LEXINGTON, Ky., July 22, 2020 /PRNewswire/ -- Ramaco Resources, Inc. ("Ramaco" or the "Company") (NASDAQ: METC) announced today that it has entered into an exclusive marketing arrangement with Australia-based Square Resources ("Square"), to market the Company's metallurgical coal into fast-growing Asian steel markets.
"We are delighted to announce this marketing relationship with Square, which is regarded as one of the most aggressive and experienced coal sales groups in the Asian perimeter," said Ramaco's Executive Chairman Randall Atkins. "It has long been a goal of Ramaco to expand our marketing footprint into the fastest growing metallurgical coal markets in the world throughout Asia. We believe we've found the perfect partner in Square and view this as a core long-term relationship for our export sales efforts."
"We have long wanted to enter the U.S. coal market to add to our current Asian marketing metallurgical coal book of over 9 million tons," said Square's Founder Staffan Ever. "However, it has taken us a long time to identify the right U.S. partner, as we've always had specific criteria in mind that we've been searching for. Ramaco is a low cost, growing producer of quality coals, with a very conservative financial structure, and almost no overlap from a quality perspective with our existing book of business from other regions' producers. Ramaco is a wonderful fit for us, and will now be our exclusive U.S. partner. We too look forward to working with Ramaco over a long time frame."
Ramaco's Chief Marketing Officer Jason Fannin remarked that "halfway through 2020, Asian steel production is roughly flat year-on-year, whereas the traditional export markets for U.S. coal are down materially. The contrast between these markets, although hopefully temporary, means that on a long-term basis it is important for our coal to make more inroads into Asia. We are excited to be able to partner with Square, who is an established and successful marketing group in all of the Asian markets."
Both Ramaco and Square note that the partnership is effective immediately. While the original focus will be in Asia, the two sides may choose to expand the geographic targets in the future.
About Ramaco Resources, Inc. Ramaco Resources, Inc. is an operator and developer of high-quality, low cost metallurgical coal in southern West Virginia, southwestern Virginia and southwestern Pennsylvania. Its executive offices are in Lexington, Kentucky, with operational offices in Charleston, West Virginia. The Company has five active mines within two mining complexes at this time.
News and additional information about Ramaco Resources, including SEC filings, are available at www.ramacoresources.com.
About Square Resources Square Resources is a privately–owned and internationally reputable coal marketing & trading company that has been operating since 2010, supplying coal to major end users globally with special strength in the Asia Pacific region. Its executive offices are in Brisbane, Australia, with operational offices in Singapore, China, Indonesia, Brazil, Colombia and Japan.
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent Ramaco Resources' expectations or beliefs concerning future events, costs and expectations regarding operating results, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Ramaco Resources' control, which could cause actual results to differ materially from the results discussed in the forward-looking statements. These factors include, without limitation, Ramaco Resources' beliefs concerning future events, including the COVID-19 pandemic, failure of our sales commitment counterparties to perform, increased government regulation of coal in the United States or internationally, or unexpected decline of demand for coal in export markets and underperformance of the railroads. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, Ramaco Resources does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Ramaco Resources to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements found in Ramaco Resources' filings with the Securities and Exchange Commission ("SEC"), including its Annual Report on Form 10-K. The risk factors and other factors noted in Ramaco Resources' SEC filings could cause its actual results to differ materially from those contained in any forward-looking statement.