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Ramaco Resources (METC +12%) is making a strong move following a bullish interview on CNBC for its CEO Randall Atkins. Today's move extends the momentum we have seen in its share price over the past month or so. Investors are getting excited about Ramaco because it's transitioning from being a supplier of met coal (used to make steel) to becoming a producer of rare earth elements (REE) and critical minerals, specifically at its Brook Mine in Wyoming.

• The problem is that China produces about 70% of the world's rare earths and processes 90% of the global supply, including much of the output from other countries. Where China excels is in the chemical processing stage, which is critical for turning mined ore into usable materials.
• A rare earth minerals shortage is currently unfolding, triggered primarily by China's suspension of nearly all exports of several key rare earth metals, which has led to supply disruptions in the US and Europe. Lots of industries rely on these materials, including automotive, electronics, renewable energy, and defense. China is retaliating in response to US tariffs and broader trade disputes. As such, there is a big push to increase domestic production in the US.
• In 2023, Ramaco Resources announced that a major deposit of primary magnetic rare earths and critical minerals was discovered at its Brook Mine. The company is not commercially producing REE, but has been making steady progress and wants to become a major critical mineral producer. Ramaco describes Brook Mine‘s rare earth deposit being exceptional in both size and quality. Last week, Ramaco released a report from Fluor which confirms it is both commercially and technologically feasible.
• Importantly, Ramaco has said that it will never need to ship its ores to China or any other country for processing, They will be 100% mined and refined in the US. Ramaco is moving as fast as it can to make this mine a commercial reality. The mine has the potential to supply precisely the rare earths and critical minerals which are in short supply. Also, Ramaco recently hired Mike Woloschuk as EVP to oversee this project. He has expertise in developing REE businesses in all parts of the world.
• Atkins was quite bullish in the CNBC interview late Friday. He said Ramaco is in the process of building a pilot plant for processing, which will probably take a year. He said the US govt has encouraged METC to consider taking this all the way to magnets and it's even conceivable it can go from mine to semiconductor wafers. METC has been involved with the govt since Day 1 and disclosed it has had some back channel discussions with Defense Dept.

Ramaco announced the rare earths find in 2023, but investors are finally starting to notice. There is renewed focus on REE as a result of China halting shipments in response to the Trump tariffs. We also think the positive Fluor report and Friday's bullish interview are sparking interest in METC. The talk about back channel discussion with DoD was pretty intriguing. Also, Atkins summed it up well, saying this is a nascent industry. Only one other company is involved in rare earths that began 70 years ago, and METC is the next one, and it's just getting started.