American Resources Corp (AREC)

[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.