SCHEDULE: Discovery Capital Boosts Ramaco Resources Stake to 9.9%

Discovery Capital Management, LLC and Robert K. Citrone report a 9.9% beneficial ownership stake in Ramaco Resources, Inc. Class A Common Stock.

Summary

• Discovery Capital Management, LLC, Robert K. Citrone, and Discovery Global Opportunity Master Fund, Ltd. filed an Amendment No. 1 to Schedule 13G.
• The filing reports beneficial ownership of Class A Common Stock, $0.01 par value, of Ramaco Resources, Inc.
• Discovery Capital Management, LLC and Robert K. Citrone each beneficially own 5,452,360 shares, representing 9.9% of the class.
• Discovery Global Opportunity Master Fund, Ltd. beneficially owns 5,080,054 shares, representing 9.2% of the class.
• All reported shares are held with shared voting and shared dispositive power.
• The securities were not acquired for the purpose of changing or influencing control of the issuer.

Sentiment

Score: 7

Explanation: The filing indicates a significant and continued institutional investment in Ramaco Resources by a reputable firm, suggesting confidence in the company. While a 13G is purely informational, a large stake by a known entity is generally viewed positively by the market.

Positives

• Significant institutional investor (Discovery Capital Management, LLC) maintains a substantial stake, indicating continued confidence in Ramaco Resources.
• Robert K. Citrone, a prominent figure, is associated with this significant ownership, potentially signaling a high-conviction investment.

Management Comments

• The securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11.

Industry Context

This filing indicates a significant institutional stake in Ramaco Resources, a company operating in the coal industry. Such a large stake by a prominent investment firm like Discovery Capital Management could be seen as a positive signal for the company within its sector, especially given potential shifts in energy markets and commodity prices.

Comparison to Industry Standards

• A 9.9% stake by an institutional investor is a substantial position, often indicating a long-term investment thesis or a belief in the company's undervalued status.
• Compared to typical institutional holdings, this level of concentration by a single investment group is notable and suggests a high conviction in Ramaco Resources.

Stakeholder Impact

• Shareholders: Existing shareholders may view the significant institutional stake as a vote of confidence, potentially leading to increased investor interest and stability.
• Management: The substantial ownership by Discovery Capital Management could lead to increased engagement or influence from the institutional investor, though the filing states no intent to change or influence control.

Key Dates

Recommendation

This Schedule 13G filing indicates that Discovery Capital Management, LLC and Robert K. Citrone, through various entities, maintain a substantial 9.9% beneficial ownership in Ramaco Resources. While this filing is purely a disclosure of ownership and does not contain operational or financial performance data, the continued significant stake by a prominent institutional investor suggests a degree of confidence in the company. For existing investors, this could reinforce a 'hold' position, while new investors would need to conduct further due diligence beyond this ownership disclosure to make an informed decision. The filing explicitly states the securities were not acquired for the purpose of changing or influencing control.

Keywords

Ramaco Resources, Discovery Capital Management, Robert K. Citrone, Schedule 13G, Beneficial Ownership, Class A Common Stock, Institutional Investment, Coal Industry