Highlights

• Ramaco Resources completes $200 million public offering to develop Brook Mine rare earth and critical minerals project in Wyoming
• Project projected to produce 1,240 tons of rare earth elements annually
• Generating $378 million in revenue with 38% EBITDA margin
• Unique mineral deposit includes rare elements like gallium, germanium, and scandium
• Potential strategic importance for U.S. supply chains

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_[Ramaco Resources](https://ramacoresources.com/wp-content/uploads/2025/08/METC-2Q25-Earnings-Presentation-8.1-1.pdf) (NASDAQ: METC, METCB) has completed a $200 million public offering to fast-track development of its Brook Mine rare earth elements (REE) and critical minerals project in Sheridan, Wyoming, according to company filings and Mining Technology reporting. The deal, led by Morgan Stanley and Goldman Sachs, saw over 10 million shares sold at $18.75 each, with an additional $30 million in shares from [Yorktown Energy Partners](https://yorktownenergy.com/) also placed with underwriters. Ramaco will use proceeds for the Brook Mine build-out, other strategic growth opportunities, and general corporate purposes._

From Met Coal to Critical Minerals

Ramaco, historically a low-cost metallurgical coal producer, is positioning Brook Mine as a “nationally important” domestic source of high-value REEs and critical minerals. According to the company’s Q2 2025 investor presentation, the project is projected to produce ~1,240 tons annually of REEs and associated critical minerals, generating $378 million in revenue and $143 million in EBITDA at steady state (38% margin).

Brook Mine’s resource mix includes primary magnetic REEs—neodymium (Nd), praseodymium (Pr), dysprosium (Dy), and terbium (Tb)—plus gallium, germanium, and scandium, which Fluor’s Preliminary Economic Assessment (PEA) identifies as the only known primary-source deposit for these three elements globally. Over 40% of projected revenue comes from gallium, scandium, and germanium, which China has restricted from export to the U.S. The volume share of these minerals is ~13% of annual production; the higher revenue share is due to high per-kg pricing.

Geopolitical and Supply Chain Context

The U.S. Department of Defense has prioritized diversification of REE supply, with multiple recent funding commitments to domestic projects. Brook Mine has already secured a $6.1 million matching grant from the Wyoming Energy Authority (opens in a new tab), and the Department of Energy’s National Energy Technology Laboratory (opens in a new tab) (NETL) has confirmed the site’s high concentration of critical minerals in coal, shale, and clay—materials less costly to process than conventional hard rock deposits and with minimal radioactive tailings.

Next Steps

Ramaco plans to complete an on-site pilot processing oxide facility and a prefeasibility study (PFS) by year-end 2025. A full-scale commercial oxide plant is targeted for 2027, with a two-year ramp-up to steady-state capacity. The company also aims to lock in long-term offtake agreements at “Western pricing” before major commercial spending.

Unanswered Investor Questions

While the PEA outlines attractive economics—$1.2 billion NPV (8% discount) and a 38% IRR—key variables remain unclear:

• How will Ramaco secure downstream processing and refining capacity for magnet metals and semiconductor inputs, given U.S. bottlenecks?
• Will Brook Mine’s lower-density ore and “de minimis” tailings translate into competitive operating costs at scale, or will processing complexities emerge?
• Can long-term offtake contracts be secured at premium prices before global market volatility—particularly China’s pricing power—erodes margins?
• How will the project’s capital intensity compare to peer REE ventures once full permitting, infrastructure, and environmental compliance costs are included?

The $200M raise positions Ramaco to move quickly, but execution risk is high in a volatile critical minerals market where geopolitical, technological, and price shocks can rapidly shift economics.

Sources:

• Ramaco Resources Q2 2025 Investor Presentation, August 7, 2025
• Mining Technology, “Ramaco Resources completes $200m public offering to fund rare earth project,” August 8, 2025