Financial Data and Key Metrics Changes - The company reported approximately $150,000 in revenue from ReElement in the quarter, indicating a relatively small scale of operations at the Noblesville facility [50] - The company is focused on minimizing shareholder dilution while pursuing growth through alternative capital strategies, such as bond offerings [29] Business Line Data and Key Metrics Changes - ReElement Technologies is producing lithium carbonate and rare earth oxides daily, with ongoing efforts to qualify products with customers [49] - American Infrastructure is transitioning to a royalty-based model, focusing on high-value, high-margin products [34] - American Metals is developing innovative strategies for pre-processing rare earth and critical minerals while continuing its steel recycling operations [35] Market Data and Key Metrics Changes - The company is positioned to disrupt the rare earth and critical minerals market, which is currently dominated by China, by offering competitive pricing and environmentally friendly processing methods [25][31] - The demand for domestic production of rare earth elements and critical minerals is expected to grow, particularly in light of national security concerns [75] Company Strategy and Development Direction - The company aims to establish a critical rare earth element supply chain to support national security and defense applications [30] - The focus is on innovation and technology to create a sustainable domestic supply chain for critical minerals, avoiding reliance on traditional methods that are environmentally harmful [22][31] - The company plans to spin off ReElement Technologies as a standalone entity, with a target retention of 19% ownership by American Resources [85] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the business and the potential for significant revenue growth in 2025 as production scales up [51][70] - The company acknowledges the challenges posed by market volatility and competition but believes its innovative approach will lead to substantial value creation [62][75] Other Important Information - The company is actively pursuing partnerships and collaborations to enhance its market position and expand its customer base [48][61] - The company is also exploring opportunities in Africa, leveraging its technology to create local jobs and compete with Chinese investments [84] Q&A Session Summary Question: Update on ReElement sales and revenue ramp-up - Management is building a diversified customer base and expects significant revenue growth in 2025 as production scales up [48][51] Question: Capacity concerns at Noblesville and Marion - Current bottlenecks are in pre-processing, and management is confident that moving this to Marion will enable increased throughput [52][58] Question: Timeline for spinoffs and public listings - The record date for ReElement's spin-off is December 31, with plans for it to be public from day one [66] Question: Future profitability of American Resources - Management believes that once mining operations commence, the company will become cash flow positive [97] Question: Market conditions and pricing strategies - The company is focused on producing affordable products while maintaining environmentally friendly practices, which are expected to attract more business [73][75]

Core Viewpoint - American Resources Corporation (AREC) reported a quarterly loss of $0.13 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.10, marking an earnings surprise of -30% [1] - The company’s revenues for the quarter ended September 2024 were $0.24 million, exceeding the Zacks Consensus Estimate by 17.50%, but significantly down from $5.83 million a year ago [2] Group 1: Earnings Performance - The company has only surpassed consensus EPS estimates once in the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is -$0.09 on revenues of $2.4 million, and for the current fiscal year, it is -$0.36 on revenues of $2.7 million [7] Group 2: Stock Performance - American Resources shares have declined approximately 17.5% since the beginning of the year, contrasting with the S&P 500's gain of 25.5% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Group 3: Industry Context - The Mining - Miscellaneous industry, to which American Resources belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

Financial Performance - American Resources Corporation reported a net loss of $9.8 million or $0.13 per share for Q3 2024, compared to a net loss of $274,167 or $0.00 per share in Q3 2023[20]. - Total revenues for Q3 2024 were $235,443, a significant decrease from $5.81 million in Q3 2023[21]. - General and administrative expenses increased to $4.37 million in Q3 2024 from $1.72 million in the prior year period[21]. - The company incurred an adjusted EBITDA loss of $6.9 million for Q3 2024, compared to an adjusted EBITDA of $1.27 million for Q3 2023[20]. - The net loss attributable to AREC shareholders for the nine months ended September 30, 2024, was $9,792,782, compared to a net loss of $21,737,543 for the same period in 2023[24]. - The company reported a net loss of $21,899,319 for the nine months ended September 30, 2024, compared to a net loss of $11,608,907 for the same period in 2023[27]. - Cash used in operating activities was $(16,552,271) for the nine months ended September 30, 2024, compared to $(15,916,641) for the same period in 2023[27]. - Adjusted EBITDA for the three months ended September 30, 2024, was $(6,929,615), a decrease from $1,265,891 in the prior year[8]. - Total adjustments to net income for the three months ended September 30, 2024, amounted to $2,878,632, compared to $1,540,058 in 2023[8]. - The company emphasizes that Adjusted EBITDA should not be considered in isolation from GAAP measures of financial performance[8]. Assets and Liabilities - Total current assets increased to $4,973,460 as of September 30, 2024, from $4,869,812 as of December 31, 2023[25]. - Cash and cash equivalents, including restricted cash, increased to $166,151,732 at the end of the period, up from $43,396,629 at the end of the same period last year[28]. - Total liabilities increased significantly to $264,949,256 as of September 30, 2024, compared to $96,285,461 as of December 31, 2023[26]. - The total stockholders' equity showed a deficit of $(51,524,856) as of September 30, 2024, compared to $(31,189,345) as of December 31, 2023[26]. - The weighted average shares outstanding for basic and diluted earnings per share was 77,400,289 for the nine months ended September 30, 2024[24]. - The company recorded total other income (expenses) of $(1,342,898) for the nine months ended September 30, 2024, compared to $(606,334) for the same period in 2023[24]. - The company reported an increase in inventories to $2,029,812 as of September 30, 2024, from $54,000 as of December 31, 2023[25]. Business Developments - ReElement Technologies commenced daily production of purified rare earth elements at 99.5%+ purity, integrating process automation to enhance capacity and efficiency[5]. - American Resources secured a $150 million bond purchase agreement for the development of the Kentucky Lithium LLC complex, the first critical mineral refining facility of its kind in the U.S.[11]. - The company announced a special dividend of shares in its subsidiary, ReElement Technologies Corporation, to be distributed on or about February 15, 2025[14]. - American Resources established a partnership with LOHUM Cleantech to develop the U.S.'s first fully integrated battery recycling and material refining entity[12]. - The company reported over 550 ppm of rare earth element deposits at its Wyoming County Coal project, verified by an independent third-party laboratory[13]. - American Resources is actively pursuing additional partnerships to enhance feedstocks for critical minerals and rare earth elements[17]. Strategic Focus - American Resources Corporation focuses on the extraction and processing of metallurgical carbon and rare earth minerals, essential for steelmaking and electrification markets[30]. - The company operates in the Central Appalachian basin, where premium quality metallurgical carbon and rare earth mineral deposits are concentrated[30]. - ReElement Technologies, a subsidiary of American Resources, provides high-performance refining capacity for rare earth and critical battery elements[32]. - ReElement's innovative process aims to create a cost-effective and environmentally safe circular supply chain for magnet and battery-grade products[32]. - The company has established a low-cost business model that allows for scaling its asset portfolio to meet global infrastructure demands[31]. Forward-Looking Statements - American Resources Corporation does not undertake any obligation to update forward-looking statements made in its communications[33].

American Resources Corporation (NASDAQ:AREC) Q2 2024 Earnings Conference Call August 19, 2024 4:30 PM ET Company Participants Mark LaVerghetta - Vice President of Corporate Finance and Communications Mark Jensen - Chairman and Chief Executive Officer Conference Call Participants Jesse Sobelson - EF Hutton Heiko Ihle - H.C. Wainwright Bobby Genovese - BG Capital Group Kyle Gallagher - Merrill Lynch Mark Sloan - Private Investor Keith Goodman - Maxim Group Steven Segal - KBB Asset Management Operator Greeting ...

分组1 - American Resources Corporation (AREC) reported a quarterly loss of $0.09 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.05, and compared to a loss of $0.01 per share a year ago, indicating an earnings surprise of -80% [1] - The company posted zero revenues for the quarter ended June 2024, missing the Zacks Consensus Estimate by 99.89%, compared to revenues of $1.98 million in the same quarter last year [1] - American Resources shares have declined approximately 58.4% since the beginning of the year, contrasting with the S&P 500's gain of 16.4% [2] 分组2 - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $8.7 million, and for the current fiscal year, it is -$0.13 on revenues of $28.8 million [4] - The estimate revisions trend for American Resources is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [4] - The Mining - Miscellaneous industry, to which American Resources belongs, is currently in the bottom 31% of over 250 Zacks industries, indicating potential challenges for stock performance [5]

Dividend Announcement - The company announced an adjustment to the record date and distribution date of its special dividend to May 27, 2024, and June 11, 2024, respectively[60]. Coal Mining Operations - The company operates seven coal mining and processing subsidiaries, focusing on metallurgical coal for steel making, with no sales in the thermal coal markets since mid-2019[62]. - The Carnegie 2 Mine has an estimated capacity to produce approximately 10,000 tons of coal per month, with operations having commenced in August 2022[63]. - The Bevins 1 Preparation Plant has a processing capacity of 800 tons per hour and a clean coal stockpile storage of 100,000 tons[64]. - The Bevins 2 Preparation Plant has a processing capacity of 500 tons per hour and a clean coal stockpile storage of 45,000 tons, currently utilizing less than 10% of its available processing capacity[65]. - The E4-2 mine has an estimated capacity to produce approximately 80,000 tons of coal per month[77]. - The Davidson Branch Preparation Plant has a processing capacity of 1,300 tons per hour, but currently utilizes less than 10% of this capacity[78]. - Wyoming County Coal has two idled underground mining permits and three permits associated with the idled Pioneer Preparation Plant, awaiting regulatory approval[75]. - The company has approximately 200 leases for coal mining and processing operations, with various mineral and surface owners[79]. - The allocated cost for the property at Deane Mining is $1,569,641, with the Mill Creek Preparation Plant operational and capable of processing coal[71]. - 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[74]. - 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[67]. Financial Performance - Revenue for the three months ended June 30, 2024, was $4,095, a decrease of $1,996,594 compared to $2,000,689 for the same period in 2023[86]. - Operating expenses for the three months ended June 30, 2024, were $6,233,513, down by $3,116,969 from $9,350,482 in the prior year[86]. - Net loss from operations for the three months ended June 30, 2024, was $(6,229,418), an improvement of $1,120,375 compared to $(7,349,793) in 2023[86]. - The net loss for the six months ended June 30, 2024, was $(13,545,365), which is $2,861,525 higher than the net loss of $(10,683,840) for the same period in 2023[86]. - Total revenue for the three months ended June 30, 2024, decreased by $1,996,594, primarily due to a reduction of $1,675,815 in coal sales compared to 2023[88]. - Total operating expenses for the three months ended June 30, 2024, decreased by $3,116,969, with the cost of coal sales and processing dropping by $3,227,090[90]. - General and administrative expenses increased by $1,262,548 for the three months ended June 30, 2024, while development expenses decreased by $1,761,642[91]. - Total other expenses for the three months ended June 30, 2024, decreased by $99,889, with earnings from equity method investees improving by $413,859[93]. Cash Flow and Liquidity - As of June 30, 2024, available cash was $169,553,258, with expectations to fund liquidity requirements through cash on hand and future borrowings[94]. - Cash used in operating activities for the six months ended June 30, 2024, was $13,217,548, consisting of a net loss of $13,545,365[95]. - Cash used in investing activities for the six months ended June 30, 2024, was $248,796, primarily due to purchases of property and equipment[96]. - Cash provided by financing activities for the six months ended June 30, 2024, was $146,338,960, including proceeds from tax-exempt bonds of $149,719,203[96]. Internal Controls and Compliance - The Company's management concluded that its disclosure controls and procedures were not effective due to insufficient staff performing accounting and reporting functions and lack of timely reconciliations[101]. - There have been no changes in the Company's internal control over financial reporting during the period ended June 30, 2024, that have materially affected the Company's internal controls[102]. - The Company believes that the financial statements and other information presented are materially correct despite the identified control deficiencies[101]. - The design of the control system must consider resource constraints, and the benefits of controls must be weighed against their costs[101]. Legal and Regulatory Matters - The Company is subject to ordinary routine litigation incidental to its normal business operations[103].

Financial Performance - American Resources Corporation reported a net loss of $6.6 million or a loss of $0.09 per share for Q2 2024, compared to a net loss of $7.6 million or a loss of $0.10 per share in Q2 2023[19]. - Adjusted EBITDA loss improved to $3.9 million in Q2 2024 from a loss of $6.2 million in Q2 2023[19]. - Net loss attributable to AREC shareholders was $10,859,495, compared to a loss of $6,758,701 in the previous period[23]. - The company reported a net loss per share of $0.14, up from $0.09 in the prior year[23]. - For the six months ended June 30, 2024, the net loss was $13,545,365 compared to a net loss of $4,100,794 for the same period in 2023, indicating a significant increase in losses[28]. - Adjusted EBITDA for the three months ended June 30, 2024, was $(3,899,978), an improvement from $(6,164,060) in the same period of 2023, reflecting a reduction in operational losses[32]. - Cash used in operating activities for the six months ended June 30, 2024, was $(13,217,548), compared to $(6,617,505) for the same period in 2023, showing increased cash outflow[28]. - Noncash stock-based compensation expense increased to $1,763,253 for the six months ended June 30, 2024, from $753,146 in the same period of 2023[28]. Revenue and Financing - Total revenues for Q2 2024 were $4,095, a significant increase from $1.98 million in Q2 2023[20]. - The company successfully closed a $150 million tax-exempt bond offering to fund the development of its Kentucky Lithium refining facility[2]. - The company has secured $45 million in tax-exempt bonds to support the development of its Wyoming County Coal project, which has rare earth element deposits exceeding 550 ppm[13]. - The company received $149,719,203 from tax-exempt bonds for the six months ended June 30, 2024, compared to $43,475,887 in the same period of 2023, indicating strong financing activity[28]. Assets and Liabilities - Current assets totaled $4,450,229, a significant decrease from $34,885,493 due to restricted cash adjustments[26]. - Total assets were reported at $195,519,282, compared to $94,176,461 in the previous period[26]. - Total liabilities increased to $241,135,129, up from $91,522,320[27]. - Accumulated deficit reached $(226,097,239), an increase from $(178,694,329) year-over-year[27]. - The company holds cash and cash equivalents of $554,416, down from $2,666,638[26]. - Cash and cash equivalents at the end of the period were $169,553,258, a significant increase from $51,532,930 at the end of June 2023[28]. Business Developments - American Resources announced a definitive business combination agreement with AI Transportation Acquisition Corp valued at $170 million, aiming for a public listing under the ticker "EMCO"[11]. - The company is expanding its partnership with UK-based Jupiter Lithium Ltd to develop Nigeria's first large-scale lithium deposit, covering 442 square kilometers[6]. - American Resources is focused on spinning off ReElement Technologies and the majority of American Infrastructure to enhance shareholder value and operational focus[14]. - The company has established commercial partnerships with major U.S. auto manufacturers and EDP Renewables to promote sustainable recycling practices in the EV and wind energy sectors[8]. Operational Focus - The company has a growing portfolio of operations focused on metallurgical carbon and rare earth minerals, essential for the electrification market[33]. - American Resources Corporation is committed to a low-cost business model aimed at scaling its operations to meet global infrastructure demands[34]. - ReElement Technologies LLC, a subsidiary, is focused on recycling critical and rare earth elements, enhancing the company's sustainability efforts[35]. - The company reported a development gain on the sale of equipment of $8,780,538, a significant increase from $2,959,744[23]. - The company reported a gain on the sale of equipment of $400,000 for the six months ended June 30, 2024, compared to a loss of $(553,105) in the same period of 2023[28].

American Resources Corporation (NASDAQ:AREC) Q1 2024 Earnings Conference Call May 21, 2024 4:30 PM ET Company Participants Mark LaVerghetta - Vice President of Corporate Finance and Communications Mark Jensen - Chairman and Chief Executive Officer Conference Call Participants Heiko Ihle - H.C. Wainwright Mike Niehuser - ROTH Capital Partners Keith Goodman - Maxim Group Michael Lary - TGI Operator Greetings and welcome to the American Resources Corporation First Quarter 2024 Conference Call. At this time, al ...

American Resources Corporation (AREC) came out with a quarterly loss of $0.03 per share versus the Zacks Consensus Estimate of a loss of $0.06. This compares to loss of $0.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this company would post a loss of $0.04 per share when it actually produced a loss of $0.14, delivering a surprise of -250%.Over the last four quarters, the company h ...

EX-99.1 2 arec_ex991.htm EARNINGS RELEASE EXHIBIT 99.1 American Resources Corporation Reports First Quarter 2024 Financial Results and Provides Business Outlook Company successfully executed and closed $150 million tax exempt bond of ering for the Company's Kentucky Lithium refining facility The first domestic, commercial producer of separated and high-purity REEs from recycled permanent magnets and high-purity battery elements from both ores and recycled feedstocks Company's patented chromatographic separa ...