Up 400%, Down 70%: Why a $5 Million Bet on Ramaco Resources Signals Long-Term Conviction
Key Points
Austin-based Beck Capital Management added 151,835 shares of METC in the third quarter.
The value of the position increased by about $5 million from the previous period.
This marked a new holding for Beck Capital, which did not report holding METC shares in the previous period.
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On November 14, Austin-based Beck Capital Management disclosed a new position in Ramaco Resources (NASDAQ:METC), acquiring 151,835 shares valued at approximately $5 million, according to its latest SEC filing.
What Happened
According to a filing with the Securities and Exchange Commission dated November 14, Beck Capital Management disclosed a new stake in Ramaco Resources (NASDAQ:METC). The fund purchased 151,835 shares during the third quarter, reporting a position valued at $5 million as of September 30. This acquisition accounts for 1.2% of the fund’s $433.8 million in U.S. equity holdings.
What Else to Know
Top holdings after the filing:
- NASDAQ: NVDA: $32.3 million (7.5% of AUM)
- NASDAQ: META: $16.1 million (3.7% of AUM)
- NASDAQ: AVGO: $14.5 million (3.4% of AUM)
- NASDAQ: MSFT: $14.5 million (3.4% of AUM)
- NYSE: VRT: $11.6 million (2.7% of AUM)
As of Thursday, shares of Ramaco Resources were priced at $14.41, up 34% over the past year and outperforming the S&P 500, which is up 15% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $579.5 million |
| Net Income (TTM) | ($32.9 million) |
| Dividend Yield | 2% |
| Price (as of Thursday) | $14.41 |
Company Snapshot
Ramaco Resources operates a portfolio of mining assets across key Appalachian regions, supplying metallurgical coal to major steel producers in the U.S. and abroad. The company produces and sells metallurgical coal, with operations spanning multiple mining properties in West Virginia, Virginia, and Pennsylvania. It generates revenue primarily through the extraction and sale of coal to domestic and international steel producers, and coke plants -- serving blast furnace steel mills and coke plants in the United States, as well as global metallurgical coal consumers.
Foolish Take
What matters most for long-term investors here is not the stock’s violent swing, but whether the underlying business is becoming more durable at the bottom of the cycle. This move reflects a willingness to look past near-term price action and focus on balance sheet strength and optionality.
Ramaco’s third-quarter results show why that matters. Despite weak metallurgical coal pricing, the company ended September with record liquidity of $272 million and a net cash position of more than $77 million, its strongest balance sheet on record. Cash costs remained firmly in the first quartile of the U.S. cost curve at $97 per ton, and adjusted EBITDA came in positive at $8.4 million even as benchmark coal prices declined.
More importantly, Ramaco is no longer just a coal story. Management is accelerating development of its Brook Mine in Wyoming, where it plans to produce roughly 3,400 tons per year of rare earth and critical mineral oxides, a 175% increase from prior expectations. That transition is backed by capital, not leverage, which lowers execution risk relative to smaller resource peers. In portfolio context, this position is modest at about 1.2% of assets, far smaller than core mega-cap technology holdings. That suggests a measured, asymmetric bet rather than a speculative swing. For patient investors, the volatility may be the price of accessing a business with both cyclical recovery upside and a credible path into strategic minerals.
Glossary
13F reportable assets: The U.S. equity holdings that investment managers must disclose quarterly to the SEC on Form 13F.
Assets under management (AUM): The total market value of investments that a fund or firm manages on behalf of clients.
Stake: The ownership interest or share that an investor holds in a company.
Dividend yield: A financial ratio showing how much a company pays in dividends each year relative to its share price.
Metallurgical coal: A type of coal used primarily in steel production, not for electricity generation.
Blast furnace steel mills: Industrial facilities that use blast furnaces to convert iron ore into steel, often requiring metallurgical coal.
Coke plants: Facilities that process coal into coke, a fuel and reactant used in steelmaking.
Outperforming: Achieving a higher return or growth rate compared to a benchmark or index.
Position: The amount of a particular security or asset held by an investor or fund.
Filing: An official document submitted to a regulatory authority, often disclosing financial or ownership information.
TTM: The 12-month period ending with the most recent quarterly report.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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