Ramaco Resources, Inc. Fair Value Disclosure
NOTE 4—FAIR VALUES OF FINANCIAL INSTRUMENTS
The carrying amounts and fair values of our financial assets and liabilities were as follows:
December 31, 2021 | December 31, 2020 | |||||||||||
| Carrying |
| Fair |
| Carrying |
| Fair | |||||
(In thousands) |
| Amount |
| Value |
| Amount |
| Value | ||||
Financial Assets: |
|
|
|
|
|
|
|
| ||||
Cash and cash equivalents | $ | 21,891 | $ | 21,891 | $ | 5,300 | $ | 5,300 | ||||
Accounts receivable |
| 44,453 |
| 44,453 |
| 20,299 |
| 20,299 | ||||
Other current assets - restricted cash | 915 | 915 | 1,410 | 1,410 | ||||||||
Financial liabilities: | ||||||||||||
Accounts payable |
| (15,346) |
| (15,346) |
| (11,742) |
| (11,742) | ||||
Debt |
| (19,073) |
| (19,073) |
| (17,450) |
| (17,450) | ||||
Senior notes, excluding discounts of $2,137 | (34,500) |
| (37,978) |
| — |
| — | |||||
Other current liabilities - financed insurance payable |
| (280) |
| (280) |
| (862) |
| (862) | ||||
The estimated fair value of cash, accounts receivable, and accounts payable approximate the carrying amount due to the relatively short maturity of these instruments. The fair value of the Company's other debt approximates its fair value because the debt has terms that are at prevailing market terms currently available to the Company. We use an observable market data approach to determine the fair value of our Senior Notes, a Level 1 fair-value measurement.
Nonrecurring fair value measurements include asset retirement and occupational disease obligations, the estimated fair value of which is calculated as the present value of estimated cash flows related to its liabilities using Level 3 inputs. The significant inputs used to calculate such liabilities include estimates of costs to be incurred, our discount rate, inflation rates and estimated date of expenditures.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2021 | Apr 1, 2022 | Showing above |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Mar 19, 2019 | |
| 2017 | Mar 21, 2018 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.