Brook Mine‘s New Conceptual Flowsheet Suggests Much Larger Project

Research evidence excerpt

Brook Mine‘s New Conceptual Flowsheet Suggests Much Larger Project

Idea

July 30, 2026 02:54 AM GMT

Morgan Stanley & Co. LLCMRamaco Resources, Inc. | North America Carlos De Alba

Equity Analyst

Brook Mine's New Conceptual Carlos.De.Alba@morganstanley.comJustin A Ferrer +1 212 761-4927

Research Associate

Justin.Ferrer@morganstanley.com +1 212 761-5246

Flowsheet Suggests Much Claudia I Pinedo

Claudia.Pinedo@morganstanley.com +1 212 296-3101

Larger Project

Ramaco Resources, Inc. (METC.O, METC US)

Metals & Mining | United States of America

Stock Rating Equal-weight

Industry View In-Line

Key Takeaways Price target US$13.00

Shr price, close (Jul 29, 2026) US$9.63

Ramaco's new flowsheet for the Brook Mine suggests >500% increase in project Mkt cap, curr (mm) US$642

52-Week Range US$57.80-9.18

NPV vs. original Fluor study

Timing of first production is now expected in 2031 vs. 2027 previously, and initial

capex now forecast at ~$4bn vs. ~$0.6bn in original Fluor study.

Lower realized ASPs from new product mix is more than offset by lower

expected cash costs, driving meaningfully higher gross margin (~76% vs. ~48%)

We await further clarity on how the company plans to fund the much larger

capital costs associated with the new flowsheet.

We expect a positive stock reaction tomorrow, but the company still has

significant work ahead to prove new flowsheet's viability.

What's new? Ramaco released (here) an Initial Assessment (IA) report by Hatch

Associates Consultants based on a new flowsheet for its Brook Mine critical

minerals project. As discussed before (here), this represents a material shift to a

carbochlorination process analyzed by Hatch (with metallurgy from Kingston

Process Metallurgy) from the solvent-extraction (hydrometallurgical) approach

considered by Fluor.