The following discussion and analysis of our financial condition and results of
operations should be read in conjunction with the "Management's Discussion and
Analysis of Financial Condition and Results of Operations" contained in our
Annual Report, as well as the financial statements and related notes appearing
elsewhere in this Quarterly Report. The following discussion contains
forward-looking statements that reflect our future plans, estimates, beliefs and
expected performance. The forward-looking statements are dependent upon events,
risks and uncertainties that may be outside our control. We caution you that our
actual results could differ materially from those discussed in these
forward-looking statements. Factors that could cause or contribute to such
differences are discussed elsewhere in this Quarterly Report, particularly in
the "Cautionary Note Regarding Forward-Looking Statements" and in our Annual
Report and in this Quarterly Report under the heading "Item 1A. Risk Factors,"
all of which are difficult to predict. In light of these risks, uncertainties
and assumptions, the forward-looking events discussed may not occur. We do not
undertake any obligation to publicly update any forward-looking statements
except as otherwise required by applicable law.

Overview



We are an operator and developer of high-quality, low-cost metallurgical coal in
southern West Virginia, southwestern Virginia, and southwestern Pennsylvania. We
are a pure play metallurgical coal company with 39 million reserve tons and 769
million resource tons of high-quality metallurgical coal. We believe our
advantaged reserve geology provides us with higher productivities and industry
leading lower cash costs.

Our development portfolio primarily includes four properties: Elk Creek,
Berwind, Knox Creek and RAM Mine. Each of these properties possesses geologic
and logistical advantages that make our coal among the lowest delivered-cost
U.S. metallurgical coal to our domestic target customer base, North American
blast furnace steel mills and coke plants, as well as international
metallurgical coal consumers.

During the first quarter of 2022, we sold 0.6 million tons of coal. Of this, 39%
was sold in North American markets, including Canada, and 61% was sold in export
markets, principally to Europe, South America, Asia and Africa. During the first
quarter of 2021, 46% of our sales were sold in North American markets, with the
remaining 54% being sold into the export markets.

At March 31, 2022, we had outstanding performance obligations for the remainder
of 2022 of approximately 1.5 million tons for contracts with fixed sales prices
averaging $188/ton and 0.2 million tons for contracts with index-based pricing
mechanisms.

COVID-19 continues to impact countries across the world, and the duration and
severity of the effects are currently unknown. We continue to actively monitor
the situation and may take further actions altering our business operations that
we determine are in the best interests of our employees, customers, suppliers,
and stakeholders, or as required by federal, state, or local authorities.

Regarding the military conflict involving Russia and Ukraine, resulting
sanctions and future market or supply disruptions in the region, are impossible
to predict, but could be significant and may have a severe adverse effect on the
region. Globally, various governments have banned imports from Russia including
commodities such as oil, natural gas and coal. These events have caused
volatility in the commodity markets. This volatility, including market
expectations of potential changes in coal prices and inflationary pressures on
steel products, may have a significant effect on market prices and overall
demand for our coal and the cost of supplies and equipment. We are closely
monitoring the potential effects on the market.

We have no meaningful direct financial exposure to Russia and Ukraine. As the
European Union ban on Russian coal goes into effect in August, it could create
further tightness in the metallurgical coal markets as Russia was the third
largest exporter of metallurgical coal in 2021 or 10% of global metallurgical
coal trade.

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Recent Developments

On April 29, the Company closed on its previously announced acquisition of 100%
of the equity interests of Ramaco Coal, an entity owned by an investment fund
managed by Yorktown Partners and certain members of the Company's management.
The consideration for the acquisition will consist of (i) an initial payment of
$10 million due at closing and (ii) an aggregate deferred purchase price of $55
million, consisting of (A) $15 million, to be paid during the remainder of 2022
in $5 million ratable quarterly installments, and (B) $40 million, to be paid
during 2023 in $10 million ratable quarterly installments.

Results of Operations

                                                                Three months ended March 31,
(In thousands)                                                    2022                 2021

Revenue                                                      $       154,882      $       43,455

Costs and expenses
Cost of sales (exclusive of items shown separately below)             81,253              31,198
Asset retirement obligations accretion                                   235                 151
Depreciation and amortization                                          8,680               6,155
Selling, general and administrative                                   11,824               4,707
Total costs and expenses                                             101,992              42,211

Operating income                                                      52,890               1,244

Other income                                                             366               2,935
Interest expense, net                                                (1,130)               (202)
Income before tax                                                     52,126               3,977

Income tax expense (benefit)                                          10,655               (166)

Net income                                                   $        41,471      $        4,143

Earnings per common share
Basic                                                        $          0.94      $         0.10
Diluted                                                      $          0.92      $         0.10

Adjusted EBITDA                                              $        64,058      $       11,540


During the three-month period ended March 31,2022, our net income and Adjusted
EBITDA were significantly higher compared to the same period in 2021. Sales
pricing and volumes were higher by 163% and 38%, respectively, during the three
months ended March 31, 2022 than the same period during 2021, which was
primarily due to the global rebound of metallurgical demand from the previous
effects of COVID-19. In the first three months of 2021, we recognized a total of
$2.5 million in other income for the CARES Act Employee Retention Tax Credit.

Three Months Ended March 31, 2022 Compared to Three Months Ended March 31, 2021



Revenue. Our revenue includes sales of Company produced coal and coal purchased
from third parties. We include amounts billed by us for transportation to our
customers within revenue and transportation costs incurred within cost of sales.
Revenue per ton sold (FOB mine) and cash cost per ton sold (FOB mine) each
exclude the impact of transportation billings and costs.

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Coal sales information is summarized as follows:



                                         Three months ended March 31,
(In thousands)                     2022          2021       Increase (Decrease)
Company Produced
Coal sales revenue              $   150,929    $ 41,794    $             109,135
Tons sold                               573         406                      166
Purchased from Third Parties
Coal sales revenue              $     3,953    $  1,661    $               2,292
Tons sold                                10          16                      (5)


Coal sales revenue in the first quarter of 2022 was $154.9 million, 256% higher
than in the first quarter of 2021 primarily due to increased tons sold in the
first quarter of 2022 and increased revenue per tons sold (FOB Mine). Revenue
per ton sold (FOB mine) increased 168% from $88/ton in the first quarter of 2021
to $236/ton in the first quarter of 2022. We sold 583 thousand tons of coal in
the first quarter of 2022, a 38% increase over the same period of 2021. We
benefited from improved domestic, spot and index pricing for metallurgical coal
in 2022. Additionally, favorable conditions in the steel and metallurgical
markets contributed to an increase demand for metallurgical coal and stronger
pricing. We expect these conditions to continue in the next quarter.

Cost of sales. Our cost of sales totaled $81.3 million for the three months
ended March 31, 2022 as compared with $31.2 million for the same period in 2021
due to higher tons sold and higher sales-related costs. The cash cost per ton
sold (FOB mine) for the first quarter of 2022 was $110/ton, compared with
$59/ton in the first quarter of 2021. Our cash cost per ton sold in the 2022
period was primarily due to higher sales-related costs directly associated with
higher revenue per ton sold in 2022.

Asset retirement obligation accretion. Asset retirement obligation accretion was
$0.2 million for each of the three-month periods ended March 31, 2022 and March
31, 2021.

Depreciation and amortization. Depreciation and amortization expense was $8.7 million and $6.2 million for the periods ended March 31, 2022 and March 31, 2021, respectively, primarily due to higher production volumes in the first quarter of 2022 and additional mining equipment placed in service in recent periods over the past year.



Selling, general and administrative. Selling, general and administrative
expenses were $11.8 million for the three months ended March 31, 2022 and $4.7
million for the three months ended March 31, 2021 primarily due to higher stock
compensation, incentives and professional services in 2022, related to the
Company's production growth profile.

Other income. Other income was $0.4 million for the three months ended March 31,
2022. For the three months ended March 31, 2021, other income was $2.9 million
which includes $2.5 million for the CARES Act Employee Retention Tax Credit.

Interest expense, net. Interest expense, net was approximately $1.1 million
during the three months ended March 31, 2022. Interest expense, net was
approximately $0.2 million in the three months ended March 31, 2021. Interest
expense, net was higher from the prior period primarily due to the issuance of
the Senior Notes in July 2021.

Income tax expense. The effective tax rate for the three months ended March 31,
2022, excluding discrete items, was 19.5%. The effective tax rate for the three
months ended March 31, 2021, excluding discrete items, was 5%. Discrete items
during the three months ended March 31, 2021 included the impact of legislative
changes in West Virginia. The primary difference from the federal statutory rate
of 21% is related to state taxes, permanent differences for non-deductible
expenses and the difference in depletion expense between GAAP and federal income
tax purposes.

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Liquidity and Capital Resources

At March 31, 2022, we had $71.5 million of cash and cash equivalents and $39.6 million available under our existing credit agreements for future borrowings.

Significant sources and uses of cash during the first three months of 2022

Sources of cash:

Cash flows from operating activities were $77.4 million. This included a

positive impact from the primary components of our working capital (accounts

? receivables, inventories and accounts payable) of a net $11.7 million,

primarily associated with an increase in accounts payable due to increases in

freight, purchases and other inflationary pressures. Increases in our accounts

receivable and inventories served as offsets.

Uses of cash:

? Capital expenditures were $19.7 million, which were primarily for growth

projects at the Berwind and Elk Creek mining complexes.

? We made net repayments of $1.2 million primarily due to certain equipment

purchases and management of our normal operating cash position.

? We paid dividends of $5.0 million.


At March 31, 2022, we also had $1.0 million of restricted cash, classified in
other current assets in the condensed consolidated balance sheets, for potential
future workers' compensation claims.

Future sources and uses of cash


Our primary use of cash includes capital expenditures for mine development,
ongoing operating expenses and deferred cash payments in connection with the
Ramaco Coal acquisition. We expect to fund our capital and liquidity
requirements with cash on hand, anticipated cash flows from operations and
borrowings discussed in more detail below. We believe that current cash on hand,
cash flow from operations and available liquidity under our existing credit
agreements will be sufficient to meet our capital expenditure and operating
plans.

Additional factors that could adversely impact our future liquidity and ability to carry out our capital expenditure program include:

? Timely delivery of our product by rail and other transportation carriers;

? Late payments of accounts receivable by our customers;

? Cost overruns in our purchases of equipment needed to complete our mine

development plans;

Delays in completion of development of our various mines, processing plants and

? refuse disposal facilities, which would reduce the coal we would have available

to sell and our cash flow from operations; and

? Adverse changes in the metallurgical coal markets that would reduce the

expected cash flow from operations.




If future cash flows are insufficient to meet our liquidity needs or capital
requirements, we may reduce our expected level of capital expenditures and/or
fund a portion of our capital expenditures through the issuance of debt or
equity securities, the entry into debt arrangements or from other sources,

such
as asset sales.

Indebtedness

Revolving Credit Facility and Term Loan-On November 2, 2018, we entered into a
Credit and Security Agreement (as amended or amended and restated the "Revolving
Credit Facility" or the "Credit Agreement") with KeyBank National Association
("KeyBank"), as the administrative agent, and other lenders party thereto. The
Credit Agreement was amended on February 20, 2020 and March 19, 2021. On October
29, 2021, we entered into the Amended

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and Restated Credit and Security Agreement (the "Amendment and Restatement")
with KeyBank. Prior to the Amendment and Restatement, the Credit Agreement
consisted of the $10.0 million term loan (the "Term Loan") and up to $30.0
million revolving line of credit, including $3.0 million letter of credit
availability. The Amendment and Restatement increased the overall availability
under the revolving credit line to $40.0 million and extended the maturity date
to December 31, 2024. All personal property assets, including, but not limited
to accounts receivable, coal inventory and certain mining equipment are pledged
to secure the Revolving Credit Facility.

The Revolving Credit Facility bears interest based on Secure Overnight Financing
Rate ("SOFR") + 2.0% or Base Rate + 1.5%. "Base Rate" is the highest of (i)
KeyBank's prime rate, (ii) Federal Funds Effective Rate + 0.5%, or (iii) SOFR +
2.0%. Advances under the Revolving Credit Facility are made initially as Base
Rate loans but may be converted to SOFR rate loans at certain times at our
discretion. At March 31, 2022, there was no amount outstanding under the
Revolving Credit Facility and we had remaining availability of $39.6 million.

The Term Loan is secured under a Master Security Agreement with a pledge of certain underground and surface mining equipment, bears interest at LIBOR + 5.15% and is required to be repaid in monthly installments of $278 thousand including accrued interest. The outstanding principal balance of the Term Loan was $2.5 million at March 31, 2022.



The Credit Agreement contains usual and customary covenants including
limitations on liens, additional indebtedness, investments, restricted payments,
asset sales, mergers, affiliate transactions and other customary limitations, as
well as financial covenants. At March 31, 2022, we were in compliance with all
financial covenants under the Credit Agreement.

Key Equipment Finance Loan-On April 16, 2020, we entered into an equipment loan
with Key Equipment Finance, a division of KeyBank, as lender, in the principal
amount of $4.7 million for the financing of existing underground and surface
equipment (the "Equipment Loan"). The Equipment Loan bears interest at 7.45% per
annum and is payable in 36 monthly installments of $147 thousand. There is a 3%
premium for prepayment of the note within the first 12 months. This premium
declines by 1% during each successive 12-month period. The outstanding principal
balance of the Equipment Loan was $1.8 million at March 31, 2022.

9.00% Senior Unsecured Notes due 2026-On July 13, 2021, we completed an offering
of $34.5 million, in the aggregate, of the Company's 9.00% Senior Unsecured
Notes due 2026 (the "Senior Notes"), and incurred $2.4 million for note offering
costs. The Senior Notes mature on July 30, 2026, unless redeemed prior to
maturity. The Senior Notes bear interest at a rate of 9.00% per annum, payable
quarterly in arrears on the 30th day of January, April, July and October of each
year. We may redeem the Senior Notes in whole or in part, at our option, at any
time on or after July 30, 2023, or upon certain change of control events, at a
redemption price equal to 100% of the principal amount plus accrued and unpaid
interest to, but not including, the date of redemption. Issuance costs for the
Senior Notes included underwriters' fees, attorney, accounting and filing costs
totaling $2.4 million. These issuance costs are reported as a debt discount
which is being amortized over the Senior Notes term using an effective rate
method. The outstanding principal balance under the Senior Notes was $34.5
million at March 31, 2022 and is presented net of unamortized discounts of $2.0
million. The effective interest rate is approximately 10.45%.

J. H. Fletcher & Co. Loan-On July 23, 2021 and November 24, 2021, we entered
into equipment loans with J. H. Fletcher & Co., as lender, in the principal
amount of $0.9 million and $3.9 million, respectively, for the financing of
underground equipment (the "Fletcher Equipment Loans"). The Fletcher Equipment
Loans bear no interest and are payable in 24 monthly installments of $200
thousand. The outstanding principal balance of the Fletcher Equipment Loans was
$3.8 million at March 31, 2022.

Komatsu Financial Limited Partnership Loan-On August 16, 2021, we entered into
an equipment loan with Komatsu Financial Limited Partnership, as lender, in the
principal amount of $1.0 million for the financing of surface equipment (the
"Komatsu Equipment Loan"). The Komatsu Equipment Loan bears interest at 4.6% per
annum and is payable in 36 monthly installments of $36 thousand for the first
six months and then at $28 thousand until maturity. The outstanding principal
balance of the Komatsu Equipment Loan was $0.8 million at March 31, 2022.

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Brandeis Machinery & Supply Company-On January 11, 2022, we entered into
equipment loans with Brandeis Machinery & Supply Company, as lender, in the
principal amount of $1.4 million for the financing of surface equipment (the
"Brandeis Equipment Loans"). The Brandeis Equipment Loans bear interest at 4.8%
per annum and are payable in 48 monthly installments of $24 thousand. The
outstanding principal balance of the Brandeis Equipment Loans was $0.9 million
at March 31, 2022.

Critical Accounting Estimates

A discussion of our critical accounting policies is included in the Annual Report. There were no material changes to our critical accounting policies during the three months ended March 31, 2022.

Off-Balance Sheet Arrangements

At March 31, 2022, we had no material off-balance sheet arrangements.

Non-GAAP Financial Measures



Adjusted EBITDA - Adjusted EBITDA is used as a supplemental non-GAAP financial
measure by management and external users of our financial statements, such as
industry analysts, investors, lenders and rating agencies. We believe Adjusted
EBITDA is useful because it allows us to more effectively evaluate our operating
performance.

We define Adjusted EBITDA as net income plus net interest expense, stock-based
compensation, depreciation and amortization expenses and any transaction related
costs. A reconciliation of net income to Adjusted EBITDA is included below.
Adjusted EBITDA is not intended to serve as an alternative to GAAP measures of
performance and may not be comparable to similarly-titled measures presented by
other companies.

                                                           Three months ended March 31,
(In thousands)                                                2022                2021
Reconciliation of Net Income to Adjusted EBITDA
Net income                                               $       41,471      $        4,143
Depreciation and amortization                                     8,680    

6,155


Interest expense, net                                             1,130                 202
Income tax expense (benefit)                                     10,655    

          (166)
EBITDA                                                           61,936              10,334
Stock-based compensation                                          1,887               1,055

Accretion of asset retirement obligation                            235    

            151
Adjusted EBITDA                                          $       64,058      $       11,540


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Non-GAAP revenue per ton - Non-GAAP revenue per ton (FOB mine) is calculated as
coal sales revenue less transportation costs, divided by tons sold. We believe
revenue per ton (FOB mine) provides useful information to investors as it
enables investors to compare revenue per ton we generate against similar
measures made by other publicly-traded coal companies and more effectively
monitor changes in coal prices from period to period excluding the impact of
transportation costs which are beyond our control. The adjustments made to
arrive at these measures are significant in understanding and assessing our
financial condition. Revenue per ton sold (FOB mine) is not a measure of
financial performance in accordance with GAAP and therefore should not be
considered as an alternative to revenue under GAAP.

                                       Three months ended March 31, 2022    

Three months ended March 31, 2021


                                     Company         Purchased                     Company        Purchased
(In thousands, except per ton
amounts)                            Produced           Coal          Total         Produced          Coal         Total

Revenue                           $     150,929     $     3,953    $  154,882    $     41,794     $    1,661    $  43,455
Less: Adjustments to reconcile
to Non-GAAP revenue (FOB mine)
Transportation costs                   (17,131)           (239)      

(17,370) (5,803) (421) (6,224) Non-GAAP revenue (FOB mine) $ 133,798 $ 3,714 $ 137,512 $ 35,991 $ 1,240 $ 37,231 Tons sold

                                   573              10           583             406             16          422
Revenue per ton sold (FOB
mine)                             $         234     $       354    $      

236 $ 89 $ 79 $ 88




Non-GAAP cash cost per ton sold - Non-GAAP cash cost per ton sold is calculated
as cash cost of sales less transportation costs, divided by tons sold. We
believe cash cost per ton sold provides useful information to investors as it
enables investors to compare our cash cost per ton against similar measures made
by other publicly-traded coal companies and more effectively monitor changes in
coal cost from period to period excluding the impact of transportation costs
which are beyond our control. The adjustments made to arrive at these measures
are significant in understanding and assessing our financial condition. Cash
cost per ton sold is not a measure of financial performance in accordance with
GAAP and therefore should not be considered as an alternative to cost of sales
under GAAP.

                                       Three months ended March 31, 2022

Three months ended March 31, 2021


                                     Company         Purchased                     Company        Purchased
(In thousands, except per ton
amounts)                            Produced           Coal          Total         Produced          Coal         Total

Cost of sales                     $      77,863     $     3,390    $   81,253    $     29,636     $    1,562    $  31,198
Less: Adjustments to reconcile
to Non-GAAP cash cost of sales
Transportation costs                   (17,134)           (239)      (17,373)         (5,803)          (421)      (6,224)
Non-GAAP cash cost of sales       $      60,729     $     3,151    $   63,880    $     23,833     $    1,141    $  24,974
Tons sold                                   573              10           583             406             16          422
Cash cost per ton sold            $         106     $       300    $      110    $         59     $       72    $      59


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