PR Newswire
LEXINGTON, Ky., Feb. 18, 2022 /PRNewswire/ — Ramaco Resources, Inc. (NASDAQ: METC) announced that its Board of Directors (“Board”) approved a 100% increase in its initial regular quarterly dividend to $5.0 million from the formerly approved $2.5 million quarterly dividend that was announced in December 2021. This will involve a commensurate increase in its annual base dividend to $20 million from $10 million. Specifically, the first quarter dividend will be paid on March 15, 2022, to shareholders of record on March 1, 2022 in the amount of approximately $0.11 per share, which annualizes to approximately $0.45 per share.
Furthermore, the Company has indicated that at the end of each calendar year it would review this cash dividend level with the expectation to annually increase it by 8-10%. While the Company intends to pay regular quarterly cash dividends for the foreseeable future, all subsequent dividends will be reviewed quarterly and declared by the Board at its discretion. The Board also indicated that as part of this annual review and dependent on prevailing circumstances, that the Company will consider a further return of shareholder capital in the form of a share buyback program.
Randall Atkins, Ramaco Resources’ Chairman and Chief Executive Officer noted that, “We are delighted to be in an enviable position of financial strength to now double our initial base dividend from $10 million to $20 million in 2022. Indeed, we are doing so before the first dividend was even paid. As we have previously communicated, we view our twin goals today as doubling our met coal production, while simultaneously returning increasing amounts of capital to our shareholders. We are pleased that our first payment next month will be a meaningful one, with a dividend yield of approximately 3% based on yesterday’s closing price. We look forward to discussing our 2021 results, our 2022 outlook and our capital return policies in more detail with the investment community on our earnings call later this month.”
Ramaco Resources is an operator and developer of high-quality, low-cost metallurgical coal in southern West Virginia, southwestern Virginia and southwestern Pennsylvania. For more information, visit www.ramacoresources.com.
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SOURCE Ramaco Resources, Inc.
