Ramaco Resources, Inc. Leases Disclosure
NOTE 7—LEASES
The Company has various finance leases for mining equipment, which generally include 3-5 year terms and expire through 2030. In addition, we have two operating leases for office space with initial terms of approximately and six years that run through 2027 and 2030, respectively, including the office space in Charleston, WV that commenced in the first quarter of 2024 resulting in the recognition of an additional right-of-use asset and lease liability of $1.0 million.
Amortization of right-of-use assets associated with finance leases was $7.8 million, $10.4 million, and $8.5 million in 2025, 2024, and 2023, respectively, as discussed in Note 3. Interest expense recognized for financing lease liabilities was $1.5 million, $0.9 million, and $0.6 million in 2025, 2024, and 2023, respectively. Operating lease expense was $0.4 million, $0.4 million, and $0.2 million in 2025, 2024, and 2023, respectively.
Right-of-use assets and lease liabilities are determined as the present value of the lease payments, discounted using either the implicit interest rate in the lease or, more commonly, our estimated incremental borrowing rate based on similar terms, payments and the economic environment where the leased asset is located. Below is a summary of our leases:
(In thousands) | Classification | December 31, 2025 | December 31, 2024 | ||||
Right-of-use assets | |||||||
Financing | Financing lease right-of-use assets, net | $ | 15,763 | $ | 12,437 | ||
Operating | 1,115 | 1,324 | |||||
Total right-of-use assets | $ | 16,878 | $ | 13,761 | |||
Current lease liabilities | |||||||
Financing | Current portion of financing lease obligations | $ | 7,281 | $ | 6,218 | ||
Operating | 355 | 290 | |||||
Non-current lease liabilities | |||||||
Financing | Long-term financing lease obligations | $ | 10,184 | $ | 7,517 | ||
Operating | 787 | 1,091 | |||||
Total lease liabilities | $ | 18,607 | $ | 15,116 | |||
Minimum lease payments for our lease obligations are as follows:
December 31, 2025 | |||||||||
(In thousands) | | Financing | | Operating | | Total | |||
Future minimum lease payments: | |||||||||
2026 | $ | 7,725 | $ | 421 | $ | 8,146 | |||
2027 | 5,851 | 405 | 6,256 | ||||||
2028 | 3,036 | 225 | 3,261 | ||||||
2029 | 2,122 | 226 | 2,348 | ||||||
2030 | 354 | 31 | 385 | ||||||
Thereafter | — | — | — | ||||||
Total undiscounted lease payments | 19,088 | 1,308 | 20,396 | ||||||
Less: Amounts representing interest | (1,623) | (166) | (1,789) | ||||||
Present value of lease obligations | $ | 17,465 | $ | 1,142 | $ | 18,607 | |||
Weighted average remaining term (years) | 3.0 | 3.1 | |||||||
Weighted average discount rate | 7.5% | 6.7% | |||||||
Coal Leases and Associated Royalty Commitments—Leases of mineral reserves and related land leases are exempt from the lease accounting requirements addressed above. Refer to Note 9 for information regarding coal leases and associated royalty commitments.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 14, 2023 | |
| 2021 | Apr 1, 2022 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 20, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.