Increased Financial Projections for Ramaco Resources
1. Ramaco Resources, Inc. METC shared promising updates on operational and financial aspects. The company estimates a nearly 50% surge in Q4 2023 net income and adjusted EPS, with Adjusted EBITDA also climbing by over 25%. This bodes well, marking a substantial upturn and positioning Q4 as the year’s strongest quarter. Despite the slight drop in inventory levels, coal shipments remained steady, achieving a four million tons annual rate.
Ramaco anticipates an outstanding 2023, with net income projected between $80-$82 million and adjusted EBITDA between $180-$182 million. Notably, sales hit a record 3.5 million tons at an average price of $169 per ton, signifying a significant increase from the previous year.
With a bolstered sales commitment of 1.8 million tons for 2024, the company raised its sales and production outlook to 4.2-4.6 million tons. This reflects soaring market acceptance and the potential for reaching a five million tons sales run-rate by the end of the year, marking a remarkable 40% year-over-year growth.
In a strategic move, Ramaco acquired a preparation plant for $3 million for its Maben Complex, with an extra $8 million in development costs. This savvy investment aims to streamline operations, reducing trucking costs and enhancing efficiency. The plant is expected to be operational by Q4 2024, promising an overall reduction in mine costs.
Hycroft’s High-Grade Silver Drill Program
2. Hycroft Mining Holding Corporation HYMC has initiated a 2024 drill program targeting high-grade silver at the Hycroft Mine in Nevada.
Recent drilling and analysis have unearthed significant high-grade silver mineralization, affirming continuity along previous unidentified trends. The 2024 Drill Program aims to define these trends and explore uncharted territories for continuous high-grade silver. Notable results from the Vortex-Brimstone and Vortex-Camel trends have showcased silver values ranging from hundreds to several thousand grams per ton.
Vice President of Exploration, Alex Davidson, expressed enthusiasm, stating, “The 2024 Drill Program is very exciting as it will illuminate the structural framework around these two previously unrecognized trends. Moreover, it will expand the significantly mineralized trends. We are equipped to integrate historical geophysical and drilling data with the exceptional results from the 2023 drill program, focusing this year’s drilling on the new Hycroft story.”
Foremost Commences Drilling at Zoro Property
3. Foremost Lithium Resource & Technology Ltd. FMST has commenced drilling on its Zoro Lithium Property in Manitoba, with a primary focus on targeting spodumene-bearing dykes for significant resource expansion, particularly at Dyke 1 and Dyke 8, which have exhibited high-grade lithium mineralization.
Foremost obtained a multi-year work permit from the Mining Permit Office for the Zoro Property, valid until April 26, 2026. An initial boost was received through a $300,000 grant from the Manitoba Mineral Development Fund in early 2024, providing the impetus for the drilling initiative.
Jason Barnard, President and CEO of Foremost Lithium, emphasized, “Our primary target remains the maiden resource at our Dyke 1, with the potential for substantial expansion beyond current estimates. The multi-year permit affords us the luxury of time to build tonnage and resource. The Zoro Property boasts 16 proven spodumene-bearing lithium pegmatite dykes, presenting a golden opportunity to yield compelling intersections that provide a significant catalyst for our company and shareholders, irrespective of prevailing market conditions.”
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