Ramaco Resources, Hycroft Mining, and Foremost Lithium Drilling Updates Major Developments in Resource Exploration and Production

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By Ronald Tech

Top Stories for Feb. 13, 2024:

1. Executive Update on Ramaco Resources, Inc. (METC)

Ramaco Resources, Inc. shared positive news about its operational and financial performance for the period.

The company projects an impressive nearly 50% increase in net income and adjusted EPS for Q4 2023, with Adjusted EBITDA also rising by over 25%. This would mark the strongest quarter of the year. Notably, coal shipments have remained steady, reaching a four million tons annual rate, while inventory levels have decreased slightly.

Ramaco anticipates its second-most successful year in 2023, expecting net income between $80-$82 million and adjusted EBITDA between $180-$182 million. Sales have hit a record 3.5 million tons at an average price of $169 per ton, a significant increase from the previous year.

Additionally, the company has increased its 2024 sales commitments by 1.8 million tons, resulting in an upward revision of the sales and production outlook to 4.2-4.6 million tons. Ramaco’s strategic moves reflect strong market acceptance and the potential to achieve a sales run-rate of five million tons by the end of 2024, signifying a remarkable 40% year-over-year growth.

Furthermore, the acquisition of a preparation plant for $3 million at its Maben Complex, with an additional $8 million in development costs, is expected to reduce overall mining costs by cutting trucking expenses and enhancing efficiency, with operational implementation projected for Q4 2024.

2. Hycroft Mining’s Exploration Progress at Hycroft Mine (HYMC)

Hycroft Mining Holding Corporation has announced the commencement of a 2024 drill program focusing on high-grade silver exploration at the Hycroft Mine in Nevada.

Recent drilling and analysis have revealed significant high-grade silver mineralization, displaying continuity along previously unrecognized trends. The 2024 Drill Program aims to define these trends and explore untapped areas for continuous high-grade silver. Noteworthy results from the Vortex-Brimstone and Vortex-Camel trends have shown silver values ranging from hundreds to several thousand grams per ton.

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Vice President of Exploration, Alex Davidson, expressed great enthusiasm for the 2024 Drill Program, emphasizing its potential to enhance understanding of the structural framework around the unrecognized trends while expanding the significantly mineralized trends. Integration of historical geophysical and drilling data with the successful results from the 2023 drill program is expected to drive this year’s drilling toward unveiling the new Hycroft narrative.

3. Foremost Lithium Resource & Technology’s Lithium Drilling Initiatives at Zoro Property (FMST)

Foremost Lithium Resource & Technology Ltd. has initiated drilling activities at its Zoro Lithium Property in Manitoba, targeting spodumene-bearing dykes for substantial resource expansion, particularly at Dyke 1 and Dyke 8, which have demonstrated high-grade lithium mineralization.

The company secured a multi-year work permit from the Mining Permit Office for the Zoro Property, valid until April 26, 2026, partially funded by a $300,000 grant awarded by the Manitoba Mineral Development Fund at the beginning of 2024.

Foremost Lithium’s President and CEO, Jason Barnard, emphasized the prioritization of their maiden resource at Dyke 1, indicating the potential for significant resource expansion beyond its current estimates. With the advantages of a multi-year permit, the company aims to build tonnage and resource over time. With 16 proven spodumene-bearing lithium pegmatite dykes at the Zoro Property, the drilling activities present an opportune moment to achieve groundbreaking intersections and create new catalysts for the company and shareholders, irrespective of prevailing market conditions.

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