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]

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]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 or FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission File Number: 000-55456 Registrant's telephone number, including area code: (317) 855-9926 Indicate by check mark whether the Issuer (1) h ...