Why Are Ramaco Resources Shares Falling Today?

• Ramaco Resources shares fell after Jefferies downgraded stock.
• Jefferies trimmed Brook Mine’s valuation.
• The company’s net loss widened in Q3, while production fell 3%.

Shares of Ramaco Resources (METC) declined over 14% in midday trade on Tuesday after brokerage firm Jefferies downgraded the stock and cut its target price.

Jefferies analyst Christopher LaFemina downgraded Ramaco Resources to ‘Hold’ from ‘Buy’ while slashing its price target to $33 from $45, as per TheFly. LaFemina trimmed Brook Mine’s valuation to $18 per share, down from $30, to better reflect recent shifts in the rare-earth and critical minerals market.

However, Jefferies maintains that Ramaco remains well-positioned to benefit from a future rebound in metallurgical coal prices.

The Brook Mine contains heavy and magnetic rare earths such as terbium, dysprosium, and critical minerals including gallium, scandium, and germanium, materials vital for defense, energy, and semiconductor applications.

China Pauses Rare Earths Export Restrictions

Reports earlier this week indicated that China plans to pause its restrictions on rare-earth exports, triggering a sharp selloff in critical mineral stocks. China controls roughly 70% of global rare earth mining and nearly 90% of processing capacity, giving it substantial influence over the sector.

Ramaco’s Q3 Loss Widens

On Monday, the miner posted a net loss of $13 million in the third quarter, compared with a loss of $200,000 in the same period last year. Revenue dropped 27% to $121 million. Sales volumes for the quarter fell to 873 tons from 1,023 tons in the previous corresponding period, while overall production declined 3% to 945,000 tons.

How Did Stocktwits Users React?

Despite the intraday decline, retail sentiment on Stocktwits turned ‘neutral’ from ‘bearish’ a day earlier, amid ‘high’ message volumes.

One user said they are here for the long term, citing the presence of earth metals in the company's mines and $200 million the company raised in August to extract them.

The stock is on track to close in the red for a sixth successive session.

Year-to-date, the shares have surged 190%. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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