Ramaco Resources Secures $500M Credit Facility, Jefferies Lifts Price Target
Ramaco Resources secured an amended revolving credit facility with KeyBank totaling $500 million, including a $350 million revolving commitment and a $150 million accordion feature, extended to 2030. Jefferies upgraded to Buy with a $30 price target (down from $33), citing a $198/ton coal forecast versus $245 futures, despite Brook project risks.
1. Credit Facility Terms
Ramaco Resources amended its revolving credit agreement with KeyBank, boosting total commitments from $275 million to $500 million. The new facility comprises a $350 million revolving line and a $150 million accordion option, with maturity extended to 2030 to enhance liquidity and funding flexibility.
2. Jefferies Upgrade and Price Outlook
On January 20, Jefferies raised its rating on Ramaco Resources to Buy from Hold and set a $30 price target, reduced from $33. The firm cited potential upside to its coal assumptions, forecasting $198 per ton in coal prices versus $245 per ton indicated by futures.
3. Brook Project Risk and Peer Ratings
Jefferies noted risks related to the Brook project as a factor in trimming its target, while Robert W. Baird maintained a Buy rating with a $40 price target. Baird highlighted escalating geopolitical tensions in critical minerals as supportive of demand for the company’s metallurgical coal.