Ramaco Resources is a metalurgical coal mining company that is developing rare earth minerals which have been found in softer clay strata located above and below the seams. Excitement over their rare earth potential is driving high interest in their stock, but mainly class A, $METC. Recent analyst forecasts for METC are $42 and $45. So, there's good potential for return beyond the current price of $31.
But here's the intriguing thing, class B stock is the tracking stock for the rare earth minerals. It will get 20% of the income generated by the rare earths, plus a coal fee per ton and royalty fees. There is currently
10.84 million shares B extent and 55.18 million shares class A, putting class B at 16.4% of the total. So it certainly seems the better of the two, but class B ($METCB). is currently trading at a 50% discount to class B.
I own some class B shares and so far, every time I compare dividends with class A, it's been better. Class B should never be worth more than A because the company has the right to convert them back to class A. But class B has the same asset claims as class A.
This continues to amaze me and I keep coming back to see if there's anything I'm missing, so would really appreciate any insights you might have.
(My opinions, not financial advice. As noted, I do own shares in METCB.)