Ramaco Resources, Inc.

Good day, and welcome to the Ramaka Resources 2Q 2022 Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Jeremy Sussman, CFO. Please go ahead.

Thank you. On behalf of Ramico Resources, I'd like to welcome all of you to our second quarter 2022 earnings conference call. With me this morning is Randy Atkins, our Chairman and CEO, Chris Blanchard, our Chief Operating Officer, and Jason Fannin, our Chief Commercial Officer. Before we start, I'd like to share our normal cautionary statement. Certain items discussed on today's call constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent Ramico's expectations concerning future events. These statements are subject to risks, uncertainties, and other factors, many of which are outside of Ramico's control, which could cause actual results to differ materially from results discussed in the forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and except as required by law, Ramico does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. I'd also like to remind you that you can find a reconciliation of the non-GAAP financial measures that we plan to discuss today in our press release. I'd encourage everyone on this call to go onto our website, ramicoresources.com, and download today's investor presentation under the events calendar. With that said, let me introduce our Chairman and CEO, Randy Atkins.

Thanks, Jeremy, and good morning to all. When we telegraphed our first half results in May, we expected to ramp to a significantly stronger second half. That's still the case, despite our recent, and we hope temporary, closing of one of the three Berwyn mines. Based on the 121 million first half EBITDA print, 2022 safely looks to be a record year for us on about every metric by several multiples. We now only have about 200,000 tons left to sell for this year. Against sales to date, we have effectively generated earnings that currently guide to about 340 million of 2022 mine level EBITDA. As you know, The 2023 domestic sales season is already now upon us with an extra twist this year. Last year, we had met prices moving north during this period. This year, European thermal customers currently seem willing to pay more than our traditional met coal buyers here in the States. We will soon see if our domestic steel customers adjust to the higher pricing dynamic. Like most producers, we will look to place our tons for next year for the best possible net back pricing. Indeed, we placed a sale a few weeks ago to a European thermal buyer at a price well north of met. This may turn out to be a very interesting fall. And as we look at the first half, 2022 has turned out to be the sort of, quote, downer year of the rails, unquote, for almost every producer. We were dinged with about 200,000 ton first half inventory build. largely from missed or delayed rail shipments. We are currently hearing all the right notes from the rails that the second half deliveries will improve. All we can do is hope and see. As I reviewed the peer group consensus earnings before this call, I noted how many of us had diminished rail capacity and mined tons we could not move. Similarly, when coal is mined but cannot be sold because of delivery issues, the inventory bill does not improve costs. We had some costs creep this quarter, which Jeremy will detail. But again, we expect second half costs to come down meaningfully. We are already starting to see improvements in some of the inflationary direct mine costs, like diesel fuels and roof bolts. And of course, the second half will see the full reduction on royalties from our recent Ramico coal purchase. I think our main takeaway from the first half is despite some current softening in benchmark prices, we take a longer-term view of continued strength in the met coal markets. There is still a multi-year mismatch between met coal supply availability and demand, and that is both in the U.S. as well as overseas. We are witnessing current global market dislocations, which we also do not see resolving themselves in the near term. Indeed, there may be several global events ahead which could exacerbate these already stretched markets and logistical supply lines. Despite the backdrop of recessionary economic sentiments, all this could lead to the same form of price volatility that we witnessed earlier this year. From our vantage, we feel perhaps confusion breeds opportunity. We are marching ahead in full growth mode to increase our long-term guidance to at least 6.5 million tons over the next two to three years. This triples our production level from where we ended 2021. This year, on the back of the Berwyn ignition incident, we will slightly miss an earlier production forecast of roughly 3 million tons. But we are now looking to a total of roughly 4.3 million tons of production next year and over 6.5 million tons in 2025. We have taken two steps since our last call to enhance that future production. First, we have started an increase in the processing capacity at our Elk Creek Preparation Plant to now reach 3 million annualized tons by the middle of next year. We had previously announced an increase to 2.5 million tons and have now bumped that figure. Next, we have entered into an agreement, which we just announced yesterday, to acquire the 33 million ton Maben-Lovall mine reserves in West Virginia for $30 million. After closing, we will begin mining later this year and expect a 250,000 ton high wall production level by 2023. We also have the optionality in the future to build a permitted deep mine and prep plant to increase the Maven production capacity to over a million tons. The immediate spend involved in both the additional Elk Creek capacity increase and the Maven acquisition will add about 20 million in capex this year and $5 million next year. For those interested in the metrics of our overall growth projects and the spend to get us above the 6.5 million ton annual level, they are outlined in some detail in the earnings presentation. In addition to the Maven deep mine, we also have other options which might indeed take us north of the 6.5 million ton level, dependent upon future market conditions and permitting. So with that, I would now like to turn the floor over to the rest of the team to discuss more detail on finances, operations, and the market. So Jeremy, please run down our financial metrics. Thank you, Randy.