Is METC a good stock to buy? We came across a bullish thesis on Ramaco Resources, Inc. on Piggo’s Trading Desk’s Substack. In this article, we will summarize the bulls’ thesis on METC. Ramaco Resources, Inc.’s share was trading at $15.54 as of May 27th. METC’s trailing and forward P/E were 9.47 and 5.49 respectively according to Yahoo Finance.
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Ramaco Resources Inc. (NASDAQ: METC / METCB) is positioned as a differentiated U.S. critical minerals and steel inputs play, combining stable cash flows from low-cost metallurgical coal operations with high-upside optionality from its emerging rare earth elements (REE) business.
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Operating primarily in Central Appalachia, the company produced approximately 3.8 million tons of met coal in 2025, generating around $537 million in revenue at competitive cash costs near $98 per ton, supporting strong operating margins and resilient free cash flow. This established coal business continues to serve as a reliable earnings base, with contracted volumes and stable demand tied to global steel production, providing downside protection while funding strategic growth initiatives.
The key re-rating catalyst lies in the Brook Mine in Wyoming, one of the first new rare earth developments in the United States in decades. The deposit contains significant concentrations of neodymium, praseodymium, dysprosium, and terbium, critical inputs for defense systems, EVs, semiconductors, and advanced technologies.
Supported by Fluor-validated processing flowsheets, DOE engagement, and proprietary patent-pending extraction technology, Ramaco is advancing toward pilot production and a pre-feasibility study expected in 2026. This positions the company as a potential domestic alternative to China-dominated REE supply chains, a structurally favorable geopolitical tailwind.
The investment thesis is further strengthened by a potential sum-of-the-parts re-rating, where monetization of the digital or REE-related value streams and improving balance sheet leverage could unlock significant equity value. In a bullish scenario, the analysis highlights that Ramaco’s stock could approximately double as the market begins to properly value its rare earth optionality alongside its high-margin coal business. With strong insider alignment, minimal net debt, and dual exposure to near-term cash flow and long-term critical minerals upside, Ramaco presents a compelling asymmetric opportunity in a strategically important sector.
Previously, we covered a bullish thesis on Ramaco Resources, Inc. (METC) by Unemployed Value Degen in October 2024, which highlighted low-cost metallurgical coal production, strong EBITDA generation, and rare earth upside framed as a potential “lottery ticket” with significant re-rating potential. METC’s stock price has appreciated by approximately 44.28% since our coverage. Piggo’s Trading Desk shares a similar bullish view but emphasizes structured REE commercialization and sum-of-the-parts value unlock.
Ramaco Resources, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held METC at the end of the first quarter which was 31 in the previous quarter. While we acknowledge the risk and potential of METC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than METC and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
