Workflow
American Resources(AREC) - 2024 Q2 - Quarterly Results
ARECAmerican Resources(AREC)2024-08-19 20:05

Financial Performance - American Resources Corporation reported a net loss of 6.6millionoralossof6.6 million or a loss of 0.09 per share for Q2 2024, compared to a net loss of 7.6millionoralossof7.6 million or a loss of 0.10 per share in Q2 2023[19]. - Adjusted EBITDA loss improved to 3.9millioninQ22024fromalossof3.9 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,comparedtoalossof10,859,495, compared to a loss of 6,758,701 in the previous period[23]. - The company reported a net loss per share of 0.14,upfrom0.14, up from 0.09 in the prior year[23]. - For the six months ended June 30, 2024, the net loss was 13,545,365comparedtoanetlossof13,545,365 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),animprovementfrom(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),comparedto(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 1,763,253forthesixmonthsendedJune30,2024,from1,763,253 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,asignificantincreasefrom4,095, a significant increase from 1.98 million in Q2 2023[20]. - The company successfully closed a 150milliontax−exemptbondofferingtofundthedevelopmentofitsKentuckyLithiumrefiningfacility[2].−Thecompanyhassecured150 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 149,719,203fromtax−exemptbondsforthesixmonthsendedJune30,2024,comparedto149,719,203 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,asignificantdecreasefrom4,450,229, a significant decrease from 34,885,493 due to restricted cash adjustments[26]. - Total assets were reported at 195,519,282,comparedto195,519,282, compared to 94,176,461 in the previous period[26]. - Total liabilities increased to 241,135,129,upfrom241,135,129, up from 91,522,320[27]. - Accumulated deficit reached (226,097,239),anincreasefrom(226,097,239), an increase from (178,694,329) year-over-year[27]. - The company holds cash and cash equivalents of 554,416,downfrom554,416, down from 2,666,638[26]. - Cash and cash equivalents at the end of the period were 169,553,258,asignificantincreasefrom169,553,258, 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 170million,aimingforapubliclistingundertheticker"EMCO"[11].−ThecompanyisexpandingitspartnershipwithUK−basedJupiterLithiumLtdtodevelopNigeria′sfirstlarge−scalelithiumdeposit,covering442squarekilometers[6].−AmericanResourcesisfocusedonspinningoffReElementTechnologiesandthemajorityofAmericanInfrastructuretoenhanceshareholdervalueandoperationalfocus[14].−ThecompanyhasestablishedcommercialpartnershipswithmajorU.S.automanufacturersandEDPRenewablestopromotesustainablerecyclingpracticesintheEVandwindenergysectors[8].OperationalFocus−Thecompanyhasagrowingportfolioofoperationsfocusedonmetallurgicalcarbonandrareearthminerals,essentialfortheelectrificationmarket[33].−AmericanResourcesCorporationiscommittedtoalow−costbusinessmodelaimedatscalingitsoperationstomeetglobalinfrastructuredemands[34].−ReElementTechnologiesLLC,asubsidiary,isfocusedonrecyclingcriticalandrareearthelements,enhancingthecompany′ssustainabilityefforts[35].−Thecompanyreportedadevelopmentgainonthesaleofequipmentof170 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].−Thecompanyreportedagainonthesaleofequipmentof2,959,744[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].