American Resources Corp (AREC)

[RandyKCMO]

Some things are hard to predict. I'm guessing the next financials out will be the 10K... which won't be out till March. But I'm guessing they will give some indications of whether their earlier projections are on target or off.

The quick trip to 80 plus cents the other day was intriguing. Not sure who wins long term by the price being held down. I'm thinking that change will be fairly dramatic.

We shall see.

FWIW, I've been adding to my position.

[Badge04]

Almost bought a chunk today but held off. Why? Because I went back to review the chart and see how long this has been under $1. This is getting dangerously close and I don’t see much in the immediate future to expect 40% gains. I have other places to move available cash until this starts to ascend. I’d like to hear your thoughts on the immediate to mid range plans to get the pps in alignment with a fair valuation of the company

[RandyKCMO]

Agreed. I'm hoping the trade agreements being worked on will call grown and prosperity astounded the world. In that scenario, infrastructure green around the globe is s given.

Part and parcel of infrastructure growth will be the need for high quality steel which needs metallurgical coking coal.

When and if all that happens, we should be in for a pretty serious ride.

[Badge04]

Encouraging indeed. We’ll see how this plays out 2020. Continued tax loss selling for now. It’ll be interesting to see what news actually drives this above $1. Holding long here

[RandyKCMO]

Encouraging promotional article about AREC's future.

https://finance.yahoo.com/news/american-resources-corporation-drilling-success-130800592.html

[RandyKCMO]

PLUS... as I type... there's a trailing bid of 178K shares.

Pretty sure this means that there are more people that just me expecting 2020 to be an exciting for AREC.

[RandyKCMO]

So far today, we've made two runs over 80 cents.

Looks like those expecting the share price to go lower were wrong.

[RandyKCMO]

Are you kidding me...

AREC trades 10 or 20 times its normal volume and not one posts or notices!!!

[RandyKCMO]

Agreed. I think AREC is experiencing some year-end loss selling, but if they can start putting up numbers any where close to those projected, I think 2020 will be a huge breakout year for them.

[AXNMAN]

"We are extremely excited about how our platform is set up to perform in 2020 and beyond.The Company produced and sold 25,969 short tons of coal in the third quarter of 2019.
Company Outlook

Based on American Resources' organic growth from its already owned infrastructure, controlled mining permits and its capital investment schedule, the Company expects its 2020 production forecast to be in the range of 2.0 to 2.2 million tons.

https://finance.yahoo.com/news/american-resources-corporation-reports-third-130000050.html?soc_src=social-sh&soc_trk=tw

[bonehead41]

Looks like another hope and hold stock...Company is broke..Time to short more..

[RandyKCMO]

Article is only sort-of relevant. The article's focus is on coal for power generation plants. I don't doubt some of their production might be sold to that market. However the vast majority of their production is the high dollar coal used in steel petition.

AREC, American Resources Group, is a metallurgical coal company. The mines they are developing and focusing on are not for power generation, but the smelting of iron ore and the refining of high quality steel, which low vol call and natural gas can't effectively process.

A comparative company would be METC, Ramaco Resources.

I'm still thinking that as AREC ramps up production, and keeps producing high quality high in-demand Met-coal, their shares price will reflect their future value.

[bonehead41]

https://www.msn.com/en-us/money/markets/the-market-has-spoken-coal-is-dying/ar-AAHB3xu?ocid=spartandhp

Good read on the future of coal

[RandyKCMO]

Looks to me like AREC's stock price and chart have reversed.

Apparently, those bidding for shares have caught the shares they thought were available at lower levels and are now stepping up their bids and buying offers.

The share price was up 12 cents per share yesterday or 19% and it looks like we're heading for higher ground again today.

There are bigger offers over-hanging a bid, but they seem to run for higher ground when buying approaches. I think they're there not so much to sell shares as to try and hold down the price.

Should be fun.

At some point... if there actually are people SHORTING these shares, there will be a tipping point where they will decide to cover. There might be someone (or maybe some someones) out there with deep pockets... but at some self-interest and the reduction of pain will prevail.

AND OF COURSE, as this is a pretty closely held security those in the know (Maxim traders and brokers) will have no problem making it hurt those shorting the market are forced to cover.

[RandyKCMO]

The Report and Recommendation is by Maxim's Tate Sullivan.

I wasn't able to find an uncovered link of the entire research report... but here is a summary from StreetInsider.com.

https://www.streetinsider.com/rating_history.php?q=AREC

Overall Rating: BUY

Rating Trend: Up

Avg. $ Target: $1.50 (+114.3%)

[Confidence?] Rating Score: 10 / 10

[RandyKCMO]

Plus... I've heard, but not yet seen that Maxim was going to put out a research report and recommendation on this stock...

Guess the Target price???

50 CENTS??? NOPE!! Absolutely not.

75 CENTS?? NOPE!! That would be safe... about the same price as the market.

$1.00 per share?? NOPE!! Looking for more...

$1.25!! That's a be a 60% gain from current levels.

$1.50!! Over 100% higher than the stock is trading right now.

Personally... I think the stock trades much higher as we approach Q3 and especially Q4 Reports.

IF YOU'RE SHORT... COVER NOW OR COVER HIGHER!!

[RandyKCMO]

Looks to me like shares are coming harder to come by.

No one has a cost down here at these levels. UNLESS someone thinks the company is going broke... this stock is a screaming buy at these levels.

[bonehead41]

I have been personally shorting this, I got suckered into buying this at 4.00 I will get even, stock is going down, look at the chart, the trend is your friend

[RandyKCMO]

The Presentation basically makes the point that in the next 3-5 years the demand for metallurgical Hi Vol and PCI coal will outpace current production. Additionally, current industry outlays and development for future production (worldwide) will not be able to meet this demand.

They make the case that their cost of production is set and will remain stable even as the expect the price of metallurgical coal will be increasing dramatically.

AREC is poised to take advantage of this situation by having a rate of production that is increasing... and that will continue to ramp up through 2020.

This means that AREC is in an ideal place and will be able to capitalize and thus DISRUPT the current market in a profitable way!!

[RandyKCMO]

8-K Reports American Resources Corp presented at last week's Disruptive Growth Conference.

The 8-K mentions the media presentation they produced for the conference and would be using from time to time.

Here's a link to the 8-K:

https://ih.advfn.com/stock-market/NASDAQ/american-resources-AREC/stock-news/80687389/current-report-filing-8-k#AREC_EX991_HTM

Here's a link to their powerpoint presentation:


https://www.sec.gov/Archives/edgar/data/1590715/000165495419010436/arec_ex991.htm

[RandyKCMO]

And what about the stock price??


Some have been claiming the stock price will continue to slide lower.

I think that's wishful thinking.

There are high dollar investors in the stock, just look back at the Institutional Holders. There might be some shuffling around if positions, but I believe AREC's future is virtually guaranteed.

That being the case, I think when whoever is selling shares stops, there will be a press to buy up the remaining low priced shares. The public float is just over 10% if they outstanding. At that point the actual and anticipated future of these shares will be better reflected.

If as some claim there are some short positions, that will only help the cause. Good news for longs, bad news for shorts. Unlimited gains for us, unlimited loses for them.

I've been accumulating and will continue to. One isn't supposed to fall in love with a stock... but this one makes a pretty compelling case. For me it's hard to resist. :)

As work every other investment... Time will tell.

[RandyKCMO]

What does all this mean?? The proverbial question.

I think the company was so committed to their long term success that they were willing to give up a percentage of ownership and interest to guarantee their long term success.

They raised $3.8 million in the current quarter so that into the foreseeable future they will generate tens and even hundreds of millions of dollars in revenue.

Tuesday's press release demonstrates this quite clearly.

The $3.8 Million in financing when fully implemented will increase MONTHLY production by 40,000 salable tons.

What does that mean??? This financing will enable AREC's monthly production to increase more than they produced in all of 2018... Or twice what they produced in the first two quarters is 2019.

Each of these 40,000 tons are worth roughly $100 per ton OR roughly $4 Million in revenue each month. And this is just from the mines being updated.

What were seeing is that the coal industry is heavily front-loaded. It takes a lot of capital to prepare mines and start production.

However, once production begins, revenue generation far outweighs the cost of extraction. At a certain point AREC's cash flow will enable them to continue and expand their production internally.

In other words, their future success will basically become a done deal.

[RandyKCMO]

NEWS American Resources Corporation Announces Organic Expansion Plans

https://www.otcmarkets.com/stock/AREC/news/story?e&id=1426792

FISHERS, IN / ACCESSWIRE / September 3, 2019 / American Resources Corporation (NASDAQ:AREC), a supplier of raw materials to the rapidly growing global infrastructure marketplace, announced today its organic metallurgical coal production expansion project, following the Company’s recent financing, that is expected to increase its metallurgical coal production from the company’s McCoy Elkhorn Coal complex. This plan will focus on upgrading the company’s equipment at its various mines and the processing facility to increase efficiencies and expand production.

As part of this effort, the Company has recently closed on an equity financing in the gross amount of approximately $3.8 million, which will be used primarily for accretive organic expansion. American Resources Corporation expects the capital to be used in an accretive manner to increase production at the company’s highest-margin metallurgical mines in the following way:

Mine #15 Expansion
American Resources will complete converting one of Mine #15’s two operating single sections to a full super section. The Company will be utilizing equipment purchased earlier this year and once fully implemented, will incrementally increase production by approximately 12,000 salable tons per month to a total of 30,000 salable tons per month during the fourth quarter.

Carnegie 1 Expansion
After restarting production at the Carnegie 1 mine this past May, American Resources will continue to implement its previously announced, production expansion plan. The Company continues to expect Carnegie 1 to yield a production range of 16,000 salable tons per month once fully implemented later this fall with ability to expand it to 30,000 tons per month in the first quarter of 2020.

Carnegie 2
The Carnegie 2 mine enables American Resources to access the same block of metallurgical coal within the Lower Alma coal seam as their Carnegie 1 mine. The Company has been developing the mine over the past year with the expectation to complete development and begin production in the fourth quarter of 2019. Once producing, American Resources expects Carnegie 2 to supplement the production of Carnegie 1 by an estimated additional 8,000 to 10,000 salable tons per month.

“In today’s market, with forecasted coking coal demand exceeding production over the next five years we are excited about reinvesting in our core operations to better our company when most company are unable to invest to meet such demand forecasted. While it’s evident that coal producers have encountered some recent turbulence this summer, as evidenced by the recent bankruptcies and highly levered mines being shut down, we are committed to investing the capital into our operations to ensure our company remains competitive and efficient,” stated Mark Jensen, Chairman and CEO of American Resources Corporation. “With this additional capital, we expect to see an exceptional return on our investment into our operations for our shareholders and stakeholders.”

American Resources Corporation continues to focus on its growth objective by efficiently leveraging its large number of core mining permits and through identifying strategic, supplemental acquisitions. The Company is committed to being one of the lowest cost operators in the Central Appalachian basin (CAPP) and throughout all its coal mining, processing, and transportation operations.

[bonehead41]

Going lower, will cover at 0.5 and below

[RandyKCMO]

AREC raises $3,900,000 in recent underwriting.

https://finance.yahoo.com/news/american-resources-corporation-announces-pricing-124500998.html

At what I think seems like a pretty high cost.

Each Share/Warrant Unit was placed at $1.05. The warrants exercisable separable and exercisable at $1.20 each... so theoretically at least they could raise another $4.6 million if they are exercised (not sure if they're callable).

My assessment is Maxim must have figured out that AREC was in a cash crunch and had them over a barrel. They needed additional capital to advance their aggressive growth strategy... and of course, that means they needed additional capital.

On the bright side, which I'm having some difficulty seeing at this point, is that Maxim and their big money clients wanted to own a greater percentage of AREC than the funding levels the company had been hoping for (after the initial underwriting at $4.00 per share... I had heard they were hoping future financings would not less than @ $6.00 per share).

We'll guess what? Money talks and big money gets what it wants.

The bright side... Maxim has or will get to the point where they will become a strategic institutional partner... where AREC's success will be their success. They will have both a front-end fairly good control of the public float and a long-term overall ownership interest of the company. The press release talks about a limitation of 5% and 10% ownership from this and future fundings.

So, It's not too fun at this point. However, those who hold and build a sizable position at current levels (70-80 cents per share), will actually be investing at what amounts to the same level as the VC'ists have also invested.

None of the powers that (venture capital folks-- Maxim and ??) are involved because they think they're going to lose money. On the contrary, they believe in the future success of the company that what they're doing well maximize their overall return.

If anyone has a more cohesive explanation for what happened, I'd love to hear it.

[bonehead41]

This was a great short play...Stocks go down faster than they go up.

[Badge04]

One thing I’ve learned, no 2 financings are the same. Unfortunately (for us) most of the short term gains are not realized by individual investors. This is a mid to long term hold for the average investor

I do know...the company doesn’t want this lingering below $1 for long.

[RandyKCMO]

Reflecting on things... I wonder if the company may have continued exchanging trading shares for cash.

We saw this in the LAST 10-K AT A FAIRLY RAMPANT RATE:


"On January 25, 2019, the Company extended its consulting agreement with Redstone Communications, LLC for an additional six-month term, and as a result, we issued 105,000 restricted common shares to Redstone Communications LLC and 45,000 restricted common shares to Mr. Marlin Molinaro...." Blah, Blah, Blah. RESTRICTED Shares, so not a factor.


"On January 27, 2019, the Company issued 1,000 shares of common shares to an unrelated party for the consideration of $5,000 cash to the Company.

"On January 28, 2019, the Company issued a total of 400 shares of common shares to two unrelated parties for the total consideration of $2,000 cash to the Company.

"On January 30, 2019, the Company entered into an Investor Relations Agreement with American Capital Ventures, Inc. (“American Capital”) whereby American Capital will provide, among other services, assistance to the Company in planning, reviewing and creating corporate communications, press releases, and presentations and consulting and liaison services to the Company relating to the conception and implementation of its corporate and business development plan. The term of the agreement is six months and American Capital was immediately issued 9,000 shares of common shares as compensation under the agreement. The common shares were valued at $10.80 on January 30, 2019 and resulted in an expense of $97,200 which was recorded in full on January 30, 2019.

"On January 31, 2019, the Company issued a total of 3,917 shares of common shares, priced at $6 per share, to an unrelated party for the settlement of trade payables in the total amount of $23,502. If at the time of potential sale of the shares, the listed price per share is below $6, the Company is required to purchase the shares back at $6 per share which results in a contingent liability of $23,502. The common shares were valued at $11.00 on January 31, 2019 and resulted in a loss on settlement of $19,585.

"On February 1, 2019, the Company issued a total of 1,000 shares of common shares to two unrelated parties for the total consideration of $5,000 cash to the Company.

....

"On February 4 through February 8, 2019, the Company issued a total of 17,800 shares of common shares to sixteen unrelated parties for the total consideration of $89,000 cash to the Company.

On February 10, 2019, $3,000 worth of trade payables were settled with 500 common shares of the company. The common shares were valued at $12.15 on February 10, 2019 and resulted in a loss on settlement of $3,075.


SIMILARLY FROM THE LAST 10Q... ADDITIONAL SHARES ISSUED:

"On May 7, 2019, the Company issued 50,000 shares of common stock as part of a settlement to an unrelated entity for the use of certain mining equipment. The stock price at the time of issuance was $3.65 resulting in a settlement expense of $182,500.

"On May 30, 2019, the Company issued 25,000 shares to an unrelated entity in conjunction with a short-term borrowing facility issued by the entity. The stock price at the time of issuance was $3.49 resulting in a stock interest expense of $87,250.


....

"On June 7, 2019, the Company issued 25,000 shares of common stock at $4 per share to an unrelated entity under an equity purchase agreement. The Company received $100,000 cash consideration for the investment. The stock price at the time of issuance was $2.10. If the Company, during the period in which the purchased shares are held by the original entity, issues or sells any shares of common stock for a price less than $4.00, the Company shall issue to the purchaser an additional number of shares of common stock, so as to provide the purchaser the benefit of the reduced price per share.

"On June 7, 2019, the Company issued 30,000 shares of common stock for consulting services to an unrelated party. The stock price at the time of issuance was $2.10 resulting in an expense totaling $63,000. The consulting agreement is for six months and the shares for services were deemed to have been earned upon execution of the consulting agreement on May 30, 2019. In addition to the shares issued, 75,000 warrants with three-year exercise period and $4.00 strike price were issued upon execution of the consulting agreement resulting in a expense of $139,500.

"On June 12, 2019, the Company restructured a series of warrants; C-1, C-2, C-3 and C-4, held by an unrelated party as part of the ARC business loan which resulted in an increase in the number of warrants issued from 1.6 million shares across four warrants to 3.0 million shares across four warrants; an increase in the term of the warrants from the date of the amendment from a weighted average of 297 days to 753 days, and a decrease in the weighted average exercise price from $7.665 per share to $4.325 per share. Fair value was determined using the Black-Scholes Option Pricing Model. The incremental value as a result of the modification is a one-time warrant expense totaling $2,545,360 as of June 30, 2019.

A LITTLE DISCONCERTING... INDICATES MUST HAVE AN GUARANTEED SHARE ISSUANNCE BUILT INTO THE LOAN-- POSSIBLY TOXIC? NOT SURE. :


"On June 13, 2019, the Company issued 28,000 shares of common stock under a consulting agreement to an unrelated party. The stock price at the time of issuance was $2.53 resulting in a stock-based compensation of $70,840. The term of the consulting agreement is 6 months with monthly payments equal...

IN CONCLUSION... WHAT I'M THINKING AT THE MOMENT.

My concern is that the company has continued issuing shares to help meet its cash-flow needs. With a stable and increasing stock price, not many complaints... but the volume and shares we've seen traded... I'm mystified.

Guess it proves the adage true... even if we don't... someone knows what the market is doing and why.

Does some of the debt the company has undertaken, have some value backed guarantees? If so, as stock price goes lower, their debt is guaranteed by additional shares and they in effect are entitled to own more of the company. If this is the case... I SUPPOSE IF THERE'S A BRIGHT SIDE... THEY'RE GOING THROUGH A LOT OF EXPENSE AND TROUBLE TO INCREASE THEIR OWNERSHIP. WHY WOULD THEY DO THAT UNLESS THEY THINK THE THERE'S MONEY TO BE MADE DOWN THE ROAD??

GRANTED... I'M JUST SPECULATING... BUT WHO THE HECK KNOWS.

I'm guessing things will become clearer in the week to come... after the current underwriting (financing) is priced.

[RandyKCMO]

It's hard to say. My best guess is that it's connected to the financing. The volume has been something... We've traded 1/3 to 1/2 of the public holiday in the last two days.

It's kind of scary but I bought more shares yesterday and today.

I would think that once the uncertainty of the financing is priced and comes out next week, we should establish a better trading range.

The company is primed to grow tremendously over the next 12 to 18 months. Unfortunately, to grow we need that investment capital to ramp up production.

[Badge04]

Any thoughts on what happened here the past 2 weeks? Have high expectations for this long term despite this drop.

[RandyKCMO]

In my opinion... the long game is a cinch. From my vantage point, if one can participate in the long term financing, it will be a win.

The short game has me a little baffled. Maybe the company ticked someone off or else a potential lender is playing hardball while negotiating.

I swapped some positions this morning with the sharp price decline and bought more AREC. If you'd asked me yesterday if the I thought the company would raise any capital below $2.00 a share, I would have said good luck with that. Current share price now says that's a possibility.

I would guess we will see a substantial uptick before the end of the day and tomorrow... but what do I know?

[AXNMAN]

Randy ...do we take some on the financing / offering ?

[willlbone]

AREC is A Wreck

[RandyKCMO]

Big numbers on the bid... Totalling 18000 to 19000 shares.

I don't think we're going to trade any lower today.

[RandyKCMO]

Seems to be some downward pressure. So far price seems to be holding. Most shares have traded in the last hour.

Guess we don't get to know people motives... just there actions.

Seems to me to be a pretty safe buy at these levels. It'd be hard pressed to think of many or any who own shares at these levels.

[RandyKCMO]

NEWS RELEASE 8-12-2019 American Resources Corporation Reports Second Quarter 2019 Financial Results

https://www.otcmarkets.com/stock/AREC/news/story?e&id=1415578

1. HEADLINES:

Reports Adjusted EBITDA of $1.8 million

Revenues grew over 33 percent to $9.34 million

Company records best quarterly production and sales volume of over 126 thousand short tons; a 30% year-over-year increase

2. ENCOURAGING QUOTATIONS:

"Operational Results"

"The Company produced and sold 126,977 short tons of coal in the second quarter of 2019, 30.3% more than the second quarter of 2018."


Compare production through the first two quarters of 2019 to what they expect to produce in 2020.

"Company Outlook"

"As previously stated, based on American Resources’ organic growth from its already owned infrastructure, controlled mining permits and its capital investment schedule, the company is maintaining its 2020 production forecast range of 2.2 to 2.8 million tons."


3. MY PROJECTIONS:

Using the price of $75 per short ton, this means that for 2020 they're projecting annual revenue OF between $165,000,000 and $210,000,000.

Check out this comparison Quarterly Results Six Months Results

Coal Sales 2019 (actual) $9,321,250 $16,315,526

Coal Sales projected $41.25 to 52.5 Million $82.4 to 105 Million

ON A QUARTERLY BASIS... THAT COMES A QUARTER OVER QUARTER GROWTH RATE OF BETWEEN 440% AND 563%.

Granted Quarterly revenue will most likely be ramping up, through the four quarters... but the projections should be illustrative of the revenue growth we're expecting over the next 12 to 18 months.

4. MY RECOMMENDATION

I don't know of many companies even thinking about making projections like we have set before us with American Resources Corp. If you're looking for an investment that you can sock and way and let appreciate over time? I don't know of a better one than AREC. They're a real NASDAQ fully reporting company with real revenue, earnings projections, and a Plan to execute. Get on board or wish you had. :)

I expect that over the next few months we'll see some analysts climb or board with these and similar "outlandish" sounding projections and expectations. By that time, I'm guessing the entry-level will be substantially higher than it is right now.

All FWIW.

Randy

[RandyKCMO]

It sounds to me like they're still waiting to hear whether their bid for the purchase of this property will be successful.

It shows the company is forward minded and still seeking to gather and develop metallurgical coal properties. They have a niche market that is looking quite promising and increasing their holdings just makes sense.

I'm confident the stock price will take care of itself as the company continues executing it's business plan.

[RandyKCMO]

News Release 8/4/2019 American Resources Corporation Files Updated Bid to Purchase Blackjewel, L.L.C. Properties in Eastern United States


FISHERS, IN / ACCESSWIRE / August 4, 2019 / American Resources Corporation (NASDAQ:AREC), a supplier of raw materials to the rapidly growing global infrastructure marketplace, with a primary focus on the extraction, processing, transportation and distribution of metallurgical coal to the steel industry, announced today that it has participated in the bidding process for the assets and operations of BlackJewel’s eastern (central Appalachian) division and will be submitting a revised bid. In relation to this process, the following statement is from Mark Jensen, Chief Executive Officer and Chairman of the Board of American Resources Corporation:

“On behalf of American Resources Corporation, we are disappointed to not be initially chosen as the successful primary bidder to purchase the assets of Blackjewel in Kentucky, West Virginia and Virginia. As the qualified backup bid, we believe that our bid is the most comprehensive and competitive as it is the only bid to include the full payment of pre-petition employee compensation of Blackjewel and Revelation Energy for those workers in the central Appalachian division, resulting in approximately $3.65 million being paid to these workers in an expedited structure that would otherwise go unfunded. Our bid also accepts responsibility for more than $200 million in reclamation liability, which prevents that liability from falling to the taxpayers of these states, whereas the other bid only addresses a fraction of this liability. Should our company prevail, we will continue to operate a number of the mines and between the current mines and the redeployment of equipment and infrastructure to existing American Resources / Quest Energy mines, we are confident that the job creation would result in a vast majority of Blackjewel’s workforce being given the opportunity to be employed by our company. We are in the process of revising our bid to increase the amount of our offer, which would further increase our funding of reclamation bonding to ensure environmental compliance. We are hopeful that at tomorrow’s 10:00 a.m. ET hearing in Charleston, West Virginia, the Court will recognize our commitment and the comprehensive value of our bid in finding the best solution and outcome to the employees, the operations, the environment, and stakeholders, and declare us the successful bidder.”

For more information regarding American Resource Corporation bid, please see:
https://cases.primeclerk.com/blackjewel/Home-DownloadPDF?id1=MTE3NDUyMg==&id2=0

For more information regarding the competing bids and also where you can compare the assumed reclamation obligations (ARO):
https://cases.primeclerk.com/blackjewel/Home-DownloadPDF?id1=MTE3NDUyOA==&id2=0

About American Resources Corporation
American Resources Corporation is a supplier of raw materials to the rapidly growing global infrastructure marketplace. The company’s primary focus is on the extraction, processing, transportation and selling of metallurgical coal and pulverized coal injection (PCI) to the steel industry. AREC’s operations are based in the Central Appalachian basin of eastern Kentucky and southern West Virginia, where premium quality metallurgical products are located.
The company’s business model is based on running a streamlined and efficient operation to economically extract and deliver resources to meet its customers’ demands. By running operations with low or no legacy costs, American Resources Corporation works to maximize margins for its investors while being able to scale its operations to meet the growth of the global infrastructure market.

Website:
http://www.americanresourcescorp.com

Institutional/Retail/Individual Contact:
American Capital Ventures
Howard Gostfrand, President
305-918-7000 - Office
[e-mail]
www.amcapventures.com

PCG Advisory
Adam Holdsworth
646-862-4607
[e-mail]
www.pcgadvisory.com
Company Contact:
Mark LaVerghetta
317-855-9926 ext. 0
Vice President of Corporate Finance and Communications
[e-mail]




https://finance.yahoo.com/news/american-resources-corporation-files-updated-010000500.html

[RandyKCMO]

I'm away this week... but I thought the projected numbers for the second quarter were lighter than I expected.

Quarter over quarter and year over year quarters were up 33% and 32%, which is pretty decent growth.

I would have liked to hear what are their current and projected annual run rates. Once the mine upgrades are completed and get into full production, we should get a better idea of the full year and next year's revenue numbers.

What I know for sure is that deployed investment dollars have been rolled into increased mine development and production.

The website has been updated to include additional mine properties. Here's the link to the current Investor Overview:

https://uploads-ssl.webflow.com/5aafef3a67150adc031ae667/5c9a7d2f4c23934d30b239e3_ARC%20-%20Corporate%20Overview%20Sprint%202019%20(public).pdf

No matter how you look at it, they're expecting a serious ramping up in production and revenue. The optimal levels will depend on some additional capital being raised, but with or without it the more revenue we can grow the more revenue and cash flow we will be able to use to fund additional growth.

[AXNMAN]

RANDY...will u comment here on the report that was released yesterday?

I appreciate and look forward to any comments you have.

[bonehead41]

There may be a squeeze coming,from my conversations with Maxim, The company is going after the clowns that where issued warrants that they sold for lack of performance, which they will have to buy these shares back on the open market.

[RandyKCMO]

Yeah, I suppose that could be a problem. :(

However, I would think that even the Democrats support rebuilding America's infrastructure... plus I think AREC's "space" has a bullseye on the worldwide export market of metallurgical (coking) coal. There just aren't that many sources for the quality is coal we're focusing on producing.

If I understand what I've read, the worldwide demand for high-quality coal is softening with the whole tariff war with China, but the pricing is still very high... Between $100 and $200 per ton.

http://uscoalexports.org/2019/07/08/analysis-us-export-met-coal-pricing-weakens-on-atlantic-steel-prices-trade-tariff-fallout/

If and when these disputes are resolved and the world economy begins reflecting greater long term growth, I think we could be in for a pretty long and sustained ride.

There's always risk... but the flip side is risk is reward.

If their projected numbers are reached... which by my calculations are $100-$150 Million in revenue this year, and 1.5x to 2x that number in 2020...applying the fundamental metrics, we could easily see a $20-40 stock price in 2020.

Plus, remember our outstanding shares and public float are quite low.
OTCMarkets says we have 23.3 million shares outstanding. By my estimates, there are somewhere around 2 million shares in the public float. The company has huge insider ownership... somewhere between 60 and 70%.

[logytwo]

What happens if God forbid, a Democrat is elected President in 2020 and the war on coal resurfaces.

[RandyKCMO]

The stock seems to be trading quite well.

I'm looking forward to seeing their 2Q financials. The 10Q won't be out for another month or so (it's due August 15). I'm pretty sure it will be encouraging.

Multiple mine renovations have come online during the first and second quarters. We will be good to see/hear some hard data. Hopefully, we will get some details on our current monthly and annual run rates, as well as a range of growth they expect through the end of the year.

From my perspective, I don't see much risk for those investing in American Resources Corp at this point. If we can meet our production goals, and especially if we can show that we are EBITDA positive... or getting close, then our long term success is just a matter of time.

Bigger and smarter money than mine is making this happen. I feel like we're in pretty good company.

[bonehead41]

You can short this just following the chart is all

[AXNMAN]

I doubt if you can borrow stock To short this... And why would you want to?

[RandyKCMO]

Agreed... I was away when this press release was issued.

There are some pretty great quotations...

This position at American Resources is a newly created role that is in response to the company's rapid coal production growth and its anticipated continued increase of coal sales. The forecasted increase in production of high-quality metallurgical coal (or coking coal) and pulverized coal injection (PCI) coal over the next eighteen months will be sold to the international and domestic marketplaces.

[[Not to mention, this metallurgical coal sells for over $100 per ton... and with AREC's annual run rate somewhere between $150-200 million, I don't doubt he will more than pay for his wages by marketing AREC's coal at the highest possible prices!! AND OF COURSE this compares with $31 Million in Revenue for the whole of 2018!!!.]]

The Chief Executive Officer of American Resources, Mark Jensen noted:

"We are thrilled to have someone of Andy's caliber, character and work ethic join our team and his hiring comes at a time where we are forecasting rapid growth over the next four quarters.. We continue to see numerous opportunities to expand both organically and through strategic acquisitions and want to be more proactive in expanding our distribution network and servicing our customer base. Andy brings extensive knowledge and relationships to our platform which will certainly complement our growth."

And then Andy Cox concludes:

"I am excited to join American Resources Corporation in their endeavor as they continue to expand their operations and coal production" commented Andy Cox. "After understanding their production strategy and growth potential, I think I can add value to the team as the company executes on its growth."

[bonehead41]

We are shorting this starting yesterday, Looking for 2.00

[bonehead41]

It could happen again but maybe not, They have a real IR firm rather some pink sheet people

[AXNMAN]

$AREC ...chart shows nice recovery from Panic sell-off !
https://c.stockcharts.com/pnf/chart?c=AREC,PRPADAYRNO[PA][D][F1!3!1.0!!3!20][J,Y]&pnf=y …