Core Viewpoint - The rare earth sector is gaining attention due to the global demand for critical minerals essential for clean energy, defense, and high-tech industries, with several companies emerging as key players in this space [1]. Company Summaries MP Materials - MP Materials Corp. has entered a public-private partnership with the U.S. Department of Defense, involving a multi-billion dollar investment package and long-term commitments [2]. - The company plans to build a second U.S. magnet manufacturing facility, named the "10X Facility," expected to be operational by 2028 [2]. - MP Materials has secured a $500 million deal with Apple to supply rare earth magnets made from 100% recycled materials, manufactured in the U.S. [3]. - As the second-largest producer of rare earths globally, MP Materials operates the Mountain Pass facility, which is crucial for supplying materials for electric vehicles (EVs), electronics, and defense [4]. - The company's stock has surged nearly 100% in the past week due to the announcements regarding the DoD and Apple deals [4]. USA Rare Earth - USA Rare Earth, Inc. is focused on mining, processing, and supplying rare earth elements and critical minerals, aiming to develop a vertically integrated domestic supply chain for rare earth magnet production [5]. - The company holds mining rights to the Round Top Mountain deposit in West Texas, which contains essential minerals like neodymium and lithium [6]. - USA Rare Earth’s stock has increased by over 50% in the past five days, reflecting market trends alongside MP Materials [6]. NioCorp - NioCorp Developments, Ltd. is developing the Elk Creek project, which is one of the largest potential sources of niobium and scandium, both important for advanced alloys and clean technologies [7]. - The company has received strong analyst support, with a recent price target increase from $4 to $5 by Maxim Group [11]. The Metals Company - The Metals Company, Inc. is engaged in deep-sea mining, targeting polymetallic nodules rich in battery metals, with operations in the Clarion Clipperton Zone [11]. - TMC has seen significant stock performance, gaining over 550% in 2025 due to its unique approach and strong technical ratings [12]. American Resources - American Resources Corp. specializes in producing high-purity rare earths from both recycled and virgin sources, with its ReElements segment supplying separated rare earths for U.S. commercial and defense needs [13]. - The stock of American Resources has also increased by more than 50% in the past five days, driven by heightened interest in the rare earth sector [13].

Core Insights - American Resources Corporation (AREC) and ReElement Technologies Corporation have expanded their antimony tolling agreement, allowing ReElement to refine stibnite ore into ultra-pure antimony products for both defense and commercial markets [1][3]. Agreement Details - The revised agreement spans a 10-year term with automatic renewals, securing long-term supply deals. Initial tolling revenues are expected to exceed $29 million annually, with potential for significant growth due to increasing domestic demand [2][7]. - The partnership will start processing approximately 500 metric tons per month of stibnite ore, with the capacity to expand based on market demand [5][7]. Market Context - Antimony oxide and antimony sulfide are crucial compounds, with the global market for antimony oxide valued at around $852 million in 2023, projected to grow at a compound annual growth rate (CAGR) of 4.9% to approximately $1.43 billion by 2034 [4]. - Antimony is utilized in various applications, including ammunition, missiles, flame retardants, batteries, and solar panels [4]. Strategic Positioning - AREC and ReElement are well-positioned to scale their operations and explore new feedstock opportunities as they ramp up refining capacity at their Marion, IN facility and consider additional sites domestically and internationally [3].

Coal Production and Operations - The company has not mined or sold thermal coal since mid-2019, with all mining operations currently idled due to adverse market conditions [196]. - In 2023, the Carnegie 1 Mine produced approximately 67,000 tons of coal, selling at an average price of $180 per ton [200]. - The Carnegie 2 Mine produced approximately 13,000 tons of coal in 2023, with an average selling price of $237 per ton [201]. - The McCoy Elkhorn subsidiary has an estimated capacity to produce up to approximately 40,000 tons of coal per month from Mine 15 when operational [199]. - The company holds 11 additional coal mining permits that are idled or in various stages of reclamation, with no current plans to bring them into production [208]. - Wyoming County Coal holds approximately 5,668,000 tons of coal deposits, with no current production from its mining permits [224]. - The E4-2 mine in Perry County has an estimated production capacity of 80,000 tons per month, but produced only 106,000 tons in 2022 due to adverse market conditions [235]. - The Davidson Branch Preparation Plant has a capacity of 1,300 tons per hour but is currently not operating due to idled mining operations [236]. - The company has approximately 200 mineral and surface leases required for its coal mining operations [245]. Financial Performance - Total revenue for the three months ended March 31, 2025, was $31,927, a decrease of $62,092 compared to $94,019 in 2024, primarily due to a reduction of $64,667 in royalty income [258]. - Total operating expenses decreased by $1,808,844 to $5,015,360 for the three months ended March 31, 2025, driven by lower coal production costs and reduced professional fees [259]. - Net loss attributable to AREC shareholders for the three months ended March 31, 2025, was $6,652,763, a decrease of $288,600 compared to a net loss of $6,941,363 in 2024 [258]. - Cash used in operating activities for the three months ended March 31, 2025, was $1,434,850, a decrease from $4,726,617 in 2024 [264]. - Cash provided by investing activities was $741,401 for the three months ended March 31, 2025, compared to cash used of $432,642 in 2024 [265]. - Cash provided by financing activities was $76,799 for the three months ended March 31, 2025, a significant decrease from $148,262,883 in 2024 due to the absence of bond issuances [266]. - As of March 31, 2025, the company had a cash balance of $24,623 and a working deficit of $75,839,150, indicating liquidity challenges [263]. Capital Expenditures and Investments - The company has expended approximately $32,500,000 of the $36,500,000 initial project fund for Wyoming County Coal as of December 31, 2024 [228]. - The purchase price allocated to the Wyoming County Coal property was approximately $22,300,000, primarily settled with shares of the Company's Class A Common stock [230]. - The company had no material commitments for capital expenditures as of March 31, 2025 [268]. Business Diversification - The company has diversified its revenue streams by establishing subsidiaries focused on metal recovery and rare earth elements, with ReElement Technologies LLC being one of them [194]. - The company anticipates increasing revenues from its new ReElement and Electrified Materials businesses in 2025, but will require cash flows from financing activities to support operations [262]. Operational Capacity - The Supreme Energy Preparation Plant, a 400 ton-per-hour facility, is currently idled and would require significant capital to bring back into operation [215]. - The Bevins 1 Preparation Plant has a raw coal stockpile storage capacity of approximately 25,000 tons and clean coal stockpile storage of 100,000 tons [203]. - The Mill Creek Preparation Plant has an operational capacity of 800 tons per hour, but currently utilizes less than 10% of this capacity [220]. Other Financial Metrics - The increase in net other expense was primarily due to a decrease in interest income of $485,630 and an increase in interest expense of $1,089,817 compared to the same period in 2024 [261]. - The company employs approximately 23 direct employees and is headquartered in Fishers, Indiana [256].

Coal Production and Operations - American Resources Corporation has not mined or sold coal into thermal coal markets since mid-2019, with all mining operations currently idled due to adverse market conditions[20]. - In 2023, the Carnegie 1 Mine produced approximately 67,000 tons of coal, selling at an average price of $180 per ton[27]. - The Carnegie 2 Mine produced approximately 13,000 tons in 2023, with an average selling price of $237 per ton[28]. - The Wayland Surface Mine has an estimated capacity to produce up to approximately 15,000 tons per month of coal but has been idle since 2022[38]. - Deane Mining LLC operates one active underground mine (Access Energy) and one active surface mine (Razorblade Surface), with a total estimated coal production capacity of approximately 28,000 tons per month[47][48]. - Access Energy has not produced any coal since its acquisition, focusing instead on metallurgical and industrial markets[47]. - Razorblade Surface began production in mid-2018, with an estimated capacity of 8,000 tons per month, but has also seen nominal coal extraction[48]. - Coal sales for the company were primarily from the Carnegie 1 and 2 mines in 2023, with no meaningful sales from coal production in 2024[82]. Coal Deposits and Mining Permits - As of December 31, 2024, approximate coal deposits owned are 0 tons and leased are 11,108,724 tons, with minimum annual lease payments of $20,000[25]. - Knott County Coal holds 22 idled mining permits, with approximate coal deposits owned at 0 tons and leased at 3,207,000 tons[37]. - Wyoming County Coal LLC holds approximately 5,668,000 tons of coal deposits, with no current production and two idled underground mining permits[55]. - ERC Mining Indiana Corporation holds 4,383,298 tons of coal deposits in reclamation, with no current plans to mine the property[76][77]. Preparation Plants and Processing Capacity - The Bevins 1 Preparation Plant has a processing capacity of 800 tons per hour and can store approximately 100,000 tons of clean coal[30]. - The Bevins 2 Preparation Plant has a processing capacity of 500 tons per hour and can store approximately 45,000 tons of clean coal[31]. - The Supreme Energy Preparation Plant has a processing capacity of 400 tons per hour and is currently idled, requiring significant capital to bring back into operation[40]. - The Mill Creek Preparation Plant has an 800 ton-per-hour capacity, but currently utilizes less than 10% of its processing capacity[50]. - The Davidson Branch Preparation Plant has a capacity of 1,300 tons per hour but is currently not operating due to the idled status of mining operations[70]. Financial and Compliance Considerations - The purchase price allocated to the McCoy Elkhorn properties was approximately $95,000, while the Knott County Coal property was approximately $286,000[33][42]. - In June 2023, Wyoming County Coal closed on an Industrial Development Bond for $45 million to finance permit and infrastructure development, with $32.5 million already expended by December 31, 2024[60]. - The company retains exposure for the first $10,000 per accident for workers' compensation liabilities, which could significantly impact operating costs[112]. - The complexity and evolving nature of mining regulations may delay the commencement or expansion of operations, affecting cash flow[99]. - The company is subject to stringent health and safety standards under the Mine Act and MINER Act, which may increase compliance costs[110]. - The company incurs costs related to blasting activities, including pre-blast surveys and monitoring, which may impact operational costs[136]. Environmental Regulations and Impact - Compliance with environmental laws and regulations may lead to increased capital, operating, and compliance costs, potentially adversely affecting operations[89]. - Changes in applicable laws regarding energy production and emissions could make coal a less attractive energy source, adversely affecting demand[92]. - The Clean Air Act and related state laws impose emission control requirements that could materially affect coal mining operations and financial results[114]. - The EPA's Clean Power Plan (CPP) aims to cut carbon emissions from existing power plants, which could adversely impact coal demand if upheld[120]. - Several states have adopted measures requiring GHG emissions reductions, which may lead to increased operational costs for coal mining companies[121]. - The uncertainty surrounding GHG regulations may inhibit utilities from investing in new coal-fired plants, potentially reducing coal demand and revenues[122]. - The Resource Conservation and Recovery Act (RCRA) establishes standards for hazardous waste management, which could significantly increase coal mining costs if exemptions are reclassified[131]. - The EPA's regulation of coal ash as solid waste may increase operational costs for customers, potentially reducing coal demand[132]. - The Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) imposes cleanup requirements for hazardous substance releases, which could significantly impact the company's financial results[134]. - The company is subject to the Endangered Species Act (ESA) and the Bald and Golden Eagle Protection Act, which may delay or prohibit mining permits due to compliance requirements[135]. - Compliance with the National Environmental Policy Act (NEPA) can be time-consuming and may impose mitigation measures affecting coal production from federal lands[137]. - Recent guidance from the Council on Environmental Quality may lead to additional delays and costs in NEPA evaluations due to increased scrutiny on greenhouse gas emissions[138]. - The company must comply with various federal, state, and local environmental laws, which can result in operational delays and additional costs[139]. Workforce and Company Structure - The company employs approximately 23 direct employees and is continually evaluating the optimal mix of company employees and contract labor[140]. - The company qualifies as a smaller reporting company and is not required to provide certain market risk disclosures[217].

Core Viewpoint - American Resources Corporation (AREC) is expanding its operational equipment through its stake in ReElement Technologies Corporation to meet the increasing demand for domestically sourced rare earth oxides [1] Group 1: Expansion and Production Capacity - ReElement's latest equipment expansion showcases the modular and scalable nature of its refining technology, effectively doubling the facility's output of finished rare earth oxides in less than three weeks [2] - A third phase of expansion is underway, expected to triple production compared to Phase 2, significantly increasing daily output of essential rare earth elements such as neodymium (Nd), praseodymium (Pr), dysprosium (Dy), and terbium (Tb) [2] Group 2: Technological Advancements - The Noblesville facility utilizes cutting-edge refining technology to rapidly scale operations, addressing the exceptional demand from a growing customer base [3] - ReElement is committed to advancing innovation and operational excellence in refining critical minerals [3] Group 3: Stock Performance - AREC stock has declined by 3.9% over the past year, while the industry has seen a larger decline of 13.2% [5]

Core Viewpoint - American Resources Corporation (AREC) is developing a modular, mobile, and scalable leaching solution for extracting rare earth concentrates from coal and mining waste, addressing environmental concerns while creating potential revenue streams [1][2]. Group 1: Technology and Process - The new leaching solution allows for the extraction of rare earth concentrates from materials typically viewed as environmental burdens [1]. - ReElement Technologies will refine the leachate produced into high-purity rare earth products for domestic and allied-nation magnet manufacturers [2]. - ReElement has successfully produced high-purity rare earth oxides from various feedstocks, including coal waste, and is expanding its supply chain for critical minerals [3][4]. Group 2: Market Potential and Strategy - American Resources' properties contain millions of tons of coal waste, with early tests showing rare earth concentrations exceeding 500 ppm, indicating strong potential for domestic supply [5]. - The company is launching a platform to secure additional funding for scaling up production and is exploring financing options, including a Form D offering and a tokenized platform [5]. Group 3: Financial Performance - AREC stock has increased by 0.8% over the past year, contrasting with a 13.1% decline in the industry [7].

Group 1 - American Resources Corporation (AREC) has launched a new preparative scale sequential simulated moving bed (SSMB) production unit through its stake in ReElement Technologies Corporation, enhancing its capabilities in refining rare earth elements and critical materials [1] - The new technology represents a significant advancement for AREC in refining critical minerals, positioning the company as a leader in the domestic market for efficient refining solutions for vital materials [2] - The addition of a third dedicated chromatography line at AREC's Noblesville, IN facility will increase the daily refining capacity for essential rare earth elements such as neodymium (Nd), praseodymium (Pr), dysprosium (Dy), and terbium (Tb), while also expanding the range of minerals processed [3] Group 2 - AREC's investment in advanced technology highlights its commitment to scientific progress and scalable refining solutions, with plans to leverage this new capability for innovation in critical materials refining [4] - Over the past year, AREC's stock has declined by 73.1%, contrasting with a 6.1% decline in the industry [4] - AREC currently holds a Zacks Rank 3 (Hold), while other companies in the basic materials sector, such as Carpenter Technology Corporation, ArcelorMittal, and Axalta Coating Systems, have better rankings and performance [5][6][7]

Group 1: Joint Venture and Strategic Goals - American Resources Corporation's subsidiary, ReElement Technologies Corporation, has partnered with LVC Global Holdings to launch a joint venture named ReElement Middle East, aimed at enhancing the processing of critical minerals and strategic metals in the region [1] - The joint venture addresses the urgent need for localized and sustainable processing capabilities in Saudi Arabia, aligning with the country's Vision 2030 to establish itself as a global hub for critical mineral resources [2] Group 2: Market Demand and Supply Chain - The global demand for critical minerals is projected to quadruple by 2040, with over 75% of processing currently concentrated in China, creating vulnerabilities in the global supply chain [3] - The strategic alliance with LVC Global Holdings aims to secure a robust and resilient supply chain in the Middle East [3] Group 3: Sustainable Processing Solutions - ReElement Technologies aims to provide sustainable solutions for processing and refining critical minerals to battery, magnet, and semiconductor grades through this partnership [4] Group 4: Stock Performance - AREC stock has experienced a decline of 52.5% over the past year, compared to a 17.5% decline in the industry [5]

Group 1 - American Resources Corporation's subsidiary, American Infrastructure Corporation, is merging with CGrowth Capital, which will be renamed American Infrastructure Holding Corporation [1][2] - The merger involves a tax-free exchange of shares, with American Infrastructure's common shareholders receiving Series A preferred stock that can convert into common shares after twelve months [2] - This merger is a significant milestone for American Infrastructure, supporting growth initiatives through organic and strategic acquisitions, with a focus on a royalty and leasehold production model strategy [3] Group 2 - American Resources Corporation's stock has declined by 51.3% over the past year, compared to a 19.5% decline in the industry [4] - The company currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [5] - In comparison, other companies in the Basic Materials sector, such as Carpenter Technology Corporation and MAG Silver Corp., have shown strong performance, with significant stock gains over the past year [6][7]

Coal Production and Mining Operations - The company has not mined or sold thermal coal since mid-2019, focusing solely on metallurgical coal for steel and specialty markets[64] - The Carnegie 2 Mine has an estimated capacity to produce approximately 10,000 tons of coal per month[68] - The Bevins 1 Preparation Plant has a processing capacity of 800 tons per hour and a clean coal stockpile storage of 100,000 tons[70] - The Bevins 2 Preparation Plant has a processing capacity of 500 tons per hour and a clean coal stockpile storage of 45,000 tons[70] - The company holds 11 additional coal mining permits that are idled or in various stages of reclamation, with no current plans to bring them into production[70] - Wyoming County Coal holds two idled underground mining permits and three permits associated with the idled Pioneer Preparation Plant, with no current production[77] - The Pioneer Preparation Plant has a capacity of 350 tons per hour, but no cost estimates for upgrades have been received yet[78] - The E4-2 mine has an estimated capacity to produce approximately 80,000 tons per month of coal, but was idled due to the COVID-19 pandemic and regional flooding[82] - The Davidson Branch Preparation Plant has a capacity of 1,300 tons per hour, but currently utilizes less than 10% of its available processing capacity[82] - Perry County Resources holds four additional coal mining permits that are idled or in development, requiring significant upfront capital investment for production[82] Financial Performance - Total revenue decreased by $5,721,840 for the three months ended September 30, 2024, primarily due to a reduction in coal sales[93] - Total revenue decreased by $16,120,841 for the nine months ended September 30, 2024, with coal sales being the main contributor to this decline[93] - Total operating expenses increased by $835,050 for the three months ending September 30, 2024, driven mainly by general and administrative expenses[95] - Total operating expenses decreased by $9,456,053 for the nine months ending September 30, 2024, primarily due to a reduction in coal production and holdings costs[95] - Net loss attributable to AREC shareholders was $9,206,768 for the three months ended September 30, 2024, compared to a loss of $2,360,828 in the same period of 2023[93] - The company reported a net loss of $21,909,367 for the nine months ended September 30, 2024, which was partially offset by adjustments totaling $6,415,477[97] Cash Flow and Liquidity - As of September 30, 2024, available cash was $161,651,732, with future liquidity needs expected to be met through cash on hand and future borrowings[96] - Cash used in operating activities for the nine months ended September 30, 2024, was $16,317,031, compared to $15,908,173 for the same period in 2023, reflecting an increase in net loss from $13,791,277 to $21,909,367[97] - Cash used in investing activities decreased from $3,862,383 in the nine months ended September 30, 2023, to $1,757,837 in 2024, primarily due to a reduction in purchases of investments[98] - Cash provided by financing activities significantly increased to $145,336,288 for the nine months ended September 30, 2024, compared to $45,671,490 in 2023, driven by proceeds from tax-exempt bonds of $149,719,203[98] - The company anticipates monthly compliance costs of approximately $35,000 as a public company, which will be covered by a combination of cash from operations and financing activities[99] Compliance and Internal Controls - The company has unabated and/or uncorrected violations listed on the Applicator Violator List, which may affect the issuance of new permits[79] - Management concluded that the company's disclosure controls and procedures were not effective as of September 30, 2024, due to insufficient staffing and lack of timely reconciliations[103] - There were no changes in the company's internal control over financial reporting during the period ended September 30, 2024, that materially affected the controls[104] Company Structure and Employment - The company employs approximately 26 direct employees and utilizes contract labor for various operations[92] - The company has established subsidiaries focused on the recovery and sale of metals and monetization of critical and rare earth element deposits[64] - The company does not have any "proven" or "probable" reserves and is classified as being in the exploration stage[64] Industry Context - The coal industry is intensely competitive, with principal competitors including Corsa Coal Corporation and Arch Resources, among others[85] - The allocated cost of the property at McCoy Elkhorn Coal is $95,210[70] - The allocated cost of the property at Knott County Coal is $286,046[74] - The allocated cost for the property at Deane Mining is $1,569,641[76] - The allocated cost for the property at Wyoming County Coal is $22,326,101, with $22,091,688 paid in shares of Class A Common stock[78] - Interest expense increased by $253,039 for the three months ended September 30, 2024, compared to the same period in 2023[95] - Earnings from equity method investees decreased by $72,881 for the three months ended September 30, 2024, compared to the same period in 2023[95] - General and administrative expenses rose by $2,216,846 for the three months ended September 30, 2024, compared to the same period in 2023[95] - The company does not have any credit lines currently available to fund liquidity requirements, indicating uncertainty regarding future financial strategies[96] - The company had no off-balance sheet arrangements that required disclosure, and all transactions are recognized in accordance with generally accepted accounting principles[100]