CEO INTERVIEW: American Resources Corporation's Unique Ability to Refine Critical Elements
Aug. 5, 2024
American Resources Corp. (NASDAQ: AREC) is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled. American Resources has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon and rare earth mineral deposits are concentrated. American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs.
American Resources is monetizing its carbon assets while simultaneously capitalizing on the wealth of opportunities for the rapid growth of its ReElement Technologies division, which recently became the first domestic, commercial producer of isolated and high-purity rare-earth elements. It is estimated that approx. $3 billion worth of rare-earth elements end up in landfills annually from end-of-life products. ReElement’s patented modular platform technology enables it to process rare earths in an environmentally friendly way that avoids polluting landfills while reducing mining-based environmental impact and mitigating cross-border supply chain risk. New energy storage technologies and EVs currently depend on China, which controls 85% of the market for rare earth metals. American Resources has the capacity to change this dynamic, producing higher purity minerals with OpEx in line with Chinese producers, driving exponential growth for the Company while creating jobs in the US. American Resources generated $21.4 million revenue in the 12-months ended September 30, 2023. With strong tailwinds, a multi-pronged business strategy, and experienced management, American Resources’ revenue growth is expected to accelerate in the quarters ahead. The Company plans to spin off its ReElement and American Carbon subsidiaries in 2024. ReElement is expected to be spun off at a premium to the current overall market cap of American Resources.
