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ANALYSTS RAISE THEIR PRICE TARGET TO $4.00
(SIMPLY WALL STREET WRITE-UP w/ Graphics)
https://finance.yahoo.com/news/american-resources-corporation-nasdaq-arec-122340255.html
American Resources Corporation (NASDAQ:AREC) shareholders are probably feeling a little disappointed, since its shares fell 5.9% to US$1.44 in the week after its latest quarterly results. American Resources' revenues suffered a miss, falling 26% short of forecasts, at US$295k. Statutory earnings per share (EPS) however performed much better, reaching break-even. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on American Resources after the latest results.
Check out our latest analysis for American Resources
earnings-and-revenue-growth
earnings-and-revenue-growth
Taking into account the latest results, the consensus forecast from American Resources' twin analysts is for revenues of US$84.6m in 2021, which would reflect a major 1,053% improvement in sales compared to the last 12 months. Per-share statutory losses are expected to explode, reaching US$0.08 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$84.9m and earnings per share (EPS) of US$0.36 in 2021. So despite reconfirming their revenue estimates, the analysts are now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results.
Despite expectations of heavier losses next year,the analysts have lifted their price target 129% to US$4.00, perhaps implying these losses are not expected to be recurring over the long term.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that American Resources is forecast to grow faster in the future than it has in the past, with revenues expected to grow manyfold. If achieved, this would be a much better result than the 15% annual decline over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 11% per year. Not only are American Resources' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The biggest low-light for us was that the forecasts for American Resources dropped from profits to a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for American Resources going out as far as 2024, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 4 warning signs for American Resources you should be aware of, and 1 of them is concerning.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
American Resources Corporation Reports Third Quarter 2020 Financial Results and Provides Business Outlook
Company reports $127,982 of net income and $2.8 million of adjusted EBITDA
.
American Metal LLC subsidiary grew 30% over second quarter of 2020
.
Well-positioned to be a long-term supplier of raw material and critical elements to the modern-day infrastructure market
.
Strategic steps taken to transform into an infrastructure company producing pure metallurgical carbon, rare earth elements and metal aggregation, while enhancing environmental, social and governance (ESG) profile
.
Company expects multiple value driving milestones over the remainder of 2020
.
Company to host conference call on Monday, November 9, 2020 at 10:30 AM ET
.
FISHERS, IN / ACCESSWIRE / October 30, 2020 / American Resources Corporation (NASDAQ:AREC) ("American Resources" or the "Company"), a next generation and socially responsible supplier of raw materials to the new infrastructure marketplace, today reported its third quarter of 2020 financial results and provided a corporate update.
Mark Jensen, Chairman and CEO of American Resources Corporation commented, "Over the course of the third quarter, our team continued to execute on the strategic transformation of the Company to solidify our position as a next generation and socially responsible supplier of raw materials. Our first-class portfolio of assets, which have been strategically acquired at a substantial discount to replacement value, has never been in a better position to deliver long term value for our stakeholders. Bolstered by our restructuring efforts that eliminate the industry's legacy mentality and issues and focuses on efficiency and forward thinking, our dynamic platform now sits at an inflection point and the beginning of a new era.
Third Quarter 2020 Key Highlights
Acquired two additional continuous miners (critical pieces of mining equipment) in anticipation of restarting Perry County Resources in the fourth quarter of 2020. The two additional continuous miners give American Resources a total of six to utilize under its restructured, efficient, low-cost operating structure. The Company's plan involves using a total of five continuous miners once fully ramped with two "super" sections and one bridge section.
Further reduced environmental liabilities and long-term costs through the strategic execution of environmental reclamation of idled, irrational thermal coal mines resulting in the bond release of an additional $400,000 of associated environmental reclamation bonds.
Commenced a railcar and metal recycling service partnership through its American Metals business line where it began to receive retired coal railcars to be recycled for their metal content and reused for alternative, modern-day purposes.
Received a prestigious Sentinels of Safety Award from the National Mining Association in recognition of its outstanding safety performance.
Further streamlined the Company's capital structure through the exercise of over two million warrants during and subsequent to the third quarter of 2020.
Mr. Jensen continued, "With the closing of our most recent capital raise and improvements to our balance sheet, we are confident that we are fully capitalized to execute our near-term plans and advance American Resources into its next and exciting chapter. Our metallurgical carbon operations are poised to restart in the fourth quarter of 2020 at Perry County Resources ("PCR") to fulfill our customers' 2021 contracted demand, with production capabilities of over 1.0 million tons per year of metallurgical carbon. Once we are operating at PCR this quarter, our sights will be set towards bringing our McCoy Elkhorn complex online sometime in mid-2021. Additionally, we are pleased with our American Metals business line, having grown nearly 30 percent quarter-over-quarter. We are committed to the growth of American Metals to further diversify our business in a meaningful way, and to advance and support our environmental efforts."
"Lastly, our recently announced American Rare Earth business line provides us with a lot of excitement and a tremendous opportunity to produce critical elements in the most environmentally friendly and socially conscious manner; all while helping to secure our country's resource independence and national security. American Rare Earth enables us to continue to innovate by advancing the Central Appalachian region towards becoming a domestic production hub of critical elements and at the same time, fully complements our ESG efforts and Sustainable Development Goals ("SDG"). Through its unique regional production attributes, the collection of these rare earth elements is done in a way that is a benefit to the environment, creates well-paying and meaningful jobs to an economically distressed area, and advances the United States, and the world, to a cleaner, more modern economy. We believe these ESG efforts will further distinguish American Resources as industry revolutionaries along with permanently shutting down and remediating irrational thermal coal operation throughout our region," added Mr. Jensen.
Conference Call Information
American Resources management will host a conference call for investors, analysts and other interested parties on Monday, November 9, 2020 at 10:30 AM ET.
To participate in the call, please dial (877) 407-4019 and reference the American Resources Conference Call.
Financial Results for Third Quarter 2020
For the third quarter of 2020, American Resources reported net income of $123,982, or $0.00 per share for the three months ended September 30, 2020, as compared with a net loss of $7.34 million, or a loss of $0.30 per share in the prior-year period. The Company earned adjusted earnings before interest, taxes, depreciation, amortization, equity-based compensation, warrant expense and development and restructuring costs ("Adjusted EBITDA") of $2.8 million in the third quarter of 2020, as compared with Adjusted EBITDA loss of $2.5 million for the third quarter of 2019.
Third Quarter 2020 Summary
Total revenues were $294,646 for the third quarter of 2020. Cost of sales (includes mining, transportation, royalty, holding and processing costs) for the third quarter of 2020 were $72,692, or 24.7 percent of total revenues, compared to $2.95 million, or 160 percent of total revenue in the same period of 2019.
General and administrative expenses for the third quarter of 2020 were $132,676, or 45 percent of total revenue, compared to $1.43 million during the third quarter of 2019. Depreciation for the third quarter of 2020 was $646,438, or 219 percent of total revenue. American Resources incurred interest expense of $379,583 during the third quarter of 2020 compared to $901,812 during the third quarter of 2019. Development costs during the quarter were $792,926, compared to $307,247 in the second quarter of 2020.
The Company did not incur any income tax expense in the third quarter of 2020 as it was able to utilize its available net operating losses ("NOL") carried forward from prior periods of approximately $13,746,391 as of December 31, 2019.
Operational Results
During the third quarter of 2020, all carbon production continued to be idled due to the disruptions related to the global COVID-19 pandemic. As previously stated, the Company instead shifted its primary focus on increasing efficiencies, readying Perry County Resources to be brought back online, reducing its long-term cost structure, monetizing non-core assets and advancing environmental reclamation.
Mr. Jensen reiterated, "During the third quarter, our carbon production and processing operation remained idle due to the COVID-19 related market disruptions and to ensure the safety of our workers. Enabled by our low corporate overhead and our dedication to not waste valuable resources, we continued to focus on improving our operations, advancing environmental reclamation and scaling our American Metals business during this market disruption, which we believe will drive significant long-term value for our shareholders. As carbon markets began to stabilize, we were able to secure 2021 baseload contracts for Perry County Resources and are in the final stages of preparing to bring the complex back online in the fourth quarter. Furthermore, with the infusion of additional capital, along with a first-class operational team behind a premier asset such as Perry County, we are in a position of strength to ensure a smooth and rapid ramp."
The exhibit below summarizes some of the key sales, production and financial metrics:
Three month endedThree month ended
September 30,June 30,September 30,
202020202019
Sales Volume (a)
Tons Sold
--25,969
Company Production (a)
McCoy Elkhorn Coal
--11,180
Perry County Resources
---
Deane Mining
--14,789
Total
--25,969
Company Financial Metrics(b)
Revenue per Ton
--71.13
Cash Cost per Ton Sold (c)
--113.84
Cash Margin per Ton (c)
--(42.71)
Development Costs
$792,926$307,2471,425,024
Notes:
(a) In short tons
(b) Excludes transportation
(c) Cash cost per ton is based on reported cost of sales and includes items such as production taxes, royalties, labor, fuel, and other similar production and sales cost items, and may be adjusted for other items that, pursuant to GAAP, are classified in the Statement of Operations as costs other than cost of sales, but relate directly to the cost incurred to produce coal. Our cash cost of sales per short ton is calculated as cash cost of sales divided by short tons sold, and our cash margin per ton is calculated by subtracting cash cost per ton from revenue per ton. Cash cost of sales per short ton and average cash margin per ton are non-GAAP financial measure which are calculated in conformity with U.S. GAAP and should be considered supplemental to, and not as a substitute or superior to financial measures calculated in conformity with GAAP. We believe cash cost of sales per ton and average cash margin per ton are useful measurse of performance as it aides some investors and analysts in comparing us against other companies. Cash cost of sales per ton and margin per ton may not be comparable to similarly titled measures used by other companies.
AMERICAN RESOURCES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONSUNAUDITED
Three Months
September 30,
2020
Three Months
September 30,
2019
Nine Months
September 30,
2020
Nine Months
September 30,
2019
Coal Sales
$-$1,847,279$524,334$18,162,805
Metal Aggregating, Processing and Sales
294,646-521,482-
Processing Services Income
---20,876
Total Revenue
294,6461,847,2791,045,81618,183,681
Cost of Coal Sales and Processing
(72,692)(2,956,306)(2,590,435)(15,254,961)
Accretion Expense
(240,685)(320,900)(981,859)(962,699)
Depreciation
(646,438)(1,414,942)(1,855,236)(3,036,747)
Amortization of mining rights
(313,224)(252,729)(939,672)(1,592,110)
General and Administrative
(132,676)(1,434,545)(1,659,908)(3,798,051)
Professional Fees
(175,832)(170,937)(686,158)(5,136,767)
Production Taxes and Royalties
(154,604)(948,148)(404,660)(2,811,691)
Development Costs
(792,926)(1,425,024)(1,228,333)(5,912,589)
Total Operating Expenses
(2,529,078)(8,923,531)(10,346,261)(38,505,615)
Net Loss from Operations
(2,234,432)(7,076,252)(9,300,445)(20,321,934)
Other Income
160,635770,405(153,544)1,251,359
Gain on interest forgiven
832,500-832,500-
Gain on Depreciation Recapture
1,706,569-1,706,569-
Gain on sale of stock
--6,820,949-
Loss on settlement of payable
--(22,660)
Amortization of debt discount and issuance costs
(2,879)(219,218)(8,637)(7,722,197)
Interest Income
41,17282,343164,686164,686
Warrant Modification Expense
---(2,545,360)
Interest expense
(379,583)(901,810)(1,891,226)(1,674,653)
Total Other income (expense)
2,358,413(268,280)7,471,297(10,548,825)
Net Income (Loss)
123,982(7,344,532)(1,829,148)(30,870,759)
Net loss per common share - basic and diluted
$0.00$(0.30)$(0.07)$(1.34)
Weighted average common shares outstanding
26,785,36424,886,76327,009,07523,025,762
AMERICAN RESOURCES CORPORATIONCONSOLIDATED BALANCE SHEETSUNAUDITED
September 30,
2020
December 31,
2019
ASSETS
CURRENT ASSETS
Cash
$753,910$3,324
Accounts Receivable
46,1502,424,905
Inventory
150,503515,630
Prepaid fees
175,000-
Accounts Receivable - Other
234,240234,240
Total Current Assets
1,359,8033,178,099
OTHER ASSETS
Cash - restricted
637,806265,487
Processing and rail facility
11,591,27312,723,163
Underground equipment
6,838,4178,294,188
Surface equipment
2,527,5763,224,896
Acquired mining rights
561,575669,860
Coal refuse storage
12,134,19212,171,271
Less Accumulated Depreciation
(11,971,657)(11,162,622)
Land
1,572,4351,748,169
Note Receivable
4,117,1394,117,139
Total Other Assets
28,008,75632,051,551
TOTAL ASSETS
$29,368,559$35,229,650
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable and accrued liabilities
$5,640,915$6,604,134
Accounts payable - nontrade
4,012,6744,440,345
Accounts payable - related party
979,146718,156
Accrued interest
573,5262,869,763
Due to affiliate
74,000132,639
Current portion of long term-debt (net of issuance costs and debt discount of $0 and $134,296)
12,469,37420,494,589
Current portion of convertible debt
-7,419,612
Current portion of reclamation liability
2,327,1692,327,169
Total Current Liabilities
26,076,80445,006,407
OTHER LIABILITIES
Long-term portion of note payable (net of issuance costs of $408,546 and $417,183)
4,734,6395,415,271
Convertible note payables - long term
16,911,548-
Reclamation liability
15,222,49917,512,613
Total Other Liabilities
36,868,68622,927,884
Total Liabilities
62,945,49067,934,291
STOCKHOLDERS' EQUITY (DEFICIT)
AREC - Class A Common stock: $.0001 par value; 230,000,000 shares authorized, 28,400,512 and 27,410,512 shares issued and outstanding, respectively
2,8392,740
AREC - Series A Preferred stock: $.0001 par value; 5,000,000 shares authorized, 0 and 0 shares issued and outstanding, respectively
--
AREC - Series C Preferred stock: $.001 par value; 20,000,000 shares authorized, 0 and 0 shares issued and outstanding, respectively
--
Additional paid-in capital
91,397,88990,326,104
Accumulated deficit
(124,977,659)(123,033,485)
Total American Resources Corporation's Stockholders' Equity (Deficit)
Total Stockholders' Deficit
(33,576,931)(32,704,641)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
$29,368,559$35,229,650
AMERICAN RESOURCES CORPORATIONCONSOLIDATED STATEMENTS OF CASH FLOWSUNAUDITED
For the Nine
Months
September 30,
2020
For the Nine
Months
September 30,
2019
Cash Flows from Operating activities:
Net loss
$(1,829,148)$(30,870,759)
Adjustments to reconcile loss to net cash
Depreciation
1,855,2363,036,747
Amortization of mining rights
939,6721,592,110
Accretion expense
981,859962,699
Cancelation of debt
--
Liabilities reduced due to sale of assets
(3,271,973)-
Recovery of previously impaired receipts
-(50,806)
Amortization of debt discount
-7,722,197
Warrant expense
230,0502,528,598
Warrant modification expense
-2,545,360
Option expense
-245,356
Issuance of common shares for services
18,8001,806,040
Issuance of common shares for debt settlement
642,060-
Return of common shares for property sale
(1,840,200)-
Change in current assets and liabilities:
Accounts receivable
2,378,7551,300,654
Inventory
365,126(840,526)
Prepaid expenses and other assets
(175,000)(335,174)
Accounts payable
(303,567)(2,274,582
Funds held for others
-(79,662)
Due to affiliates
202,351164,526
Accrued interest
(2,296,237)858,406
Cash used in operating activities
(2,102,216)(11,688,816)
Cash Flows from Investing activities:
Cash paid for PPE, net
-(327,250)
Cash received in asset acquisitions, net
417,857650,000
Cash provided by (used in) investing activities
417,857322,750
Cash Flows from Financing activities:
Principal payments on long term debt
(1,072,745)(2,548,111)
Proceeds from long term debt
28,0005,139,399
Proceeds from convertible debt
3,638,277399,980
Proceeds from related party
-8,639
Issuance of warrants in conjunction with convertible notes
1,223,700-
Net proceeds from (payments to) factoring agreement
(1,807,443)(1,087,413)
Sale of common stock for cash in connection with public offering
-4,354,000
Sale of common stock for cash issued with warrants in connection with public offering
-3,409,600
Sale of common stock in connection with warrant conversions
797,475-
Cash provided by financing activities
2,807,2649,676,094
Increase (Decrease) in cash and restricted cash
1,122,905(1,689,972)
Cash and restricted cash, beginning of period
268,8112,704,799
Cash and restricted cash, end of period
$1,391,716$1,014,827
Supplemental Information
Cash paid for interest
$208,154$389,437
Cash paid for income taxes
$-$-
Non-cash investing and financing activities
Shares issued in asset acquisition
$-$24,400,000
Assumption of net assets and liabilities for asset acquisitions
$-$8,787,748
Issuance of warrants in conjunction with convertible notes
$1,223,700$-
Conversion of accounts payable into common shares
$-$231,661
Beneficial Conversion Feature on note payable due to modification
$-$7,362,925
Shares issued in connection with note payable
$-$297,831
Conversion of Series A Preferred into common shares
$-$161
Conversion of Series C Preferred into common shares
$-$1
Return of shares related to employee settlement
$-$11
Warrant exercise for common shares
$-$60
Reconciliation of Non-GAAP Measures
Reconciliation of Adjusted EBITDA to Amounts Reported Under U.S. GAAP
For the three months ended September 30, 2020For the three months ended September 30, 2019
Net Income
123,982(7,344,533)
Interest & Other Expenses
379,5831,121,030
Income Tax Expense
--
Accretion Expense
240,685320,900
Depreciation
646,4381,414,942
Amortization of Mining Rights
313,224252,728
Amortization of Dedt Discount & Issuance
2,879219,218
Non-Cash Stock Options
--
Non-Cash Warrant Expense
142,296-
Non-Cash Share Comp. Expense
101,615138,857
Development Costs
792,9261,425,024
PCR Restructuring Expenses
66,275-
Total Adjustments
2,685,9214,892,699
Adjusted EBITDA
2,809,903(2,451,834)
About American Resources Corporation
American Resources Corporation is a supplier of high-quality raw materials to the rapidly growing global infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking. 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 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 market 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. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.
Special Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company's actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond American Resources Corporation's control. The words "believes", "may", "will", "should", "would", "could", "continue", "seeks", "anticipates", "plans", "expects", "intends", "estimates", or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved.
PR Contact:
Precision Public Relations
Matt Sheldon
917-280-7329
matt@precisionpr.co
Investor Contact:
JTC Team, LLC
Jenene Thomas
833-475-8247
AREC@jtcir.com
Company Contact:
Mark LaVerghetta
317-855-9926 ext. 0
Vice President of Corporate Finance and Communications
investor@americanresourcescorp.com
SOURCE: American Resources Corporation
View source version on accesswire.com:
https://www.accesswire.com/613474/American-Resources-Corporation-Reports-Third-Quarter-2020-Financial-Results-and-Provides-Business-Outlook
https://m.facebook.com/groups/1395247277154371/permalink/3713118015367274/
The Prospectus uses .78? as a long term holder basis, bringing SP average to >< 1.28.... I don't see any short term benefit and when the company discusses REE openly states sale of the division goes to A holders.
Sorry, This is trading stock short term only, not long term investment vehicle. I might add the company made the statement about Presidential policy not being a effect-or... 'Comon Man!' will decimate this sector.
According to the 8-K the Offerings has been fully subscribed and funded.
This basically means that that the company has raised capital at a favorable level and will be able to now better execute its business plan.
As I see it, if you're following smart (big) money, you're probably going to be in good shape.
If you're able to acquire shares at less than the recent shelf offering, you're giong to be in even better shape.
If you're a trader trade. If you're an investor... this is a great opportunity... invest.
Think it will find support >< 1.25?
okay... look at that price drop! Gee... where is the Shelf offering now?
now explain all that to me in noob investor terms
Maybe someone might give me a clue.. why was a Shelf announced during the day? Why would anyone buy at Shelf pricing now that SP is collapsed?- just to use as proof of available counts so to enable shorting? Was it shorted by the same people, that were going to buy 'the shelf', thereby they already have profits.. in shorting the Shelf?
Seems pretty sloppy in methods and questionable as to management competence.
If anyone knows of Shelf situation I would like to hear... get no response from management.. as if it were a pinkie!
The only basis I can imagine for the company to create a shelf but destroy it SP value is there would be news to re-instate a SP back to the Shelf pricing and the outfit running a 'Green shoe' effort to get Shelf offered SP at least a wash sp... unless the 'big short' was the 'shelf sp profit structuring.
Wow sick play I sold some too and getting back in now harder than before
Hoped you bailed..and made bank..I had a great day..Shorted this when it broke VWAP yesterday..Covered today 47,000 thank you
Wow, I flip it twice this morning, I had a feeling that’s coming .
ABSOLUTELY HISTORIC METRICS
Stock Trades 638,290 .... Huge number
Traded Volume 159,844,426 .... Over Five times Outstanding shares
VWAP $ 3.45 ........ Pretty high.
Dollar Volume $ 551,226,013 ... Almost unfathonable.
Average Volume 53,760 .... Funny in comparison.
52 Week Range 0.32 - 4.93 .... High & Low
Pretty exciting. The future is looking pretty bright.
Congratulations Randy..
You deserved this......
* * $AREC Video Chart 10-07-2020 * *
Link to Video - click here to watch the technical chart video
I got in and out this morning. Thanks though.
Been in since 2.48
Holding until 6-10+
Just a hunch.
Yeah it was looking good till 3.80 but I set my stop loss at 3.60 and it saved my arse.....
Terrible timing, the stock tanked 5 minutes after this post.
AREC
I think the float is around 10m still low
O/S traded 3 times within the first hour, new highs on the way .
Whats a good entry? Got 300$ im tryn to flip today
OS only 26M with a 7M float, huge squeeze on the way .
Re enter at any time below $2.00
Very very small float love it .
Wow!
Nice move up. I think you deserve it.
BIG NEWS American Resources Corporation Unveils Rare Earth Element Wholly Owned Subsidiary, American Rare Earth LLC
American Rare Earth Focuses on Consolidating High-Quality, Low-Cost, Environmentally-Sensitive Rare Earth Mineral Sites Within Its Portfolio of Assets and Beyond
Company Exploring Strategic Options to Unlock Value of Rare Earth Assets Resulting in No Dilution to Existing Shareholders
FISHERS, IN / ACCESSWIRE / October 7, 2020 / American Resources Corporation (NASDAQ:AREC) ("American Resources" or the "Company"), a supplier of raw materials to the rapidly growing global infrastructure marketplace, today unveiled its wholly owned subsidiary, American Rare Earth LLC ("American Rare Earth"). Through its acquisition of multiple mining complexes over the past five years, the Company has established American Rare Earth to organize, consolidate, evaluate and develop its owned portfolio of high-quality, low-cost rare earth mineral sites.
Mark Jensen, Chairmen and CEO of American Resources Corporation commented, "The need for rare earth elements is a growing economic theme given the growing global demand from industries such as technology, automotive, aerospace and renewable energy. With China accounting for approximately 80 percent of the global supply, restoring the United States' resource independence has become an increasingly important topic. As a forward-thinking company, we take pride in our ability to innovate, adapt and unlock value from all of our existing assets. As such, we are truly excited about the discoveries we have made at a number of our already-developed, beneficiation ponds to capture these rare earth elements, and we are committed to swiftly selecting a path that best unlocks the value of these assets for our shareholders while we continue to focus on growing our business."
Existing Controlled Assets and Qualities
Consistent with American Resources' commitment to maximize the value of its complete portfolio of assets, the Company has been working over the past several years to identify which of its current holdings possess the most monetizable rare earth element ("REE") rich deposits. The Company, utilizing the history and success in the region exemplified by the University of Kentucky, has established a unique model for testing and evaluating its sites that enable an efficient evaluation of the deposits' quality and overall potential.
Mr. Jensen added, "The historical Rare Earth developments conducted by the University of Kentucky, with funding provided by a U.S. Department of Energy Cooperative Agreement, has been at the forefront of studying and producing nearly pure rare earth concentrates from coal sources using an environmentally-conscious and cost-effective process, which is considered a groundbreaking accomplishment in the energy industry. We have been closely following the University's groundbreaking work in rare earth elements and applaud them for their efforts and the public dissemination of information to benefit not only the environment but also the local community. Their successes are certainly noteworthy in that they have been able to produce a 98 percent pure rare earth concentrate from coal sources in one of the most environmentally conscious and cost-effective ways. In fact, Appalachia may be one of the few regions in which extracting rare earths has a positive environmental impact."
Through the Company's environmental efforts, American Rare Earth has initially identified and ranked its first ten rare earth mineral beneficiation sites within the Company's owned asset base with the goal of building out its collection protocols. The ten sites located in eastern Kentucky, within Pike, Letcher and Knott counties, have already been evaluated and are being engineered to recover and concentrate the REE's. Additional sites are being evaluated in Floyd and Perry counties.
Upon analysis, it has been estimated that American Rare Earth's initial site has the ability to produce rare earth oxides having a mix of approximately 20% Neodymium, Praseodymium and Dysprosium, in addition to healthy levels of Cobalt and Lithium, all important elements used in the production of permanent magnets, widely used in electric vehicles (EV's) and other technologies. Furthermore, the sites in this region are unique in that, unlike most sites in the domestic market, they possess a low level of thorium and other radioactive elements that can be harmful to the environment and the process.
Collection Method - Noninvasive, Environmentally Sensitive
The Central Appalachia region possess very unique attributes with the collection of REE's in that the process utilizes existing hydro-based extraction methods to capture and extract rare earth concentrates versus high-intensity land excavation. American Resources is confident this low-cost process of capturing the rare earth concentrates as compared to more intrusive mining methods conducted throughout the world and ensures that water discharged from these sites is environmentally sensitive and beneficial. The method utilizes existing sites that the Company has identified and possess specific attributes within its water sources to conduct natural leaching that can be further supplemented to perform natural separation.
Rare Earth Processing
As part of its targeted expansion plans, the Company has been identifying various sites to build the first commercial scale rare earth processing facility in the Central Appalachia market. Site selection has been narrowed down to three locations, of which two of the locations are located in opportunity zones that are also deemed rural distressed areas for New Markets Tax Credit purposes. The Company is in discussions with industry leading experts to design and build a state-of-the-art processing facility and be able to process material from not only the initial 10 identified sites but also for expansion related purposes internally and as a consolidator of third-party materials in the region.
Local Workforce and Management Team
The Company anticipates that as part of its rare earth development, the workforce expansion could result in 15 near-term, permanent jobs created in the local community with the goal of ramping to approximately 120 jobs in the next few years. The job functions and performance would create jobs that meet the immense skillset of the local workforce, many of which would be filled from the mining labor force, while also offering on-the-job training opportunities for new applicants. As part of the Company's strategic options discussed below, American Rare Earth anticipates building out a separate management and executive team to drive the future value for all shareholders along with the support of American Resources Corporation's existing operational team.
Strategic Options - No Dilution to Existing Shareholders
American Resources is utilizing a streamlined and focused process to evaluate various strategic options to further develop the American Rare Earth business line to best unlock the value of its REE assets which include:
Grants and government-based funding that are widely available for such development;
Joint ventures or strategic sale of the assets; or
The filing of an SEC Form 10-12B which would allow the Company to "spin off" the REE portfolio of assets into a newly listed public company which would then pursue the prospect of a follow-on underwritten financing or private placement.
As part of its strategic evaluation process for unlocking value, the Company is strictly focused on ensuring that the future growth from the rare earth assets results in no dilution to existing shareholders of American Resources Corporation. It is anticipated that, should the Company sell to a strategic partner or spin off into a separate public company, a majority of the shares received would be distributed as a dividend to the Class A Common Stock shareholders of American Resources Corporation in the future.
The American Rare Earth presentation can be viewed here on the Investor Relations section of the Company's website.
About American Resources Corporation
American Resources Corporation is a supplier of high-quality raw materials to the rapidly growing global infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking. 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 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 market 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. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.
https://finance.yahoo.com/news/american-resources-corporation-unveils-rare-120000307.html
That AREC is focussing their production on metallurgical coal makes them a hybrid among coal producers.
Once things break loose and American steel production and infrastructure restoration kick into high gear, I think you'll see AREC and other companies like them like Ramaco (METC), etc., we'll see revenues and profits increase substantially.
10/1/2020 NEWS American Resources Corporation Awarded National Mining Association's Top Safety Award
Company Receives 2019 Sentinels of Safety Award and
Is Recognized by the National Mining Association for Its Outstanding Safety Performance
Company Is Poised to Be One of the Fastest Growing U.S. Suppliers of Raw Materials to Serve Long-Term Steel Markets Driven by Global Infrastructure Demand
FISHERS, IN / ACCESSWIRE / October 1, 2020 / American Resources Corporation (NASDAQ:AREC) ("American Resources" or the "Company"), a supplier of raw materials to the rapidly growing global infrastructure marketplace, today announced it is the proud recipient of the National Mining Association's ("NMA") 2019 Sentinels of Safety Award, which is widely considered mining's most prestigious safety award.
NMA's Sentinels of Safety Award recognizes mineral mining operations in various categories for recording the most hours in a calendar year without a single lost-time injury. A minimum of 4,000 hours is required for award consideration. American Resources received this award for its underground, room and pillar carbon mining operation located in Letcher County, Kentucky.
Mark Jensen, Chairman and CEO of American Resources Corporation commented, "First and foremost, we are extremely proud of our team members for all of their contributions in achieving an exemplary safety record. The safety of our team is always held as our primary responsibility and we believe that efficient mines create safer mines. This award further highlights our ability to achieve both high-efficiency standards while operating in a safe and sustainable manner. All of these values are core to our mission and bolsters our confidence in the platform we have built to become a long-term, stable supplier of raw materials to the global infrastructure market. We are honored to receive this recognition of safety and very much look forward to upholding this standard as we prepare to restart our operations at our Perry County Resources complex this quarter."
American Resources is keen on efficiently and effectively utilizing its asset bases to supply customers in the metals and infrastructure industry raw materials to manufacture products in the most sustainable way while focusing on building out its full suite of infrastructure-related business lines. The Company is committed to continuing its efforts to identify operational efficiencies in its ongoing goal to be one of the lowest-cost and safest operators and responsible stewards of the environment in Central Appalachia and throughout all its mining, processing, and transportation operations.
About American Resources Corporation
American Resources Corporation is a supplier of high-quality raw materials to the rapidly growing global infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking. 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 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 market 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. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.
Special Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company's actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond American Resources Corporation's control. The words "believes", "may", "will", "should", "would", "could", "continue", "seeks", "anticipates", "plans", "expects", "intends", "estimates", or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved.
PR Contact:
Precision Public Relations
Matt Sheldon
917-280-7329
matt@precisionpr.co
Investor Contact:
JTC Team, LLC
Jenene Thomas
833-475-8247
AREC@jtcir.com
Company Contact:
Mark LaVerghetta
317-855-9926 ext. 0
Vice President of Corporate Finance and Communications
investor@americanresourcescorp.com
SOURCE: American Resources Corporation
View source version on accesswire.com:
https://www.accesswire.com/608621/American-Resources-Corporation-Awarded-National-Mining-Associations-Top-Safety-Award
I have to say... it sounds like AREC is doing everything right.
Love each of these headlines:
"Strategic execution of environmental reclamation efforts further enhances Company's long-term value and reduce long-term cost structure
"Company is poised to be one of the fastest growing U.S. supplier of high-quality met carbon and well positioned to serve long-term steel markets driven by global infrastructure demand"
BRING IT ON!!! Once the revenue flow start and bottom line ramping up... I think AREC will deserve some outstanding valuations!
NEWS RELEASE: American Resources Further Reduces Environmental Liabilities and Long-Term Costs
Strategic execution of environmental reclamation efforts further enhances Company's long-term value and reduce long-term cost structure
Company is poised to be one of the fastest growing U.S. supplier of high-quality met carbon and well positioned to serve long-term steel markets driven by global infrastructure demand
FISHERS, IN / ACCESSWIRE / September 10, 2020 / American Resources Corporation (NASDAQ:AREC) ("American Resources" or the "Company"), a supplier of raw materials to the rapidly growing global infrastructure marketplace, today provided an update on the further reduction of its environmental liabilities through the remediation of certain idled, non-core permits. Through its expanded environmental efforts, the Company has been able to expediate its environmental reclamation process during the COVID-19 pandemic and successfully receive bond releases of an additional $400,000 of associated reclamation bonds. Additionally, the Company has made substantial progress in the reclamation process that represents approximately an additional $7 million of bonds.
Mark Jensen, Chairman and CEO of American Resources Corporation commented, "We are extremely proud of our team's efforts to efficiently pull forward our environmental reclamation work which we believe will drive significant long-term value for our shareholders, as well as demonstrates our ability to think outside the box during these past few months. Additionally, the launch of American Metals has enabled us to leverage our environmental work to create a valuable, high-margin revenue stream for the Company, while also diversifying our product offerings that we can provide customers. We believe it is actions like this that separate us from our competitors."
American Resources, since inception, has strategically acquired and restructured mining complexes to set itself up for being one of the fastest growing, lowest cost metallurgical carbon platforms in the Central Appalachian basin over the next few years through cost cutting and right-sizing operations designed to fit the current and future market conditions. The Company is committed to continuing its efforts to identify operational efficiencies and ways to reduce future liabilities in its ongoing goal to be one of the lowest cost operators and responsible stewards of the environment in Central Appalachia and throughout all its coal mining, processing, and transportation operations.
About American Resources Corporation
American Resources Corporation is a supplier of high-quality raw materials to the rapidly growing global infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking. 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 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 market 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. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.
Special Note Regarding Forward-Looking Statements
https://www.otcmarkets.com/stock/AREC/news/story?e&id=1689491
Informational Release AMERICAN RESOURCES CORPORATION: IS BREAK EVEN NEAR? (Simply Wall St. article)
https://finance.yahoo.com/news/american-resources-corporation-nasdaq-arec-141511872.html
We feel now is a pretty good time to analyse American Resources Corporation's (NASDAQ:AREC) business as it appears the company may be on the cusp of a considerable accomplishment. American Resources Corporation supplies raw materials for global infrastructure marketplace. The US$33m market-cap company posted a loss in its most recent financial year of US$70.9m and a latest trailing-twelve-month loss of US$49.3m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which American Resources will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for American Resources
According to some industry analysts covering American Resources, breakeven is near. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$10m in 2021. So, the company is predicted to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 167% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
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earnings-per-share-growth
Underlying developments driving American Resources' growth isn’t the focus of this broad overview, however, keep in mind that generally an energy business has lumpy cash flows which are contingent on the natural resource and stage at which the company is operating. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
One thing we would like to bring into light with American Resources is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
There are key fundamentals of American Resources which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at American Resources, take a look at American Resources' company page on Simply Wall St. We've also put together a list of relevant aspects you should look at:
Historical Track Record: What has American Resources' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on American Resources' board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
Alternatively, email editorial-team@simplywallst.com.
Hey Dubster watching,
I think there's a pretty compelling case to be made for AREC... if not in the short term, certainly in the medium to long term.
The properties have book value all by themselves and if they can be turned into enterprise value... start generating revenue and profits, I think we will be off to the races.
As our outstanding shares are relatively low, I think this makes shares of AREC significantly more valuable than several of her peers. Once she reaches profitability the low number of shares should mean greater appreciation.
We'll see.
I think folks will catch on soon.
I'm just sitting here wondering...
Why would AREC purchase two additional "Continuous Miners?"
Why? Because they intend to use them to activate and access additional metallurgical Coal!
And that mean additional Revenue and Profits!!
Why? Because AREC has positioned itself to be "a nimble, low-cost business model centered on growth" whose "streamlined and efficient operations are able to maximize margins while reducing costs."
2020 and especially 2021 and beyond are looking like stellar years for AREC. Press Release mentioned that AREC expects that at just the Perry County Resources location they will ramp up production to 1 million tons of premium PCI coal which should sell for well over $100 per ton. Annualized that's $100 million in revenue (from just this location). Let's say that that results at net income of $10 or $15 Million. With just 28 million shares that eps of 34 cents to 54 cents per share. Multiply those numbers by 10-20 and you'll see how how much potential there is in AREC's shares.
Who knows for sure, but it looks to me like the sky is the limit for AREC's future.
BTW... As the public float of this company is less than 1 million shares, you would think this will trade where company friendlies want it to.
This would be a fairly risky company in which to build much of a short position.
NEWS 8/11/2020 American Resources Corporation Acquires Two Additional Continuous Miners for Perry County Resources
Company preparing to restart metallurgical carbon mining and processing operations at restructured complex
Perry County Resources restructured to be one of the lowest cost and most innovative PCI (pulverized coal injection) and stoker operations in the United States
FISHERS, IN / ACCESSWIRE / August 11, 2020 / American Resources Corporation (NASDAQ:AREC) ("American Resources" or the "Company"), a supplier of raw materials to the rapidly growing global infrastructure marketplace, announced today that the Company has signed a contract to acquire two additional continuous miners for their Perry County Resources ("PCR") mining complex in Hazard, Kentucky.
The PCR complex was acquired in September 2019 and has undergone a major restructuring. In anticipation of restarting the PCR complex within the next thirty days, American Resources is expanding its fleet of continuous miners to fit its restructured and low-cost operating model. With the addition of the two continuous miners the Company will now have six continuous miners as it restarts and ramps production.
Mark Jensen, Chairman and CEO of American Resources Corporation commented, "We are truly excited to restart the Perry County complex and unveil it as one of the lowest cost, if not the lowest, PCI and stoker operations in the United States. We applaud our team for the tremendous achievements made over the last several months to reduce over $45 million of costs and implement our strategic plan moving forward. Since acquiring it out of bankruptcy, we have invested a significant amount of time and resources into the complex to return it back into an efficient and productive operation. Now with six continuous miners, up from the one continuous miner that was operational when we acquired PCR, we feel we are in a really good position to ramp up the complex very efficiently and look forward to doing so in the near future."
Over the next twelve months, American Resources anticipates ramping up carbon production at PCR to have five continuous miners in operation with two "super" sections and one bridge section, allowing the mine to scale with maximum efficiency. The Company also anticipates adding additional continuous miners to the fleet at PCR to have a high degree of redundancy to minimize any unexpected equipment down-time. Additionally, the Company is anticipating through its forecasted production schedule to ramp the PCR complex to over 1.0 million tons of carbon per year to be shipped on the PCI, semi-soft metallurgical carbon and specialty stoker markets.
American Resources has been a consolidator and operator of quality metallurgical carbon assets in the Central Appalachian basin ("CAPP") to serve customers in the steelmaking, specialty alloy metals, and industrial marketplaces. Its next-generation model and philosophy is to restructure existing, legacy operations to better fit the modern-day marketplace by eliminating legacy costs and liabilities to significantly increase the overall efficiency and profitability of its complexes. Perry County Resources is one of the Company's five operating complexes within the CAPP.
Production at PCR has been idle during the COVID-19 outbreak to ensure a safe working environment, to protect the health of its employees and others, to mitigate the spread of the virus, and to better navigate the global economic disruption. With its restart, American Resources expects the complex to support approximately 140 long-term, sustainable jobs for the community.
About American Resources Corporation
American Resources Corporation is a supplier of high-quality raw materials to the rapidly growing global infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking. 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 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 market 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. For more information visit americanresourcescorp.com cor connect with the Company on Facebook, Twitter, and LinkedIn.....
https://www.otcmarkets.com/stock/AREC/news/story?e&id=1667712
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