more than doubles its borrowing capacity to $500 million. The move, backed by a syndicate of major financial institutions, signals strong lender confidence and provides the company with substantial capital to pursue its ambitious dual-platform strategy of expanding its core metallurgical coal operations while advancing a pivotal rare earth and critical minerals project in Wyoming.

The amended agreement, led by KeyBank, N.A., increases the facility from a previous $200 million and extends its maturity to 2030. It consists of a $350 million revolving commitment and a $150 million accordion feature, giving Ramaco enhanced flexibility for its long-term objectives. This transaction is a capstone on an aggressive period of financial maneuvering for the company, contributing to nearly $1 billion in capital market and banking deals since August 2025.

A Vote of Confidence from Wall Street

The sheer scale of the financing and the high-profile nature of the banking syndicate underscore a powerful vote of confidence in Ramaco's strategic direction and financial management. KeyBank served as the Administrative Agent, with KeyBank and Truist acting as Joint Lead Arrangers. The syndicate also includes prominent names like Morgan Stanley, Goldman Sachs, Texas Capital, and others.

This robust backing from the banking sector provides a compelling counterpoint to the more varied opinions among equity analysts. While Ramaco's stock has seen significant long-term gains, it has also experienced recent volatility, and analyst ratings remain mixed. Some analysts have lauded the company's assets, with Morgan Stanley initiating coverage with an “Equalweight” rating and highlighting a “Crown Jewel” project. Conversely, Goldman Sachs initiated with a “Sell” rating, citing concerns that the low-grade nature of the company's rare earth deposit could lead to high production costs.

The participation of institutions like Goldman Sachs and Morgan Stanley in the credit facility, however, tells a different story—one of creditworthiness. While equity analysis weighs future stock price potential, a lending decision is a fundamental bet on a company's ability to service its debt and execute its business plan. By committing hundreds of millions of dollars, this diverse group of banks signals a collective belief in the viability of Ramaco's assets and the soundness of its management.

Fueling a Dual-Platform Future

The influx of capital is designed to fuel what Ramaco calls its dual-platform model. The strategy involves simultaneously nurturing its established, cash-generating metallurgical coal business in Appalachia while investing in the high-growth, strategic development of its Brook Mine in Wyoming, a site of a major rare earth element discovery.

In the company's announcement, Chairman and CEO Randall Atkins stated the new facility provides a “solid foundation” for the company's multifaceted goals. “This enables us to continue disciplined growth in our metallurgical coal business, return capital to shareholders, and to advance our Brook Mine critical mineral and rare earth development,” Atkins said. “We believe the amended credit facility enhances our ability to create long-term value for our investors.”

This capital allocation strategy is already in motion. Beyond funding operations and development, the company's strengthened financial position supports direct shareholder returns, as evidenced by a recently announced $100 million share repurchase program. The new credit line ensures Ramaco has the liquidity to balance rewarding current investors while making the long-term, capital-intensive investments required for its ambitious expansion plans.

The High-Stakes Bet on Brook Mine

At the heart of Ramaco's future-facing strategy is the Brook Mine near Sheridan, Wyoming. A 2023 discovery revealed a major deposit of magnetic rare earths—elements crucial for high-tech applications like electric vehicles, wind turbines, and advanced defense systems. The new financing is critical to moving this project from discovery to production.

The project's significance extends beyond corporate balance sheets, touching upon pressing geopolitical and national security concerns. The United States is heavily reliant on foreign nations, particularly China, for its supply of refined rare earth elements. Recent global tensions and Chinese export restrictions have highlighted the vulnerability of this supply chain, prompting a federal push to develop domestic sources. Ramaco's Brook Mine is positioned as a potentially key player in this national effort toward mineral independence.

Progress is being made, with Ramaco recently signing a memorandum of understanding with Mulberry Industries to negotiate a future supply agreement for elements from the mine. However, the path to commercial production is not without challenges. Skeptics, including analysts at Goldman Sachs, have pointed to the deposit's low-grade concentration as a potential hurdle that could inflate extraction costs and require massive capital outlays. Yet, others see immense potential, with some analysts setting price targets that reflect a significant valuation for the Brook Mine's resources. The new financing provides Ramaco the necessary runway to de-risk the project, complete its pilot plant, and prove its economic viability.

Shoring Up the Core Business

While the rare earth venture captures headlines, the expanded credit facility is equally vital for Ramaco's foundational business: producing high-quality, low-cost metallurgical coal. This material, essential for steelmaking, remains the company's primary revenue driver. The financing provides capital for “disciplined growth” across its four active mining complexes in West Virginia and Virginia.

This stability is crucial in the cyclical metallurgical coal market, which is tied to the fortunes of global steel production. Having a robust and flexible credit line allows the company to weather market downturns, invest in operational efficiencies, and selectively expand production to meet demand. By reinforcing its core coal operations, Ramaco ensures it has a steady financial engine to help fund the more speculative, long-term development of its critical minerals division.

Ultimately, the $500 million facility equips Ramaco to navigate its complex path forward. The company is now capitalized to simultaneously operate as a traditional resource producer and a developmental pioneer in a strategic, 21st-century industry, straddling America's industrial past and its technological future.