American Resources Corp (AREC)

[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