智通财经记者 | 田鹤琪 美国资源公司是一家总部位于印第安纳州费舍尔斯的美国原材料和基础设施供应商。它主要专注于收购、开发和运营对美国基础设施和能源转型至关重要的 矿产和能源资产。 稀土被誉为"工业维生素"，是元素周期表中的镧系元素和钪、钇等17种元素的总称。具体包括镧、铈、镨、钕四个轻稀土；钐、铕、钆三个中稀土；铽、 镝、钬、铒、铥、镱、镥、钇八个重稀土。 美国正在加强本土稀土产业链的构建。 8月19日，火神元素(Vulcan Elements)官网宣布，与新元素技术(ReElement Technologies)签署了一项商业规模的轻重稀土氧化物承购协议，旨在加速火神元素 将其国内稀土磁体制造能力立即扩展至商业化产能。 火神元素表示，其将和新元素技术联手推进磁体供应链的本土化，助力美国下一代经济活力和军事优势。该公司并未透露此次交易的具体财务细节。 火神元素是高性能稀土磁体制造商，位于北卡罗来纳州的美国初创公司，成立于2023年，目前员工规模不足50人。 目前，火神元素已在北卡罗来纳州的"研究三角园区"建立了小规模的商业化制造和研发设施。其所生产的稀土磁体，可用于国防、卫星、人工智能数据中 心、半导体制造 ...

Core Viewpoint - The news highlights a significant increase in rare earth stocks, driven by potential government funding reallocations to support critical mineral projects, particularly in the context of the semiconductor industry [1] Group 1: Market Reaction - Rare earth stocks experienced notable gains, with American Resources (AREC.US) rising over 14%, MP Materials (MP.US) increasing more than 5%, and Energy Fuels (UUUU.US) and USA Rare Earth (USAR.US) both up over 3% [1] Group 2: Government Actions - The Trump administration is reportedly considering a plan to reallocate at least $2 billion from the CHIPS Act to fund critical mineral projects, enhancing the influence of Commerce Secretary Gina Raimondo in strategic industries [1] - The proposed initiative aims to extract funds from semiconductor research and chip factory construction allocations, avoiding new spending requests [1] - This move follows discussions initiated by White House officials regarding the U.S. government's mineral strategy after a recent investment in MP Materials by the Pentagon [1]

Core Viewpoint - Rare earth stocks experienced significant gains, with American Resources rising over 14%, MP Materials increasing over 5%, and Energy Fuels and USA Rare Earth both up over 3% due to potential government funding for critical mineral projects [1] Group 1: Government Actions - The Trump administration is considering reallocating at least $2 billion from the CHIPS Act to fund critical mineral projects [1] - This proposed measure aims to enhance Secretary of Commerce Gina Raimondo's influence over strategic industries [1] - The funding will be sourced from semiconductor research and chip manufacturing grants, avoiding new spending requests [1] Group 2: Industry Implications - The move to strengthen the government's role in critical mineral financing is expected to centralize the overall strategy for the industry [1] - Discussions regarding the U.S. government's mineral strategy were prompted by a recent investment in MP Materials by the Pentagon [1]

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced news journalists who produce independent content across various financial markets [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content includes insights into sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is committed to adopting technology to enhance its content creation and workflow processes [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all published content is edited and authored by humans [5]

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's analysis of the company's financial condition and operational results [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=2&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for the period ended June 30, 2025, show a decrease in total assets to **$200.4 million** from **$205.0 million** at year-end 2024, and an increase in total liabilities to **$292.6 million**, with a net loss of **$8.7 million** for Q2 2025, and restatement of prior period financials due to accounting errors Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheet Summary (as of June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$200,445,719** | **$205,013,999** | | Total Current Assets | $9,542,095 | $11,325,039 | | **Total Liabilities** | **$292,644,028** | **$286,923,743** | | Total Current Liabilities | $82,298,344 | $84,802,847 | | **Total Stockholders' Deficit** | **($90,630,594)** | **($80,348,078)** | - The company's total assets decreased slightly, while total liabilities increased, leading to a larger total stockholders' deficit of **$90.6 million** as of June 30, 2025, compared to **$80.3 million** at the end of 2024[8](index=8&type=chunk) Condensed Consolidated Statements of Operations Condensed Consolidated Statements of Operations Summary (Unaudited) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 (Restated) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 (Restated) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$13,256** | **$4,095** | **$45,184** | **$98,114** | | Net Loss from Operations | ($6,770,634) | ($8,432,856) | ($11,754,062) | ($15,163,041) | | **Net Loss Attributable to AREC Shareholders** | **($8,666,129)** | **($11,056,660)** | **($15,318,888)** | **($17,998,025)** | | Net Loss Per Share (Basic and Diluted) | ($0.10) | ($0.14) | ($0.19) | ($0.24) | - The company's revenue for the first six months of 2025 was **$45,184**, a significant decrease from **$98,114** in the same period of 2024, though the net loss attributable to shareholders improved, decreasing to **$15.3 million** from **$18.0 million** year-over-year[11](index=11&type=chunk) Condensed Consolidated Statements of Changes in Stockholders' Deficit - The total stockholders' deficit increased from **$80.3 million** at the end of 2024 to **$90.6 million** as of June 30, 2025, primarily driven by a net loss of **$15.3 million** for the six-month period, partially offset by stock compensation and shares issued to settle accounts payable[14](index=14&type=chunk)[15](index=15&type=chunk) Condensed Consolidated Statements of Cash Flows Cash Flow Summary for the Six Months Ended June 30 | Cash Flow Activity | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | Net cash used in operating activities | ($8,880,683) | ($13,300,247) | | Net cash provided by (used in) investing activities | $2,691,099 | ($148,271,896) | | Net cash provided by financing activities | $5,980,665 | $146,703,378 | | **Net change in cash and cash equivalents** | **($208,919)** | **($14,868,765)** | - For the six months ended June 30, 2025, the company used **$8.9 million** in cash from operations, with significant year-over-year changes in investing and financing activities primarily due to proceeds from tax-exempt bonds in 2024 and convertible notes in 2025[16](index=16&type=chunk) Notes to Unaudited Condensed Consolidated Financial Statements The notes detail the company's accounting policies, business segments, and the basis of presentation, highlighting the restatement of previously issued financial statements for 2024 due to accounting errors and expressing substantial doubt about the company's ability to continue as a going concern - The company's operations comprise three segments: American Infrastructure (coal mining), ReElements (rare earth elements), and Electrified Materials (metal recovery), with American Infrastructure and ReElements consolidated as variable interest entities (VIEs) despite distributed ownership[18](index=18&type=chunk) - Management has concluded there is substantial doubt about the company's ability to continue as a going concern for the next twelve months, contingent on obtaining additional financing and generating revenue[27](index=27&type=chunk)[29](index=29&type=chunk) - The company restated its previously issued financial statements for the year ended December 31, 2023, and the three and six months ended June 30, 2024, due to multiple accounting errors related to cash adjustments, investment classifications, bond compliance, lease accounting, accrued expenses, and stock compensation calculations[31](index=31&type=chunk)[32](index=32&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's strategic shift from coal mining towards revenue diversification through its ReElements and Electrified Materials segments, with coal production suspended due to adverse market conditions, resulting in decreased revenue but reduced operating expenses and net loss for H1 2025, while liquidity remains constrained - The company has shifted its business focus and capital allocation away from coal production towards diversifying revenue streams through its ReElements (rare earth elements) and Electrified Materials (metal recovery) segments, which were in development stages through 2024[20](index=20&type=chunk)[201](index=201&type=chunk) - All coal mining operations are currently idled due to adverse market conditions, with any future production focused on metallurgical coal[203](index=203&type=chunk) - The company has a working capital deficit of **$73.9 million** as of June 30, 2025, and expects to fund its liquidity needs over the next 12 months with cash on hand and additional debt and equity financing[277](index=277&type=chunk) Results of Operations Comparison of Results for the Three Months Ended June 30 | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$13,256** | **$4,095** | **$9,161** | | Total Operating Expenses | $6,783,890 | $8,436,951 | ($1,653,061) | | Net Loss from Operations | ($6,770,634) | ($8,432,856) | $1,662,222 | | **Net Loss** | **($8,668,904)** | **($11,042,325)** | **$2,373,421** | Comparison of Results for the Six Months Ended June 30 | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$45,184** | **$98,114** | **($52,930)** | | Total Operating Expenses | $11,799,246 | $15,261,155 | ($3,461,909) | | Net Loss from Operations | ($11,754,062) | ($15,163,041) | $3,408,979 | | **Net Loss** | **($15,324,938)** | **($18,063,448)** | **$2,738,510** | - For the six months ended June 30, 2025, total operating expenses decreased by **$3.5 million** compared to the prior year, primarily due to lower coal production costs, reduced general and administrative expenses, and lower professional fees[272](index=272&type=chunk) Liquidity and Capital Resources - The company's primary liquidity sources are existing cash, bond fund reimbursements, and other debt/capital proceeds, with continued reliance on financing to support operations and the development of new businesses due to suspended coal production and limited revenues in 2024[276](index=276&type=chunk) Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Cash used in operating activities | ($8,880,176) | ($13,300,247) | | Cash provided by (used in) investing activities | $2,691,099 | ($148,271,896) | | Cash provided by financing activities | $5,980,665 | $146,703,379 | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is not required to provide this disclosure as it qualifies as a smaller reporting company - As a smaller reporting company, the registrant is exempt from providing disclosures about market risk[285](index=285&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were not effective as of June 30, 2025, due to insufficient accounting staff and lack of timely reconciliations, with no material changes to internal controls during the quarter - Management has concluded that the company's disclosure controls and procedures were not effective as of the period ending June 30, 2025[288](index=288&type=chunk) - The ineffectiveness was attributed to an insufficient number of accounting and reporting staff and a lack of timely reconciliations[288](index=288&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected the company's internal controls[290](index=290&type=chunk) [PART II. OTHER INFORMATION](index=26&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, unregistered sales of equity securities, defaults on senior securities, mine safety disclosures, and a list of exhibits filed with the report [Item 1. Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to routine litigation incidental to its business operations, with detailed information on specific cases referred to in the financial statements - The company is involved in ordinary routine litigation, and for details on specific legal cases, readers are directed to the contingencies footnote in the financial statements (Note 9, though the text incorrectly refers to Note 6)[292](index=292&type=chunk)[293](index=293&type=chunk) [Item 1A. Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) This section is not applicable for this filing - No risk factors are provided in this quarterly report[294](index=294&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the period - The company reports no unregistered sales of equity securities for the period[295](index=295&type=chunk) [Item 3. Defaults upon Senior Securities](index=26&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) There were no defaults upon senior securities during the period, although Note 7 of the financial statements indicates non-compliance with certain bond provisions, constituting an event of default - The company reports no defaults upon senior securities, which contradicts information in Note 7 stating non-compliance with certain bond provisions, constituting an event of default[140](index=140&type=chunk)[296](index=296&type=chunk) [Item 4. Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Information regarding mine safety violations and other regulatory matters as required by the Dodd-Frank Act is included in Exhibit 95.1 of this report - Mine safety disclosures are provided in Exhibit 95.1 to the Quarterly Report[297](index=297&type=chunk) [Item 5. Other Information](index=26&type=section&id=Item%205.%20Other%20Information) There is no other information to report for this period - The company reports no other information for the period[298](index=298&type=chunk) [Item 6. Exhibits](index=26&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including articles of incorporation, bylaws, various agreements, and certifications from the CEO and CFO - A comprehensive list of exhibits filed with the report is provided, including corporate governance documents, material contracts, officer certifications, and mine safety disclosures[300](index=300&type=chunk)[303](index=303&type=chunk)

About Emily Jarvie About this content Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, The ...

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced news journalists who produce independent content across various financial markets [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content includes insights across sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans [5]

Core Insights - American Resources Corp's subsidiary, ReElement Technologies, has entered a new agreement with Impossible Metals to deploy refining technology in American Samoa, enhancing the company's strategic position in the rare earth elements sector [1][3][4] Company Developments - The partnership with Impossible Metals is yielding positive results, allowing ReElement Technologies to utilize its environmentally friendly refining technology locally [3][5] - The technology enables the extraction of nodules from the seabed and the subsequent refining of materials to a purity of 99.5% or higher, which is crucial for the production of critical minerals [5][8] Economic Impact - The initiative aims to create jobs in American Samoa while ensuring minimal environmental impact, addressing local community needs and concerns [4][6][8] - The collaboration with the American Samoa Economic Development Group highlights the commitment to environmentally sensitive practices and local economic development [7][8] Operational Timeline - The setup process for the refining facilities is expected to take approximately six months to a year, with the company poised to move quickly in establishing operations [9][10] - The infrastructure requirements are minimal, allowing for rapid deployment without straining local resources [10][11]

Industry Overview - The global competition for critical minerals, particularly rare earth elements, is intensifying due to rising geopolitical tensions between the US and China [1] - The US is heavily reliant on China, which controls over 90% of the world's rare earth refining capacity, exposing vulnerabilities in the US supply chain [3][2] - Recent export controls imposed by Beijing on rare earth elements have highlighted the urgency for the US to develop its own supply chain [2] Company Strategy - American Resources Corp is positioning itself as a key player in the US rare earths market, focusing on innovation in mining, refining, and downstream manufacturing [3][12] - The company operates a vertically integrated business model, controlling over 30,000 acres of rare-earth-rich land and utilizing a proprietary refining method that is more efficient and environmentally friendly than traditional methods [7][8] - American Resources has established a network of subsidiaries and partnerships, including a commitment to build a $100 million refining facility in Africa and a $150 million letter of interest from the US Export-Import Bank for domestic expansion [9][10] Market Positioning - The company aims to challenge China's dominance in rare earth pricing by developing a decentralized, AI-driven pricing platform to enhance market transparency and efficiency [11] - American Resources focuses on lesser-known but strategically important materials, such as samarium, cobalt, and germanium, which are essential for defense applications [10] - The company plans to announce new partnerships and key customers in the coming months, expanding its footprint in both commercial and defense markets [12][13]

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced news journalists who produce independent content across various financial markets [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content includes insights into sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is committed to adopting technology to enhance its content creation and workflow processes [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all published content is edited and authored by humans [5]